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.
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.
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.
Germany E-Commerce Market Sizing; GMV, Shipments and Order Value, 2021
Germany E-Commerce Market Segmentation; Major Product Category and Return Rate, 2021.
Consumer Online Buying Preferences
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.
Due to rising concerns regarding cyber fraud, German population usually prefers invoice. As per a survey 81%2 of e-shoppers prefer it,2021.
“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.
Germans usually prefer express deliveries. The higher expectations are due to the well placed logistics network in the region.
Future Trends and Growth Drivers of Germany E-Commerce Industry
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 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.
The E-Commerce companies are looking forward to outsource their order management and fulfilment to 3pl companies to optimize their supply chain process.
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.
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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.
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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.
