Ecommerce in Europe is growing at a rapid rate, and it shows no indication of slowing down any time soon. Experts predict that the ecommerce market in Europe will be worth over 621 billion euros by the end of 2019, most of which will come from Western Europe.

With internet penetration in Western Europe at 92.3%, there is no shortage of consumers who are looking to make purchases online.

Retailers who want to increase their conversion rate, their number of loyal customers, and their bottom line should take note of the potential for ecommerce retail in Western Europe and consider making their products available in the United Kingdom (UK), France, Germany, Spain, Ireland, the Netherlands, and Belgium.

The United Kingdom

When most people think of the United Kingdom, a few things probably come to mind: red double-decker buses, Big Ben, and the legendary rock band, The Beatles.

However, in addition to these great aspects of this island nation, the United Kingdom should also be recognized for being one of the largest ecommerce markets in the world.

Here are a few factors and insights into consumer insights that you should consider when you are deciding whether or not to ship their products to the UK:

The ecommerce market in the United Kingdom

The Ecommerce Foundation estimates that ecommerce in the United Kingdom will reach over 200 billion euros by the end of the year, which is 14.6% more than last year, and this market will only continue to grow. Whereas ecommerce only accounted for about 11% of total retail sales in the United States, it represents almost 17% of total retail sales in the UK.

Consumers in the UK have the power and the desire to engage with ecommerce, and online retailers in the United States can take advantage of this by advertising and offering their products in Western Europe.

High purchasing power

Ecommerce businesses that are not currently doing business with the United Kingdom have a lot to gain from expanding their reach to this country. The United Kingdom has an estimated purchasing power parity of 0.69, and the average online shopper in the UK spends about 3,620 euros each year on online purchases.

Consumer spending in the United Kingdom

The most common goods purchased in the United Kingdom are clothing, sporting goods, and household items. According to the UK Office for National Statistics, consumers in the United Kingdom purchased 55% of their clothing and sporting goods and 48% of their household items,  online, which will be beneficial for ecommerce retailers in the United States that sell goods that fall into these categories. If your ecommerce business specializes in any of these items, you can be confident that selling your products to consumers in the UK will be beneficial for your bottom line.

Internet penetration rate

The United Kingdom has a high internet penetration rate. With roughly 86% of their population of over 66,435,600 people using the internet every day, there are plenty of opportunities for ecommerce merchants to boost their profitability and expand their reach by choosing to advertise sell their goods to the United Kingdom.

By 2021, analysts predict that approximately 93% of internet users in the United Kingdom will shop online, giving the UK the highest online shopping penetration rate in Europe. These internet users are willing and able to make a large percentage of their purchases online.

If your ecommerce business ships products internationally to the United Kingdom, you will be able to reach thousands of new consumers, ultimately leading to an increase in conversions and sales.

France

France is another country in Western Europe where global ecommerce is taking off. France is currently the third-largest ecommerce market in the European Union and the sixth-largest market in the world.

If you want your ecommerce business to benefit from this growing market, you should consider shipping products to Western Europe. Here are some reasons why marketing your goods to consumers in France will be advantageous for your ecommerce business:

The ecommerce market in France

While the market in France is already sizeable, it is only continuing to grow. Ecommerce in France is projected to grow by 11.5% this year for an estimated 58.84 billion euros.

This growth in ecommerce sales is not just beneficial for retailers based in France. As the market continues to grow, the increase in competition opens opportunities for international retailers to step in and sell their goods.  More than half of consumers (approximately 52%) in France participate in cross-border ecommerce, making France a great market for ecommerce merchants selling products from the United States.

Consumer spending in France

The top purchases made by online shoppers in France are vehicle parts and accessories and fashion, which account for 35% and 11% of their ecommerce purchases, respectively. If your ecommerce business specializes in producing these items, there is a new world of consumers with high purchasing power available to you in France who willing to make cross-border purchases for these goods.

Internet penetration rate

France has roughly  55,860,330 internet users, many of whom use the internet as their main platform for making purchases. With an approximate internet penetration rate of 86.40%, ecommerce retailers have a great opportunity to gain new consumers when they make their products available in France.

With its immense market, high potential for growth, and its large number of internet users, there are plenty of reasons why your ecommerce business should say “bonjour” to shipping products to France.

Germany

While Germany’s luxurious meats, bread, and beer might not be great for your waistline, their booming ecommerce market will work wonders for your bottom line. With one of the larger ecommerce markets in Western Europe, there is no shortage of advantages that ecommerce retailers can gain when they open their online stores to German consumers.

The ecommerce market in Germany

Similar to the UK and France, the ecommerce market in Germany is rising. Data shows that ecommerce in Germany is likely to reach 57.8 billion euros by the end of 2019 with an annual growth rate of roughly 8.8%.

Consumers in Germany are increasingly engaging with internationally ecommerce, so if your business is not selling to Germany, you are missing out on massive revenue potential.

High purchasing power

Like other countries in Western Europe, consumers in Germany have high purchasing power. With an average purchasing power increase of 2.8% for the past two years, your ecommerce business has a lot to gain from advertising to consumers in Germany.

Consumer spending in Germany

The average consumer in Germany spends the equivalent of $867 on online purchases each year.

Fashion accounts for the largest amount of online purchases in Germany. This is closely followed by electronics, computer accessories, books, and media. With many consumers in Germany preferring to purchase these items online rather than in stores, and a growing need for international retailers to offer these products at reasonable prices, Germany is a treasure trove for ecommerce merchants in the United States.

Internet penetration rate

Germany currently has an internet penetration rate of 81.3%, and this number is expected to increase to at least 85.2% by 2023. One of the main reasons why the ecommerce market in Germany is so strong is because close to 80% of the population owns a smartphone. In fact, over $24 billion worth of online purchases were made by mobile users in 2017, and this number is only continuing to grow.

Which such a high percentage of mobile and desktop internet users, the future of ecommerce in Germany is bright.

Spain

Ecommerce in Spain is growing at an astronomical rate, and ecommerce retailers in the United States should capitalize on this impressive market. Consumers in Spain love online shopping for the convenience of having goods delivered straight to their front door, and the ability to make purchases at any time of day or night.

With more and more consumers in Spain engaging in global ecommerce, now is the right time to consider expanding your business to this Western European country.

The ecommerce market in Spain

According to the Ecommerce Foundation, 2.69% of Spain’s GDP will come from ecommerce sales. While this number might seem small now, it is rising steadily each year.

Experts estimate that ecommerce in Spain will grow by 20% this year, resulting in an estimated value of 33.56 billion euros by the end of 2019.

Consumer spending in Spain

The most popular product categories that draw online shoppers from Spain are fashion, electronics, and media. Clothing and fashion accessories account for 65% of ecommerce sales in Spain, while electronics and media represent 55% and 46% respectively.

Internet penetration rate

With a population of over 47 million people, Spain is the 9th largest country in the world. So while Spain only has an internet penetration rate of 59%, this number is significant enough for ecommerce retailers to consider when making marketing decisions.

Ireland

Ireland has a lot more to offer the United States than great music and great beer. Ireland has a strong ecommerce market that is beneficial for United States retailers, especially those who sell clothes, shoes, and other fashion accessories. If your ecommerce business specializes in items from this product category, Ireland is an ideal market.

The ecommerce market in Ireland

Ireland has an ecommerce market worth over $2.6 million, and revenue from this market is projected to grow at an annual rate of 11.5%. This is great for ecommerce retailers that want to expand into this market.

Consumers in Ireland prefer purchasing products from international merchants when they shop online, which is a big advantage for ecommerce retailers from the United States. Roughly 2.2 million consumers in Ireland made purchases from international retailers over the 2.1 million that made domestic ecommerce purchases in 2018.

Because of the advantages this market has to offer, many retailers in the United States are starting to sell their products to consumers in Ireland. Even if you are not currently shipping your goods to Ireland, you are allowing your competitors to capitalize on this revenue stream and increase in customers.

Consumer spending in Ireland

The majority of international ecommerce sales in Ireland come from consumers purchasing clothing and other fashion accessories. Online fashion sales in Ireland accounted for $767 million dollars in 2019. This means that United States ecommerce fashion retailers that start selling to Ireland have thousands of potential new customers and a huge potential for revenue.

Internet penetration rate

The internet penetration rate in Ireland was 72% in 2019, and this number is projected to get as high as 77.7% in 2023. This high internet penetration rate contributes to this large market because many mobile and desktop users in Ireland feel comfortable making online purchases via their smartphones.

With an increasing number of consumers in Ireland using their phones to make purchases from international retailers, Ireland is a key market in Western Europe that United States ecommerce merchants should explore.

The Netherlands

Although the Netherlands only has a population of 17 million people, it is a major market that can increase the profitability of ecommerce merchants in the United States. Thanks to its high internet penetration rate and the increasing number of consumers from this country looking to make purchases from overseas businesses, the Netherlands is a great market for those retailers who want to gain new consumers and increase their revenue.

Here are some factors to weigh when you are considering whether to expand your reach to the Netherlands.

The ecommerce market in the Netherlands

Boasting 23.7 billion euros in ecommerce sales in 2018, the Netherlands has a fairly large ecommerce market. Online sales represent roughly 9.6% of total retail sales in the Netherlands, and while the biggest online retailers in the Netherlands are Dutch, more and more consumers in this country are branching out to international ecommerce businesses for competitive pricing.

Consumer spending in the Netherlands

The Netherlands has a lot to offer ecommerce retailers in the United States that sell products in a variety of categories including travel, electronics, computer hardware, and fashion.

While Dutch retailers like Zalando and Coolblue account for most of the ecommerce sales in popular product categories, international retailers like H&M are also becoming major players in this market. There is great potential for growth and revenue for retailers from the United States, especially those in the tech industry.

Internet penetration rate

The Netherlands has a whopping 96% internet penetration rate, which is great for ecommerce retailers that are trying to tap into this market. As the desire for cross-border shopping increases, retailers in the United States have a unique opportunity to market their products to millions of smartphone and desktop users in the Netherlands.

Belgium

Even though Belgium separated from the Netherlands over 100 years ago, these two countries have more in common than you might think. Just like the Netherlands, Belgium’s ecommerce market is blossoming, and it is expected to grow steadily for the next few years. If you are considering shipping your products to Western Europe, Belgium is an ideal country where you can start.

The ecommerce market in Belgium

Online sales in Belgium contribute to $10.67 billion in revenue. While this market is not growing as quickly or significantly as other markets in Western Europe, the Ecommerce Foundation notes that the value of the ecommerce market in Belgium will continue to increase over time.

Cross-border ecommerce is also becoming increasingly popular for consumers in Belgium. The top five ecommerce stores for consumers in Belgium are owned by international parties, showing a growing desire for the competitive pricing offered by merchants from other countries. If your business has not started marketing to Western Europe yet, you are potentially missing out on the opportunity to increase your cross-border ecommerce.

Consumer spending in Belgium

The average consumer in Belgium spends roughly $766 on online purchases annually. Most of this goes toward electronics, media, and clothing.

The product categories that saw the most growth in Belgium this past year include toys, which increased by 11%, followed by sporting goods, media, and clothing..

Internet penetration rate

Thanks to its solid internet infrastructure, consumers in Belgium have easy access to cross-border ecommerce. At 83%, the internet penetration rate in Belgium is higher than that of the European Union. As an increasing number of desktop and mobile users are using the internet to make purchases, the market in Belgium is continuing to grow.

Choosing Zenda

As you can see, ecommerce is taking off in Western Europe, and there are countless consumers who are looking for goods from the United States. Zenda can help your ecommerce business take advantage of hundreds of thousands of potential customers in Europe by providing you with a quick and reliable way to ship your products overseas.

Powered by British Airways, Zenda offers daily flights from the United States to Europe that ecommerce retailers can use to deliver products within 4 to 8 business days. With a fast shipping speed, and prices up to 50% less expensive than Express providers, Zenda is the best option for retailers looking to ship their products to Europe.

Capitalize on the growth potential and customers that Europe has to offer, and contact us today.