After Brexit, the cross-border e-commerce sector from the EU suffered a slight drop. Still, despite a post-Brexit drop in the number of shoppers, Western Europe’s cross-border e-commerce market is booming as consumers spend more on goods from foreign retailers.
Truthfully, much of the momentum is being driven by China’s e-commerce giants and investment by online marketplaces such as Amazon and Zalando. But even so, there is a tendency for buyer growth to increase, which seems to forecast a profitable future for Europe's cross-border e-commerce at least until the end of 2025.
Consumer numbers for cross-border e-commerce are forecasted to grow again in Spain (0.2%) and Italy (0.6%) this year and return to growth in Germany (3.0%), France (2.3%), and the UK (2.6%) in 2025.
European e-commerce will hit US$813.20bn by 2029
Overall, following a recent Statista survey, Revenue in the European e-commerce Market is projected to reach US$530.80bn in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.91%, resulting in a projected market volume for cross-border e-commerce of up to US$813.20bn by 2029.
The same report also shows that, overall, global cross-border B2C e-commerce is also on the rise, with an expected value of 7.9 trillion U.S. dollars by the year 2030.
Which countries in Europe have the biggest e-commerce markets?
Currently, the top European markets for e-commerce per country is the following:
The United Kingdom
With a population of 67.9 million, the UK will have approximately 62.1 million e-commerce users in 2025. The United Kingdom generates more than €254 billion in e-commerce revenue, with €129.5 billion coming from consumers. This relatively small, densely populated European country spends more on online purchases than any other, devoting 10.26% of its GDP to e-commerce.
The most popular marketplaces in the United Kingdom are:
- Amazon
- eBay
- Etsy
- Argos
France
France had over 51 million e-commerce users in 2023. More than 5% of GDP goes towards e-commerce spending. Marketplaces and other channels generated annual revenue of €146.9 billion in 2022; this is expected to grow by 7.8% in 2023.
The most popular marketplaces in France are:
- Amazon
- Aliexpress
- Cdiscount
- eBay
Germany
Seen as the economic powerhouse of Europe, Germany is the third-biggest e-commerce market in Europe. With 67.9 million online consumers, this European country is estimated to generate e-commerce revenue of €109 billion in 2023.
The most popular marketplaces in Germany are:
- Amazon
- eBay
- Otto
- Temu
Spain
Although Southern Europe contributes less to the European ecommerce landscape, Spain is a powerful player. This country of 46 million people has 33.82 million ecommerce users. Combined they will spend €45.9 billion online in 2029, much of it on marketplaces.
The most popular marketplaces in Spain are:
- Amazon
- El Corte Ingles
- Aliexpress
- Temu
Italy
With a population of over 60 million, Italy has a bigger potential market than Spain but spends less online. However, it’s still in the top 5 countries in Europe, and online consumers spend proportionally more. There are 31.7 million e-commerce users in Italy, who spent some €45.9 billion online in 2022.
The most popular marketplaces in Italy are:
- Amazon
- Temu
- Aliexpress
- Etsy
The EU's current e-commerce ‘legal storm’
Among all this booming, there are some black clouds on the horizon: the legal unrest that is beginning to grow in the midst of the European Union.
Laws regarding data protection and cookie use have collided with the new anti-monopoly policies to create perfect storms affecting the e-commerce and tech sectors. In fact, multiple lawsuits have been filled recently by EU authorities.
From Amazon being charged with having ‘falsos autónomos’ in Spain, to Apple being ‘toasted’ with the biggest fine in history - reaching 1,8 billion euros - to Amazon and yes - again - Apple being fined in Spain for breaching data protection legislation, to all tech companies collectively complaining the EU plans to increase their taxes to ‘internet giants’ the scenario is complex in the EU, and one thing seems clear: authorities have realized the economic prowess of e-commerce and want to tax and control the activity at all costs.
All in all, one thing is sure: e-commerce in Europe is booming and will continue to do so! And so, if you want to keep being informed about all things trending regarding cross-border commerce and e-commerce in EU, you can read all of the latest news here at Cross-Border Magazine!