Market Dynamics
Germany is the largest economy within the European Union and as such, it has a huge potential when looking at the E-commerce market space. The E-commerce market in Germany can be segmented into B2C (Business to Consumer), B2B (Business to Business) and C2C (Consumer to Consumer). In 2018, the total sales within the Germany E-commerce market amounted to €77.3 billion which is expected to grow by an annual growth rate of 8.7% until 2032. It is expected that the E-commerce sector will continue to grow in the German market due to the many technological advances in the mobile and internet-based technologies. Almost all types of retail items can be found in the E-commerce market which are making it easier and more convenient for consumers to purchase goods and services. The rapid growth in E-commerce is also enabled due to the increasing number of payment service providers which provides faster and more secure transactions. It is estimated that mobile commerce will account for 40% of the total online retail sales in Germany by 2032. Furthermore, the German E-commerce market has great potential due to the increasing number of internet users.
Germany ranks fourth in the EU for internet usage, with 74.2% of individuals in the country using the internet on a regular basis. This provides the perfect platform for E-commerce and retail websites to not only target the local market, but also reach and engage with a global audience. In addition, the German governmental organisations are taking steps to improve the virtual shopping experience in the country. The Digitalization Strategy introduced in 2016 aims to reduce the bureaucracy by introducing e-governance and online public services. By improving the internet infrastructure and promoting internet usage, the virtual shopping experience is also enhanced. The German digitalization strategy is also expected to create 25,000 new jobs in the IT and digital technology sectors by 2030. Overall, the Germany E-commerce market has great potential for growth and development. With the combination of technological advancements, increasing number of internet users and support from the German government, the Germany E-commerce market is expected to continue to expand and grow between 2018 and 2032.
