Germany's online sales are marketplace and mobile

May 13, 2024 by
Frank Calviño

Over 50% of Germany's online sales came from marketplaces, and 55% of all online sales in that country were carried out on smartphones, for a total of 47 billion euros in sales.

The Online Monitor 2024, a report from Handelsverband Deutschland (HDE) provided this data showing how the German e-commerce market is predominantly a marketplace/mobile market. And the market is huge and still growing: Germany will reach 85 billion euros by the end of the year, a one percent increase compared to the year before.

“Online trading was the sales boost for retail in Germany for many years. However, the high growth rates during the coronavirus years make it difficult for the industry to keep raising the bar. We are therefore, experiencing further normalization in online sales this year”, said Stephan Tromp, deputy managing director at HDE.

Marketplace sales keep growing 

According to the Online Monitor,  2023 showed a 10% increase in marketplace turnover, and also earlier this year HDE already called on German politics to be stricter towards cheap marketplaces from China. 

The association is now underlining that sentiment again and fears that fair competition is at risk ‘Anyone who offers goods in this country must adhere to all rules.’ claimed the organization. 

“Regarding Temu, everyone is talking about the fact that a significant proportion of the goods ordered there do not meet our EU guidelines for pricing, website design, product safety, environmental protection, or taxes—and do not comply with customs law. This cannot be a permanent situation. Anyone who offers goods in this country must adhere to all the rules. The authorities have to enforce this.”

The association has also included a forecast for German e-commerce for the current year. It expects a sales growth of 3.4 percent compared to 2023. The online share of German retail is expected to reach 13.1 percent this year.

Temu answers

Following the release of this content, Temu reached out to Cross Border Magazine with an official statement:

Temu is committed to complying fully with the laws and regulations in all the markets where we operate. Since expanding into the EU last year, we have actively incorporated feedback to enhance our systems and processes, ensuring they meet consumer needs effectively.

Product Quality and Safety: 

We ensure the safety and compliance of our products through rigorous seller vetting, continuous monitoring, and a responsive feedback system. Our goal is to provide a safe and affordable shopping experience, and we encourage customers to report any concerns.

Pricing Practices:  

Our pricing strategy is informed by our direct-from-factory model. We reference the suggested retail prices from suppliers who traditionally serve physical stores, highlighting the savings our customers enjoy. We diligently verify all pricing information for accuracy and transparency.

App Design:  

Our app features elements like flash sales, competitions, prize draws, and games, drawing inspiration from traditional retail practices to enhance the online shopping experience. These features not only provide enjoyment but also offer customers additional discounts, enhancing the value of our competitive prices.

Environmental Impact:  

Our direct-from-factory model reduces environmental impact by cutting out unnecessary supply chain steps. We ship products only when purchased, directly from the factory to the consumer, reducing emissions and preventing the overproduction and waste typical in conventional retail. As part of our commitment to sustainability, we have partnered with Trees for the Future to plant over 8 million trees, capturing an estimated 400,000 metric tons of CO2 over two decades.

Taxes and Customs Law:  

Temu strictly complies with EU customs and tax regulations. We do not manipulate parcel splitting to evade customs; when it occurs, it is due to logistical needs like size and weight limits or specific regulatory requirements for separate shipping of certain items. Our shipping policy emphasizes efficiency and timeliness, optimizing package consolidation and cargo space utilization to ensure fast and reliable international delivery.

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