Ecommerce is booming. We have written about some recent trends, in the context of the pandemic and the underlying social distancing mandates. But a lot of numbers have been popping up recently, specifically about the situation in Europe.
Here’s some of the most relevant:
The full impact of COVID will be felt next year
There’s a lot of data to be collected from Retailx’s new report on consumer behaviour in the EU. One of the most important figures is that growth in ecommerce hasn’t been greatly affected yet (13% compared to last year’s 14%).
According to the EU’s new survey report, this is due to several factors. While there has been a massive spike in demand, it hasn’t been equal to all industries. Some have actually experienced the opposite (such as the fashion industry), with people focusing on more immediate needs. Not only that, a lot of businesses have had a hard time keeping up with the demand during lockdowns, with significant disruption of supply chains.
Next year, however, the expectation is that these problems will be mitigated, and that the permanent shift of consumers to ecommerce will be more fully realised.
Western Europe is dominant
67% of all European Internet users have shopped online in the last year. This is a 6.5% growth compared to 2018. There is massive inequality in this across Europe, however.
The same Retailx report also indicates that about 70% of all ecommerce in Europe happens in the west, with a very high share of online shoppers (around 83% of all Internet users).
There has, however, been strong growth in places like Romania and Bulgaria. These are countries with a very low share of online shoppers, (29 and 30% respectively), which indicates plenty of room for improvement.
The UK is Europe’s largest ecommerce market (and it’s not close)
The United Kingdom’s ecommerce market presented a neat 200 billion euros in turnover last year. That’s 7.94% of the country’s whole economy. For the sake of comparison, the second largest ecommerce market in the EU, Germany, is worth about half of that, and that’s if the estimates for 2020 hold.
It goes without saying that the UK and Germany are the two juggernauts for ecommerce. The entire European ecommerce market is worth about 717 billion euros, so the UK is worth over one quarter of the market, and the two together are worth well over one third.
Cross border numbers are rising
We already knew people were buying more from all over the world, caring less and less about where products came from. Now we know that within the EU almost one quarter of all ecommerce happens across borders. Cross border commerce in Europe (this excludes travel of course) has risen by 14% compared to 2018. It now represents 108.75 billion euros and about 24% of all online sales.
So what happens next for ecommerce in Europe?
There are several key aspects:
- Brexit will mean that exporting to the UK will be trickier. They will be outside the EU and no one really knows what the rules will be. With them representing such a large share of the market, ensuring a presence there will be very important.
- Ecommerce growth is expected to spike as people remain socially distant for the foreseeable future and supply chains stabilise.
- Cross border sales are expected to continue growing at a faster rate than general ecommerce.
Here’s how Utrust can help you make a success of these changes:
- Utrust is borderless. You can accept payments from anywhere in the world and get paid in fiat, in your usual bank account. Payments are also extremely fast.
- Protection against fraud is foolproof. We were built for the Internet. Your customers will never have to share their private information online, so you can transition more of your business to the web without fear.
- Commerce is becoming digital, and it will wait for no one. Now is the time to make sure your company is not left behind, and that’s what we were made for. We provide a custom API and will tailor our service to your needs, whether you’re on Magento, Wordpress, Payrexx or anywhere else.
So just head here to join Utrust today. The future is coming. Be ready.