Unlimited Growth Potential
E-commerce continues to thrive: 75 percent growth in the travel segment, 16 percent in services. Approximately 1,300 consumers in Germany were surveyed regarding their online purchasing behavior. All age groups have firmly integrated online shopping into their daily lives. What is becoming increasingly relevant for younger target demographics are innovations such as drone deliveries and augmented reality.
On behalf of the largest European PayTech company Nexi, Kantar Sifo surveyed over 10,000 consumers across eight European countries about their online shopping behavior. In Germany, around 1,300 consumers contributed to the E-commerce Report 2022, detailing their online purchasing habits, changes in habits and revenues compared to the previous year, and what customers expect from online shopping in terms of innovation today. It's evident that even after the pandemic, e-commerce revenues are increasing, although the travel industry has not yet returned to pre-pandemic levels.
89 percent of all respondents between 18 and 79 years old in Germany stated that they had made online purchases in the last month – with marginal differences across age groups. The top three reasons cited were convenience, wider selection, and competitive pricing.
Smarter E-Commerce Solutions for Small Retailers
"We see that e-commerce has long been established in mainstream society and is a daily routine for most people, even in retirement," says Carola Wahl, Chief Regional Officer DACH and Country General Manager Germany at Nexi. "One reason for this is that online offerings and customer journeys are continually improving. Personalized advertising, vast product diversity with detailed filtering options, and convenient check-out processes through Remember-Me functionalities make online purchases quick and easy – thanks to smarter solutions, even smaller niche shops can compete with marketplace providers."
There is significant revenue dynamics in the segments compared to the previous year: while physical goods show a slight decline of three percent (revenue of 120.3 billion euros), services have increased by 16 percent (28.7 billion euros).
The travel industry has grown by 75 percent compared to the previous year (+73.4 billion euros) and is thus a key driver of e-commerce growth.
Clothing, Shoes, and White Goods Remain Top Sellers
Clothing, shoes, and white goods account for 42 percent of physical goods purchases. The highest growth compared to 2021 in this category was seen in auto, motorcycle, and boating accessories (+24 percent), beauty products (+23 percent), and delivery services and prepared meals (+13 percent). Interestingly, clothing remains the top category for physical goods in all eight Nexi countries.
In Germany, around 7.2 billion euros were spent on insurance services in 2022, 4.5 billion euros on streaming services, and 4.4 billion euros on tickets. While insurance services top the list in all three DACH region countries, streaming music, movies, and series, as well as audiobooks, are more popular in Denmark and Sweden. It's hardly surprising that ticket revenues increased by 76 percent in the year following the pandemic. Online donations for charitable purposes also increased by 75 percent, and online betting by 43 percent.
217 Percent Increase in Car Rental Revenue
In the travel segment, the three categories with the highest revenues are hotels (19.9 billion euros), flights (19.2 billion euros), and charter and package tours (14.2 billion euros). The largest increase compared to 2021, with a plus of 217 percent, was seen in car rentals (5.7 billion euros). While most money is spent on hotels in the DACH region and Italy, flights and package tours top the list in the Nordic countries.
Eighty percent of Germans surveyed prefer to buy domestically. Those who do shop online abroad usually do so because of lower prices or unavailable products in Germany. However, the more challenging return process and longer delivery times deter many. The younger the buyers, the more likely they are to shop on foreign websites: 24 percent of those under 30 stated shopping on foreign sites, compared to only five percent of those over 65.
Preferred Payment Methods: Wallets, Invoices, and Credit Cards
In Germany, the preferred payment methods are E-wallets like PayPal (36 percent), invoices (24 percent), credit cards (11 percent), or SEPA direct debit (8 percent). This generally aligns with the actual payment methods used by consumers, according to the survey results. They prefer these payment methods because they are easy, secure, and/or fast. Payment preferences vary by country: credit cards are most commonly used in Switzerland, online transfers in Finland, and the national payment app "Swish" is significant in Sweden.
Regarding innovation, skepticism still prevails. However, 17 percent each expressed interest in drone or robot deliveries and augmented reality within the next five years. Fifteen percent would appreciate personalized clothing based on a body scan from their phone, and 14 percent would like to use biometrics for identification. It's hardly surprising that the younger generation is generally more open to technological innovations.
"Despite the positive revenue development, there is still significant potential in online retail. The Nexi E-commerce Report 2022 for Germany provides exciting insights into what will matter in the coming years," says Wahl, adding, "It's already clear today: the sky's the limit."
The entire report can be downloaded here: Nexi E-Commerce Report 2022- Deutschland