E-commerce in Europe 2019 - Digital marketplaces gain increasing influence - PostNord
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E-commerce in
Europe 2019
Digital
marketplaces
gain increasing
influence
Contents Foreword
Foreword: Climate and environment will be the next major issues in the industry......................................................................3
Overview: The European e-commerce market...................................................................................................................................................................... 4 “Climate and
Outlook: Eight trends spotted from five years of e-commerce.............................................................................................................................7
E-commerce in Europe: 45 million new consumers who shop online...................................................................................................... 8
environment will be
E-commerce in Europe: Top product categories among European online shoppers..........................................................10 the next major issues
International retailing: Low prices attract shoppers from abroad...............................................................................................................11
Marketplaces: International marketplaces in Europe...................................................................................................................................................16
in the industry”
P
Deliveries: Mature markets take fast and flexible deliveries for granted...............................................................................................20
Online store: Customers demand clarity and simplicity from their online store ........................................................................22 PostNord has been producing the E-commerce
in Europe report since 2014. Over the years we
Returns: Returns – a double-edged sword.................................................................................................................................................................................24 have been able to see how e-commerce has devel-
Payment method: More payment solutions result in better business.....................................................................................................25 oped in a number of areas, ranging from consumer
Interview: Many fail because they view Europe as one market.......................................................................................................................26 demand for deliveries and returns, to how e-com-
merce moved in to the cell phone. But if we look
Spotlight on: UK ...................................................................................................................................................................................................................................................28 forward, I believe that climate and the environment
Spotlight on: Belgium....................................................................................................................................................................................................................................30 will be the next major issues for the industry. For
Spotlight on: Netherlands........................................................................................................................................................................................................................32 example, clearly, more and more people are beginning to question the
sustainability of sending parcels back and forth over long distances,
Spotlight on: Italy.................................................................................................................................................................................................................................................34 which is especially common in segments with high return rates, such
Spotlight on: Poland.........................................................................................................................................................................................................................................36 as fashion.
Spotlight on: Spain..............................................................................................................................................................................................................................................38 Here PostNord has an important role to play. Our carbon dioxide
emissions mainly come from transports and as e-commerce increas-
Spotlight on: Germany.................................................................................................................................................................................................................................40 es, we handle more and more parcels. The target is a 40-percent
Spotlight on: France..........................................................................................................................................................................................................................................42 reduction in our total carbon dioxide emissions by 2020, in relation
Spotlight on: Nordic region................................................................................................................................................................................................................... 44 to 2009, mainly through reduced use of fossil fuel. This is a challenge,
but we are making progress. By the end of 2018, carbon dioxide
Detailed results......................................................................................................................................................................................................................................................46 emissions had decreased by 35 percent compared with 2009, so we
PostNord – a partner for e-commerce..................................................................................................................................................................................... 57 have good prospects of reaching the target.
But we also want to help make e-commerce more climate-smart in
the area in which we are experts - logistics. We at PostNord are therefore
About this report each country that used the Internet in and Finland. However, the smallest country gathering various companies and organizations in a work stream to
develop new processes and methods for more sustainable transports in
2018. This percentage was calculated
by Eurostat. This is of significance, since
in the region, Iceland, is not included in the
survey, unless stated otherwise. e-commerce. There is much to be done here. For example, the choice of “A growing number of
PostNord has studied the European
e-commerce market in the E-commerce
Internet use varies among the different E-commerce is defined as the pur- packaging material and the size of the packaging can be optimized to
allow more parcels to fit in a single transport. I look forward to being able
companies are coming to
European countries. chase of physical products via the Inter-
in Europe report since 2014. The report is To calculate how many consumers net. This means that services (e.g. travel, to present more details about this in the future. us because they want to
based on interviews with a total of about
11,000 consumers in Belgium, Denmark,
from each market shop online, we used
Eurostat’s population statistics for 2018
hotel and tickets), as well as downloads
(e.g. music, movies and apps), are not Another point that we have followed up in the report addresses enter Europe, and more
Finland, France, Germany, Italy, the Nether-
lands, Norway, Poland, Spain, Sweden and
as a basis. included. how e-commerce is becoming increasingly global. This is well in
line with our experiences here at PostNord. A growing number of
and more e-retailers that
To calculate the average purchase in PostNord also publishes the E-barom-
the UK. When the report refers to Europe, EUR we used the exchange rate from May eter report in Sweden and E-commerce companies are coming to us because they want to enter Europe, and are already here are taking
it is referring to these countries unless more and more e-retailers that are already here are taking the step
stated otherwise. The interviews were
28, 2019.
The report presents the aggregate
in the Nordics in all the Nordic countries.
Those reports are based on a different beyond the borders of their own countries. the step beyond the
conducted with representative nationwide
samples of private individuals aged 15-79
findings for the Nordic region. The Nordic methodology and are therefore not fully
We at PostNord want to be the obvious partner for e-commerce, to,
borders of their own
region refers to Sweden, Denmark, Norway comparable with this report.
years. The number of respondents varies from and within the Nordic region. As an e-retailer, you are therefore countries.
somewhat between the countries. In most NUMBER OF RESPONDENTS IN EACH COUNTRY welcome to contact us at any time about everything from local
of them, the number of respondents was market information to distribution solutions. Through our global
1174 1140 1139 1136 1154 1129
around 1,000. The Nordics are an excep- 1200
1073 1093 logistics company Direct Link we help e-retailers worldwide establish
tion, where the countries are reported as 1,000
a presence in new markets.
one cohesive region and the number of I hope that this report will give you a great deal of useful new
800
respondents was just over 500 per coun- information and insights about the European e-commerce market,
try. The interviews were conducted by the 600 555 561 557 551 whether you already have a business in Europe or are thinking about
Netherlands
research company Nepa. establishing operations here.
Denmark
Germany
Belgium
400
Sweden
Norway
Finland
Poland
France
Since the survey was conducted online,
Spain
Italy
200
the responses were recalculated based Annemarie Gardshol,
UK
on the percentage of the population in 0 Acting Group CEO PostNord
2 E-commerce in Europe 2019 E-commerce in Europe 2019 3
Overview NORDIC REGION Overview
19.6
million consumers
500 MORE EUROPEANS SHOP FOR HIGHER AMOUNTS
Comparison between 2014 and 2019 Basis: Entire population aged 15–79
ITALY
European
shop online
94%
Increase in average purchase amount (in EUR)
400
e-commerce market Percentage of the population
(15-79 years) that shops online
FRANCE
SPAIN
Percentages and values refer to the entire population aged 15 to 79 years.
Question: Approximately how often do you buy goods online? Comprises
EUR 769 SWEDEN
all respondents minus those who responded “Never,” “Unsure,” or
Estimated average spend 300
per person per year
“Don’t know.” All methods have been used in previous reports with the FINLAND
exception of the calculation of internet penetration1. NETHERLANDS POLAND
200 DENMARK
UK POLAND BELGIUM In most countries, both the
GERMANY number of people who shop online
46.8 24.5 and the amount they spend have
increased since 2014.
million consumers NETHERLANDS million consumers
100
shop online shop online
91% 12.6
million consumers
80%
Percentage of the population Percentage of the population Increase in percentage of e-commerce consumers (percentage points)
(15-79 years) that shops online shop online (15-79 years) that shops online
0
EUR 921 92%
Percentage of the population
EUR 419 10% 20% 30% 40% 50% 60%
Estimated average spend Estimated average spend
per person per year (15-79 years) that shops online per person per year UK
EUR 601
Estimated average spend
−100
per person per year NORWAY
BELGIUM GERMANY
−200
7.5
million consumers
61.5 Europe – a continent in change
million consumers
shop online shop online Since E-commerce in Europe was published for the first time in 2014, major
85%
Percentage of the population
92% changes have occurred in the European e-commerce market. The number of
consumers who shop online has steadily increased, especially in Italy, Spain,
Percentage of the population
(15-79 years) that shops online (15-79 years) that shops online Poland and Belgium. The average amount for each online purchase has also
EUR 478
Estimated average spend
EUR 784
increased as consumers buy more types of products online and do so more
frequently.
Estimated average spend
per person per year per person per year The EU initiatives to increase access to the internet, expand broadband in-
frastructure and eliminate roaming fees within the union provide an important
partial explanation. Another reason is that people without an internet connec-
tion in the home can now use their cell phones to go online.
European countries are clearly becoming more equal regarding digitaliza-
tion, and are moving toward a common e-commerce market. The number of
European online shoppers is extremely likely to increase and buying behavior
SPAIN FRANCE online will be broadened, with more types of goods available and more fre-
quent purchases.
31.2
million consumers
45.0
million consumers
shop online shop online
85%
Percentage of the population
89%
Percentage of the population
ITALY
(15-79 years) that shops online (15-79 years) that shops online
37.8
EUR 665
Estimated average spend
EUR 746
Estimated average spend
million consumers
shop online
per person per year per person per year
78%
Percentage of the population
(15-79 years) that shops online
EUR 668
Estimated average spend
per person per year
1
The source for internet penetration changed
this year from Internet World Stats to Eurostat.
4 E-commerce in Europe 2019 E-commerce in Europe 2019 5
Overview Outlook
Eight trends spotted
from five years of
e-commerce
Arne Andersson, e-commerce expert at
PostNord, and Olof Källgren, Market Information
Manager at Direct Link, summarize the
development of e-commerce since E-commerce
in Europe was first published in 2014.
Arne Andersson. Olof Källgren.
E-commerce is with convenient Internet place. However, players the opportunity to shop
becoming increas- access. Another reason are also emerging who directly in social media.
ingly global is that the cell phone is only sell a certain kind
Cross-border e-com- always available, making of product. For example, Higher demands
merce is increasing online shopping possi- Zalando has developed for freedom of
every year. In 2014, ble anytime, anywhere. into a marketplace dedi- choice
four of 10 e-commerce cated to fashion. Consumer requirements
consumers stated that Returns have for freedom of choice
they had shopped on- increased New product regarding delivery has
line from abroad. In this The return rate was not categories steadily increased, and
year’s report the figure explored in 2014, but in Clothing and footwear, e-retailers have listened.
is 7.5 of ten. E-com- 2015 24 percent of shop- home electronics, and In-store pickup in chain
merce from China has pers made a return. In books have been the stores is becoming
grown most, driven pri- 2019, the corresponding most popular product increasingly popular.
marily by the low prices. figure was 43 percent. categories to purchase Partner outlets have
E-commerce from the One reason is that online online ever since the made strong progress
A growing Between 2015 and 2019, the percentage of older
Europeans who shopped online has sharply increased UK and Germany have stores have improved report was first pub- in countries that have
also increased, but here their return processes lished in 2014. But a few otherwise preferred
number of older
Percentage of individuals aged 65-79 who shopped online
at any time. The difference in percentage points between consumers are driven and their explanations of newcomers have arrived home delivery. In the
2015 and 2019 is shown in parentheses.
individuals Basis: Use the internet.
2015 Increase 2015-2019
more by strong brands
and unique products.
the terms and conditions
that apply. As a result,
that we believe will
increase greatly in the
Nordic region, where
partner outlets are stan-
shop online 100% (+15) E-commerce using
consumers feel more
confident that every-
future, including home
furnishings, and prod-
dard, home delivery has
instead increased.
(+13) (+12) (+12)
(+5) (+5) (+2)
In recent years, more groups have
(+13) (+10)
the cell phone is thing will work and dare ucts in the beauty and
begun to shop online, and the largest growing to order more products health segment. Free is no longer
(+15)
increase has occurred among older E-commerce using the and then return what sustainable
individuals.
80% cell phone has also un- they do not want. The internet A growing number of
One reason is that digitally mature dergone strong growth. changes the pur- e-retailers appear to
groups are aging, another is that those In 2014, 28 percent of Growing marketplaces chase journey be considering wheth-
who are already 65 are learning to shop e-commerce consum- Marketplaces were not The internet has devel- er free shipping and
online. Older people also benefit from the 60% ers had shopped using investigated in 2014 oped at record speed, returns are sustainable,
increase in choices for accessing the Inter- their cell phone, while because they were not which has had great sig- from both an environ-
net compared with previously - those who this year the figure is an as large a phenomenon nificance for how e-re- mental and a financial
have difficulty using a computer can use impressive 63 percent. here in the Nordic coun- tailers reach consumers perspective. For exam-
a cell phone or tablet instead. And it will 40% One reason is that tries at that time. Howev- and how the purchase ple, Zalando, which pre-
be even simpler in the future. Voice-rec- cell phone usage has er, in recent years mar- experience is designed. viously promoted free
ognition tools such as Alexa and Google increased in countries ketplaces have become We are primarily thinking shipping as its major
NETHERLANDS
Home in the US have already been shown that have lagged in increasingly important. about influencers through message, has begun to
to be capable of helping older people digital development, The advantage is that whom e-retailers can charge for orders under
DENMARK
GERMANY
20%
BELGIUM
FINLAND
NORWAY
SWEDEN
POLAND
providing more people most are in a single market themselves, and a certain amount.
FRANCE
in everyday life, since they require less
SPAIN
ITALY
technical knowledge. Voice recognition
UK
is expected to be particularly valuable for
older people with physical disabilities. 0%
6 E-commerce in Europe 2019 E-commerce in Europe 2019 7
E-commerce in Europe
UK NETHERLANDS
45 million new consumers shopped online
47.1 8.2
BELGIUM
Digitalization has taken Europe by storm. Eu-
rostat statistics show growth in essentially all digital
initiatives to achieve a common European e-com-
merce market, and to eliminate obstacles to trade,
4.2
areas, from video streaming and social media to it is likely that the increase will continue, and that
banking and of course – e-commerce. In four years, borders between countries within the union will have
45 million new e-commerce consumers have been declining significance for e-commerce.
added in the surveyed countries, and today the
How much do POLAND
Total e-commerce in the surveyed countries is EUR
12.8
total number is 286 million.
you estimate you
However, not only domestic e-commerce has 235 billion annually. Germany was still the largest have spent on
grown. The number of consumers that make online e-commerce market, closely followed by the UK. But goods online in
purchases from abroad has exploded in Europe over the southern European markets have seen strong the past year?
the past four years, from 159 to 217 million peo- growth and are taking an ever-increasing share of
ple – an increase of 58 million. Considering the EU e-commerce's total cake.
Did
Italy and Spain are among you know
the countries where e-com- GERMANY
that…
52.1
merce has developed most
286
rapidly in recent years.
ITALY
32.2
Number of EUR billion
million consumers in
Europe shop online that European consumers
have spent online over
235
the past year
Basis: Have shopped online
FRANCE
37.9
billion EUR – the total that European
consumers estimate that they SPAIN
spent online in the past year 24.5
217
NORDIC REGION
16.9
million European consumers
make online purchases from abroad
8 E-commerce in Europe 2019 E-commerce in Europe 2019 9
E-commerce in Europe International retailing
Top product categories among European online shoppers
(millions of consumers)
Low prices attract shoppers from abroad
40 There are many reasons to shop online countries it is easy to shop where the low- Germany, France and the UK, a large se-
40
from abroad. The most common are wide est price is found. Nor do delivery times lection does not rate particularly high - it is
35 range of products, unique products, lower pose an obstacle, since they are usually quite simply taken for granted. In contrast,
30 29 prices, or, quite simply, curiosity. Germans short in Europe, including across national a large selection rates high in Sweden,
25
25 26 25 are particularly curious, with almost one borders. Norway, Poland and Italy. Even though
20
20 19 19 18 quarter of all purchases abroad based on Low prices appear to be important e-commerce is well developed in Sweden
16 17 17 16 pure curiosity, primarily from China, the regardless of how developed e-commerce and Norway, the countries are small, for
15
15 13 12
10 11 US and the UK. is in a country. In both the well-developed which reason the selection is perceived
10 8 8 8 But the strongest driving force is low UK and fast-growing Poland, low prices as small. Meanwhile, Italy and Poland are
5 6
5 4 3 4 prices. The reason is that the major are essentially equally important. large markets, but here e-commerce has
2
0 brands are global and many products are However, the situation for product not come as far as in Germany, France
UK Belgium Netherlands Italy Poland Spain Germany France Nordic region standardized, which allows price com- selection is different. In large countries and the UK, which also limits the range of
parisons; if the price level differs between with well-developed e-commerce, such as products.
Clothing and footwear Home electronics Books/audiobooks
40
35
How common is shopping online from abroad?
30
Question: Approximately how often do you buy products online from abroad? Basis: Have shopped online.
25 70%
70%
66%
20 19 19 18 63% 64%
15
15 14 14 60%
57%
12 54% 55%
10
10 9 10 10 10 10
6 6 7 7 6 50%
5 4 4 46% 47%
5
2 2 3 3 3
1 42% 41%
0
40% 39%
UK Belgium Netherlands Italy Poland Spain Germany France Nordic region 37% 36%
33% 34%
Cosmetics, skincare and haircare Home furnishings Sports and leisure products 30%
26%
24%
40
20%
35
30 10%
25
0%
20
15
15 UK Belgium Netherlands Italy Poland Spain Germany France Nordic region
12 12 12
10 11 11 11 10
Make online purchases from abroad each quarter Make online purchases from abroad once a year
10 8 8 7 8 7 8 7
5 4 5
5
2 2 2 3 3
1 1 1 Low prices are always important
0
UK Belgium Netherlands Italy Poland Spain Germany France Nordic region
The diagram shows that low prices are an important reason for shopping from abroad. However, a large range of products is a driving force that varies from
country to country. Question: Why have you purchased products from abroad? Basis: Have shopped online from abroad.
Children’s items Toys Food
70%
40
35 60%
30
50%
25
Looking for lower prices
20 40%
17
15
12 13 13
30%
10 8 8 9 8 8 8 8
7 6 6 7
5 5 4 5
5
2 2 2 3 3 20%
1 1 1
0
UK Belgium Netherlands Italy Poland Spain Germany France Nordic region 10%
Looking for a wide range
Movies Car accessories Dietary supplements and similar 0% of products
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Number of consumers in millions who have shopped online in each category over the past year.
Question: What types of products have you bought online in the past year? Basis: Have shopped online.
For more detailed information, see detailed results on pages 47-48. UK France Finland Germany Netherlands Belgium Spain Denmark Italy Sweden Norway Poland
10 E-commerce in Europe 2019 E-commerce in Europe 2019 11
International retailing
Nordic region
17.0
France UK
33.7 33.3
Belgium
6.0
Netherlands
9.0
Italy
31.6
Germany
44.1
Young people shop from abroad more often
Young consumers are often at the forefront of new trends, and e-commerce
from abroad is no exception. In many of the countries more than one in four
young consumers state that they make online purchases from abroad at least
once a month. The largest increase in recent years has occurred in Poland.
Spain Poland Percentage of the 18-29 age group that make online purchases from abroad at least once a month
217
The difference in percentage points between 2015 and 2019 is shown in parentheses.
25.5 16.7 Percentage who shopped online from abroad each month in 2015 Increase 2015-2019
40%
38% (+5)
35%
31% (+26)
30%
25% 27% (+18)
(unchanged)
25%
23% (+13)
20%
18% (+2) 18% (+4)
16% (+4) 15%
(unchanged)
15% 14% (-5)
10%
(unchanged) 10% (+6)
10%
5%
million people have shopped online from abroad 0%
UK Belgium Denmark Spain Sweden Poland Norway Italy Netherlands France Finland Germany
Number of consumers in millions in each country who shopped online from abroad
Basis: Entire population, aged 15–79 years
12 E-commerce in Europe 2019 E-commerce in Europe 2019 13
International retailing Mobile devices
Have you used
your cell phone
2 to buy products
online at any point
Percentage who shopped online using a cell phone or tablet
Percentage who answered yes. Basis: Have shopped online.
in the past
2014
80% 12 months?
70%
77%
3 1 60%
76%
68%
65%
61% 62%
50%
58% 60%
54%
40% 42% 41%
30% 32% 34%
30%
20% 23% 22%
14% 14%
10%
80
0%
Countries from which
Europeans have UK Belgium Netherlands Italy Poland Spain Germany France Nordic region
shopped online
China, the UK and the
70
The diagram shows how many
Europeans have shopped
60
online from each country.
Basis: Have shopped online
US top the list for online
from abroad.
2014 2019
shopping abroad
China is most popular when Europeans make online
50
From which
purchases from abroad. Companies such as Ali
Express and Wish mainly attract with inexpensive E-commerce using
40
countries have you
bought products
products, while the UK, Germany and the US are
more appealing with respect to brands, good service
the cell phone is
online? and unique products. skyrocketing
30 Today, using mobile devices for shopping
is a given. In five years, the percentage of Eu-
ropean consumers who used a cell phones
20 or tablet to shop online has almost tripled.
On average, almost two of three Europeans
has shopped using a mobile device during
the past year.
10
A mobile-friendly page has therefore be-
come a hygiene factor for online stores, and
consumer demands are constantly increas-
0 ing. Now, consumers also expect websites
that load quickly and are easy to search,
CHINA
UK
USA
GERMANY
NORDIC REGION
FRANCE
NETHERLANDS
REST OF EUROPE
SPAIN
JAPAN
ITALY
REST OF ASIA
CANADA
INDIA
AUSTRALIA
ICELAND
RUSSIA
REST OF NORTH AND CENTRAL AMERICA
COUNTRIES IN SOUTH AMERICA
COUNTRIES IN AFRICA
make accurate personal recommendations,
and the option to pay without having to fill in
a bunch of personal information or to regis-
ter an account.
Since it is easy to switch to a different on-
line store that sells the same product, any
resistance in the purchase journey may
mean a lost customer, so it is important for
e-retailers to keep up with developments.
14 E-commerce in Europe 2019 E-commerce in Europe 2019 15
Marketplaces Marketplaces
International
marketplaces
in Europe
The latest e-commerce trend involves
digital marketplaces, a kind of digital bazaar
where external salespeople compete with
each other for customers. The gist is a huge
offering, stiff competition and low prices,
which many traditional shoppers find hard
to resist.
International marketplaces are common
in large countries, and less common in small
countries. The explanation is Amazon, which
has deliberately focused on the largest mar-
kets in Europe.
Access to international marketplaces will
probably increase in the smaller countries
over the next few years. Most likely, the major
market participants will expand, or less likely,
a domestic participant will succeed in posi-
tioning itself before the giants barge in.
Percentage who shopped online from marketplaces in the past year
The term “marketplaces” refers to Amazon, Wish, eBay, Zalando, Etzy, Alibaba, JD, or Allegro.
Basis: Have shopped online.
100% 97% 98%
93% 93% 94%
92%
90%
80%
74%
70%
64% 65%
63% 63%
60%
56%
50%
40%
30%
20%
10%
0%
Denmark Finland Belgium Netherlands Sweden Norway France Poland Germany Spain UK Italy
16 E-commerce in Europe 2019 E-commerce in Europe 2019 17
Marketplaces Marketplaces
Marketplaces are most popular where Amazon has a presence
The diagram shows that marketplaces are most popular in France, Germany, Spain, the UK and Italy, and Amazon has a presence in all of these Wish is relatively popular
countries. Poland is the exception that confirms the rule – here e-commerce is dominated by domestic Allegro.
Basis: All respondents (y axis) vs “Have shopped online” (x axis). The term “international marketplaces” refers to Amazon, in most countries, but
Wish, eBay, Zalando, Etzy, Alibaba, JD, or Allegro.
does not have a strong
White frame = Amazon countries
position in any country. Amazon and Wish
30%
Norwegians and Swedes have different
shop most from Wish. strategies in Europe
25%
The international marketplaces appear to have differ-
Percentage who shop online every week
20% ent strategies in Europe. This is clarified by a comparison
between Amazon,based in the US, and Wish, based in
China. Amazon is strong in a few markets, while Wish
15%
has small market shares in many countries. The diagram
below shows loyalty to Amazon is extremely high in the
countries where the company is established (with the
10%
exception of Poland). The UK, Germany, Spain, France
and Italy are examples of this phenomenon. In contrast,
5%
customers in neighboring countries do not appear to
be particularly inclined to shop from Amazon – the giant
Have shopped online from one of the marketplaces loses its grip on customers as soon as the product has
0% to cross a border. This means that Amazon has a few
50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% strong footholds in Europe, but without much reach.
In contrast, Wish appears to pursue the reverse strate-
Denmark Finland Belgium Netherlands Sweden Norway France Germany Poland Spain UK Italy gy. Wish is relatively popular in most countries, but does
not have a strong position in any country. Norwegians
and Swedes shop most from Wish.
Which of the
following
e-commerce sites
have you shopped
International from in the last 12
months?
Amazon is strong in a few markets, Wish has small market
marketplaces drive shares in many countries
Basis: Have shopped online.
purchasing frequency
White frame = Amazon countries
A clear effect of the invasion by marketplaces is the 120%
increase in consumer purchasing frequency. In countries
where more people shop online from marketplaces, more
people also shop online every week. This trend is proba- 100%
bly because it is convenient to shop in marketplaces, at
the same time that they also often have attractive mem-
Percentage who shopped from Amazon
ber benefits. A well-known membership service is Ama- 80%
zon Prime, which provides access to Amazon’s streaming
service, discount coupons, and most importantly: free
shipping. Prime members can shop with free shipping 60%
at any time and this drives sales sharply upwards. Prime
customers have been shown to shop for more than twice
as much as ordinary Amazon customers and the differ- 40%
ence appears to increase with each year.
20%
Percentage who shopped from Wish
0%
0% 5% 10% 15% 20% 25% 30% 35%
Denmark Poland UK Germany Belgium Netherlands Finland Spain France Italy Sweden Norway
18 E-commerce in Europe 2019 E-commerce in Europe 2019 19Deliveries
Mature markets
take fast and flexible
deliveries for granted
Two things affect how quickly consumers in a country
expect to receive their goods purchased online: popula-
tion density and the maturity of the e-commerce market.
Residents of densely populated Belgium and the Neth-
erlands have become used to quick deliveries. The high-
est expectations can be found in the Netherlands, where
more than one in three consumers expects to receive Did
the purchased product within two days. Over the past five years, consumers in you know
Speed and freedom of choice are currently hygiene fast-growing e-commerce markets such
as Belgium, Italy and Spain have begun to
that…
factors in all markets. But it is interesting to note that expect faster deliveries, while only mar-
consumers in rapidly growing new markets, such as Italy ginal changes have been seen in mature
and Spain, say that fast and flexible deliveries are very markets such as the UK, Germany and the
important, while consumers in more mature markets, Nordic region.
such as the UK, Germany and the Nordic region, do not
rank this as high. This may be because consumers in
mature markets quite simply take speed and flexibility
for granted.
The markets are on the way to finding the balance
between consumer expectations and the ability of com-
panies to deliver. However, it is still possible to exceed
customer expectations regarding delivery.
When you buy a
product online, what
are your expectations When you order a
as to delivery time? product online, how
What is the maximum do you prefer to have it
number of days it may delivered?
take to have your
product delivered?
Delivery expectations in different countries
Respondents who answered “don’t know” have not been included
Basis: Have shopped online. Basis: Have shopped online.
Home delivery
40%
in daytime 63% 46% 51% 68% 43% 37% 42% 23% 9%
Percentage of consumers who expect delivery in 2 days
Delivered to my mailbox/
35% multi-occupancy mailbox 14% 20% 19% 11% 6% 16% 37% 44% 38%
by the mail carrier
30%
Collect the product
myself from a 4% 13% 11% 4% 7% 8% 2% 23% 30%
25% distribution point
Home delivery
20%
in evening 11% 13% 17% 7% 8% 25% 10% 6% 6%
15% Collect the product
myself from a parcel 1% 3% 0% 2% 29% 2% 4% 1% 10%
machine
10%
5%
Delivery to workplace
5% 4% 1% 7% 5% 9% 2% 1% 1%
Percentage who shopped
Average expected deliveryfrom
timeWish
(number of days)
Pick up at the
0% online store’s physical 2% 2% 2% 1% 2% 4% 2% 1% 6%
3 3.5 4 4.5 5 store
Poland Netherlands UK Germany Italy Spain Belgium France Nordic region UK Belgium Netherlands Italy Poland Spain Germany France Nordic region
20 E-commerce in Europe 2019 E-commerce in Europe 2019 21Deliveries
Are you willing
to pay for faster
delivery
80%
(next day)?
70%
Pay for faster delivery
60% Percentage who answered yes.
Basis: Have shopped online.
2016 2019
50%
44% 44%
43%
42% 41%
40%
35%
32%
31%
30%
30%
27%
26%
22%
21%
20%
20% 18%
16% 17%
15%
10%
0%
UK Belgium Netherlands Italy Poland Spain Germany France Nordic region
How important are Is it important to
the following factors Speed and freedom of choice most you to be able to change Option to change time of delivery
regarding delivery important for delivery the delivery date or Percentage who answered yes.
in your decision to buy time after the products Basis: Have shopped online.
Fast delivery Option to choose when delivery will occur.
goods from an are dispatched from 2016 2019
Being able to choose the place for delivery
70% online store? 80%
the online store?
Basis: Have shopped online.
63%
60% 60% 70% 69%
60% 59% 68%
67%
56% 56%
54%
53% 53% 60% 60%
60%
50%
50% 49%
54%
53%
45% 52%
51%
44% 44% 44%
50%
41%
40% 39% 45%
38% 43%
35% 35% 39%
40%
32% 36%
31%
30%
27% 31%
25% 30%
27%
23% 23% 25%
20%
20%
20% 18%
13%
10%
10%
0% 0%
UK Belgium Netherlands Italy Poland Spain Germany France Nordic region UK Belgium Netherlands Italy Poland Spain Germany France Nordic region
22 E-commerce in Europe 2019 E-commerce in Europe 2019 23Returns Payment method
0% 10% 20% 30% 40% 50% 60% 70% 80%
Returns – a double-edged sword UK
45% More payment solutions
The pendulum has swung. Returns have gone industry has the most returns, but the retail sector as
73%
result in better business
from being honored as the holy grail of e-commerce a whole has a return rate of about 10 percent in physi- 49%
Belgium In many ways, e-commerce in the European countries is
for creating loyalty and recruiting new customers, to cal stores and about the double in e-commerce. 73%
Consumers also have high demands for infor- becoming more standardized, but there are major differences
being questioned from a financial and environmental regarding payment methods.
mation about how the return process works, and 49%
perspective. There are many examples. Zalando has Netherlands Online stores need to understand their local market and know
in recent years online stores appear to have fought 74%
begun to charge for returns, and H&M describes how hard to clarify terms and conditions and to simplify how consumers want to pay. Those who offer many alternatives
A.I. will help consumers find the right size and fit for the practical side of returns. In all countries, with the 65% are most successful. In the UK, France, Spain and Italy, consum-
clothing. This approach will reduce both returns and exception of the UK, consumers think it is easier to
Italy ers prefer credit cards, Paypal, or similar services. Greater varia-
65%
end-of-season sales, which together will result in bet- understand procedures today than they stated in tion can be found in other countries; in many, local options have
ter margins and lower environmental impact. 2016. This trend is probably related to improvement 53%
a strong position. In the Netherlands and Poland direct payment
But free returns are still a basic requirement for ma- efforts at online stores, but consumers have also Poland to the bank is common. Poland is also the only country in Europe
80% where cash on delivery is relatively common. The Nordic region
ny consumers. The exception is when the store has become more used to returning goods and do so
a strong brand or sells unique products. The fashion more often. and Germany rely to a large degree on payment by invoice. That
60%
Spain has been the case since the e-commerce was in its infancy, and it
64% will probably continue. Especially considering that today invoice
apps are available that can track invoice payments, where, for
45%
Germany example, it is possible to freeze the payment if the product is to
60
68% be returned. In addition, invoice purchases mean that consumers
% Did do not have to pay any money if they make a return.
50
The percentage of consumers 54%
%
in Europe who returned goods
you know France
Alternative payment methods (APA) are becoming more popu-
40
that… 62% lar, with strong growth expected over the next few years. Paypal
%
that were purchased online is
47
is perhaps the most common example, but there are hundreds
%
increasing. Strongest growth
30
%
can be found in Italy and Spain,
Nordic region
47% of new alternative payment methods all over the world. In the
20
since e-commerce is increasing developed countries, for example, Apple Pay, Google Pay and
38
%
59%
%
in these countries overall.
Klarna are in a growth phase. Chinese WeChatPay and Alipay
10
%
Clear returns – a business-critical factor have dominated the domestic market for a long time, but they
32
39
%
%
are now spreading around the world. These payment methods
0%
How important is it that “Clear instructions are given for how
51%
43
%
to return goods” in your decision to buy goods from an online store? are often in direct contact with the consumers’ bank and offer
Percentage of consumers who regard this factor as “very important”
convenient authorization solutions.
UK Basis: Have shopped online.
46
In general, do you think that it is easy to understand the procedures
%
Most popular online payment methods
32
for returns on the websites of online stores?
%
i um Percentage who answered Yes. Basis: Have shopped online. Which of the following methods do you prefer to use when paying for a
B elg product you have bought online?
Basis: Have shopped online
36
27
s
nd
%
%
e rla
45
eth
53
1% 1% 1%
%
N 1%
%
1% 1% 1% 1% 2%
30
2% 1% 2% 1% 1%
53
%
ly 2%
%
Ita 2%
1%
8% 5%
nd 12% 15% 24%
la
Po
39
9% 30% 34%
44
48% 62%
%
%
46% 21%
ain
Sp 21% 55% 31%
43
27%
%
32
29%
%
TOP FIVE PRODUCTS ny
ma
THAT ARE RETURNED G er
1. CLOTHING AND ce UK BELGIUM NETHERLANDS ITALY POLAND
n
FOOTWEAR Fra
67.2 million consumers. 1%
1% 1% 1% 1% 1% 2% 2%
ion Have you at some
2. HOME ELECTRONICS re
g
point during the past 2%
2% 1% 1% 2%
dic
22.3 million consumers. N or year returned an Debit card or credit card
5%
item that you bought PayPal or similar
3. CHILDREN’S ITEMS
online? 18% Direct payment through
10.4 million consumers. 24% 20% my bank
41%
4. CAR ACCESSORIES 47% 33% Invoice
9.2 million consumers. 60% Cash on Delivery
43% 6%
Return products purchased online 12% (COD)
5. SPORTS AND LEISURE Percentage who answered yes. 50% Payment by installments
21%
PRODUCTS Basis: Have shopped online. Other method
8.5 million consumers. 2016 2019 Don’t know
SPAIN GERMANY FRANCE NORDIC REGION
24 E-commerce in Europe 2019 E-commerce in Europe 2019 25Interview
MakesYouLocal
» Founded: 2010 in Denmark.
» Offices: in Copenhagen,
Vilnius and Stockholm.
» Employees: about 45.
» Business: help e-retailers
to launch their businesses
“Many fail because abroad, with services ranging
from analysis and strategy, to
implementation, translation
they view Europe as
and local customer service.
one market”
Do you plan to expand to a European
country? The expert provides tips
on how to succeed.
MakesYouLocal helps e-retailers to suc- what to do in one country, they often Germany, the largest market in Europe, but satisfied customers. Local customization of money to advertise on Facebook in
ceed abroad. The company, which was want to launch their businesses in more,” that may not be realistic, because of the also involves adjusting to how customers Germany and wondered why it did not
founded more than ten years ago, has says Henrik Hansen. extremely intense competition. It may be want to pay and have the goods deliv- work. If they had asked us they would
completed about 600 projects, most of Here are his three most important tips better to begin with a smaller country or ered, returns should be convenient, and have learned that the Germans don’t
them in the Nordic region and the rest of to e-retailers who want to begin to sell region, like the Nordic region or the Bene- customer service should feel local. We call like to be reached through Facebook
Europe. their products in a European country. lux countries. While fewer people live there, these factors security markers - they create ads, and that other channels are pref-
Henrik Hansen, partner at MakesYou- the economy is good. Such considerations security and get us to shop. But you don’t erable there. But the rest you have to
Local, believes that many view Europe as 1. Choose the right market should be addressed before you go into a need an on-site staffed office, which would figure out yourself. And it is isn’t enough
one market and underestimate the chal- “When I meet e-retailers who plan to country. be expensive - especially if you are going “Almost everyone wants to check what the competitors are do-
lenge of multiple languages, currencies launch their business abroad I usually ask to sell in many countries. It is better to find to sell their products ing, because if you want to take market
and cultures in the region. what country they intended to begin with, 2. Adapt to the local market partners with local knowledge or opera- share, you have to be even better.
“It is also the reason that many e-retail- and why. Unfortunately, the answers are “Adapting to the local market is extreme- tions in the country. to Germany, the largest Here we have seen a successful e-re-
ers do not succeed with their launches usually based more on gut feeling than on ly important – preferably, the customers market in Europe, but tailer take an agile approach by testing
here,” he says. facts. But that doesn’t work. You have to should not notice that they are making 3. Find the best ways to market many different ideas over a short period
At the same time, he believes that understand whether you can be profitable online purchases from abroad. A common and sell
that may not be realistic, and on a small scale. Then they evalu-
there isn’t any reason to be afraid to take in the market and compete with the local question is to what extent the website “There are experts who are on top of because of the ate the options and scale up the best
the step across the border. It’s a matter of
focusing on the right market and adapt-
participants. What do you have to offer that
they don’t have? Why should people shop
needs to be translated to the local lan-
guage. I recommend translating the entire
the fundamentals of sales and mar-
keting in different markets, and such
extremely intense ideas. With this approach they avoid
spending money on sales and market-
ing to how it works. in your particular online store? Almost online store professionally, which has been knowledge is very important. I know competition.” ing that doesn’t work and quickly make
“Once our customers have figured out everyone wants to sell their products to shown to result in higher sales and more a company that spent a large amount Henrik Hansen, partner at MakesYouLocal. progress.
26 E-commerce in Europe 2019 E-commerce in Europe 2019 27Spotlight on: UK
11%
Did you
know that…
The population of the
UK has increased by Delivery with precision
more than three million
since 2014.
wins British hearts 14%
The British e-commerce consumer moves quickly
between various channels and it is becoming in-
creasingly common to integrate the shopping experi-
ence with social media, such as Instagram, through
one-click-shop-solutions. 62%
To build loyalty, many British e-commerce com-
panies use membership, which may entail extra
fast deliveries. In London it is common to receive
the products within just a few hours, and precision Top three preferred delivery methods
- delivering the right product at the right time - is How do you prefer to have your product
very important. Here, online food retailing has grown delivered when you shop online?
larger than anywhere else in Europe and customers Basis: Have shopped online
Home delivery in daytime In mailbox Home delivery in evening
have become accustomed to narrow time windows.
Grocery chain Ocado has been a driving force and
is now testing delivery of certain orders within one
hour in London. Top three international marketplaces
From which of the following e-commerce sites have
Regarding payment methods, Paypal and card
you shopped online in the past year?
payments are clearly dominant. Basis: Have shopped online
Niche products are popular
UK: Brexit creates uncertainty – and so is home delivery
The British mainly purchase books, fashion
87% 61% 13%
Amazon eBay Wish
The UK has long been a bright star on the European have been dominated by Brexit, which at the time of products and home electronics online. The shopping
e-commerce horizon, with digitally mature consumers writing (September 2019) has not yet become reality. experience often begins with a search on Amazon,
and the highest average purchases in Europe. Fashion One of the arguments from Brexit supporters before where an impressive 87 percent of e-commerce con-
pioneers such as Asos and Marks & Spencer enable the 2016 referendum was that leaving the EU would sumers have shopped in the past year. But eBay also
the British to dress in style, while food is served online make it possible for the UK to pursue a more liberal has a strong position in the country.
65%
Most commonly bought
on silver platters through grocery chains such as Tes- trade policy in relation to countries outside the union. The British market is large and has many consum- products online
co and Ocado. Regarding marketplaces, Amazon and However, an exit may entail customs controls on deliv- ers who are accustomed to online shopping. This Percentage of e-commerce consumers who have
eBay are the given browsing favorites. eries and returns between the UK and the EU, which makes it an excellent destination for e-retailers from 55% made purchases from each respective product
category over the past year.
Political developments in the UK in recent times could complicate e-commerce. other countries who want to try to export somewhat 60%
unique and niche products. 45%
Average for Europe
Latent potential among 35%
42%
Key indicators compared with average for Europe
middle-aged consumers? 25%
40%
Regarding choice of online store, the British con- 32% 31%
29%
Internet penetration
96% sumer differs from the typical European on at least
three points. First, the British feel that it is more im-
15%
24% 23%
91%
portant that the total price, including additional costs,
Percentage of e-commerce consumers 0%
is clear. Second, they demand the best possible price
to a greater degree. Third, they want all relevant in-
Clothing and footwear
Home electronics
Books
Cosmetics and skincare
Food
Home furnishings
Movies
Toys
Percentage of e-commerce consumers abroad
65% formation in English.
Interestingly, the percentage of British consumers
Average purchase per year (EUR)
EUR 1,007 who shop online at some time is highest among
people between the ages of 50 and 64. It can there-
Growth in number of e-commerce consumers since 2014
11% fore be worth considering whether e-retailers in
the British market have focused adequately on this
target group.
28 E-commerce in Europe 2019 E-commerce in Europe 2019 29Spotlight on: Belgium
13%
Large potential for
new market participants
Belgium should be of great interest to e-retailers
searching for new markets on which to become
established. The country has a good IT infrastructure 45%
and competition online is lower than, for example, 20%
in Germany. However, there are a few things to keep
an eye on. First, it is important to be able to com-
municate with customers in the country’s three
official languages: Flemish, French and German. In
Did you addition, it is important to accept card payments,
know that… Paypal and preferably also direct payments. Offering
The proportion of convenient home delivery methods during the day
Belgians who made online
Top three preferred delivery methods
is also appreciated to a greater degree by Belgians How do you prefer to have your product
purchases has increased
than by other Europeans. However, fast delivery is delivered when you shop online?
by an impressive Basis: Have shopped online
19 percentage points less important. Less than one quarter of consumers
Home delivery in daytime In mailbox To distribution point
since 2014. feel that speed is important, which can be compared
with close to fifty percent in the neighboring country,
the Netherlands.
Top three international marketplaces
From which of the following e-commerce sites have
Popular to make online you shopped online in the past year?
Basis: Have shopped online
purchases across the
country’s borders
Belgium: cross-border e-commerce
At the time of writing, Belgium is number one in Europe among non-European companies. Acknowl-
Belgian e-commerce consumers mainly buy fash-
ion, home electronics and cosmetics online. As pre-
viously mentioned, shopping from other countries
39% 21% 17%
Zalando Alibaba Amazon
FIFA’s world ranking in soccer, which is impressive for edgement of this came in 2018 when Chinese e-com- is extremely popular, especially from the Nether-
a country with a population of only eleven million. The merce giant Alibaba chose Liege in Belgium as the lands, but also from China and Germany. Belgian
country is not equally prominent in e-commerce, al- base for its first distribution center in Europe. men aged 30 to 49 years are more likely to make
though Belgium comes in at a respectable ninth place Culturally, historically and economically, Belgium cross-border online purchases, especially from the
in DESI, which is the EU ranking of the digital compet- otherwise has strong ties to the Netherlands, which Netherlands, Germany and the US, and the most
60%
Most commonly bought
itiveness of its member countries. The country scores is evident from its consumption patterns. Other attractive products are in sports and home elec- products online
particularly high on internet access and integration of than Vanden Borre, which sells electronics, Belgium tronics. Among the marketplaces, German Zalando Percentage of e-commerce consumers who have
digital technology in business. has few large domestic e-commerce participants, is most popular, especially among young women. 50% made purchases from each respective product
category over the past year.
A unique characteristic of Belgium is that the coun- and Belgians shop instead from sites based in the One thing that stands out is that Alibaba is larger
try has succeeded in marketing itself as a gateway to Netherlands. on the Belgian market than Amazon, at least regard- 40% 51%
ing the percentage of consumers who have shopped
from each site. In all, 21 percent have made purchas-
Average for Europe 30%
es from Alibaba during the past year, compared with
17 percent from Amazon. 35%
Key indicators compared with average for Europe 20%
26%
Young people searching 23%
Internet penetration
91% for brands and mature
10% 21%
17%
Percentage of e-commerce consumers
85% price hunters 0%
14% 14%
The digital generation gap is large in Belgium, but
Clothing and footwear
Home electronics
Cosmetics and skincare
Books
Home furnishings
Sports and leisure
Toys
Dietary supplements
Percentage of e-commerce consumers abroad
68% e-commerce is so common that an impressive 85
percent of people over the age of 65 have pur-
Average purchase per year (EUR)
EUR 560 chased products online at some time. The reason is
often better prices.
Growth in number of e-commerce consumers since 2014
24% However, young men shop online most. They are
mainly attracted by the broader selection, usually in
narrow niche and brand products.
30 E-commerce in Europe 2019 E-commerce in Europe 2019 31Spotlight on: Netherlands
Did you
16%
know that…
The share of people in
the Netherlands who buy Highest demand for
products online from foreign
markets has increased by
fast deliveries
as much as 35 percentage People in the Netherlands want extremely fast
points since 2014.
deliveries. One third of consumers expect delivery 50%
after two days, which is higher than in any other Eu- 18%
ropean country. The reason is that the Netherlands is
one of the most densely populated countries in the
world, and consumers often shop on websites within
the country that have short lead times. Foreign
market participants who wish to become established
in the Netherlands should therefore consider local
warehouses. Top three preferred delivery methods
Regarding payments, unconventional payment How do you prefer to have your product
methods are commonly employed. The mobile solu- delivered when you shop online?
tion Ideal is currently essential for e-retailers. With as Basis: Have shopped online
Home delivery in daytime In mailbox Home delivery in evening
many as 400 million transactions each year, Ideal ac-
counts for over 50 percent of the domestic payment
market with respect to e-commerce.
Top three international marketplaces
From which of the following e-commerce sites have
Great interest you shopped online in the past year?
Basis: Have shopped online
in fashion
Netherlands: foremost in the world
34% 32% 18%
Consumers in the Netherlands are interested in
fashion - only the Germans buy as much clothing
according to the UN and footwear online. In addition, Zalando is clearly
the hottest marketplace online. One third of e-com- Zalando Alibaba Wish
The Netherlands has become known for having one Nevertheless, many foreign e-retailers have avoided merce consumers have shopped here during the
of the most well-developed e-commerce markets in Eu- full establishment in the Netherlands and have focused past year. Low prices at Alibaba and Wish also attract
rope. For example, the orange banner waved at the top instead on larger markets such as Germany, France, many people who buy products online, even though
in 2018, when the UN agency UNCTAD ranked the abil- or the UK. The market in the Netherlands is therefore delivery times from China are probably longer than
ity of 151 countries to promote domestic e-commerce dominated for now by domestic market participants what many people in the Netherlands would like.
65%
Most commonly bought
through good digital infrastructure. The welcoming such as Bol.com (which sells products such as books Other fast-growing categories in the country include products online
climate for digitalization often turns the country into a and toys), Coolblue (which sells home electronics) and cosmetics and toys. Percentage of e-commerce consumers who have
kind of workshop where major market participants test Albert Heljn (which sells groceries). But this domes- 55% made purchases from each respective product
63% category over the past year.
new ways of meeting customers. For example, IKEA tic dominance may weaken in the future as Dutch
chose to launch its augmented reality app first in the consumers have spontaneously begun to look across Large share of young 45%
Netherlands and France. borders, mainly in search of better prices.
people in the population
Average for Europe 35%
Among the larger markets in Europe, the Neth- 43%
erlands has the largest share of young people aged
Key indicators compared with average for Europe 15 to 29 – an attractive target group for e-retailers. 25%
Young people typically make many purchases using
30%
Internet penetration
96% their cell phones. As many as 85 percent of e-com-
merce consumers in the Netherlands aged 18 to 29
15% 27% 25%
22%
92%
have used a cell phone to make purchases over the 18% 18%
Percentage of e-commerce consumers 0%
past year. In order to be relevant for this group, the
purchase journey must be personalized and use the
Clothing and footwear
Home electronics
Books
Cosmetics and skincare
Home furnishings
Toys
Children’s items
Sports and leisure
Percentage of e-commerce consumers abroad
66% proper channels. WhatsApp and Facebook are the
largest social channels among young people in the
Average purchase per year (EUR)
EUR 651 Netherlands and thus are potential display windows
for e-retailers. Other potential paths to success in-
Growth in number of e-commerce consumers since 2014
13% clude marketing via influencers on Instagram, and
creating online communities that are integrated with
the purchase experience.
32 E-commerce in Europe 2019 E-commerce in Europe 2019 33You can also read
