Euro E-Commerce Hit $133 Billion, 25 Percent Yearly Growth Projected

E-tailers looking to expand their footprint in Europe are finding a vibrant growing marketing--$133 billion in sales last year, with annual 25 percent growth for each of the next five years, according to a new report from eMarketer.

But those merchants will also find a Europe that is changing, with vastly different country personalities and preferences. Europe may be moving to one consolidated currency, but its residents still use those Euros quite differently. The money may be Euros, but Germans still purchase differently than the French, Italians and the British.

In terms of straight revenue and buying power, the United Kingdom still dramatically overshadows all other European countries, with sales last year of $56 billion and a projected annual growth rate of 51 percent. Second- and third-place prizes go to Germany and France respectively.

But revenue is only one way to measure a country's E-Commerce oomph. Some of the countries in Nordic and Netherlands parts of Europe?including Denmark, Finland, Iceland, Norway and Sweden?may deliver less revenue, but the efficient of their activity is much higher. In other words, the percentage of residents who regularly use the Web and the percentage of those Web surfers who make purchases can make those countries a very efficient place to try and sell online.

For example, the UK reports that 89 percent of its Web surfers often buy online, a figure that dwarfs the 54 percent in Italy, the 67 percent in Belgium and even the 75 percent in France. Germany is closer at 83 percent, but Norway tops the list at 93 percent.

Norway also took top honors for the highest average spend ($1,772), although the UK ($1,513) came close, followed by Denmark ($1,460), Sweden ($1,276), Belgium ($995), Netherlands ($858) and then a steep drop with Germany ($656), France ($641), Italy ($572) and Spain ($570).

So although Germany's much larger population makes the country a more lucrative target, the higher average income and literacy rate of Norway and Denmark makes their residents not a group to be ignored.

"The Nordic countries, they don?t get the publicity and attention," said Jeffrey Grau, a senior analyst with eMarketer and the author of the European E-Commerce report. But the data "keeps showing that the Netherlands, Denmark and Sweden have the highest rates of online buyers and average spend online. These are affluent societies, yet because they are such small countries, you don't talk about them much in European E-Commerce."

Even less talked about is what eMarketer dubs the third wave in Euro E-Commerce, which is when the firm argues that some Eastern European countries?including Russia, Poland and the Czech Republic?will start have a huge E-Commerce impact, "perhaps starting early in the next decade," which is just a few years away.

The report also looked at the reasons various European E-Commerce consumers opted to not make purchases. "Have no need" for the product or service?what a silly reason to not buy something?impacted most German (65 percent) and Spanish (58 percent) consumers, but had much less of an impact on Italian (43 percent), UK (38 percent) and French (30 percent) consumers.

An even bigger difference was seen when the question involved "trust concerns about receiving or returning goods, complaint/redress concerns," where it was again German consumers (55 percent) who expressed the most concerns, compared with other Euro consumers who seemed to shrug it off, such as Spain (15 percent), France (13 percent), Italy (16 percent) and the U.K. (10 percent).

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.