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With 68 million people (84% of the German population) online on a regular basis, Germany is responsible for around one quarter of all European B2C e-commerce turnover. The A.T. Kearney Global Retail E-Commerce Index 2015 also identified Germany as Europe’s second largest online market behind the UK – but with almost triple the UK’s current growth potential. In fact, the Verband der deutschen Internetwirtschaft (Association of the German Internet Industry) has predicted turnover to surpass EUR 100 billion by 2020. Combined with an extensive, highly developed logistics infrastructure, Germany is the clear continental leader in this area and offers a myriad of opportunities for international online retailers and service providers alike.
Nadine Litchfield, Senior Manager of Consumer Markets and E-commerce, Germany Trade and Invest | © ecommerce berlin expo 2017
E-Commerce Market in Germany. Nadine Litchfield at ecommerce berlin expo 2017.
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Nadine Litchfield, Senior Manager of Consumer Markets and E-commerce, Germany Trade and Invest | © http://www.ecommercecapitals.com/blog
Germans are ‘Return-Champions’, but it is still the biggest consumer market in Europe
The E-Commerce Market in Germany
The German e-commerce market is expanding rapidly. During the period 2012 to 2015, e-commerce grew by nearly 70% (from EUR 27.6 billion to EUR 52.2 billion), with e-commerce now comprising around 96% of all interactive commerce. Industry experts expect this trend to continue, with expected growth rate of 12% in 2016. With 68 million people (84% of the German population) online on a regular basis, Germany boasts not only the most internet users in Europe, but also the greatest e-commerce customer potential.
According to the Verband der deutschen Internetwirtschaft (Association of the German Internet Industry), more than half (53%) of German GDP will be comprised of e-commerce related activities by 2017; a 16% leap from 2012 e-commerce activity levels.
These developments can also be witnessed in the e-commerce B2B sector. According to a 2015 ibi research study, 83% of interviewed companies reported buying online, at least in part. Moreover, 20% of professionals in this study expected online buying in their company to strongly increase, with another 53% expecting at least some increase. Forrester Consulting also reported in 2014 that 52% of businesses expect at least half of their orders to be online within three years. These forecasts highlight the fact that businesses are rapidly becoming more online-oriented, and signal the significant potential of a rapidly expanding virtual B2B environment.