E-commerce in Europe will cross a major milestone in 2021. The number of e-commerce users will probably pass 500 million this year. The penetration rate also projects to reach almost 60%. The e-commerce in Europe is becoming more and more popular across the continent and the rest of the world. There were 480.9 million digital commerce users in Europe last year. Ultimately, the number of e-commerce users will probably grow to 506.9 million by the end of this year.
Digital commerce defined
Digital commerce defines as all consumer transactions that are made via the internet and directly relate to online shopping for products and services. Payments can be made through debit cards or credit cards. This can also be through online payment service providers such as PayPal. Transactions between private individuals and between businesses are notably excluded from calculations.
Surpassing the 500 million mark
This year, e-commerce in Europe will surpass the 500 million mark for the first time. At the same time, the penetration rate will probably reach 59.7%. This rate breached the 50% mark three years ago. It is now expected to reach 67.1% by 2025.
E-commerce value of €573 billion
According to TradingPlatforms, the total transaction value of all digital commerce activity in Europe experienced a contraction of 12.18% last year. Furthermore, it recorded a total value of about €573 billion. This year, the online retail industry will probably bounce back by growing 22.15% Year-on-Year. In doing so, it will reach almost €700 billion, which would be higher than the total transaction value in 2019.
Positive outlook for the future
Technological advancements in the past couple of decades have given digital commerce a much bigger influence than ever before. Its importance was further highlighted during the lockdowns of 2020. It allowed companies to survive despite the hardships imposed by the COVID-19 outbreak. The strength of the segment and its still bright future is clear to see with projections for 2021 already showing a promising rebound.