What is the specificity of the German market? Top 5 categories in e-commerce

E-commerce platforms in Germany are gaining increasing popularity year by year. Local sellers are noticing this. Nearly 45% of businesses operating online stores also have a sales account on #Amazon, over 36% on eBay, and almost 15% on kaufland.de. German manufacturers and resellers are increasingly leveraging the potential of multichannel sales.

Statistical data indicates the dominance of several product categories that have enjoyed the greatest popularity among internet users shopping online for several years. These include, among others, interior design items, cosmetics, and electronics. However, these are not the only factors that Polish sellers should consider in their sales strategy.

Do you want to understand the specifics of the customer beyond the western border? Find out how to prepare an offer that is attractive to German consumers.

Most Popular Product Categories

In 2021, the top 5 most selected product categories on German Amazon were:

– Home

– Drugstore and Body Care

– Clothing

– Sports and Leisure

– Garden

Fig. 1 Most popular categories on amazon.de in 2021

Source: Entrepreneurs of the Future - SME Report Germany, https://assets.aboutamazon.com/0f/9a/d8c2696b464d929dcb7a670c98ec/amazon-kmu-report-deutschland-2022.pdf

Compared to the previous year, there were significant changes. In 2020, clothing was in second place, and the Health and Body Care category was in third. The list was completed by sports equipment and toys. It was a specific period for the entire #e-commerce industry because there were strict operational rules in retail at that time, and some outlets were closed for many months due to the pandemic.

The current market is largely shaped by these factors, as over the last 2 years, many customers have been forced to shop online. Consequently, consumer habits have changed, with over 40% of Germans shopping online more than once a week. In 2019, this percentage was just over 33% (Fig. 2).

Fig. 2 Increase in the number of German consumers shopping online in 2019–2021

Source: https://www.bevh.org/fileadmin/content/05_presse/Pressemitteilungen_2022/26012022_PM_PK_final.pdf

For sellers worldwide, this means that the German version of the Amazon platform and other marketplaces have significant potential that they can utilize. There is little likelihood that consumers who have discovered the benefits of online shopping will return to traditional brick-and-mortar stores. It should be recognized that the upward trend will continue, although it is likely to be on a smaller scale than in 2020.

Leading Industries in German E-commerce
Data for 2021 indicate that in the Fashion & Accessories and Electronics/Consumer Electronics segments, the share of online trade exceeds 40%. In the former case, it is 23% of total e-commerce revenues, and in the latter – 24%. The next position was occupied by the Leisure & Hobby category, which achieved 15%.

Fig. 3 Share of individual sectors in online trade in Germany in 2021

Source: https://www.netz98.de/blog/b2c-e-commerce/e-commerce-studien-prognosen-wohin-entwickelt-sich-der-b2c-onlinehandel/

An important piece of information for Polish producers and resellers is that in 2021, compared to the same period of the previous year, a decrease in revenue from foreign suppliers was recorded from 7 to 5.4 billion euros. The reasons included the introduction of new regulations concerning exemptions from import sales tax and Brexit. Another important indicator is the 30% increase in the number of internet users aged 60+ shopping online. The prolonged pandemic made e-commerce attractive also to customers who previously preferred brick-and-mortar stores.

Specifics of the German Consumer
A Pattern study (2022) among 1000 people: 96% ordered products from Amazon at least once in the previous year. Key factors influencing purchasing decisions:

– local, sustainable production,

– certifications,

– diverse selection.

Show that you care about sustainability
Nearly 1/3 of consumers think about sustainability already at the purchase stage, and 60% admit that the topic is close to their hearts. Sellers on amazon.de can benefit from the Climate Pledge Friendly designation. Certifications confirm:

– high quality,

– commitment to climate and environmental protection,

– transparency of processes and compliance with standards.

Prepare offers for mobile devices
In 2021, more than half of online sales came from mobile devices. How to leverage this? When planning titles, content, and graphics, remember that most customers will see them on small screens. Mobile sales increased by 56.5% over two years and in 2021 accounted for 40% of online revenues. The most active mobile shoppers are users aged 14–29; before purchasing, they use search engines, product pages, social media, and apps. The role of social media as a source of product information increased by 350% from 2017 to 2021.

Ensure regular promotional actions
Even small discounts can improve conversion. Regular promotions:

– attract to the assortment,

– increase referrals,

– encourage more frequent visits (store, Brand Store, auction page).

Key dates: Black Friday and Cyber Monday – in 2021, revenues in Germany reached 5 billion euros. With an inflation rate of 10.9% (September this year), interest in promotions is rising – customers are waiting for Black Week to buy electronics, household appliances, and gifts at lower prices. The "harvest time" in e-commerce usually lasts until mid-December.

Focus on the attractiveness of the offer
The most important pillars of stable sales:

– attractive prices,

– building loyalty,

– well-prepared offer (content + graphics).

Example: “carpenter's hammer 550 g” vs. “fiberglass carpenter's hammer with stainless steel head” with a description of applications, features, dimensions, and origin – the latter inspires more trust. Source of graphics: brgfx, https://pl.freepik.com/

36% of German consumers indicate that the product description and photos have the greatest influence on their decisions (price – 33%, reviews – 21.7%).

Amazon's Position in the German E-commerce Market
94% of online shoppers purchase on Amazon; 70% of revenue is generated by Prime customers. 1/3 of users place half of all their online orders on Amazon. In 2021, 88% of Germans used amazon.de, 5% used amazon.co.uk and amazon.com. Advantages of Amazon according to customers:

– more attractive price (63%),

– faster delivery (43%),

– availability (42%),

– ease of use (41%),

– Prime (35%).

Approximately 700,000 sellers operate on amazon.de (about 90,000 local; about twice as many from China). Between 2019 and 2021, the number of sellers increased from ~240,000 to ~691,000. Despite high competition, there are niches – before entering, it's worth investigating market potential (category analysis).

Summary
The German e-commerce industry benefits from the growing popularity of online shopping. The number of sellers and customers on marketplaces, online stores, and those purchasing through social media is increasing year by year.