The progress of e-commerce in Germany—home to Europe’s largest Internet population—was relatively slow, retarded by many of the same issues seen earlier in other countries, such as the UK and the US. Heightened security concerns and adherence to traditional payment habits on the part of many Germans hindered the development of online selling.
But the situation has changed.
By the end of 2008, the GfK Group reported that retail e-commerce sales—excluding event tickets, financial products and travel—reached €13.6 billion ($20 billion), up €2.2 billion ($3.2 billion) from 2007.
“Consumers in Germany have largely overcome their reluctance about buying online,” says Karin von Abrams, eMarketer senior analyst and author of the new report, Germany Online: Europe’s Biggest E-Commerce Market Comes of Age.
Eurostat calculated that 89% of Germany’s male Internet users ages 16 to 74 shopped online in 2008—the same percentage that sent or received e-mails.
Among males ages 25 to 54, the percentage who shopped online was 93%.
Online shopping was only marginally less popular among female Web users in Germany ages 16 to 74, with 87% involved.
“The size of the country also aids the emergence of online markets for specialist goods—such as regional foods, handmade craft items, luxury gifts and high-end electronics—by ensuring a critical mass of buyers,” says Ms. von Abrams. “And the total audience for e-tail offerings is even more substantial when other German-speaking countries such as Austria and Switzerland are taken into account.”
In fact, in the “Digital World, Digital Life” report, TNS Global put the percentage of online buyers in Germany at 73% of Internet users ages 18 to 55—higher than in any other country sampled.
“Inevitably, German e-commerce mirrors the nation’s values and overall economy,” says Ms. von Abrams. “Nonetheless, developments in Germany offer useful insights for online retailers and marketers in other countries.”