germany
Business E-Commerce

Recent data from EHI and ECDB’s “E-Commerce Market Germany 2024” report indicates a potential turnaround in Germany’s online retail sector. After experiencing a decline in 2022, the industry appears to be stabilizing, with projections suggesting a return to growth in the near future.

Key Findings:

  1. Market Performance:
    • 2023: Net sales of top 1000 webshops declined by 0.2% (not inflation-adjusted)
    • 2022: 2.8% decline
    • 2024 Forecast: Nominal growth expected
  2. Historical Context:
    • 15 consecutive years of growth until 2022
    • Significant expansion during 2020-2021 (pandemic years)
    • 2022: “Post-COVID rebound” resulted in 2.8% revenue decrease
  3. Current State:
    • 2023: 0.2% decline (€164 million reduction)
    • Total market value: €77.5 billion

Industry Outlook: EHI researcher Lars Hofacker states, “Online commerce is returning to the development curve that would have been expected without the pandemic.” The firm projects a modest nominal growth of 1.1% for the top 1000 online stores in 2024.

Pre-pandemic Performance: From 2008 to 2019, the top 1000 online stores experienced an average annual growth rate of 10.7%.

Market Leaders:

  1. Amazon: Solidifying its lead
  2. Otto
  3. Zalando
  4. MediaMarkt
  5. Ikea: Notable growth in online furniture market

Emerging Players:

  • H&M
  • Lidl
  • About You
  • Shop Apotheke: Demonstrating rapid growth

Marketplace Dynamics: EHI and ECDB’s analysis of gross merchandise value reveals:

  1. Amazon: €51.4 billion
  2. eBay: €8.9 billion
  3. Otto: €6.5 billion

This data suggests that while the German e-commerce market faced challenges in recent years, it is showing resilience and adaptability. As the sector navigates post-pandemic normalization, businesses should remain attentive to evolving consumer behaviors and prepare for potential opportunities in this recovering market.

We have been helping clients sell in Germany since 2010. If you need advice, get in touch!