The growth in online trade has increased again (significantly). With a plus of 11.0 percent, the absolute growth in online sales in 2019 rose by EUR 5.9 billion (to compare: 2018 – 4.4 billion euros), which is more than expected. The reasons for the new pace of growth are manifold. The main reasons are:
- The overall retail economy in 2019 was better than in previous years. Online shoppers spend significantly more money online. The smartphone (or mobile shopping) makes access easier and more convenient, thus increases the frequency of purchases in online commerce.
- People of younger age-groups with high online-affinity grow to consumers with more and more purchasing power.
- Marketplaces like Amazon, Zalando, About You and others drive the main momentum of online growth. Summarized, all together achieved a growth of 19.6 % in 2019, which is far above average.
- Marketplaces, other platforms and social media are increasingly becoming central touch points for consumers. Nearly all branches of trade are growth drivers – the online growth of the industries has adjusted, documenting a strong marketability. FMCG is the exception to the rule and continues to grow online well above average.
- In fashion, consumer electronics, living and leisure, online trade is increasingly cannibalizing brick-and-mortar retail.
- The average online expenditure per online shopper continues to rise. Thereby online purchases outside of Germany gain importance, for example at marketplaces like Wish, Shein or AliExpress. Low prices are often a main motive for purchases at these providers.
- Interest in new products and brands or variants also attracts consumers to online shops located in Europe or America. However, there is also a large number of purchases from providers outside of Germany, which are neither deliberately nor consciously made. A number of online shops abroad certainly provide the impression of a German store or at least of a supplier with a branch or warehouse in Germany. The offer of foreign suppliers on marketplaces is not always transparent, so that in some cases the foreign sender-address only gets visible at delivery.
Sources: GfK, HDE
Photo: Pexels – Karolina Grabowska (CC-license)