By the end of 2019, e-commerce in Europe is expected to reach 621 billion Euros, up 13.6 percent from last year, when e-commerce in Europe was worth 547 billion Euros. The focus of Europe’s e-commerce remains in Western Europe, with the UK, France and Germany once again the top three European e-commerce markets, accounting for more than two-thirds of Europe’s e-commerce turnover and about 68% of its online retail turnover. The e-commerce platforms of giants such as Amazon, eBay and Aliexpress are all located in these countries, attracting numerous cross-border e-commerce sellers from all over the world to the European e-commerce market.
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The forecast comes from the E-Commerce Foundation’s latest report on e-commerce in Europe, which also found that Scandinavian countries (norway, Sweden, Denmark, Finland and Iceland in northern Europe) consistently rank high among important e-commerce indices. Denmark, for example, is the easiest country to do business in Europe, while Sweden, Denmark and Finland are all in the top 10 of the global logistics performance index.
Across Europe, Western Europe continues to dominate the e-commerce market, with large markets including the UK, Germany, France, Italy and Spain having advanced e-commerce infrastructure and a sophisticated e-commerce environment.
Enabling e-commerce consumers to make online purchases in a comfortable environment has contributed to the healthy and sustainable development of these markets.
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Top countries in Europe’s business environment
Denmark: NO.3
Norway: NO.7
United Kingdom: NO.9
Northern Macedonia: NO.11
Sweden: NO.12
Top countries in the European Logistics Performance Index
Germany: NO. 1
Sweden: NO. 2
Belgium: NO.3
Austria: NO.4
Dutch: NO. 6
Denmark: NO. 8
English: NO. 9
Finland: NO. 10
France: NO. 16
Percentage of online shoppers in European countries
It is estimated that global e-commerce turnover will reach 3.5 trillion us dollars by 2019.
The proportion of consumers using shopping on the Internet varied across Europe last year. In Switzerland, the United Kingdom and Denmark, the figure was more than 85 percent, while in countries like Romania and Ukraine, less than 26 percent of people used shopping online last year.
E-commerce growth in Europe 13%
Europe’s B2C e-commerce transactions are expected to reach 621 billion Euros this year, and if this is the case, e-commerce in Europe will continue to grow at a rate of more than 13%. According to the e-commerce foundation, the majority of e-commerce turnover in Europe is concentrated in Western Europe (66%). In Romania, Ukraine, Kazakhstan, Portugal, Greece, Russia, Italy and Estonia, ecommerce is growing strongly, but for different reasons. Eastern European countries such as Romania, Ukraine and Estonia are on the list in eight cross-border e-commerce markets that showexplosive growth in 2018, according to a recent study by PPRO Group, a UK-style online payment company.
Among them, the fastest annual growth of e-commerce is Romania, its e-commerce sales are estimated to be $2.41 billion per year, accounting for 5.6% of retail sales, e-commerce average annual growth rate of 40%. This was followed by Ukraine, which had an average annual growth rate of 31 per cent, with e-commerce valued at $5.1 billion.
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Average spending by online shoppers in Europe
In Europe, online shoppers reported 11.3% of their online shopping. While Western Europe has the highest share of e-commerce transactions on the continent, northern Europe is the region with the highest per-capita spending by online shoppers: €2.046 a year. Online shoppers across Europe spent an average of €1,346 last year and are expected to spend €1,464 by the end of the year.
Payment methods: global but also localized
Consumers have tried and trusted payment preferences. They rarely look for new ways to pay. Three years ago, e-commerce sales using local payment methods outstripped those made by international brand edyes credit cards. By 2021, that share is expected to climb to 71 percent, according to the Worldpay report. Clearly, if retail e-commerce only accepts international credit and debit CARDS, they are likely to lose both sales and customers.
Internet penetration in Europe
In Europe, the Internet penetration rate is 82.5%, with the highest rates in northern Europe and Western Europe at 93.3% and 92.3% respectively. There are still many big differences between European countries on this issue. In Iceland, for example, Internet penetration is 99 per cent, while in Ukraine only 64 per cent of the population has access.
While there are a lot of consumers in Europe who like shopping online, there are also those who like to go to a physical store shopping in person, who like to actually look at the product, who are loyal to the store, or who are used to going to a physical store. In kosovo and Montenegro, people are more likely to avoid ordering online, while in Poland only 2% prefer physical stores to online ones.