How Online Shopping in Germany is driving the e-commerce logistics spend in next 5 years?


Germany E-Commerce Logistics industry is a developed market driven by the tailwind spend of internet users online. The e-commerce industry sustained growth is indicating how the logistics infrastructure and business model in Germany is evolving. Ingrown domestic demand is leading to higher courier and parcel shipments in country while neighbouring countries orders from Netherlands, Poland and Austria, etc is driving the international e-commerce shipments.
At Ken Research, we’ve been closely monitoring the country’s e-commerce and last mile logistics landscape, and we see areas that are growing well and need improvement to drive this market multi-fold. Read on to learn the key insights of our recent report on what the future of e-commerce logistics spend has in store for Germany in next 5 years.

1. Germany is the 4th Largest Economy in the World; the High Spending Power of the Population also makes it a Strong Market for E-commerce businesses

Germany is the 4th Largest Economy in the World; the High Spending Power of the Population makes it a Strong Market for E-Commerce businesses.

Growth in E-Commerce: From EUR 66.3 in 2017 to EUR 123.1 Mn in 2021 has aided the growth of E-commerce logistics industry

The German population is risk-averse; prefers outcomes where there is very low risks involved. This makes it difficult for new companies to establish a foothold in the market.

Majority of the population prefers the local language and there is a demand for websites and online stores to be in German Language.

Germany is a price-focused market, but the demand for quality and life-style enhancing products is increasing providing a platform for e-commerce to grow.

The proportion of German consumers looking to act in an environmentally friendly manner, providing growth opportunities for e-commerce logistic companies to help them with it.

1.1. The Internet User Penetration in Germany is 88.2% in 2021, with 78.8 Mn Active Internet Users; the Internet User Penetration is expected to reach 93.8% by the end of 2027.

The Internet User Penetration in Germany is expected to reach 93.8% by the end of 20271. The number of social media users in Germany increased by 13% between 2020 to 20212.

Internet User Penetration in Germany (2018-2021)1


Smartphone Users in Germany In Mn (2018-2021)1

Source: Industry Articles, Industry Report & Ken Research Analysis 1. Statista | 2. DataReportal

2. Germany E-Commerce Market Generated a GMV of € 130.1 Bn in 2021 owing to Rise in Social Media Penetration Rate and Convenience of Home Delivery

Germany E-Commerce Market Sizing; GMV, Shipments and Order Value, 2021

E-commerce Retail GMV, 2017-2021


Germany E-Commerce Market Average Order Value, 2017 and 2021


Germany E-Commerce Market Shipments, 2017-2021

Growth Drivers
  • One of the major reason for consumers to shop online is due to the convenience of home delivery.
  • 24/7 availability of the products is also one of the reason for the growth of e-commerce retail sales.
  • The increase in smartphone and social media penetration rate along with social media platforms such as Instagram, Facebook and YouTube is also a major driver for growth.

3. The Top Product categories in the Germany E-Commerce Market Consists of Fashion, Electronics, Furniture and Toys, Hobby and DIY products.

Germany E-Commerce Market Segmentation; Major Product Category and Return Rate, 2021.

Major Product Segments by Revenue, 2021


Major Product Return Rate, 2021


4. The German Population is very value conscious, demanding and Aware; Conducts Proper Research before Purchasing, heavily rely on customer reviews and purchase from different sellers for value purchase.

Consumer Online Buying Preferences

Online Buying Preferences

Research before Purchasing

The German population is very demanding and prefers to know everything about a product before clicking the buy button.
Around 56%1of the German population researches before purchasing online.

Inclination towards Invoice Payment

Due to rising concerns regarding cyber fraud, German population usually prefers invoice. As per a survey 81%2 of e-shoppers prefer it,2021.

Attitude While Purchasing Online, 20211


Inclination towards Green Goods

“Reduce, reuse, and recycle” is trending in Germany these days. The German population consists of responsible buyers who want to give back to the environment.

Delivery Preferences

Germans usually prefer express deliveries. The higher expectations are due to the well placed logistics network in the region.

Source: Industry Articles, Industry Report & Ken Research Analysis 1. Statista | 2. boostcommerce

5. High Numbers of Orders are Placed from November to January on the account of Cyber Monday, Singles Day, Holiday Season and Post Christmas Sales

Seasonal Demand for Online Shopping in Germany

  • Post Christmas Sales (January)

    • Traditional Post Christmas Sale in Germany during the Month of January produces the third biggest sales peak1.
    • Customers are attracted towards the attractive Post Christmas Discounts and snap up bargains.
  • Valentine’s Day (February)

    • Valentine’s Day has become one of the biggest opportunities of the year for digital retailers, with queries like ‘same day delivery’ and ‘romantic gifts’ showing massive growth.
    • Types of Products: Gift and greetings, florists, fashion and apparel, as well as personalization services.
  • Holiday Season (Late November to Early January)

    • Singles day and Cyber Monday season i.e., during November is considered as peak season for German customers.
    • As per a survey2, Germans spend at least 28% of their total holiday budget on gifts resulting in highest volume of sale during November and December.

6. The Future Trends that are Expected to Contribute to the Future E-Commerce Market in Germany are Creative Advertising, Omnichannel Selling and Supply Chain Optimization.

Future Trends and Growth Drivers of Germany E-Commerce Industry

Growth Drivers and Trends of Future E-Commerce Industry In Germany

Creative Advertising

Advertising on Social Media is an effective way for online business to attract customers. Creative advertising on the social media platform can be considered a trend for the future market as well.

Omnichannel Selling

Omnichannel Selling helps businesses to deliver seamless services to its customers. Various market players like Amazon has started developing tools like Amazon Pinpoint1 for better customer services.

Supply Chain Optimization

The E-Commerce companies are looking forward to outsource their order management and fulfilment to 3pl companies to optimize their supply chain process.

Technology Adoption

Adoption of already existing technology during Covid has been a growth factor in the E-commerce Industry and is expected to contribute to the growth in future market as well.

Future Scenario of E-Commerce Market in Germany

It is expected that the online population will increase from 62.4 Mn to 68.4 Mn in 20252; the e-commerce retail will grow with it.

It is also expected that the sale of “Do it Yourself ” products will increase and add to the overall market growth by 20252.

The growth is likely to be driven by retailers improving their online site experience and provide mode convenient way of shopping by increasing focus on mobile websites.

Germany is known for its high return rate which adds to the carbon footprint. This is highly unlikely to change in the future; however, the companies are focusing more on making deliveries environment friendly.

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