The retail industry has seen significant changes. Ecommerce retail sales have surpassed $3.53 trillion USD globally, with no signs of decreasing. By 2040, it is estimated that 95% of all purchases would be completed online.
Nonetheless, country-specific laws, rules, cultures, and purchasing conventions have resulted in very varied online buying experiences all around the world. What does this mean for companies and merchants that operate internationally or want to expand their business?
Because the more you know, the better…here are some intriguing ecommerce statistics and cultural distinctions from European countries:
Germany is the fifth-largest ecommerce market, and it is known for its low-cost shipping alternatives. In reality, Germany is the world’s third most active country in both import and export ecommerce, trailing only the United States and the United Kingdom.
Germany has a 2.2 percent conversion rate and an average order value of 138 euros (both of which are above industry averages). However, it has one of the greatest return rates, with certain industries approaching 70%.
In the past, German buyers preferred to pay for online purchases using invoices. E-wallets, credit cards, and debit cards have lately gained popularity among Germans.
Russia has Europe’s highest internet user population. They are, however, not frequent online buyers. Ecommerce sales make up only 2% of total retail sales. Russian consumers are wary of internet transactions, and nearly 80% choose cash on delivery as their primary means of payment.
In Russia, social commerce is on the rise, with 55 percent of internet users making a purchase through social media. Whereas Facebook, Instagram, and TikTok are the most popular in the United States and Western Europe, Russian-centric social networks VK, Avito, and Youla are the most popular in Russia.
With 87 percent of the population shopping online and ecommerce accounting for over 20% of all retail sales, the United Kingdom is one of the most active ecommerce markets in the world. The UK retail ecommerce market is the world’s third largest. Furthermore, British consumers spend more money on average than consumers in any other country.
When it comes to online payment methods, PayPal is far and away the most popular. The UK accounts for 73 percent of internet purchases, with 16 percent coming from EU markets and 11 percent from outside the EU. In the United Kingdom, mobile phones are used by the vast majority of online shoppers. In fact, 2020 was the most successful year for mobile shopping to date, with consumers spending 82 billion hours on the platform.
In comparison to other countries, the Spanish ecommerce market has been growing slowly. And, at 86 percent, Spain has the highest cart abandonment rate.
Consumer statistics indicate that Spaniards are price-conscious and distrustful of online buying. They are particularly hesitant to provide personal information online because they cannot personally inspect the merchandise. To attract Spanish customers, businesses will need to establish more buying trust in the experience.
Italy is the third largest economy in Europe, however its ecommerce market is far less. Although the country is Europe’s largest market for luxury goods, it has one of the lowest rates of online penetration, accounting for only 5% of total retail sales. When it comes to payment methods, Italian online shoppers favor credit cards, PayPal, and Cash on Delivery.
The sixth largest ecommerce market in the world is France. Consumers in France, like those in the United Kingdom, prefer to shop on their phones, with mobile phones accounting for 40% of all internet sales. When ordering online, the most popular payment option is credit cards, followed by PayPal. In France, a lot of cross-border shopping takes place. In fact, 52 percent of internet buyers purchase items from countries such as the United Kingdom, China, and Germany.
Switzerland has a high internet penetration rate, with 95 percent of the population (ages 16–65) using the internet on a regular basis and 90 percent having done some online shopping. When it comes to payment methods, Swiss shoppers prefer credit cards and invoicing. Switzerland is also a top-three European market for cross-border buying, with cross-border purchases accounting for 61% of all online purchases.
It can be difficult to connect Swiss shoppers. While the majority of Swiss inhabitants are bilingual, the government recognizes four national languages: German, French, and Italian dialects as well as Romansh.
Despite the fact that ecommerce is a worldwide phenomena with fast growth, it varies per country due to differences in consumer behaviors and cultural conventions. Getting a lay of the (ecommerce) land is an important component of conducting business for retailers who want to operate on a global basis.