The European ecommerce market is one of the largest in the world, valued at over €500 billion. However, it’s not as easy to crack as the US or APAC markets.
Europe consists of 44 countries with 24 official languages and 15 currencies. It has a population of over 740 million people, but it’s not a single market. Each country has its own culture, regulations, and consumer preferences.
Despite these challenges, cross-border ecommerce is thriving in Europe, with 57% of online shoppers making a purchase from a foreign website in 2020. For manufacturers, this growth represents a significant opportunity to establish B2B ecommerce channels that cater to the unique demands of European businesses. By integrating ecommerce for manufacturing, companies can streamline bulk ordering processes and offer localized solutions tailored to regional regulations and preferences. So what are the key qualities of the European ecommerce customer, and how can you win their business?
In this post, we’ll look at the key qualities of the European online shopper and offer some strategies for selling to them, including how 3D ecommerce solutions can enhance the shopping experience and drive conversions.
1. Customers in Europe are price sensitive.
It’s not a surprise that price is an important factor in purchasing decisions. In fact, it’s the most important factor for European consumers. There are a few reasons for this, but the most obvious is that the majority of people are on a budget.
And with the exception of the UK, where the average salary is higher, the average salary in most European countries is lower than in the US. That means that people have less money to spend and are more likely to be price-sensitive.
What’s more, the European Union has a Value-Added Tax (VAT) that can add up to 25% to the cost of goods and services. This is a big reason why European consumers are so price-sensitive. If you want to attract European customers, you need to offer competitive pricing.
2. They are more likely to be repeat customers.
In general, European consumers are more likely to be repeat customers than customers in other parts of the world. In fact, 45% of European consumers say that they have made a repeat purchase from an online store in the past six months.
This is good news for ecommerce businesses, as repeat customers tend to spend more and are less expensive to market to than new customers. If you want to increase your repeat business, consider offering a loyalty program or other incentives to encourage customers to come back similar to membership or loyalty programs you might encounter at a science museum.
Tracking key performance indicators (KPIs) like repeat customer rates can help you better understand your business’s growth and identify opportunities for improvement.
3. They are using mobile devices to shop.
Mobile commerce is on the rise in Europe. In the UK, for example, over half of all online sales are now made on a mobile device.
This means it’s important to make sure your ecommerce website is mobile-friendly. If it’s not, you could be missing out on a huge number of potential customers.
In addition to having a mobile-friendly website, you should also consider e-commerce app development to create a mobile app for your ecommerce business. This can help you reach customers who prefer to shop on their mobile devices, and it can also help you build customer loyalty.
4. They are using social media.
Europeans are also using social media to get inspiration for their purchases, and they are more likely to use social commerce than customers in the US. Social commerce is when customers buy products directly from a social media platform, rather than going to a website.
If you want to reach European customers, you will need to have a strong social media presence. Make sure to post regularly and engage with your followers. You can also use social commerce tools to make it easy for customers to buy your products from your social media profiles.
Additionally, leveraging revenue intelligence can help businesses analyze sales data derived from social commerce activities. This provides insights into customer behaviors, preferences, and purchasing trends, enabling companies to refine their social media strategies and optimize conversion rates. This way, brands can identify high-performing channels and tailor their campaigns to maximize ROI in the European market.
5. They are using multiple devices.
It’s no secret that the way people shop online is changing. Gone are the days of sitting at a desktop computer and typing in a URL to find what you’re looking for. Now, people are using a wide variety of devices to shop online, including smartphones, tablets, and even smartwatches.
This is especially true in Europe, where people are more likely to use multiple devices to shop online than they are in the US. This means that if you want to reach European ecommerce customers, you need to make sure that your website is optimized for all devices.
6. They are influenced by other shoppers.
Customer reviews are one of the most powerful marketing tools for ecommerce businesses.
In fact, 95% of consumers read reviews before making a purchase, and 72% say that they trust a business more when it has positive reviews.
European ecommerce customers are no different. They are heavily influenced by other shoppers and will often read reviews before making a purchase.
In addition to customer reviews, European shoppers are also influenced by things like social media, influencer marketing, and user-generated content.
7. They expect free shipping.
Free shipping is the most popular incentive for making a purchase online, according to a 2019 survey by the Centre for Retail Research.
The survey found that 70% of consumers in the countries surveyed (including the UK, France, and Germany) said that free shipping was the most important factor when deciding whether to make a purchase online.
In the UK, the figure was even higher, with 75% of consumers saying that free shipping was the most important factor.
8. They are shopping locally.
While many European consumers are open to shopping from international retailers, they also enjoy the convenience of shopping locally.
In fact, 47% of European consumers say they prefer to shop from online retailers in their own country.
To appeal to local consumers, you can use geo-targeting to personalize your website and online store for different countries and regions.
You can also offer local payment options and provide information about local shipping and delivery.
9. They are using alternative payment methods.
In the U.S., most shoppers prefer to pay for their online purchases with a credit card. But in Europe, shoppers are using a variety of payment methods, including bank transfers, e-wallets, and buy now, pay later (BNPL) options.
In fact, 66% of European shoppers say that the availability of their preferred payment method is an important factor in their decision to shop with an online retailer.
If you want to attract European shoppers to your ecommerce business, it’s important to offer a variety of payment options. The more payment options you offer, the more likely you are to convert sales.
10. They are concerned about security.
Nearly every customer is concerned about security when it comes to online shopping, but it’s a particularly high priority for European customers.
This is especially true in the U.K., where 85% of online shoppers say that security is the most important aspect of the online shopping experience. Other top concerns include the quality of the products and the returns process.
11. They are concerned about privacy.
When you’re selling products to European customers, it’s important to keep in mind that the European Union has strict data privacy laws. This means that your customers are likely to be concerned about how you collect, store, and use their personal information.
To build trust with your customers, make sure that you’re transparent about your data privacy practices. You should also make it easy for customers to understand and control how their data is used.
12. They are concerned about environmental issues.
European consumers are generally more concerned about environmental issues than consumers in other parts of the world. This is especially true in the case of younger consumers, who are increasingly looking to make more sustainable purchasing decisions.
Offering eco-friendly products and using sustainable business practices can help you attract more European customers and build a positive brand image. You can also highlight the steps you’re taking to reduce your environmental impact in your marketing materials to appeal to this audience.
Conclusion
Selling internationally can be hard, but it doesn’t have to be. If you take the time to research each market you’d like to enter and adapt your strategy to the needs of local consumers, you’ll be far more likely to succeed.
