European e-Commerce: An Examination of the Top Players in Online Shopping

The European e-Commerce retail sector is a rapidly growing market. According to Statista, European e-commerce revenue is expected to rise +54.58% by 2029, reaching a new peak at US$977.36 bn. As such, European eCommerce is ripe for the picking for Amazon sellers. Whether you plan to expand from another marketplace in Europe for cross-border sales, or you’re planning to explore from Asia, the US, or elsewhere, the e-Commerce industry in Europe is so healthy, it’s definitely worth a look.

In this blog, we will provide you with the facts about the European eCommerce market so you can make the best decision for you. You’ll have to ask yourself if the growth rate justifies the cost, and if Amazon is the best e-Commerce platform given your goals, or other online stores are better for you. Without a doubt, European consumers are fans of online retail, so it’s important to do your due diligence before jumping in.

Let’s get started.

Interested in Amazon Europe? Check out our guide.

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Section 1: The Power of the European E-Commerce Market

Europe’s e-commerce landscape is indubitably one of the world’s largest and fastest-growing, with a projected value of US$631bn in 2024 and an expected rise to US$951bn in 2029. The number of online shoppers has also seen significant growth; before the pandemic, there approximately 235 million eCommerce consumers in Europe, a number that is projected to reach 446 consumers by 2029 (Statista).

The continent’s leading e-Commerce markets – Germany, the UK, France, and Italy – are hubs of growth and innovation, fueling online retail activity. These established markets provide a challenging, competitive, and incredibly engaging playing ground for sellers looking to expand their reach, with each country bringing unique opportunities and demands.

The International Trade Administration reported that total sales in German eCommerce during 2022 hit US$141.2bn – 11% growth vs. 2021. The ITA also reports that the UK had its highest annual growth in 2022 after 2007 with an increase in sales of 36%. ECommerce Europe reported that the eCommerce sector in France was worth €159.9 billion in 2023, rising 10.5% on the previous year. Mordor Intelligence forecasts that the Italy eCommerce market will reach US$101.88bn this 2024, and hit US$163.66bn in 2029. However way you cut the cloth, e-Commerce in Europe is on the rise.

Cross-border e-Commerce is also flourishing in Europe, allowing sellers to tap into multiple markets through one integrated strategy. This growth in cross-border shopping highlights the importance of accessible, localized e-commerce solutions for sellers that plan to reach new customers all across the European Union.

Furthermore, omnichannel sales are another driving force in European e-Commerce, with many e-commerce companies extending their presence online to meet consumer demand. Oftentimes, online sellers combine brick-and-mortar shopping with online retail, to offer buyers greater flexibility and convenience. An omnichannel approach is key to capturing a broader customer base and enhancing their competitiveness in the dynamic European e-Commerce market.

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Section 2: Why Amazon Sellers Should Consider e-Commerce in Europe

Margin Business reports that Amazon EU made up 24% of Amazon’s global sales in 2021, with more than 1.4 European eCommerce sellers. In Germany, the UK, France, and Italy, Amazon consistently ranks as a top online shopping platform. However, each of the countries that participate in European eCommerce presents unique challenges and opportunities for Amazon sellers, from navigating varied regulations and cultural preferences to establishing localized marketing and customer service strategies.

Keep in mind that the European eCommerce market isn’t limited just to Amazon. Consider Allegro in Poland, Bol.com in the Netherlands and Belgium, and Zalando across Europe – European marketplaces that are becoming increasingly popular, offering new ways to diversify and capture a share of local markets. Leveraging these platforms allows sellers to adapt to specific consumer preferences on a regional level, and boost their visibility past Amazon.

Check out Amazon Europe’s competitors, and see if the other European marketplaces might be better for you.

ECommerce DB reports that 21.6% of the European eCommerce market revenue comes from fashion, with UK and Germany leading the pack. Next are electronics, with 20% of the market share, especially in consumer electronics and electrical appliances. Also at 20% of the market revenue is the hobby & leisure category, which covers hobbies, leisure activities, and toys. This category is most popular in France, where it represents the largest e-Commerce segment.

That’s not to say your product won’t do well in eCommerce Europe if it doesn’t fall into these categories. Before venturing into the European eCommerce market, run YLT’s Amazon Product Opportunity Report first, and see if expansion makes sense for you – or if another marketplace in Europe is perhaps better for your product. As always, we must stress the importance of thorough market research before scaling.

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Section 3: An Overview of the European e-Commerce Landscape

The future of European eCommerce is bright indeed, but it comes with its own challenges, including:

• • Researching and selecting the right countries to target.
  • Understanding VAT and tax regulations for the EU and non-EU countries.
  • Navigating EU compliance requirements (packaging, consumer rights, language localization).
  • Localizing product listings and reviews to cater to diverse languages and consumer preferences.
  • Offering localized payment options (e.g., digital wallets, A2A payments).

Aside from finding the right country to target, you need to ask yourself, should you stick to Amazon? Ignore Amazon altogether and sell on a local eCommerce market? Or do both?

Here’s an overview of the European eCommerce market based on the success of each online marketplace last 2021:

Rank	Marketplace	Country	Revenue (EUR)
1	Amazon	Pan-European	€53 billion
2	Apple	Pan-European	€8.7 billion
3	Shein	Pan-European	€8.4 billion
4	Temu	Pan-European	€7.2 billion
5	IKEA	Sweden (HQ)	€6.3 billion
6	Otto	Germany	€4.2 billion
7	H&M	Sweden (HQ)	€3.9 billion
8	Trendyol	Turkey	€3.4 billion
9	Bol.com	Netherlands	€2.9 billion
10	Zalando	Germany	€2.2 billion

You read that right. Even Shein and Temu have presence in the wide wonderful world of e-Commerce in Europe. Even these China-based players have penetrated the eCommerce market to some success. This might add another dimension of complexity to your market research, as you must ask yourself – should you just sell on Amazon, Shein, and Temu, and call it a day? Or do other online stores make better sense for you?

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Section 4: Localization and Translation: The Key to Success in European eCommerce

Whether you understand and speak the language or not, it’s crucial to employ expert localization when selling in European countries. That’s why, in the table above, you saw that many local players like Otto, Trendyol, and Bol.com are doing so well; these local marketplaces understand their customers on a visceral level, which makes it easier for them to adapt to market trends and build relationships with the European market.

When selling in Europe, translating product listings, descriptions, packaging, and even customer reviews is crucial for success. Providing accurate, localized translations builds trust, improves the customer experience, and leads to higher conversion rates. However, it’s also important to adapt to regional variations within the same language – for example, if you’re selling in France and Belgium at the same time.

YLT Translations specializes in creating culturally relevant, market-specific content that goes beyond basic translation. Our team of native speakers helps sellers connect with European customers through nuanced, localized content that resonates with regional preferences and buying behaviors. That careful approach to localized selling can boost e-Commerce sales and brand credibility, having a positive impact on the growth projections of e-Commerce businesses.

You’ll read more about our clients that have successfully scaled to Europe on our Testimonials page, but take the example of David, who started out as a successful seller on Amazon US. He’d gone to several contractors, online translators, and translating agencies, but nobody really understood the nuances of selling on an online platform as complex as Amazon. He sent a couple of listings to YLT Translations – in languages that he spoke himself – and was highly impressed with the fluency of the result. Or take the example of Alex, a UK seller that expanded to France – he got his first sale an hour after activating the listing!

Without a doubt, your online presence is magnified if you speak the language of your customers. The key to doing well in global e-Commerce – not just in Europe – is through careful localization, so be sure you don’t skip this crucial step.

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Section 5: Tips for Amazon Sellers to Maximize Success in Europe

It’s pretty clear that expanding to European e-Commerce requires a strategic approach in order to capture the unique dynamics of each market.

Here are some things you’ll need to address:

Should you adopt a multi-channel strategy?

Sure, you can stick to Amazon, the juggernaut with the largest market volume. You could sell on Chinese marketplaces like Shein and Temu, which have a massive market size all over Europe. Or, you could go for smaller players, with a more targeted, country-specific consumer base. We recommend that you perform an in-depth feasibility study and discover which online retailer (or more than one) will get you the largest share in revenue.

If you ask us, it’s probably a good idea to sell on Amazon as well as local players. Although Amazon attracts a massive market in Europe and is the biggest online player, smaller marketplaces specialize in different categories, drawing a customer base that’s primed to buy. By selling on both, brands can connect with varied consumer segments, catering to shoppers with specific interests on smaller, regional players, while still reaching the mass market on Amazon.

Furthermore, European customers tend to trust local platforms they’re familiar with, like bol.com in Holland and Allegro in Poland. Listing on these marketplaces can build credibility with buyers who may not like shopping on international sellers, like Amazon.

Last but not least, you achieve multi-channel sales resilience. If there are issues with Amazon’s algorithm, fulfillment, or customer policies, sales may be affected. Selling on local players provides additional stability, balancing any disruptions and diversifying income streams.

How will you handle localized SEO?

Boosting visibility and rank is possible through optimizing product listings and content with local keywords and trends. The diverse European landscape is so rich in culture, that catering to a demographic that wide is tricky. It’s so important to invest in proper localization, so your brand can stand out with each target market.

How can you use data to make important decisions?

Use analytics to identify high-demand products in each of the e-Commerce sites. Then refine your inventory, optimize pricing strategies, and make sure your listings are properly localized, so they correspond with local consumer expectations. Remember, what appeals to the German customer may not appeal to the Polish customer, so if you plan to become a major e-Commerce player in the EU market, don’t go in blind. Do your homework, and let the numbers do the talking.

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Conclusion: the Future of European e-Commerce is Yours to Witness

Expanding to Europe’s diverse and thriving e-Commerce market opens doors to an extensive, affluent customer base, and high growth potential. Embracing Europe’s varied marketplaces, from global players like Amazon, Shein, and Temu, to local platforms like bol.com, Zalando, and Allegro, allows sellers to connect with a wide range of consumer segments, enhance brand credibility, and increase sales resilience across multiple channels.

Keep in mind, the final decision is yours to make. We presented the statistics, opportunities, and challenges here; now, the heavy lifting is in your hands. You’ll have a few things to think about, like adapting pricing methods, finding the right market, choosing between local and global players, and more. We can assure you, though, that it’s worth it.

Remember, YLT Translations is here to help you enter and succeed in the European market through careful localization. Through the adaptation of content, you’ll find that you’ll increase sales, brand awareness, and recall with your new customers.

We’re happy to help; let us know how we can be of assistance!