German e-commerce: 29% generated by micro-enterprises

The turnover share of the smallest companies in the total turnover is significantly higher in the e-commerce sector than the economic average. 29% of German e-commerce sales are generated by small businesses with fewer than ten employees, according to Shopanbieter. Compared to the situation in the entire German economy, small e-commerce enterprises are much more important for the total turnover in their sector.

The situation in e-commerce is totally different

In 2018, small businesses accounted for just 6.6% of the non-financial commercial economy in Germany. However, the situation in e-commerce in Germany is totally different. There, these small enterprises account for 29% of generated sales. This means that e-commerce has an above-average turnover per employee. Compared to the situation in the entire German economy, e-commerce micro-enterprises are much more important for the total turnover in their sector.

Low initial investement

The fact that these small enterprises account for 29% of generated sales in e-commerce is due to the comparatively low initial investment required to get started in e-commerce. One-man entrepreneurs and start-ups do not have to open a store. They are also not required to hire only a few staff. In addition, if desired, they can even outsource the logistics from the start. Furthermore, they can still develop a flourishing online business. 

The growth trap

The problems tend to arise later. If sales grow, so do costs. More storage space is needed, the growth in sales can only be met with higher marketing expenses. Ultimately, this requires more staff, and at the same time growth is gradually weakening. And before they know it, they are caught in the growth trap. "From an annual turnover of around €25 million, it becomes dangerous," says the German website. The initially  good relationship between the number of employees and sales , which speaks must also be maintained in later growth phases if possible.