Cashback News – Aug 15: EU e-commerce growing fast – up 13.3%

Cashback News – Aug 15: EU e-commerce growing fast – up 13.3%

- in E-Commerce, Slider

EU e-commerceToday, we’re looking at e-commerce in the EU. According to Deloitte, 19 of the top 50 global e-commerce companies originate in the EU. That surprising strength and the pace of e-commerce growth in the region combine to make this market an interesting study in growth, innovations and trends. Internet Retailer reports overall EU e-commerce sales totaled $508.65 billion in 2015 up 13% from the previous year. According to Ecommerce News, European consumers spent more than $200.7 billion online in 2014 in the 12 largest European markets.

Ecommerce Europe estimates e-commerce will grow by an average of 12% through 2017. German fashion retailer Zalando reached record Q2 sales of more than $1.02 billionCyberport, a Dresden-based home electronics retailer recently 15 bricks-and-mortar stores, a trend as German retailers try to compete with Amazon. 2015 e-commerce revenue in France grew 14% although 2016 is forecast to be up “only” 10%.

In the Netherlands, e-commerce is forecast to reach $20.1 billion by the end of 2016, an increase of 12.1%. Dutch cross-border shoppers spent more than $572 million, up 30%. Ecommerce in Sweden grew by 19% to reach $5.98 billion in 2015. Finally, Amazon is investing $167.4 million in new warehouse and logistics center that will employ more than 1200 people.

European e-commerce strengthens to reach $508.65 billion

eu-referendumEuropean shoppers turned their gaze to e-commerce in 2015, as overall web sales reached €455.30 billion ($508.65 billion), up 13.3% from €401.85 billion ($449.14 billion), according to Ecommerce Europe. That compares with 3.3% overall growth in retail sales in 2015 in the 28 countries of the European Union, according to Eurostat, the EU’s statistics agency. Europe accounted for an estimated 22.6% of $2.251 trillion in global e-commerce in 2015. For perspective, European e-commerce topped online sales in the United States, where shoppers spent $341.73 billion in 2015, by the U.S. Commerce Department’s measurements.

Retailers ranked in Internet Retailer’s recently published 2016 edition of the Europe 500 grew web sales more than both Europe overall and the United States—by 16.8%—to €145.01 billion ($161.60 billion) from €124.16 billion ($138.36 billion) in 2014. The United Kingdom, Germany and France remain the big three in terms of online sales, and their growth is fed by a combination of consumers’ expanded use of mobile devices, more omnichannel services and an uptick in cross-border sales. Via

European consumers spent €179.7 billion ($207.6 million) online last year in twelve major European countries have spent a total of nearly €180 billion ($207.6 billion) while shopping online last year. This is €10 billion ($11.2 billion) more than in the previous year. Especially, ecommerce between countries – both within and outside Europe – is on the rise.

PostNord concludes this in its ‘E-Commerce in Europe‘ report. It surveyed over 11,000 consumers in Belgium, Denmark, Finland, France, Italy, the Netherlands, Norway, Poland, Spain, the United Kingdom, Sweden and Germany. The Nordic postal company found out that an increasing number of Europeans shop online regularly and spend on average more than they have before.

And on top of that, cross-border ecommerce is getting more popular. Compared to last year, nearly 11 million more Europeans shopped online from abroad at least once. This kind of shopping is most popular in the Nordics, where 70% of consumers did this. That’s more than the share of consumers in the United Kingdom (58%) and Germany (53%) who shopped at foreign ecommerce sites. Via

19 European companies in global top 50 of biggest e-tailers the 50 largest online retailers around the world, 19 are originated in Europe. The biggest European online retailer is Otto, followed by Tesco from the UK and Casino from France. These three players ended in the top 10 of the list compiled by Deloitte.

Deloitte made a list of the 250 largest retailers in the world and a list of the 50 biggest online retailers. It based this list on publicly available data for the fiscal year 2014 ended through June last year. As Deloitte puts it: “Ecommerce accounts for the majority, if not all, of the sales growth for many retailers today – especially mature, traditional retailers who, at best, are eking out low-single-digit gains in same store sales. And for a number of companies, online sales are helping to offset declining sales in the physical store base.”

More than half of the top 50 online retailers are based in the United States. The second most popular country of origin for top e-tailers is the UK, where nine ecommerce companies are based. Via

Ecommerce in Germany to data from Ecommerce Europe the online retail market in Germany is up for almost 50 billion euros. And thinks it’s expected to grow 12 percent yearly through 2017, faster than any other Western European country. Revenue from German ecommerce has grown with 44% in 2013 and ecommerce now account for 83% of all revenues made online. It’s expected ecommerce revenue will account for 53% of the total gross domestic product in Germany by 2017. The estimated share of online retail in Germany in total retail is 6,6% at the moment.

And according to a study from Deutsche Card Services, the east-west difference in German online retailing has vanished. In terms of purchasing activity nowadays there is virtually no disparity between the western and eastern parts of Germany any more. And data from the Centre for Retail Search shows us that online sales in Germany account for 8% of total retail sales.

Big online stores in Germany
Ecommerce in Germany seems all about two big players: American retailer Amazon and German-founded Otto. They own almost half of the online market, so it’s pretty clear that it’s quite hard for smaller merchants to make a difference. The 10 largest online retailers in Germany, by turnover in 2013, are: Amazon (€5,787 million), Otto (€1,180mn), Zalando (€702mn), (€499mn), Bonprix (€411mn), Cyberport (€404mn), Tchibo (€400mn), Conrad (€390mn), Alternate (€367mn) and H&M (€304mn). Via

Zalando: an “outstanding” first half of 2016 with revenue of $1.02 billion sales of German fashion retailer Zalando during the second quarter increased by 25% compared to the same period last year. Sales were worth €916.4 million ($1.02 billion) during these three months. Adjusted earnings before interest and taxes amounted to €80.9 million ($90.3 million).

Zalando said in a statement it had an “outstanding” first half of 2016 with strong growth and profitability. Due to investments in logistics and marketing, the online fashion giant saw its EBIT almost triple to €80.9 million, while revenue increased by 25%. The number of active customers grew to 18.8 million by the end of this quarter, with each customer making an average of 3.3 orders per year.

Zalando’s revenues keep on growing. During the second quarter of 2014 they were worth 546 million euros ($609.6 million), in 2015 they were worth €727 million ($811.5 million – an increase of 33%) and now the aforementioned €916 million ($1.02 billion). With a 25% increase this quarter, the revenue growth is now lower than it was one year ago. Via

German online retailers return to real stores for attract ‘omni-channel’ customers

German online retailersBERLIN — The history of modern retailing runs like this: Mom-and-pop shops fall prey to superstores that, in turn, get squeezed out by the international giants of online commerce. Germany, however, is writing a chapter that is injecting fresh life into main streets and shopping malls around the country.

Struggling to compete with e-commerce global behemoths such as Amazon, Germany’s online retailers are moving back to bricks-and-mortar in order to attract “omni-channel” clients — customers who want to be able to blend the benefits of online browsing with shopping in cool, real-world stores.

Take Helmar Hipp, CEO of Cyberport, a Dresden-based home electronics retailer that boasts an online catalog to rival that of any technology superstore. It recently opened 15 stores across Germany and Austria to offer the discerning customer a high-end shopping experience. Via

Growth of ecommerce in France is expected to decline in France increased by 14.3% last year, which is a nice recovery from the declining growth that took place in 2014. But for this year, the growth is expected to decline again, as a growth rate of 10% is forecasted. B2C ecommerce sales in France are expected to reach €71.4 billion ($79.7 billion) in 2016.

These are some of the most important findings from a report on ecommerce in France by the Ecommerce Foundation. It predicts the industry won’t grow as hard as it did last year. And the growth rate was already decline over the last few years, from 19.4% in 2012 to 11.2 percent in 2014. Last year however, the ecommerce industry grew by 14.3%. But for next year, a growth rate of 10% is forecasted, meaning ecommerce sales in France will increase from €64.9 billion ($72.5 billion) last year to €71.4 billion ($79.7 billion) in 2016.

Ecommerce in the Netherlands to reach €18bn ($20.1 billion) in 2016 Ecommerce sales in the Netherlands are expected to reach €18 billion ($20.1 billion) in 2016. The ecommerce industry was worth slightly more than €16 billion ($17.9 billion) last year, but according to the Ecommerce Foundation the online retail industry is expected to increase by 12.1% and thus reach €18.014 billion.

These are some of the figures the Ecommerce Foundation shared in its latest report about B2C Ecommerce in the Netherlands. The report gives insight in the Dutch online retail industry and how it performed in 2015. According to Ginio Thuij from market research company GfK, the Dutch ecommerce sector has shown some remarkable growth last year. “Online spending increased by 16.1% last year, which is remarkable as it has been less than 10% in the preceding years.”

Cross-border sales increased by 30%
This growth was mainly due to the fact the online spending on products increased by 22% compared to 2014. But cross-border sales also increased significantly, by more than 30%. And 23% of the Dutch bought at least one item at a foreign website last year. In total, there were 3.2 million Dutch cross-border shoppers, spending a total of €513 million ($572.8 million) abroad. Via

Ecommerce in Sweden increased by 19% to €5.36bn in 2015 in Sweden has increased by 19% to reach 50 billion kronor, or €5.36 billion ($5.98 billion), in 2015. Since the financial crisis, the growth of this industry hasn’t been as strong as it was last year. The strong purchasing power is the key driver for this growth.

In collaboration with Svensk Digital Handel and HUI Research, PostNord published its latest E-barometern, stating the strong growth in the ecommerce industry continued in 2015. Especially the DIY sector had a great year, while online sales of food took off. “It’s evident that we are now in a new phase in which digitization affects all industries”, says Carin Blom, ecommerce expert and PostNord’s retail analyst. Via

Amazon investing €150 million ($167.4 million) in Italy

Amazon invests in ItalyOnline retailer is set to announce on Friday investments worth at least €150 million ($167.4 million) in Italy, a bet on the government’s plan to go from laggard to leader in digital commerce, sources said.

The new investment will be used to build a major storage and logistics center outside Rome, its second in Italy, said one source close to the matter. The new center, due to open next year, will employ 1,200 people.

“There are wide margins of growth for small and medium businesses in Italy, which are still very much behind their European counterparts on e-commerce,” the source said. Via

EU e-commerce growth will continue strong

E-commerce in the EU is on track to continue its strong growth in 2016 and 27. Further moves to streamline e-commerce and reduce barriers further will enhance cross-border e-commerce growth as well. The EU will continue to see e-tailers open bricks-and-mortar stores as in the US and other markets. Several global players such as Amazon and Alibaba are investing in the EU in anticipation of future growth. With uncertainty around Brexit, the EU looks more appealing and it’s a wonder more US companies aren’t exploring the EU market more aggressively.

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