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Europe E-commerce Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

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  • 200 Pages
  • June 2022
  • Region: Europe
  • Mordor Intelligence
  • ID: 5617217
Europe E-commerce Market is expected to grow at a CAGR of 13.84 % from 2022 to 2027. Higher e-commerce penetration rates in the European market are here to grow. Online sales in the UK market increased by 43% yearly. Since the lockdown began in the UK, there has been a significant shift toward online channels, and sales in the country have been sustained. It has also accelerated the digitalization of retail in Germany at every level.

Key Highlights

  • European consumers increasingly turned to Amazon during the lockdown due to its convenience, delivery, and low prices. Nearly 300 million unique visitors visit Amazon's six main European sites each month. The platform's traffic increased in every European market in 2020, with visits increasing by 17% in the UK and 9% in Germany between March and August 2020. Amazon is estimated to have a 30% market share in the UK and Germany.
  • Cdiscount began shipping items to Belgium, Germany, Italy, and Spain, triggering the start of its international expansion. Cdiscount's growing cross-border presence results from a 15% year-on-year increase in net sales. Last year, Cdiscount customers placed 5.8 million orders for 11 million items. The Cdiscount marketplace currently has 10,000 connected sellers.
  • Zalando has added a new offer to its platform, bridging the gap between new and pre-owned clothing for European customers while providing unrivaled convenience in typical Zalando fashion. Furthermore, Zalando is experimenting with using plastic-free packaging and recycled materials to ship all pre-owned orders. Both contribute to Zalando's 2023 goal of extending the life of 50 million items and eliminating single-use plastic, which is committed to with the do more sustainability strategy.
  • Lightspeed and Shopify are both well-optimized for cross-border e-commerce in the European market. H&M, Carrefour, and Ikea are great platforms for well-known retailers in multiple countries across Europe and beyond. Furthermore, the United Kingdom has the second-largest share, accounting for 3.9 %, with nearly 59,000 Shopify e-commerce websites. Germany rounds out the top five with over 23,000 Shopify-built e-commerce websites, while France (about 19,000) and the Netherlands also have many Shopify-built websites (over 12,000).
  • While most Covid-affected Europeans shop at home on Amazon, AliExpress has quietly but aggressively expanded into the market. AliExpress is a division of the Chinese conglomerate Alibaba Group. Furthermore, Up and coming Chinese brands, such as Xiaomi, provide a brand experience to European consumers. Products from the first European brands that sell direct, such as Kimbo Coffee in Italy, and more than 10,000, mostly smaller Spanish companies, are available on AliExpress.
  • The COVID-19 outbreak has significantly impacted European countries such as Spain, Italy, Germany, France, the United Kingdom, Turkey, and Switzerland. Despite the nationwide lockdown, online sales have shown a positive response. The European government closed most brick and mortar retail stores as a precautionary measure as part of a series of lockdown plans to contain the spread of COVID-19. As a result, there is a high demand for online shopping for essential and non-essential products such as groceries, clothing, and accessories.

Key Market Trends

Growing European Retail eCommerce Consumer

  • Europeans are spending more time on online shopping. On an account, E-shopping penetration rates are highest in Western (83%) and Northern Europe (79%), while in Eastern and Southern Europe, especially Spain and Italy, more buyers are trying internet shopping for the first time.
  • According to J.P. Morgan, mobile commerce is the primary driver of growth in Europe. Mobile devices are currently the most preferred device for online shopping in the United Kingdom and the Czech Republic. In Ireland, Norway, and Sweden, smartphone use as a shopping device is also prevalent.
  • According to the most recent data on internet penetration in the EU, Europeans use the internet at least once a week, with 71 % using it every day. This level of internet adoption, combined with rising levels of trust in electronic payment methods, has paved the way for the e-commerce sector's steady as well as healthy evolution.
  • The rise in popularity of online marketplaces is one of the most notable trends in the current year. Europe has been slower to adopt marketplaces than the United States or China. Still, they are becoming an increasingly crucial online route of entry for brands worldwide looking to break into the European market.

Increasing number of e-shoppers in European countries.

  • In recent years, e-commerce sales have been the primary growth engine in the retail sector. However, the European Commission reports that 75% of Europeans use the internet on a daily basis. In comparison, only 15% buy online from another country, and only 7% of Small and medium enterprises sell cross-border.
  • Digital literacy and skills are also on the rising trend in Europe, with internet users increasing from 87 % to 89 % by 2020. Over 95 % of the population in Western and Northern Europe uses the internet, while 77% are online in Eastern Europe, where internet use is the lowest on the continent.
  • Clothing, electronics, communication products, and computers and their accessories such as games, apps, and so on are in high demand in the European e-commerce market. Products in these categories account for roughly 50% of all European e-commerce sales. Travel, footwear, household goods, and home and living items are also profitable segments in the European E-commerce market.

Competitive Landscape

Marketplaces of European origin accounted for 11% of the market last year, up 17% from the previous year. Vinted, G2A, Farfetch, and Zalando are the major players in the market. Additionally, Amazon is a dominant player in the European E-commerce market. Its revenue has increased from the previous year to 51 billion euros. eBay comes in second with a turnover of 17 billion euros. Online platforms' market share will rise to 65 % by 2025.
  • May 2022- The Chinese e-commerce behemoth Alibaba is expanding its Lazada marketplace into Europe. Lazada will focus on local merchants rather than cross-border sales, such as AliExpress. Cainiao, Alibaba's logistics company, is new to Belgium. Alibaba's marketplace AliExpress is currently present in the European market. However, cross-border sales from China are AliExpress's most profitable source of revenue. Lazada instead focuses on local European sellers.
  • April 2021- Allegro expands its international footprint by completing the acquisition of Mall Group, and WE - DO. The merger will strengthen the company's status as a significant marketplace platform for European customers and merchants, accelerating the group's international expansion. The move will enhance the shopping experience for 70 million potential customers across Europe by offering the widest variety at the best prices and with the greatest convenience.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Key market trends and share of e-commerce of total Retail sector
4.4 Impact of COVID-19 on the e-commerce sales
5.1 Market Drivers
5.1.1 Internet penetration and growth of mobile
5.1.2 Digital literacy and skills are on the rise.
5.2 Market Challenges
5.2.1 Technical Problems (Cyber-attacks and hackings have been on the rise)
5.3 Market Opportunities
5.3.1 Online business of goods or services
5.3.2 Formation of advanced technology such as Artificial Intelligence (AI) and Machine Learning (ML)
5.4 Analysis of key demographic trends and patterns related to e-commerce industry in Europe (Coverage to include Population, Internet Penetration, ecommerce Penetration, Age & Income etc.)
5.5 Analysis of the key modes of transaction in the e-commerce industry in Europe (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)
5.6 Analysis of cross-border e-commerce industry in Europe (Current market value of cross-border & key trends)
6 Market Segmentation
6.1 By B2C ecommerce
6.1.1 Market size (GMV) for the period of 2017-2027
6.1.2 Market Segmentation - by Application Beauty & Personal Care Consumer Electronics Fashion & Apparel Food & Beverage Furniture & Home Others (Toys, DIY, Media, etc.)
6.2 By B2B ecommerce
6.2.1 Market size for the period of 2017-2027
6.3 By Country
6.3.1 United Kingdom
6.3.2 Germany
6.3.3 France
6.3.4 Spain
6.3.5 Italy
6.3.6 Nordics
6.3.7 Rest of Europe (Eastern Europe, Benelux, etc.)
7 Competitive Landscape
7.1 Company Profiles
7.1.1 Amazon.com, Inc.
7.1.2 eBay Inc.
7.1.3 Allegro
7.1.4 AliExpress
7.1.5 Zalando SE
7.1.6 ASOS PLC
7.1.7 Cdiscount
7.1.8 Emag L.L.C.
7.1.9 Otto GmbH & Co KG
7.1.10 Flubit Ltd
8 Investment Analysis9 Future Outlook of the Market

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Amazon.com, Inc.
  • eBay Inc.
  • Allegro
  • AliExpress
  • Zalando SE
  • Cdiscount
  • Emag L.L.C.
  • Otto GmbH & Co KG
  • Flubit Ltd