E-Commerce in Germany: Key Insights from PayPal's E-Commerce Index 2022
Online shopping has become a staple in our daily lives, with a growing number of consumers turning to the internet to make purchases of goods and services.
As the trend towards e-commerce continues to surge, it’s essential for businesses to stay up-to-date with the latest consumer habits and behaviors. In this blog post, we will delve into the results of the PayPal E-Commerce Index 2022, a study that examines the relationship between Germans and online shopping and payments.
From the average amount spent online each month to the preferred platforms for social commerce, this study provides valuable insights for businesses looking to stay ahead in the ever-evolving world of e-commerce.
PayPal, the leading payment provider, recently published its E-Commerce Index 2022, providing valuable insights into the online shopping behavior of German citizens. The study is based on a survey of 2,038 consumers conducted in mid-2022. The findings provide crucial information for businesses looking to keep pace with the evolving trends in e-commerce and meet the expectations of consumers.
Average Monthly Online Spend in Germany
According to the study, Germans spend an average of EUR 295 per month on online purchases. Around 15% of the respondents spend EUR 500 or more per month on online purchases, including payments for in-app purchases, bills, services, and other online purchases.
Popularity of Online Shopping Across Generations
Almost two-thirds of Germans (59%) shop online several times a week. On average, Germans make three online purchases weekly, with 7% making daily purchases. The younger generations, Gen Z and Millennials, are leading the trend towards online shopping, with an average of five online purchases per week and around three-quarters shopping online many times a week.
Social Commerce: The New Gold Rush in Retail
With smartphones becoming an integral part of our lives, social commerce is also gaining popularity among consumers. According to the study, 68% of the respondents make online purchases or payments via their smartphones, and 45% shop via a social media platform. The most popular social media platforms for shopping in Germany are YouTube (72%), Facebook (57%), and Instagram (53%). TikTok is quickly becoming a popular platform for shopping among 18-25-year-olds, with 66% of social shoppers having already ordered something via the platform. Businesses should be prepared to reach their customers through all sales channels, including online, mobile, and social media, as 15% of shoppers make purchases via social media every week, spending an average of EUR 113 per month.
Simple Payment Processes Avoid Shopping Cart Abandonment
While the report highlights consumers’ willingness to shop online, it also highlights that it’s easy for retailers to lose customers in the sales process. According to the study, 66% of the respondents have abandoned a purchase at some point, mainly due to the website not offering their preferred payment method (42%), security concerns (23%), and the payment process taking too long (21%). 37% of shoppers are less likely to make an online purchase if the payment process is too long and confusing. On the other hand, 56% are more likely to make a purchase if the website offers their preferred payment method.
Cross-border Shopping: Appealing to Consumers
The pandemic’s economic impact and a strong wave of inflation have contributed to an increase in cross-border shopping. Access to better prices (48%) and products not available locally (38%) are the main reasons cited by international shoppers for shopping abroad. The study shows that 82% of the respondents now shop internationally, with 38% of their online purchases made from retailers outside their country.
Conclusion
In conclusion, PayPal’s E-Commerce Index 2022 provides valuable insights into the evolving trends in e-commerce in Germany. From the increasing popularity of online shopping across generations to the growth of social commerce, businesses should be prepared to meet the changing needs and expectations of consumers. Simple and secure payment processes, along with access to a wide range of products, are crucial for businesses looking to succeed in the online retail space.
Source:
PayPal. (2023). E-Commerce Index 2022. https://newsroom.deatch.paypal-corp.com/2022-11-16-PayPal-Studie-zeigt,-wie-die-Deutschen-beim-Onlineshopping-wirklich-ticken-und-welche-E-Commerce-Trends-angesagt-sind (German)
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