E-Business Strategy

business question and need the explanation and answer to help me learn.

1. I have started the assignment. However, you must complete the report in order to comply with the attached instructions.
2. You can collect some data and charts from the attached reference.
3. Similarity , shouldn’t exceed 15 – 20 %.

Requirements:
E-Commerce and Digital Infrastructure in Germany

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5 October 2023
INTRODUCTION
Germany is Europe’s e-commerce leader offering a myriad of opportunities for international online retailers and service providers alike.
Ninety-five percent of Internet users in Germany 16 years of age and older purchase goods and services online. This corresponds to 58 million digital buyers according to digital association Bitkom. The Bundesverband E-Commerce und Versandhandel Deutschland – bevh (German Federal Association of E-Commerce and Mail-Order Trade) reports that gross sales of e-commerce goods grew by 19 percent to EUR 99.1 billion in 2021. This represents more than one in five euros of pure e-commerce sales excluding the food retail sector (one in seven euros including food sector).
DIGTAL INFRASTRUCTURE
The following are some key aspects of Germany’s digital infrastructure:
Broadband Internet: To ensure high-speed internet access for all citizens, including in rural areas. The government has set targets to achieve nationwide coverage of gigabit-capable connections by 2025 and has allocated significant funding to support broadband infrastructure development.
5G Network: To improve mobile network connectivity. Several telecommunication companies have been conducting trials and deploying 5G infrastructure in major cities. The aim is to provide faster and more reliable wireless communication, which is crucial for supporting emerging technologies like the Internet of Things (IoT) and autonomous vehicles.
Data Centers: To support the increasing demand for cloud services and data storage. These data centers play a vital role in hosting digital applications, services, and infrastructure. Large technology companies, as well as local providers, are investing in data center facilities in various regions of the country.
E-Government Services: The German government has been actively digitizing its services to provide citizens with convenient access to public services. This includes initiatives like digital tax filing, online registration systems, and digital platforms for accessing government information and services.
Smart Cities: Several cities in Germany are embracing smart city concepts and deploying digital infrastructure to enhance urban living. Smart city initiatives involve implementing technologies like IoT sensors, data analytics, and automation to improve services such as transportation, energy management, waste management, and public safety.
Cybersecurity: With the increasing reliance on digital infrastructure, Germany has been focusing on strengthening cybersecurity measures. The government has implemented regulations to protect critical infrastructure and personal data. Efforts are also being made to enhance cybersecurity awareness and promote collaboration between public and private sectors to combat cyber threats.
E-COMMERCE MODELS
The following are some popular e-commerce models in Germany:
Business-to-Consumer (B2C): During the period 2017 to 2022, B2C e-commerce grew by 69 percent – from EUR 58.5 billion to EUR 99.1 billion. With 58 million people – 84 percent of the German population over the age of 16 – purchasing online on a regular basis, Germany boasts not only the most internet users in Europe but also the greatest e-commerce customer potential. Examples of popular B2C marketplaces in Germany include Amazon.de, Zalando.de, and Otto.de.
Top 10 Online Shops in Germany, 2021
Direct-to-Consumer (D2C): Around the world, D2C is becoming increasingly popular. In 2022, approximately 64 percent of  made regular purchases directly from brands, D2C e-commerce revenue was valued at 880 million euros as of the third quarter of 2021.
Business-to-Business (B2B): Germany is one of the leading European markets for cross-border trade, both for consumer products as for business-to-business products and services.
In Germany, B2B transactions are carried out across various industries, including automotive, engineering, chemical, pharmaceuticals, machinery, electronics, and information technology.
Online Grocery Shopping: Online grocery shopping has experienced significant growth in Germany, particularly in recent years. Supermarket chains like Rewe, Edeka, and Aldi have established online platforms, allowing customers to order groceries and have them delivered to their homes.
Online Retailers: Many companies in Germany operate as online retailers, selling products directly to consumers through their own e-commerce websites, some well-known online retailers in Germany include Zalando, MediaMarkt, and Notebooksbilliger.de.
Online Marketplaces for Handmade and Unique Goods: Platforms like Etsy and DaWanda cater to artisans and sellers of handmade and unique goods.
Subscription-Based E-commerce: Subscription-based e-commerce models have gained popularity in Germany, companies like HelloFresh and Marley Spoon offer subscription-based meal kits, delivering pre-portioned ingredients and recipes to customers’ homes.
E-COMMERCE FACTS
CONCLUSION
E-commerce in Germany has experienced remarkable growth, driven by changing consumer preferences, technological advancements, and a robust regulatory framework. The market continues to evolve, offering opportunities for both domestic and international retailers to tap into the country’s thriving e-commerce sector.
REFERENCES
[1] InternetRetailing.
[2] Statista.
[3] Gtai.
[4] Export.
[5] The European Commission.
1 Instructions: 1. The assignment must contain a minimum of 2,000 words and maximum 3,000 words. Make sure to use proper referencing for the sources of your literature. 2. Writing Guidelines: Paper size: A4, Line Spacing: 1.5, Margins: 1” (inch) all sides, Font: Times New Roman, Font Size: 12 for text 14 for heading and 13 for subheading. 3. The report should follow the structure of the assignment given below. Structure of the Assignment # Contents Details 1 Cover Page The cover page should be well-presented, business-like, neat and professional. It should have the following information: • Heading (name of the university and address) • Course name • Course code • Student name and number • Date of submission (date, month, year) • The name of your country of practice with their flag • The name of your instructor (using the same font with your name) 2 Introduction and Background Information The introduction should be concise and interesting background of a chosen country of practice from the members of the G20 countries. 3 Discussion and analysis It should include the following: • Description of the infrastructure of the e-business • E-commerce • E-infrastructure ranking of the chosen country • Components of the e-business, and discuss each of them. 4 Conclusion and recommendations Students are expected to restate the report relate to its purpose and summarise the key points. 5 Appendix It should include: • References (minimum 5)
GERMANY 2022In partnership with€499 I MAY 2022RXRDE22RPEcommerce Country Reportwww.retailx.netGERMANY 2022In partnership with€499 I MAY 2022RXRDE22RPEcommerce Country Reportwww.retailx.net
2 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net GERMANY ECOMMERCE COUNTRY REPORT | INTRODUCTIONWelcome to the RetailX Germany Ecommerce Country Report for 2022.Like many European markets Germany was in the midst of change last year, attempting to recover from both the impact of Covid-19 but also a change in government. In our last report the country was hopeful. The vaccination programme at that time was going well with a healthy rollout underway. Yet fast-forward and we now see that the country is looking to dump out of date vaccines later this summer as take-up hasn’t been at the levels expected. This is coupled with the fact that initiatives by the new Chancellor Olaf Scholz to push this through with mandatory vaccinations have failed. IntroductionScholz has certainly had a busy few months in office since coming to power last December after taking over from Angela Merkel. Inflation has also soared and, like customers across Europe, German consumers are facing rising costs and inflation which will impact on consumer spending in the coming months. So what can retailers do? We see that the German consumer remains value-conscious, a trait they’ve long been known for. This hunger for value will be even more apparent in the coming months. Retailers will need to ensure that they are meeting all the needs of German consumers which means understanding what, how and why they buy is more crucial than ever. Over the coming pages you will discover how they are coping and how habits are changing, and crucially what you need to do to respond. Ian Jindal, CEO, RetailXContentsCountry profile3Market context4Partner perspective: Tealium6Partner perspective: Amplience8Partner perspective: Rakuten Advertising10Key indices12Online payments13Delivery & returns15Product categories18Consumer preferences19Social commerce21Peak trading22Covid-1923The Largest 10025Company spotlight: Lidl27Company spotlight: Saturn28Company spotlight: Shop Apotheke29Company spotlight: Zalando30Figures31Conclusion33
3 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net In September 2021 Germany went to the polls after the then Chancellor of the Federal Republic of Germany Angela Merkel, first elected in 2005, chose not to run again. The results were mixed. The Social Democratic Party of Germany (SDP) had their best result since 2005, emerging as the largest party since 2002. The ruling CDU/CSU, which had led a grand coalition with the SDP since 2013, meanwhile recorded their worst result. It took until 23 November, and complex coalition talks, before an agreement was reached for a traffic light coalition between SDP, the Alliance 90/The Greens and the Free Democratic Party (FDPD). Chancellor Olaf Scholz, a member of the SDP and previously vice chancellor to Angela Merkel, and his team were elected in December. Scholz has had to mastermind Germany’s response to the Russia/Ukraine war. In February[1]Germany halted the approval of Nord Stream 2, a gas pipeline connecting Russia to Germany which was completed last September but was waiting on its operating licence, over fears it would give Russia even more of a stranglehold over gas supplies to Europe.He then became embroiled in a row over a boycott of Russian energy. Germany relies on Russia for around half of its natural gas and coal and a third of its oil [2]. In April[3]Chancellor Scholz said Germany was doing all it could to wean itself off its reliance on Russia and would stop using Russian coal by the summer and oil by the end of the year. However, he refused to put a timeline on stopping the use of Russian gas. The task ahead is challenging given Scholz also needs to deal with the country’s response to the coronavirus and its impact on the economy. His plans for mandatory vaccinations to improve vaccine take-up haven’t been successful meaning that the country remains under threat from Covid-19. [1] https://www.bbc.co.uk/news/world-europe-60131520[2] https://www.nytimes.com/2022/03/23/business/olaf-scholz-russia-energy.html[3] https://www.theguardian.com/world/2022/apr/08/germany-russian-gas-imports-olaf-scholz-boris-johnson-ukraine Country profileNew Chancellor Olaf Scholz hasn’t had an easy first few months in officeGERMANY ECOMMERCE COUNTRY REPORT | COUNTRY PROFILEGermanyArea: 357,022 km2Capital: BerlinCurrency: Euro (EUR) €Official language: GermanOther languages spoken: English, FrenchNationality: GermanGovernment: Federal parliamentary republicVAT: 19% | Reduced VAT: 7%
4 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net In November 2022[1] retail sales had risen to an unexpected high in Germany, up 0.6% on the month in real terms, before further restrictions brought retailers’ hopes crashing down again. For 2021 as a whole retail sales rose 0.9% in real terms and 3.1% in nominal terms. The country’s economy had seen some recovery, growing once again in the summer of 2021, despite increasing supply and material shortages, yet the fourth coronavirus wave and tightening restrictions – including the 2G rule in retail stores – saw things slow once more. GDP was -0.3%[2] in the fourth quarter of 2021 and +2.9% for the year as a whole. Compared to the fourth quarter of 2019, the quarter before the beginning of the pandemic, economic output in the fourth quarter of 2021 was 1.1% lower.Inflation has soared of late. In March 2022 Germany reported its highest level of inflation since the country was reunited, when it hit +7.3%[3], up +2.2% on the Market contextSoaring inflation is hitting German consumers hard as the energy crisis impacts the countryGERMANY ECOMMERCE COUNTRY REPORT | MARKET CONTEXT82.35m82.66m82.91m83.09m83.16m83.29m83.39mAll20162017201820192020202120220m20m40m60m80mPopulation structureRetailX 2022Source: RetailX, drawing on data from the International Monetary Fund0.8%0.4%0.3%0.2%0.1%0.2%GermanyEuropeGlobal201620172018201920202021Population growthRetailX 2022Source: RetailX, drawing on data from the International Monetary FundData for Europe includes UK, France, Germany, Russia, Italy and Norway. Data for Global includes the countries in RetailX Global Report 2021.GermanyEuropeGlobal2016201720182019202020210k10k20k30k40k50k60kGDP per capita (USD)RetailX 2022Source: RetailX, drawing on data from the International Monetary Fund and Worldbank
5 | RetailX | May 20222017201820192020202120222023 (f)2024 (f)2025 (f)545658606264666870Ecommerce users in Germany, 2017-2025 (in millions)RetailX 2022Source: Statista Digital Market Outlook. Accessed via StatistaNote: The ecommerce market comprises the sale of physical goods via a digital channel to a private end consumer (B2C). This definition encompasses purchases via desktop computers as well as purchases via mobile devices. All figures are estimate. Data current as of February 2022.565960626567686868Note: Harmonised index of consumer prices year-on-year change. Data current as of April 2022.2020 Jan2020 Feb2020 Mar2020 Apr2020 May2020 Jun2020 Jul2020 Aug2020 Sept2020 Oct2020 Nov2020 Dec2021 Jan2021 Feb2021 Mar2021 Apr2021 May2021 Jun2021 Jul2021 Aug2021- Sept2021 Oct2021 Nov2021 Dec2022 Jan2022 Feb2022 Mar-1%0%1%2%3%4%5%6%7%8%Inflation rate in Germany, by month, 2020-2022RetailX 2022Source: Statistisches Bundesamt1.7%1.7%1.4%0.9%0.6%0.9%-0.1%0.0%-0.2%-0.2%-0.3%-0.3%1.1%1.3%1.7%2.0%2.6%2.4%3.8%3.9%4.1%4.5%5.2%5.3%4.9%5.1%7.3%GERMANY ECOMMERCE COUNTRY REPORT | MARKET CONTEXT[1] https://www.msn.com/en-gb/money/other/german-retail-sales-rebound-in-november/ar-AASpmpG[2] https://www.destatis.de/DE/Themen/Wirtschaft/Volkswirtschaftliche-Gesamtrechnungen-Inlandsprodukt/_inhalt.html[3] https://www.destatis.de/EN/Press/2022/04/PE22_160_611.html[4] https://www.destatis.de/EN/Press/2021/12/PE21_545_421.html[5] https://www.destatis.de/EN/Press/2022/04/PE22_162_125.htmlprevious month. The last time such high inflation levels had been seen was in autumn 1981 when mineral oil prices had increased as a result of the first Gulf war between Iraq and Iran. Once again it was international conflict driving up energy prices to be partly to blame as the Russian war against Ukraine saw price increases for heating oil, motor fuels and natural gas, as well as some food products. Energy prices rose 39.5% year on year. Delivery bottlenecks[4], which had already slowed down the Germany industry in 2021, also continue to impact the country and the rate of inflation. The German population remains relatively stable at just over 83 million, but migrant workers continue to make up a significant proportion of the German population, up 2%[5] to 22.3 million people or 27.2% of the German population in 2021.

7 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net German shoppers want value and convenience when shopping online, no surprise given they live in the country that spawned discounters Lidl and Aldi. Their focus on value is likely to increase given the country has recently seen record levels of inflation and consumers will be re-examining how they spend their money and where they buy. Retailers must be on top of their game to deliver the value that German consumers will demand, accompanied by a fully integrated online and offline offer that meets all of the needs of their customers and supports their demands. German consumers want information at their fingertips. These are customers that do their groundwork when deciding what and where to buy, so as a retailer having a clear knowledge of your customer and their behaviour is key to your business decisions and strategy. Getting the balance between store and online German customers are happy shopping online and have a solid logistics network that supports efficient delivery. But the physical store still appeals too, and consumers are looking forward to the return of their pre-pandemic buying habits. However, the reality is that the balance has shifted. For many customers, the online shopping behaviours developed during the pandemic will stay. This means it’s even more important than ever that retailers and brands build trusted relationships with their customers, backed by solid customer data and proactive marketing that prevents customer churn. The country’s prominence in terms of logistics means it’s natural that its consumers are increasingly concerned about the environmental impact of deliveries and want more sustainable options. Their willingness to pay for this, and to pay a substantial premium in some cases, means retailers should be seriously looking at how to improve the environmental impact of their delivery services, especially since this is a consumer who prefers delivery straight to their door. A growing influence from social The influence of social commerce is also on the rise, as mobile continues to grow, with an increasing number of German consumers influenced by social media when buying online. Retailers need to build a strong social presence to engage with existing and potential customers if they are to take advantage of this trend and, ideally push these consumers to either buy through social commerce on their social media platforms, or at least buy instore or online. Customers increasingly expect the brands they love to be building relationships with them through social, as well as through all the other channels in which a retailer operates. Cross-channel integrationIntegrating information across channels to enable a single view of the customer which means that retailers or brands can engage with relevance and confidence at any point in the customer journey is essential. Consumers don’t expect a scattergun approach from the brands they engage with. They expect facts and an integrated approach. The market is evolving and as Germany continues to recover from the pandemic there will be much more change to come. Retailers need to brace themselves for this by building on their relationships with consumers, ensuring they are relevant when the German consumer does look to engage and buy.Frank TrefzerManaging director DACH at Tealium Expert insightTealium’s customer data platform enables marketers to create composite 360-degree customer profiles in real time, drive more profitable and relevant omnichannel interactions, and fuel the performance of the business intelligence and data warehouse projects using the richest source of first-party data available. For more information, visit www.tealium.com.GERMANY ECOMMERCE COUNTRY REPORT | PARTNER PERSPECTIVE
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9 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Customer behaviour is changing again now we’re starting to exit the pandemic. Many brands have closed bricks and mortar offerings. But it’s not all about ecommerce – Amazon and Zalando, for example, are opening more physical stores. The key is in connecting those experiences: the physical and the digital. People still want to order online and pick up in store, for example. And many German consumers still like to physically touch products before they buy them. The retailers who get that balance right will do extremely well. And you need to get that experience right across every channel. Mobile is particularly important now – consumers no longer just use desktop or laptop computers to shop.German consumers expect brands to be likeable beyond just the products and services they offer. Environmentalism is a key concern for these buyers – they engage most with brands that are conscious about issues such as sustainability and animal welfare.The challenges ahead A customer can come from anywhere – social selling, bricks and mortar, even TikTok. And they can be looking for anything, whether it’s a brand, a product, a campaign or something else entirely. Everything you’re doing needs to be joined up. The German market is fiercely competitive and brands need to know exactly what consumers are looking for. Due to the current political and economic situation in the world, demand will outpace supply and delivery possibilities. Transparency is important to German shoppers, so you need to manage expectations and be upfront about what you’re offering. As customers want to shop at any time and anywhere, ecommerce is continuing its shift to mobile devices. To accommodate that behaviour, German brands need to invest more into their mobile offerings. The mobile and native app market space in Germany is still dominated by international brands such as Amazon.How your brand can adapt right nowMake sure your commerce experience goes beyond the sale. You must take the post-sale experience seriously. German consumers expect to be able to return purchases with ease. If the return experience is bad, the customer is unlikely to ever come back. German shoppers don’t like to share their data. Privacy is more important in Germany than in almost any other region in the world. So it’s an expectation that during the process you also show you’re focusing on their privacy. This makes it far more difficult to deliver tailored messages and personalised experiences.This is why your overall brand experience is essential. Your brand image is just as important as your product, and your content campaigns need to reflect that. Make sure you have a clear brand message across all channels.The customer experience you offer needs to be easy to follow. Complicated shopping walkthroughs aren’t going to cut it. Improving functionality on mobile can go a long way towards attracting and retaining German shoppers. And it will give you an advantage over the competition.Oliver SteinCountry manager DACH, AmplienceExpert insightGERMANY ECOMMERCE COUNTRY REPORT | PARTNER PERSPECTIVEAmplience is a dynamic commerce experience platform built to make content management easy. Plan, create, preview, launch. All from the same place. Faster than you otherwise could. Give marketers and developers the freedom to create digital experiences without limits. Find out more at Amplience.com

11 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Covid measures such as lockdowns moved customers from physical shops to their home, and consequently boosted the business of online retailers. As restrictions eased but concerns about new Covid-19 variants remained, this trend continued.There is no doubt that the shift towards online shopping is clear and consistent and, seemingly, now firmly established. Here in Germany, we expect a significant proportion of consumers to permanently make a greater proportion of their purchases online due to new behaviours that have emerged since the pandemic. Customers now have an “online-first” mentality, which brings new challenges and emerging trends that need to be addressed.Now that the first barriers such as setting up online accounts, providing payment details, and gaining trust have been overcome, retail is facing a new era. Consumers are increasingly turning their backs on stationary retail and buying online instead, not least because of the greater choice. In the virtual market, almost 450,000 online retailers compete in Germany and Austria alone, and more are added every year.In Rakuten Advertising’s German affiliate network, sales grew 53% year-on-year between 1st and 24th December 2021, following a 90% increase in 2020 over the same period. This confirms that the pandemic-related shopping behaviour of Germans is becoming more solidified. Studies show that due to the impact of Covid-19, sales of non-food products worth $632 billion will shift to the internet by 2025.In Influencers we trust The number of consumers who want to discover and buy products via social media has recently increased significantly – especially among generations such as Millennials and Gen Z. Visual content leads to an even more engaging shopping experience and social commerce allows consumers to find everything bundled in one place, from the initial inspiration to the final purchase.Customers are relying more on ratings and reviews to make choices among the sheer volume of products and online shops – and this is where influencers enter the picture. The influencer marketing market is experiencing a real upswing. In 2021, the industry was worth $13.8 billion and grew by $4.1 billion compared to the previous year. Retailers and brands must collaborate with the new “stars and starlets” of the internet to engage with their audiences. Customising marketing messages to specific audiences and products can help build trust and familiarity, allowing online retailers to incrementally increase sales without appearing pushy or obnoxious.Going green Covid-19 is not the only factor changing consumer attitudes. Reducing the impact of all humanity on the environment has become a major priority for shoppers around the world. Awareness of the impact of consumption is a key feature of these changing consumer habits. Many brands benefited from the increasing demand for second-hand goods and thus the so-called recommerce (reverse commerce). The demand in the second-hand market has increased significantly worldwide in recent years. Stefan Bernauer Country manager, DACH, Rakuten AdvertisingExpert insightGERMANY ECOMMERCE COUNTRY REPORT | PARTNER PERSPECTIVERakuten Advertising connects leading agencies, brands and publishers to active and engaged consumers around the world. With access to Rakuten’s diverse media properties and audiences, combined with an award-winning performance network and proprietary consumer research, we create the right conditions to reach new customers and sustain long-lasting loyalty. Learn more at www.RakutenAdvertising.com.
12 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net The international indices allow the comparison of the performance of countries in measures ranging from logistics to doing business.Within the key four indices we measure in these reports, Germany sits in the top quartile overall. But it’s the country’s logistics network that sets it apart. Germany leads the Logistics Performance global ranking and ranks second in the Integrated Index for Postal Development. Germans are confident online shoppers with a trusted delivery network at their fingertips. When it comes to the ease of doing business and the E-Government Development Index the country sits at the further extreme of the first quartile. The country is within the top quartile of the Internet Inclusive Index – just – where it has an overall score of 25. Germany scores highly for Readiness where it ranks 12thfor its capacity and skills to access the internet. However, it is let down by Relevance where it sits in 60th place. Market overview: international indicesGermany leads on its logistics infrastructure but when it comes to relevance the country doesn’t perform so well IndicesDefinitionGlobal RankLogistics PerformanceLPI measures performance along the logistics supply chain within a countryIndexEase of DoingA high Ease of Doing Business ranking means the regulatory environment is more conduciveBusiness Indexto the starting and operation of a local firmE-GovernmentThe E-government Development Index measures the willingness and capacity of nationalDevelopmentadministrations to use information and communication technologies in order to deliverIndexpublic servicesIntegrated Index for2IPD is a comparative indicator of postal development around the world which builtPostal Developmenton four pillars: reliability, reach, relevance and resilience(2IPD)1/16022/19025/1932/170Internet Inclusive IndexAvailabilityQuality and breadth of available infrastructure required for access and levels of internet usage AffordabilityCost of access relative to income and the level of competition in the internet marketplace RelevanceExistence and extent of local language content and relevant content ReadinessCapacity to access the internet, including skills, cultural acceptance and supporting policy Overall Internet Inclusive Index20/12022/12060/12012/12025/120KEY: Top quartileSecond quartileThird quartileBottom quartileGERMANY ECOMMERCE COUNTRY REPORT | KEY INDICES
13 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Germany’s payment market has previously been dominated by open invoicing to pay for goods, allowing customers to order, receive and review their goods before they make payment, usually by bank transfer. It’s effectively a buy now, pay later option. The continuing dominance of invoice/instalment and cash on delivery among the top 500 online stores in Germany shows that the sentiment to purchase and pay at a later date remains.Debit cards have been less popular since the country’s major debit card Girocard, which has more than 100 million cards in circulation, previously didn’t work online. It is used by around 95% of all Germans aged 16 to 69, compared to around 43 million credit and debit cards from Visa and Mastercard. However, since July 2021[1]Sparkasse customers who are also Apple users can use their Sparkassen Girocard in the Apple Pay wallet to pay online. Payment methodsGerman consumers continue to adopt a wider range of payment methods with digital wallets growing stronglyNote: 2,547 online respondents in Germany; who used online payment methods. More than one answer possible. Data updated to November 2021.94%47%24%14%14%9%7%3%3%2%PayPalKlarnaAmazon PayGiropayGoogle PayApple PayPaydirektSkrillAfterPayMasterpassMost used online payment brands in Germany, 2021Which online payment services have you used in the past 12 months?RetailX 2022Source: Statista Global Consumer Survey95%95%86%79%43%32%20%eWalletsCardsBank transferInvoice/InstallmentDirect DebitsCash on deliveryOtherPayment methods most offered by the top 500 German online stores, 2021RetailX 2022Source: ecommerceDBNote: Based on the top 500 online stores by net sales in Germany in 2020 for which payment information is available. Stores may offer more than one payment method. Data updated to October 2021GERMANY ECOMMERCE COUNTRY REPORT | ONLINE PAYMENTS
14 | RetailX | May 2022Today digital wallets rank as the strongest payment methods for consumers, with PayPal dominating the market. 94% of German consumers have used PayPal to pay online in the last 12 months. Klarna is the second most popular digital wallet option at 47%. The company partnered with eBay in March [2] to offer German shoppers more flexible payment options, including Buy Now Pay Later (essentially payment on invoice) and Financing (the ability to spread payments over a period of time) giving customers added ways to pay beyond its Pay Now service. PayPal also dominates mobile payments, followed by Apple Pay and then Google Pay. Nearly one in four (24%) of German consumers say they would like to be able to pay for goods or services with their smartphone all the time. [1] https://computop.com/payment-insights/en/e-commerce-en/girocard/[2] https://www.pymnts.com/buy-now-pay-later/2022/klarna-offers-bnpl-to-german-ebay-shoppers/24%14%13%13%13%11%11%7%6%I would like to pay with my smartphone all the timeFor public transportation ticketsFor everyday purchases (e.g. food)For food and drinks in restaurantsFor food and drinks in bars and cafesFor minor purchases (e.g. decoration items)For admission ticketsFor travel bookingFor major purchases (e.g. washing machine)Where consumers would like to use mobile payments in Germany, 2021In what situations would you like to be able to pay with your smartphone (without debit/credit card or cash)?RetailX 2022Source: Statista Global Consumer SurveyNote: 3,578 online respondents in Germany.Recorded based on “Payments at points of sale by type”. Data updated to November 2021.Note: 415 online respondents from Germany; who used mobile payment in the past 12 months. More than one answer possible. Data updated to November 2021.59%34%31%22%18%PayPalApple PayGoogle PaySparkasse – Mobile BezahlenPayback PayMost used mobile payment brands in Germany, 2021Which of these services have you used in the past 12 months to pay in stores, restaurants, or other points of sale with your smartphone?RetailX 2022Source: Statista Global Consumer SurveyGERMANY ECOMMERCE COUNTRY REPORT | ONLINE PAYMENTS
15 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net German consumers have a high preference for home delivery with a signature required, with more than half (52%) of them preferring this method of delivery. They want certainty and proofof delivery. This is followed by just under a third (32%) who are happy with home delivery without signature.Click and collect is less popular for German consumers, with only 6% willing to collect from a parcel locker and even less from a store or distribution point. Only a quarter of the top 500 German online stores offer click and collect as a shipping service to their consumers. This isn’t a surprise when we remember that Germany leads in the logistics index that began our report. DHL dominates the market in terms of delivery, used by 81% of the top 500 German online stores. German consumers are more concerned about the cost of delivery (55%) than they are about speed. Almost Delivery & returnsThe appetite for convenient and sustainable delivery, collection and returns is growingGERMANY ECOMMERCE COUNTRY REPORT | DELIVERY & RETURNS 52%32%6%5%3%Home delivery withsignature requirementHome delivery or delivery outsidethe door without signature requirementCollect the product myself froma parcel machineDelivered to my mailbox/multi-occupancymailbox by the mail carrierCollect the product myself froma distribution pointPick up at the online store’s physical storeOtherPreferred online shopping delivery methods in Germany, 2021Source: PostNordRetailX 2022Note: Approx. 1000 respondents; 15-79 years; Germany residents who have shopped online. Online interview conducted in 2020 and 2021.81%25%25%20%13%10%9%3%1%DHLClick &CollectHermesDPDUPSDeutschePostGLSOwndeliveryserviceDachserMost used shipping service providers by the top 500 German online stores, 2021Source: ecommerceDBRetailX 2022Note: Based on 89% of the top 500 online stores by net sales in Germany in 2020 for whichshipping information is available. Stores may work with more than one shipping serviceprovider. Data updated to October 2021.15%74%9%3%1-2 days3-5 days>6 daysDon’t knowEcommerce consumer expectations of delivery time in Germany, 2021Source: PostNordRetailX 202255%40%38%Cost of deliveryFast deliveryBeing able to choosethe place for deliveryImportance of delivery relatedcharacteristics when orderingproducts online in Germany, 2021Source: PostNordRetailX 2022Note: Approx. 1000 respondents; 15-79 years; Germany residents who have shopped online. Online interview conducted in 2020 and 2021.
16 | RetailX | May 2022three-quarters (74%) expect deliveries within three to five days, compared to only 15% who expect delivery in one to two days. But tolerance for longer deliveries, of six days or more, is less than in other European countries at only 9%.That said the rapid grocery delivery market of store to door in ten minutes or less is growing in Germany. Gorillas is one rapid delivery start-up that debuted in Berlin during the pandemic in June 2020 and has since expanded into the UK, France and the Netherlands. It recently launched its latest funding drive [1]. One in five (20%) of German consumers will use rapid grocery delivery services for their occasional full grocery shop, while similar amounts will use it for convenience, for instance after stores have closed or if missing an ingredient (both 19%). Just under half of consumers say they would use it if they found such a company, showing there is big demand among German consumers for the rapid delivery as awareness and spread of such services grows.But the country also has one of the highest product returns rates in Europe, particularly in fashion and shoes, thanks to its mail order and open invoice heritage. Note: Results include 750 16+ Germany respondents and are stratified by age and gender. Survey conducted in November 2021.16%20%18%19%19%34%32%40%36%35%50%49%42%45%46%I use a rapid grocery delivery service for thisI wouldn’t use the service even if it was availableI would use the service if I found such a companyRegular full grocery shoppingOccasional full grocery shopTreats / snacksShopping after closing timeA missing ingredient0102030405060708090100Consumer willingness to use rapid 10 minute grocery delivery services in Germany, 2021RetailX 2022Source: RetailXNote: 2,522 online respondents in Germany; who shop online. More than one answer possible. Data updated to October 2021.41%37%37%26%22%Return/replacement in the store of items ordered onlineHome delivery of products purchased in the storeOrdering online and picking up in the storeOnline store locatorPicking up purchased items in the store outside opening hoursDelivery and returns services that German consumers would like to use, 2021RetailX 2022Source: Statista Global Consumer SurveyGERMANY ECOMMERCE COUNTRY REPORT | DELIVERY & RETURNS
17 | RetailX | May 202241% of German consumers would like to be able to return or replace items instore that are bought online with consumers saying that better product descriptions (39%) or better images (27%) would encourage them to return less. Sustainability is an issue too. 14% say that sustainability would drive them to return less and a third (32%) say that they would pay extra for eco-delivery, second only to Italy[2]. While 40% consumers say they would pay up to 20% more for eco-delivery one in four say they would pay 50% or more. 44% would accept longer delivery times to make their deliveries more sustainable. 8%25%15%11%6%9%25%0%1-10%11-20%21-30%31-40%41-50%>50%The premium as a percentage of product cost that German consumers are willing to pay for carbon neutral or green delivery, 2021Source: RetailXRetailX 2022Note: Results include 1000 16+ Germany respondents and are stratified by age and gender. Survey conducted in January 2021.32%18%6%6%5%ClothingShoesConsumerElectronicsBags andAccessoriesHouseholdAppliancesOnline shopping returns in Germany, by category, 2021Which of these have you sent back after an online order in the past 12 months?Source: Statista Global Consumer SurveyRetailX 2022Note: 2,522 online respondents in Germany; who shop online. More than one answer possible. Data updated to October 2021. 44%36%20%Longer delivery timeOne day forall deliveriesHigher costOptions that German consumers would consider to make their delivery more sustainable, 2021Source: RetailXRetailX 2022Note: Results include 1000 16+ Germany respondents and are stratified by age and gender. Respondents could select multiple answers. Survey conducted in January 2021.39%27%20%14%Better ProductDescription/InformationBetter ProductPicturesSmall Fee ForReturning ItemsAspects ofSustainabilityWhat would help to reduce consumer propensity to return items, 2021Source: RetailXRetailX 2022Note: Results include 1000 16+ Germany respondents and are stratified by age and gender. Survey conducted in January 2021.[1] https://www.thetimes.co.uk/article/gorillas-rapid-delivery-app-set-for-4bn-value-in-funding-deal-xfnvd58ln[2] https://www.directlink.com/varying-willingness-to-pay-for-sustainable-e-commerce-deliveries/GERMANY ECOMMERCE COUNTRY REPORT | DELIVERY & RETURNS
18 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Consumer interest is strongest in clothing, shoes, food and drink and consumer electronics. However, in terms of purchases it’s clothing, shoes, media and consumer electronics that are most bought by German shoppers online. This is reflected in the sales of the top 500 online stores, where electronics and media dominate online sales. Product categoriesWhen it comes to individual product categories it’s clothing that dominates both interest and spend GERMANY ECOMMERCE COUNTRY REPORT | PRODUCT CATEGORIESNote: 2,522 online respondents in Germany; who shop online. More than one answer possible. Data updated to October 2021.Age of consumers 10%9%8%8%7%6%6%6%4%4%17%17%15%13%13%13%11%11%10%9%16%15%14%13%13%12%11%10%10%9%17%17%17%15%14%14%12%12%12%10%16%15%15%12%12%12%11%10%11%9%18-2425-3435-4445-5455-64ClothingShoesFood & DrinkConsumerElectronicsBooks, Movies,Music & GamesDrugstore &HealthProductsTravelCosmetics &Body CareHouseholdAppliancesFurniture &HouseholdGoods010203040506070Interest of online shoppers in Germany, by category, 2021Which of these products and services are you interested in?RetailX 2022Source: Statista Global Consumer SurveyNote: 2,522 online respondents in Germany; who shop online. More than one answer possible. Data updated to October 2021.8%6%4%4%2%3%3%1%3%2%13%11%8%8%6%6%6%4%5%4%13%11%10%8%6%6%6%5%4%4%14%11%10%9%7%6%6%5%4%4%13%9%8%7%7%5%5%5%3%3%051015202530354045505560Purchases of online shoppers in Germany, by category, 2021Which of these items have you bought online in the past 12 months?RetailX 2022Source: Statista Global Consumer SurveyClothingShoesFood & DrinkBags &AccessoriesConsumerElectronicsBooks, Movies,Music & GamesDrugstore &HealthProductsCosmetics &Body CareHouseholdAppliancesFurniture &HouseholdGoodsAge of consumers 18-2425-3435-4445-5455-64191817117Electronics& MediaToys, Hobby& DIYFashionFurniture &AppliancesFood &Personal CareEcommerce net sales of the top 500 online stores in Germany, by category, 2021 (in billion USD)Source: ecommerceDBRetailX 2022Note: The top 500 online stores by net sales in Germany in 2020 for which information isavailable and known. Data updated to October 2021.
19 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Mobile shopping continues to increase in prevalence with 58% of shoppers buying online via their smartphone in the past 12 months. Add in laptop users (53%) and tablet users (29%) and we see that German consumers are less tied to their desks when buying online than in the past. In fact, only just over a third (35%) of online shopping is now done via desktop. Convenience dominates in terms of why German consumers purchase online. For nearly two-thirds (65%) it’s the availability of direct delivery to home which tops their drivers of purchase online. For 60% it’s about the 24/7 accessibility of products that online shopping allows.The German consumer remains a conscientious, value-driven shopper. More than two-thirds (68%) will keep an eye out for special offers when shopping. The German consumer in focus Value-driven shoppers who are increasingly interested in the environment are an important part of Germany’s consumer profile GERMANY ECOMMERCE COUNTRY REPORT | CONSUMER PREFERENCESNote: 3,577 online respondents in Germany. More than one answer possible. Data updated to November 2021.59%47%29%27%27%16%When I plan a major purchase, I always do some research on the internet firstCustomer reviews on the internet are very helpfulI usually manage habitual / recurrentorders directly via my smartphone or tabletI want to see an item before I buy itI prefer to use my smartphone or tablet to researchproducts and to make major new purchasesSometimes I deliberately ordermore items than I want to keepAttitudes towards online shopping in Germany, 2021Which of these statements about online shopping do you agree with?RetailX 2022Source: Statista Global Consumer Survey58%53%35%29%7%5%SmartphoneLaptopDesktop PCTabletSmart TVSmartSpeakersDevices used for online shopping in Germany, 2021 in the past 12 monthsSource: Statista Global Consumer SurveyRetailX 2022Note: 2,522 online respondents in Germany who shop online. More than one answer possible. Data updated to October 2021.65%60%56%54%53%46%42%30%18%Direct delivery to my homeAvailable round the clockMore convenient way of shoppingGreater product rangeCheaper pricesUndisturbed shopping processMore possibilities to compareMore product informationI prefer online shopping in generalDrivers of online purchase inGermany, 2021Source: Statista Global Consumer Survey.RetailX 2022Note: Survey conducted during 2021. Survey includes 3577 Germany residents. Multipleanswers were possible. Data current as of November 2021.
20 | RetailX | May 2022And they do their research. 59% will research on the internet when planning a major purchase and just under half (47%) find customer reviews helpful when they are looking for information on prospective purchases. But purchases aren’t always thoroughly researched. Just under half (43%) admit to impulse buying too. What is evident in this year’s report is a growing concern among German shoppers for sustainability when shopping online. It’s part of a wider European trend among consumers for more sustainable delivery options as consumers take more notice of their impact on the environment. Just under a third (32%) are willing to pay an extra three euros for a more eco-friendly delivery. It’s of little surprise when you look at consumer concerns among Germans. Climate change (39%) and the environment (37%) are among the top three concerns for German shoppers. And their hunger for value is further supported by the fact that 35% see rising prices and the cost of living as a challenge for the country . Concerns will have increased this year after the country hit its highest rate of inflation since 1981 in March. GERMANY ECOMMERCE COUNTRY REPORT | CONSUMER PREFERENCESNote: 3,577 online respondents in Germany. More than one answer possible. Data updated to November 2021.68%43%28%27%When shopping,I look out for special offersWhen strolling through stores, I tend to buy items spontaneouslyI always shop at the same storesI prefer to purchase goods from varioussellers through the same online shopAttitudes towards shopping in Germany, 2021RetailX 2022Source: Statista Global Consumer Survey32%68%YesNoWillingness to pay more for sustainable deliveries in Germany, 2021Are you willing to pay 3€ extra for a more eco-friendly delivery?Source: PostNordRetailX 2022Note: Approx. 1000 respondents; 15-79 years; Germany residents who have shopped online. Online interview conducted in 2020 and 2021.39%39%37%36%35%Climate changeHealth and social securityEnvironmentHousingRising prices/inflation/cost of livingTop 5 perceived challenges for the country, 2021Source: Statista Global Consumer SurveyRetailX 2022Note: 2,1479 online respondents from Germany. More than one answer possible. Data updated to November 2021.
21 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net A third of German consumers have bought on social media sites such as Facebook, Instagram and Snapchat. And it’s driving further interest in the potential of such platforms for shopping. Certainly retailers can’t ignore the impact of social commerce on consumer buying patterns. 86% of German consumers admit to being influenced to buysomething after they’ve seen it on social media platforms including TikTok, YouTube, Facebook, Instagram and Snapchat. It means German retailers know that they need a social media presence. 95% of German retailers have a Facebook presence but only three-quarters have a presence on Instagram. Yet, in another survey, we see that Instagram is driving the highest level of shopping engagement with more than a third (36%) of German consumers shopping via Instagram compared to a quarter (25%) via Facebook. Social commerceThe influence of social commerce is of increasing importance for German retailers as consumers become more mobileGERMANY ECOMMERCE COUNTRY REPORT | SOCIAL COMMERCE33%67%YesNoShare of consumers that buy on social media sites (e.g. Facebook, Instagram, Snapchat)Source: RetailXRetailX 2022Note: Results include 697 16+ Germany respondents and are stratified by age and gender. Buying refers to actually clicking “Buy” on the social media website, not only browsing products on a social network and then buying from a retailer’s website. Survey conducted in May 2021.86%14%YesNoConsumers who bought something after seeing it on social media inGermany, 2021Source: TikTok for Business, WARC, Publicis. Accessed via StatistaRetailX 2022Note: Survey conducted in October 2021 to 18-45 years old Germany residents who use at least two social media platforms weekly. The source included users from the following social media platforms: TikTok, YouTube, Facebook, Instagram and Snapchat. Data current as of October 2021.95%75%46%FacebookInstagramTwitterSocial media presence of online stores in Germany, 2021Source: ecommerceDB, Statista. Accessed via StatistaRetailX 2022Note: The ecommerce market encompasses the sale of physical goods via a digital channel to a private end user (B2C). Incorporated in this definition are purchases via desktop computerand via mobile devices such as smartphones and tablets. Data current as of September 2021.36%25%16%10%6%4%4%InstagramFacebookYouTubeSnapchatTwitterPinterestOthersSocial media platforms that German consumers shop on, 2021Source: RetailXRetailX 2022Note: Results include 261 16+ Germany respondents and are stratified by age and gender. Respondents could select multiple answers. Survey conducted in May 2021.
22 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Peak trading in Germany in 2021 was again impacted by Covid-19. In 2021 stores stayed open but were subject to the 2G rule, which meant that only the vaccinated and recovered were allowed instore. We can see that between 2019 and 2021 the preference to buy online has almost doubled while the preference to buy Christmas presents at local retailers has dropped over the two years, most likely due to the Covid-19 risk. At the beginning of November[1] German retailers said they expected Christmas sales to rise 2% to 111.7 billion euros. Online sales were expected to grow by 17.3% to 23.1 billion euros. But within a week or two the continuing surge of infections had meant the introduction of the 2G rule and a survey by the HDE[3] found that only 20% of 350 companies were satisfied with their Christmas sales to date. [1] https://www.reuters.com/business/retail-consumer/german-retailers-optimistic-about-christmas-sales-2021-11-08/[2] https://www.msn.com/en-gb/money/other/german-retail-sales-rebound-in-november/ar-AASpmpG[3] https://www.reuters.com/world/europe/german-retail-suffers-start-crucial-christmas-season-2021-11-28/Peak tradingChristmas 2021 started well but with infections rising Covid-19 impacted business yet againGERMANY ECOMMERCE COUNTRY REPORT | PEAK TRADING17%28%30%29%30%35%54%42%35%Preferably onlineNo preferencePreferably at local retailers2019202020210102030405060708090100Consumer preference to buy Christmas presents online or at local retailersSource: EY. Accessed via StatistaRetailX 2022Note: Survey conducted between 2019 and 2021. Survey includes telephone interviews to 1000 18+ years old Germany residents. The number of respondents may vary each year. Datacurrent as of November 2021.121315202320172018201920202021 (f)10%12%14%16%18%20%22%24%Online revenue from Christmas season sales in Germany, 2017-2021 (in billion euros)Source: HDE, IfH Köln. Accessed via StatistaRetailX 2022Note: Results include revenue generated from online retail sales during the Christmas trading period. Results exclude sales tax. Data current as of November 2021.96989188929066747680495611758111221Specialty shops/storesDepartment stores/shopping centresOnline/internetSupermarkets/discount stores201720182019202020210%20%40%60%80%100%120%140%Anticipated spending on Christmas gifts in Germany, by retail saleschannel, 2017-2021 (in euros)Source: EY. Accessed via StatistaRetailX 2022Note: Survey conducted between 2017 and 2021. Survey includes telephone interviews to 1000 18+ years old Germany residents. The number of respondents may vary each year. Datacurrent as of November 2021.838524-hour serviceAvoiding the busy city centreA wider selectionProtection of healthMore pricing transparencyLower pricesBetter return policies/optionsAdvantages that German consumers see when doing Christmas shopping onlineSource: EY. Accessed via StatistaRetailX 2022Note: Survey conducted during November 2021. Survey includes telephone interviews to 1500 18+ years old Germany residents who prefer online shopping. Multiple answers were possible. Data current as of November 2021.66%57%55%39%34%33%28%
23 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Germany continues to take the threat of Covid-19 seriously. At the time of writing (April), health minister Karl Lauterbach said he would not yet end mandatory isolation[1] for those who caught the virus. He had previously suggested switching to a voluntary five-day period of isolation, similar to the UK, but his U-turn came as he revealed that more than 300 people a day were still dying from the virus. More than 22 million total cases have been reported in Germany since the start of the pandemic, with 130,708 deaths by April 2022. Yet vaccine take-up remains behind target and the country may have to dump 3 million doses of the vaccine[2]that expire in June. Only around 76.6% of the population has received at least one dose of the vaccine, compared to more than 80% in other Western European countries such as France, Italy and Spain. Covid-19Germany has worked hard to combat the threat of Covid-19 yet vaccine take-up is low compared to other countriesGERMANY ECOMMERCE COUNTRY REPORT | COVID-19 Note: Results include 697 16+ Germany respondents and are stratified by age and gender. Survey conducted in May 2021.7%11%7%11%13%13%8%9%7%11%16%26%38%34%37%17%8%7%7%7%47%47%39%41%33%I reduced itI didn’t buy these goods online before the pandemic started, but I do nowIncreasedI have completely stoppedHas not changedBuying groceries onlineBuying electrical goods onlineBuying clothes onlineBuying gifts onlineOrder takeaway food0102030405060708090100How COVID-19 has affected online shopping in GermanyRetailX 2022Source: RetailXNote: Results include 697 16+ Germany respondents and are stratified by age and gender. Survey conducted in May 2021.8%4%4%5%7%10%13%14%12%10%20%9%12%11%17%21%21%25%23%25%41%53%46%48%40%I did not purchase these goods online during the pandemic, but will afterwardsWill riseI will stop completelyI will reduceWill not changeBuying groceries onlineBuying electrical goods onlineBuying clothes onlineBuying gifts onlineOrder takeaway food0102030405060708090100How lifting of COVID-19 restrictions is expected to affect online shopping in GermanyRetailX 2022Source: RetailX
24 | RetailX | May 2022Meanwhile, a Covid-19 vaccine mandate[3] requiring citizens aged 60 and over to be vaccinated from October has been voted against. The plans had been led by German Chancellor Olaf Scholz who had also previously proposed mandatory vaccinations for anyone over 18 years of age. In late November Germany launched a strict 2G rule which meant that only the vaccinated or recovered could enter non-essential retail stores. The Germany Retail Association (HDE) estimated it could mean a 5.5 billion Euros[4] drop in sales over the Christmas period.[1] https://uk.news.yahoo.com/germany-drops-plan-relax-covid-054527585.html[2] https://www.reuters.com/world/europe/some-3-mln-covid-vaccine-doses-expire-germany-by-end-june-2022-04-11/[3] https://www.reuters.com/world/europe/german-parliament-rejects-mandatory-vaccines-blow-scholz-2022-04-07/[4] https://gounna.com/2021/12/06/2g-rule-in-retail-fears-about-the-christmas-business/Note: Results include 697 16+ Germany respondents and are stratified by age and gender. Survey conducted in May 2021.8%20%48%18%4%1%Will rise sharplySomewhat will go upWill stay the sameWill sink a littleWill go down sharplyWill only shopin stores againPredicted online shopping levels post-pandemiccompared to during the pandemicRetailX 2022Source: RetailX5%19%41%21%9%5%1%More thanonce a dayMore thanonce a weekMore thanonce a monthMore than onceevery three monthsMore thanonce a yearLess thanonce a yearNeverHow often consumers will shop online once all pandemic health measures have been lifted (i.e. no restrictions are in place)RetailX 2022Source: RetailXNote: Results include 697 16+ Germany respondents and are stratified by age and gender. GERMANY ECOMMERCE COUNTRY REPORT | COVID-19 Possibility to shop at any timeLess time consumingBetter pricesBetter product selectionAll products are in one placeBetter information and comparisonsOtherWhich of the following are the main reasons why you will continue to shop online after the pandemic?Source: RetailXRetailX 2022Note: Results include 697 16+ Germany respondents and are stratified by age and gender. Respondents could select multiple answers. Survey conducted in May 202121%19%18%18%13%10%1%
25 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net In our country reports when we look at the Largest 100 retailers in a country it offers a useful insight into the demands and habits of consumers in that market. The Largest 100 represents the retailers that command the biggest share of the ecommerce market by consumer web traffic and provides useful guidance for other retailers and brands that are operating in the market already or looking to exploit opportunities. Germany’s shopping behaviour is dominated by marketplaces such as Amazon. German consumers love a marketplace, most likely thanks to their associated fondness for value since marketplaces like Amazon offer both range and value.It’s no surprise then that our RetailX researchers, who worked with SimiliarWeb to examine customer visits to the Largest 100 websites in the German market, found that multi-sector retail dominates with an 88% share of web traffic. The Largest 100What does RetailX data say about the largest 100 online retailers in Germany? GERMANY ECOMMERCE COUNTRY REPORT | THE LARGEST 100Note: The number of retailers for each category is shown in parentheses. A retailer can fall into multiple categories. Data based on 99.0% of the Largest 100.88.0%3.2%2.6%1.7%0.9%0.6%0.5%Multi-sector (22)Fashion (20)Consumer electronics (28)Homeware (10)DIY & trade (5)Sports & leisure (7)Supermarket (6)Web traffic by sectorPercentage of web visits to the Germany Largest 100 retailers by German consumers, by sectorRetailX 2022Source: RetailX, drawing on data from SimilarWebNote: There are 55 Germany-based retailers among the Germany Largest 100. The Largest 100 are selected based on German consumer web traffic. Data based on 99.0% of the Largest 10047.7%5.9%4.4%4.4%4.3%3.1%2.9%2.7%2.7%2.6%18.7%GermanyPolandFranceThe NetherlandsSpainRussiaItalyUKUSAAustriaOthersCountries from which shoppers visit the Germany-based Largest 100RetailX 2022Source: RetailX, drawing on data from SimilarWeb
26 | RetailX | May 2022Amazon is doing everything to hold on to its customers in Germany. Expansion continues apace with the company creating 6,000 new jobs in Germany this year alone. By the end of 2022, Amazon will employ around 36,000 staff at more than 100 locations in the country. The company invested more than 36.5 billion euros between 2010 and 2020 and more than 9 billion euros in 2020 alone.But the marketplace is important for German sellers too. More than 40,000 SMEs sell on Amazon in Germany, achieving an export turnover of 3.75 billion euros in 2020 alone. We see that Germany dominates the countries from which shoppers visited the Germany-based Largest 100. There are 55 Germany-based retailers in the Germany Largest 100. Just under half (47%) of the traffic to the Largest 100 comes from Germany, followed by Poland, France, The Netherlands and Spain. This is little surprise when you consider some of the retail giants that have been founded in Germany, from the likes of Zalando to Lidl and Aldi. More than half (55%) of Germany’s Largest 100 retailers have a base in Germany, followed by 16% for the US and showing the importance of having a localised approach in the market. GERMANY ECOMMERCE COUNTRY REPORT | THE LARGEST 100Note: Retailers in the Germany’s 100 largest retailers are selected based on German consumer web traffic. Data based on 99.0% of the Largest 100.69.0%23.1%2.4%2.0%0.5%0.5%0.4%0.4%0.3%0.3%1.2%USAGermanyThe NetherlandsChinaSouth KoreaFranceAustriaSwedenSwitzerlandUKOthersGerman web traffic to the Germany Largest 100 retailers, by country of retailer headquartersRetailX 2022Source: RetailX, drawing on data from SimilarWeb55%16%7%6%2%2%12%GermanyUSAChinaThe NetherlandsFranceUKOthersCountries where the Germany Largest 100 retailers are basedSource: RetailXRetailX 2022Note: Retailers in the Germany Largest 100 are selected based on Germany consumer web traffic, irrespective of where they are headquartered. Data based on 99% of the Largest 100.However, when it comes to the amount of web traffic to the Germany Largest 100 by their headquarter country, it’s the US that leads with a share of 69% of the total traffic. This is thanks to the dominance of marketplaces such as Amazon and eBay which, although they run localised sites in the country itself, are actually headquartered in the US. This is followed by just under a quarter (23%) in Germany.
27 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net From the opening of its first branch in Ludwigshafen-Mundenheim in 1973, Lidl is now one of the leading companies in the German food sector and in Europe. In Germany the company operates more than 3,200 stores from 39 logistics centres, employing more than 91,000 staff. Internationally it has around 11,550 stores and 200 distribution centres in 32 countries employing 341,000 staff. It is part of the Schwarz Group, which also operates the hypermarket chain Kaufland. The discounter focuses on the essential, with a Lidl pledge of quality and freshness and the tagline ‘Big on quality, Lidl on price’. Ranges include own private label and well-known branded goods in both food and non-food. The company was initially launched as a fruit wholesaler but was developed by Josef Schwarz into a general food wholesaler from the 1930s onwards. In 1973 the first Lidl discount store opened. Within four years it had expanded to more than 30 stores. International expansion included the UK in 1994 and the US in 2015. Its online store focuses on Lidl’s weekly specials, with offers around technology, multimedia, fashion and more. Shoppers are still waiting for the company to sell groceries online. Lidl has tested a click and collect partnership in Polandand also partnered with third-party delivery firms in Spain and Ireland. In Ireland the retailer offers delivery in as little as an hour through a partnership with mobile app Buymie. In the US Lidl partners with Shipt for grocery home delivery. LIDLCompany: LidlHeadquartered: Baden-Württemberg, GermanyFounded: 1973 (first store)Online:www.lidl.deDiscounter giantLidl continues to hold off online groceryLidl’s online offering features technology, multimedia and fashion, but not foodwww.lidl.deGERMANY ECOMMERCE COUNTRY REPORT | COMPANY SPOTLIGHT
28 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Saturn was first founded in 1961. Under the ownership of Kaufhof Warenhaus AG it opened new stores in 1985, beginning with Frankfurt. However, in 1990 the stores were acquired by MediaMarkt and today the company operates as an independent sales brand under the umbrella of the MediaMarktSaturn Retail Group – Europe’s number one in the electronics retail sector.Today Saturn has around 135 stores in Germany, including what it claims is the world’s largest electronics store in Hamburg’s Mönckebergstraße, a 17,000 sq m six floor store. Nearly a third (45) of its stores are in North Rhine-Westphalia, Germany. Saturn sells around 45,000 electrical items on average, including consumer electronics, household appliances and telecommunications in stores of between 2,000 sq m and 10,000 sq m in size. Unusually, each Saturn store is registered as an independent company at its respective location. The company says its success is based on providing sound advice to customers, showcasing the latest innovations instore and online via www.saturn.de since 2011.Finance options such as warranty and insurance are also available. In 2018 the company launched the option to lease products via its online store, extending the service in 2019 to its stores. In April 2022[1] Saturn was awarded fourth place in the Google Omnichannel Excellence Study. First place went to sister brand MediaMarkt.[1] https://www.mediamarktsaturn.com/en/press/press-releases/mediamarkt-awarded-outstanding-omnichannel-shopping-experienceSaturnCompany: SaturnHeadquartered: GermanyFounded: 1961Online: www.saturn.deRuns rings around electricalsSister brand to MediaMarkt, Saturn aims to showcase innovation and provide advice instore and onlineSaturn turns technology into an experience for its customerswww.saturn.deGERMANY ECOMMERCE COUNTRY REPORT | COMPANY SPOTLIGHT
29 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Shop Apotheke was born from a traditional pharmacy store in Cologne in Germany that had bigger ambitions to break new ground, be open for customers outside of normal opening hours and offer more service and choice, as well as bringing greater value to the market. Its online store opened in 2001.The offer initially consisted of over-the-counter products such as beauty and add personal care, as well as dietary supplements. By 2004 the company had been granted permission to sell pharmacy and prescription drugs online, making it one of the first online pharmacies to stock such a complete offer, as well as abolishing the price fixing of over-the-counter medicines. Today Shop Apotheke claims to be one of the top online pharmacies. It stocks more than 100,000 original products, has advice provided by a team of more than 100 pharmacists and pharmaceutical employees and has around 5.5 million customers who typically save around 50% on traditional pharmacy prices. It ships more than 30,000 parcels a day sent from a logistics centre in the Netherlands that is the size of five football pitches and has the capability to ship 45,000 parcels in 16 hours. Shop Apotheke began its European expansion in 2012, initially launching in Austria. It has a presence in various European markets and listed on the Frankfurt Stock Exchange in 2016. Since 2019 it has offered a same day delivery service in all metropolitan regions of Germany for those who need their medication urgently. Shop ApothekeCompany: Shop ApothekeHeadquartered: CologneFounded: 2001Online: www.shop-apotheke.deReinventing the rulesA pioneering online pharmacyShop Apotheke brings value to the online pharmacy sectorwww.shop-apotheke.comGERMANY ECOMMERCE COUNTRY REPORT | COMPANY SPOTLIGHT
30 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net Since its formation in Berlin in 2008, Zalando has today established itself as a leading European online platformfor fashion and lifestyle. It was formed after university friends Robert Gentz and David Schneider pushed ahead with their plans to sell shoes online – an idea that had been mocked in feedback – which launched a couple of days before the start of the financial crash. The pair worked from a shared apartment in Berlin before convincing another university friend Rubin Ritter to join them. The trio put in the legwork, literally. Their mobile phone numbers were customer hotlines and their courier network involved them taking the packages to the post office themselves. The business grew quickly, beginning international expansion in Austria and Switzerland and into the Netherlands, its first non-German speaking market in 2010. Today Zalando sells more than 5,800 brands from its online fashion store as well as selling through Connected Retail, Zalando’s solution that allows it to sell through more than 7,000 bricks-and-mortar stores. Growth has been rapid for the retailer, with Zalando adding more than 10 million new customers in 2021 alone, with 48 million active customers in total. The company also operates a network of 13 Zalando Outlet stores, the most recent of which opened in Berlin City West in March, ten years after the first. Zalando is active in 23 European markets with close localisation offered in each country. The retailer offers 20 local payment options, collaborates closely with regional logistics service providers across a network of 12 fulfilment centres in Europe (with four more due to open by 2023) and covers 19 languages. ZalandoCompany: ZalandoHeadquartered: GermanyFounded: 2008Online:www.zalando.deFrom start-up to powerhouseZalando continues to forge ahead, adding 10 million new customers in 2021 aloneZalando is currently active in 23 markets across Europewww.zalando.deGERMANY ECOMMERCE COUNTRY REPORT | COMPANY SPOTLIGHT
31 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net FiguresPopulation structure4Population growth4GDP per capita (USD)4Ecommerce users in Germany, 2017-2025 (in millions)5Inflation rate in Germany, by month, 2020-20225Indices12Most used online payment brands in Germany, 202113Payment methods most offered by the top 500German online stores, 202113Where consumers would like to use mobile payments inGermany, 202114Most used mobile payments brands in Germany, 202114Preferred online shopping delivery methods in Germany, 202115Most used shipping service providers by the top 500 German online stores, 202115Ecommerce consumer expectations of delivery time in Germany, 202115Importance of delivery related characteristics whenordering products online in Germany, 202115Consumer willingness to use rapid 10 minute grocerydelivery services in Germany 202116Delivery and returns services that German consumerswould like to use, 202116Options that German consumers would consider to maketheir delivery more sustainable, 202117What would help to reduce consumer propensityto returns items, 202117The premium as a percentage of product cost that German consumers are willing to pay for carbon neutral or green delivery, 202117Figures & sourcesOnline shopping returns in Germany, by category, 202117Interest of online shoppers in Germany, by category, 202118Purchases of online shoppers in Germany, by category, 202118Ecommerce net sales of the top 500 online stores in Germany, by category, 2021 (in billion USD)18Attitudes towards online shopping in Germany, 202119Devices used for online shopping in Germany, 2021 in the past 12 months19Drivers of online purchase in Germany, 202119Attitudes towards shopping in Germany, 202120Willingness to pay more for sustainable deliveries in Germany, 202120Top 5 perceived challenges for the country, 202120Share of consumers that buy on social media sites (e.g. Facebook, Instagram, Snapchat)21Consumers who bought something after seeing iton social media in Germany, 202121Social media presence of online stores in Germany, 202121Social media platforms that German consumers shop on, 202121Consumers preference to buy Christmas presentsonline or at local retailers22Online revenue from Christmas season sales in Germany,2017-2021 (in billion euros)22Anticipated spending on Christmas gifts in Germany,by retail sales channel, 2017-2021 (in euros)22Advantages that German consumers see when doingChristmas shopping online22How COVID-19 has affected online shopping in Germany23How lifting of COVID-19 restrictions is expected to affectonline shopping in Germany23Predicted online shopping levels post-pandemic compared to during the pandemic24Which of the following are the main reasons why you will continue to shop online after the pandemic?24How often consumers will shop online once all pandemic health measures have been lifted (i.e. no restrictions are in place)24Web traffic by sector25Countries from which shoppers visit the Germany-based Largest 10025German web traffic to the Germany Largest 100 retailers, by country of retailer headquarters26Countries where the Germany Largest 100 retailers are based26Sources–Population structure–Population growth–GDP per capita (USD)–Consumer willingness to use rapid 10 minute grocery delivery services in Germany 2021–Options that German consumers would consider to make their delivery more sustainable, 2021–What would help to reduce consumer propensity to returns items, 2021–The premium as a percentage of product cost that German consumers are willing to pay for carbon neutral or green delivery, 2021–Share of consumers that buy on social media sites (e.g. Facebook, Instagram, Snapchat)–Social media platforms that German consumers shop on, 2021–How COVID-19 has affected online shopping in Germany–How lifting of COVID-19 restrictions is expected to affect online shopping in Germany–Predicted online shopping levels post-pandemic compared to during the pandemic–Which of the following are the main reasons why you will continue to shop online after the pandemic?–How often consumers will shop online once all pandemic health measures have been lifted (i.e. no restrictions are in place)–Web traffic by sector–Countries from which shoppers visit the Germany-based Largest 100–German web traffic to the Germany Largest 100 retailers, by country of retailer headquarters–Countries where the Germany Largest 100 retailers are basedRetailX(2022)GERMANY ECOMMERCE COUNTRY REPORT | FIGURES
32 | RetailX | May 2022– Top 5 perceived challenges for the country, 2021 – page 10– Attitudes towards shopping in Germany, 2021- page 21– Attitudes towards online shopping in Germany, 2021- page 22– Drivers of online purchase in Germany, 2021- page 26– Most used online payment brands in Germany, 2021- page 78– Where consumers would like to use mobile payments in Germany, 2021- page 79– Most used mobile payments brands in Germany, 2021- page 80Statista (2021). The German consumer. Data used with thanks to Statista. The full report can be downloaded at: https://www.statista.com/study/108103/the-german-consumer/– Interest of online shoppers in Germany, by category, 2021 – page 12– Delivery and returns services that German consumers would like to use, 2021 – page 15– Purchases of online shoppers in Germany, by category, 2021 – page 18– Devices used for online shopping in Germany, 2021 in the past 12 months – page 19– Online shopping returns in Germany, by category, 2021 – page 21– Ecommerce net sales of the top 500 online stores in Germany, by category, 2021 (in billion USD) – page 26– Payment methods most offered by the top 500 German online stores, 2021- page 31– Most used shipping service providers by the top 500 German online – stores, 2021 – page 33ecommerceDB (2021). eCommerce in Germany 2021. Data used with thanks to Statista. The full report can be downloaded at: https://www.statista.com/study/69513/ecommerce-in-germany/– Ecommerce consumer expectations of delivery time in Germany, 2021 – page 22 Preferred online shopping delivery methods in Germany, 2021 – page 23– Importance of delivery related characteristics when ordering products online in Germany, 2021 – page 24– Willingness to pay more for sustainable deliveries in Germany, 2021 – page 25PostNord (2021). E-commerce in Europe. Data used with thanks to PostNord. The full report can be downloaded at: https://www.postnord.se/en/business-solutions/e-commerce/e-commerce-reports/e-commerce-in-europe– Ecommerce users in Germany, 2017-2025 (in millions) https://www.statista.com/forecasts/1288106/e-commerce-users-in-select-european-countries-by-country– Inflation rate in Germany, by month, 2020-2022 https://www.destatis.de/EN/Press/2022/04/PE22_160_611.html;jsessionid=7F3865E87A9AC9F065798C66387F58AB.live732– Consumers who bought something after seeing it on social media in Germany, 2021 https://www.statista.com/statistics/1275520/purchases-due-to-social-media-promoted-content-worldwide/– Social media presence of online stores in Germany, 2021https://www.statista.com/forecasts/1218347/ecomdb-twitter-international-com https://www.statista.com/forecasts/1218348/ecomdb-facebook-germany-com https://www.statista.com/forecasts/1218350/ecomdb-instagram-international-com– Consumers preference to buy Christmas presents online or at local retailershttps://www.statista.com/statistics/1069252/preference-for-online-christmas-shopping-in-germany/ – Online revenue from Christmas season sales in Germany, 2017-2021 (in billion euros) https://www.statista.com/statistics/1064594/online-retail-revenue-from-christmas-season-sales-germany/– Anticipated spending on Christmas gifts in Germany, by retail sales channel, 2017-2021 (in euros)https://www.statista.com/statistics/1064535/anticipated-spending-on-christmas-gifts-by-retail-sales-channel-in-germany/– Advantages that German consumers see when doing Christmas shopping online https://www.statista.com/statistics/1069374/advantages-of-christmas-shopping-online-germany/Sources for indices– Logistics Performance Index (2018) https://lpi.worldbank.org/international/scorecard/radar/254/C/FRA/2018#chartarea– Ease of Doing Business Index (2020)https://www.doingbusiness.org/en/rankings– E-Government Development Index (2020) https://publicadministration.un.org/egovkb/en-us/Data/Country-Information/id/61-France– Integrated Index for Postal Development (2IPD) (2021) https://www.upu.int/UPU/media/upu/publications/Postal-development-report-2021.pdf– Internet Inclusive Index (2021) https://theinclusiveinternet.eiu.com/explore/countries/performance– Availability https://theinclusiveinternet.eiu.com/explore/countries/performance?category=availability – Affordability https://theinclusiveinternet.eiu.com/explore/countries/performance?category=affordability – Relevance https://theinclusiveinternet.eiu.com/explore/countries/performance?category=relevance– Readiness https://theinclusiveinternet.eiu.com/explore/countries/performance?category=readiness
33 | RetailX | May 2022© 2022 retailx.net, distributed by InternetRetailing.net This report may not be stored in a retrieval system, distributed or sold in whole or in part without the publisher’s express permission. Fair quotation is encouraged, with a link to the report’s URL on RetailX.net. All charts and figures marked with RetailX 2021 are provided under the Attribution-NoDerivatives 4.0 International(CC BY-ND 4.0) license (https:creativecommons.org/licenses/ by-nd/4.0/). You are welcome to use these in full with a link to this report, retaining the copyright notice RetailX 2021This report is based upon our reasonable efforts to compile and analyse the best sources available to us at any given time. Opinions reflect judgment at the time and are subject to change. RetailX123 Cannon Street, London, EC4N 5AUTel: +44 (0) 20 7062 2525 Printed in Great Britain. Global Retail Research RV Van Heuven Goedhartiaan 13D1181LE Amstelveen The Netherlands We hope that you have found our research and analysis to be of interest and commercial value. We would be very pleased to hear from you with questions, suggestions or comments, and in particular we would like to hear about any areas you think we should include in the 2023 report. Please get in touch via: research@retailx.netConclusionRESEARCH: Researcher Anna Segarra FasFor questions about our research and to send feedback, please email Anna via: research@retailx.netHead of Research Martin ShawCEO Ian JindalEDITORIAL: Managing Editor Liz MorrellProduction Editor Gary TippDESIGN: Art Editor Daniel TeroMARKETING: Marketing and Circulation Addison Southam marketing@retailx.netSALES: Commercial Director Andy James andy@retailx.netGroup Creative Solutions Director Marvin Roberts marvin@retailx.netWe update the region reports every year and more regularly at www.retailx.net. Subscribe to get updates and access to additional charts: www.retailx.net/my-accountThe Ecommerce Country and region Reports are published by Global Retail Research BV, a subsidiary of RetailX, and distributed to a variety of media partners. To become a distribution partner, please contact marketing@retailx.net© RetailX Limited, 2022.GERMANY ECOMMERCE COUNTRY REPORT | CONCLUSION
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