Do you know that the revenue of Germany’s eCommerce market is primed to hit US$108.78 billion in 2023?
In the era of digital-centric consumer needs, online shopping and emerging payment methods have taken an international leap. The ubiquity of smartphones has streamlined the purchasing products and services from global sellers, enhancing speed and convenience.
With our new eBook, Regional payments roundup 2023 Germany, you’ll unlock the potential of Germany’s booming economy and learn more about localised digital shopping and varied payment experiences. If you want to conquer new markets, redefine your business strategy and boost your profitability, this eBook is your map to success in Germany’s vibrant eCommerce landscape.
Germany’s economic progress in 2023 and beyond
Germany, a European economic powerhouse, offers fertile ground for ambitious merchants who want to expand and amplify their brand’s growth. To illustrate that, the country’s key sectors and consumer buying confidence are witnessing promising shifts, geared by a robust policy response to energy cuts and recovering industrial production. While GDP growth is on the rise, set to hike from –0.3% in 2023 to an impressive 1.3% in 2024, inflation is expected to considerably decrease to 2.6% by 2024 versus 5.8% in 2023.
Whereas high inflation and rising prices affect spending in many parts of Europe, Germany is showing signs of improvement. While 63% of German consumers made cut offs because of the cost of living crisis in Q3 2022, only 20% expect reduced spending in the years to come, which could imply a modest uptick in consumer confidence.
Exploring Germany’s eCommerce momentum
81%. This how many Germans are active digital shoppers in 2023, according to our report, suggesting an ever-growing consumer base for eCommerce brands striving to access this market.
Notably, Germany’s eCommerce ecosystem is characterised by a tech-savvy population with substantial online purchasing power. With internet penetration reaching 85% in the same year, it is no wonder that the country ranks fourth globally after the US, Spain, and the UK. Germany is also highly preferred for cross-border trade, as it was the go-to location to buy from overseas for most (63%) consumers in Luxembourg and Austria (61%) among others in 2022. At the same time, Germany’s eCommerce sector is expected to see an increase in revenue, with projections noting a surge by 40% from 2023 to US$148.57 billion in 2027.
When digging into the top selling eCommerce segments of the country, it becomes obvious that fashion items accommodate the biggest part of the German population with a total of 128.4 million in 2023. This trend of high demand also echoes in the Furniture category, as it registers a market share of 26.5% in 2023 and outpaces other European countries such as the UK (15.8%), France (11.8%), Italy (5.2%). Studying the demographics of your target market is vital, as they can play a critical role when entering it for sustained business growth. Younger consumers aged 25 to 45 dominate digital purchases in Germany, representing 78% of digital online shopping in the nation. In terms of gender, females hold a notable edge, with 92% of those aged 25 to 44 buying online compared to 90% of males.
In this thriving eCommerce scene, tailored strategies based on these insights can enable merchants to tap into the potential of the German market.
Digital payments are leading the way
Venturing into the German market unravels a world of opportunity, and aligning with local payment preferences is key for lasting business success. Its digital transaction value is forecast to hit US$258 billion in 2023, with a penetration rate of nearly 82% in digital payments reinforcing the shift from cash.
Online payment services dominate the German payments scene, favoured by more than three thirds (68%) of Germans, with PayPal leading the charge. An impressive 91% of locals have adopted PayPal for online purchases in 2023. Other solutions such as invoice and direct debit also hold sway with 55% and 49% respectively, while the Buy Now Pay Later (BNPL) trend rises steadily, capturing 23% of the market in 2022.
When it comes to card payments, Germans emphasise domestic options. Girocard accounts for a staggering 75% market share. Embracing these insights places digital retailers to not only enter but excel in Germany's evolving payment landscape for maximised conversions and profit margins.
Maximise your revenue in Germany with local payments – How emerchantpay can help
The forecast for Germany in 2023 appears optimistic, highlighted by a rebounding economy and eCommerce industry. By analysing consumer data and implementing localised payment processes, merchants can safeguard their online brands and achieve long term growth and reputation within Germany.
Download your copy of our eBook now and find out about the consumer attitudes and localised payment needs in Germany. Teaming with a trustworthy and knowledgeable payment service provider like emerchantpay can help you expand and grow your eCommerce brand in the nation.
Ready to take your eCommerce business to new heights in Germany and increase your revenue? Contact our payment experts today and learn how.