“Germans are used to buying online, whether on smartphone or desktop. However, they are concerned about security and pay attention to the sites they shop on.”
E-Commerce in GERMANY
OPPORTUNITIES FOR FOREIGN ONLINE SHOPS
In terms of quantity, Germany is the country with the greatest potential in Europe. Germany has 58 million Internet users, 41 million of whom are online shoppers, i.e. half of the German population. The German e-commerce market is worth around 63.9 billion euros.
Payment
Differing payment methods in an international e-commerce landscape
Alongside sales strategies, marketing channels and customer service, providing the appropriate range of payment options is one of the most vital ingredients for running a successful online retail business. Customers who can’t find their preferred method of payment at the checkout are more likely to abandon their basket.
In line with the increasing internationalisation of e-commerce, certain payment methods and providers are becoming standard European options – above all credit cards and PayPal. As can be seen in the study, within Europe there are still various country-specific options when it comes to online payment. For retailers, it is important to recognise these and develop the payment offering according to their market. For example, a UK retailer interested in reaching out to Polish consumers would do well to identify the country-specific e-payment alternatives to PayPal, and offer these as payment methods.
The analysis is based on the 50 online retailers with the highest national Alexa traffic rankings within the 100 most-clicked shops on idealo.co.uk, idealo.de, idealo.fr, idealo.it, idealo.es and idealo.pl
In Germany, credit cards are a much less common means of payment than in other countries. Online shoppers in Germany will expect you to offer payment methods that match their habits. For example, Germans appreciate being able to pay in installments at no charge.
The two payment methods they prefer are often money transfers by bank transfer or payment on account upon delivery of the order. Electronic payment methods are by far the most popular (90%), with credit cards dominating (90%). However, the variety of payment options offered in Germany is higher than in any other country.
A total of ten different payment methods - from credit transfer to mobile payments - were identified in the study on payment trends among the 50 leading e-merchants conducted by Idealo, Germany's leading price comparator. Among them are many "classic" payment methods such as cash on delivery, invoicing and payment 30 days after receipt or payment in advance.
Although little appreciated by German merchants, the principle of delivery before payment is strongly represented. Some merchants use third parties such as Klarna or BillSAFE and thus outsource the administrative burden and the risk of non-payment. Compared to other countries, cash on delivery is offered relatively frequently - a sign of the increasing combination of online and offline channels. A rarity in Germany, payment by direct debit is offered by some merchants in their shops.
LOGISTICS
Shipping services like DHL, Hermes and DPD are now being considered as innovators in E-Commerce by developing solutions based on the needs of the merchants or their customers. Thus, both sectors are driving each other. Consumers are pleased with shorter delivery times, varied delivery options and new services. They make online shopping more comfortable and promote growth for comparatively young E-Commerce areas such as furniture or food delivery. 70% of German online retailers rely on DHL, only 31% offer an optional express delivery. Same Day Delivery is still a niche product.
SECTORS
And what do Germans mostly buy on the net? Clothing, consumer electronics, books and media are the most sold items online.
MOBILE COMMERCE
In Germany, the most popular products for online shopping by mobile phone are clothes and shoes as well as books. Food, on the other hand, is rarely purchased.
Online shopping via smartphone is particularly popular in Germany in the 20-29 age group. 96% of respondents in this age group stated in a survey that they had already made purchases on their smartphone at some point in the past.
Despite the growing popularity of shopping via mobile devices, satisfaction with this form of online shopping is still lower than with purchases made via PCs or laptops.
As far as websites and user-friendliness are concerned, online shops have achieved a relatively low level of satisfaction among mobile shoppers.
OUTLOOK
The turnover of the e-commerce market will amount to approximately EUR 72 758 million in 2020. A market volume of EUR 97 253 million is expected to be reached in 2024, corresponding to an annual turnover growth of 7,5 % (CAGR 2020-2024). The most important market segment is the electronics and media market with a volume of EUR 20 116 million in 2020. The penetration rate is 82.5% in 2020 and is expected to reach 85.8% in 2024. The average income per user (ARPU) is currently EUR 1 052.28.
Source: T3N | Idealo | Bitcom | Presseportal | Idealo
