The Ecommerce Europe federation has published, jointly with EuroCommerce, the 2024 edition of the European e-commerce market report. A report marked by limited growth of 3% in 2023 (compared to 2% in 2022) and a nominal turnover increasing from 864 to 887 billion euros. Growth masked by significant disparities depending on the region.
Certainly the European B2C online commerce sector is on the rise… but a fairly small increase! A certain number of factors have in fact slowed down this growth since 2022 including inflation, costs linked to the integration of technological advances, the implementation of more sustainable models and adaptation to new environmental regulations. Moreover, European companies are faced with increased competition from non-European players who often escape the application of European standards.
Disparities depending on the region
Breaking down the data by region reveals contrasting performance across different regions. The Western Europe region, which traditionally occupies first place in terms of B2C sales, recorded a turnover of 596 billion euros in 2023, a slight decrease of 1%.. On the other hand, Southern and Eastern Europe showed high growth rates (14 and 15%)with respective turnovers of 166 and 17 billion euros. Central Europe is showing resilience by generating a turnover of 79 billion euros, up 8%. Finally, Northern Europe recorded a turnover of 56 billion euros, down 5%.
Stabilization of inflation
Like the previous edition, the 2024 report includes inflation-adjusted figures for Europe and its regions. While inflation has led to a real drop in e-commerce turnover (adjustment of -3%), comparison between 2023 overall data and this year suggests gradual stabilization. The inflation rate forecast for 2024 is expected to reach a more normal level of 2.7%. The forecast also points to more robust growth (8%) for 2024, reflecting a rebound in consumer confidence and spending across Europe.
Look for growth opportunities
The report highlights the efforts undertaken by European e-commerce players to comply with new regulations while seeking growth opportunities. For example, companies are experiencing difficulties in interpreting and applying the principles set out in the regulation on artificial intelligence (IA Act) in the implementation of new tools intended to improve the customer experience, particularly in terms of returns and after-sales service. The sector is also developing or consolidating second-hand activities through the sale of reconditioned or used products in order to meet growing consumer demand and comply with new legislation. Despite prospects that seem more favorable for the market, it is essential that European and national political decision-makers address the issue of unfair competition from non-European and particularly Asian players.
Luca Cassetti, general secretary of the Ecommerce Europe association, commented on these figures and trends: “ The stabilization of the market after a turbulent period and the resumption of growth require clear signals from decision-makers who must recognize the role of e-commerce as a driver of the revival of European competitiveness. Above all, we must ensure a level playing field and effective enforcement of EU regulations for all players active in the European market, regardless of their geographic location. Likewise, it is essential that public policies focus on respecting the principle of channel neutrality, and pursuing the objectives of simplification for businesses, like the recommendations contained in our Manifesto. »
For her part, Christel Delberghe, general director of EuroCommerce, continues: “ Our report shows that, thanks to technological advancements and strong consumer demand for sustainability, e-commerce remains dynamic and offers significant growth opportunities. It also faces many challenges linked to international competition, disparities in the adoption of technologies or difficulties in adapting to new European legislation. In such a competitive landscape, the capacity to innovate and adapt to these changing conditions will be decisive for the success of economic actors. The authorities will also have to ensure that European legislation is applied fairly for all stakeholders working with EU consumers.. »
A summary version of the report is available ici.
Methodology
The report was prepared by the Center for Market Insights at the Amsterdam University of Applied Sciences.
The 2024 edition of the report offers an in-depth analysis of e-commerce in 38 European countries. Mainly focused on the EU 27, this report updates essential data on B2C e-commerce turnover and internet and e-shopper penetration rates. Although Estonia is included in the report, this edition does not present any data on its turnover (data not available). Moldova is included for the first time this year, allowing us to expand our analysis and provide a more comprehensive view of an evolving European market.
Western Europe is by far the leading region : it represents 64% of the total turnover of the B2C segment for 2023. Southern Europe is the second region, with 19% of turnover. Central Europe (9%), Northern Europe (6%) and Eastern Europe (2%) represent a significantly smaller share of this total. In real figures for 2023, Western Europe, Southern Europe and Central Europe made 569, 166 and 79 billion euros respectively. Northern Europe comes just behind Central Europe with 56 billion euros, followed by Eastern Europe (17 billion).
This year, the baseline criteria for e-shopping penetration has been adjusted to reflect the total population aged 16 to 74. This results in slightly lower figures than the previous report, which used the number of internet users as a baseline. In 2023, 71% of the European population aged 16 to 74 made online purchaseswhich suggests an increase in these purchases in absolute figures, but conceals trends (upward or downward) specific to the countries studied. Relevant national e-commerce associations have linked the rise in online shopping to convenience, increased shopping frequency and expanded product offerings. The decreases were interpreted as a consequence of inflation and the general climate of uncertainty. Last year, Northern Europe regained its traditional leading position in the share of online shoppers in the total population aged 16 to 74 (83%). Western Europe, where 82% of the population concerned had made online purchases in 2022, comes just behind. Central Europe occupies third place (70%). In Southern Europe, 59% of the population aged 16 to 74 have shopped online, while in Eastern Europe, which includes many countries outside the EU, the figure rises at 53% for the year 2023.
Source: www.ecommercemag.fr
