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Cross-border B2C E-Commerce to evolve rapidly in Europe, with Luxembourg leading the pack in cross-border online shopping

The latest publication of Germany-based market intelligence firm yStats.com, “Europe Cross-Border B2C E-Commerce Market 2023”, gives an in-depth look at cross-border B2C E-Commerce and the upcoming trends within the market. The report also highlights the growth trajectory of cross-border B2C E-Commerce across different countries in Europe.

The cross-border B2C E-Commerce landscape is flourishing in Europe with Germany showing tremendous growth potential in the cross-border sphere.

The outbreak of the pandemic led to increased online purchases as consumers globally changed their buying habits. Consumers globally turned towards international markets for fulfilling their shopping needs, with the market value of the overall cross-border E-Commerce market forecasted to witness a double-digit CAGR between 2022 and 2026, reaching a value in trillions of Euros, as revealed by the new yStats.com report. The growth of cross-border E-Commerce continued across regions and Europe was no exception to this trend, with cross-border buying in different European countries growing at varied levels. Luxembourg, for instance, was the first among the top 16 European countries in cross-border shopping based on indicators such as cross-border market share and number of cross-border website visits, among other factors. While Germany was the leader when it came to best cross-border online shops and marketplaces, witnessing a presence of large cross-border online shops as well as brands such as Hugo Boss, Hello Fresh, and Zoo Plus, with most of its retailers also claiming to sell internationally as of September 2022. Germany was also among the nations with the highest share of online shoppers making cross-border purchases, as per capita cross-border spending in Germany was also among the highest in the region, second only to Austria as of 2022, with a certain share of shoppers in the age range 25-34 years claiming to spend more than € 200 euros on online overseas purchases as per the new yStats.com report.  Additionally, more than half of surveyed online shoppers are inclined towards purchasing clothing and footwear via cross-border channels, followed by sports, leisure & hobby, and consumer electronics as of H1 2022.

Other European countries are also gradually increasing cross-border B2C E-Commerce

The shift of consumers towards online shopping platforms gave a rise to the growth of cross-border B2C E-Commerce, with Amazon and AliExpress being the most preferred marketplaces among online shoppers in Europe for cross-border purchases. The changing expectations of cross-border B2C E-Commerce buyers contributed to the emergence of new consumer trends such as hyper-personalization, AR/VR, as well as live shopping. The European market in 2022 also witnessed trends such as consumer centricity, last-mile supply chain, and new marketplaces, among others. Important among these is the creation of new cross-border B2C E-Commerce marketplaces that will allow higher revenue creation and wider audience reach, as stated in the new yStats.com report. Thus, countries such as Italy and Spain saw growth in their cross-border B2C E-Commerce sales during recent years, with more than half of surveyed online shoppers in Italy preferring to pay via PayPal for their cross-border purchases as of January 2022. In the UK too, nearly half of online shoppers made cross-border purchases as of January 2022, while most consumers in Austria indicated having used online cross-border channels to purchase goods and services as of 2021. While growth in cross-border shopping has generally been on the increase in Europe, in Turkey cross-border purchases formed a small share of total purchases in the country as of H1 2022. Russia saw a decline in the share of cross-border B2C E-Commerce trade in total B2C E-Commerce during the same period, as revealed by the new yStats.com publication.