Austria’s ecommerce sector is undergoing a dramatic transformation. Just 35% of its online spending stays within national borders, while the majority flows to international platforms.
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A new study by Johannes Kepler University Linz (JKU), commissioned by the Austrian Federal Economic Chamber (WKÖ), reveals that foreign online retailers in Austria are capturing an overwhelming share of consumer spending – raising red flags for the future of domestic retail.
Online spending is growing, but not locally
While the number of online shoppers has slightly declined – from 72% in 2023 to 71% in 2024 – the share of total retail spending conducted online has increased. Online sales now account for 10% of all retail sales in Austria, surpassing the pre-pandemic level of 9.9%. Yet, this growth is not benefitting Austrian retailers equally.
According to the study, only 35% of Austrian online spending goes to domestic platforms, with the remaining 65% funneled to international retailers. This imbalance highlights the competitive pressure local businesses face and the urgent need for regulatory interventions.
Young shoppers turn to international platforms
One of the most eye-opening insights from the JKU study is the behavior of younger consumers. Shoppers aged 16 to 24 are increasingly opting for international ecommerce options, nearly matching the usage rates of major global platforms. At the same time, their overall online spending is declining—indicating a renewed interest in the physical retail experience. This shift underlines the importance of omnichannel strategies for retailers hoping to engage younger demographics.
What Austrians are buying online
The most popular categories among online shoppers remain clothing and shoes, purchased by 48% of consumers. Furniture, garden items, and electronics also rank high. However, grocery shopping online remains relatively low at just 11%, suggesting that certain sectors of traditional retail still have resilience and opportunity for digital growth.
Home delivery still dominates
The vast majority – 83% – of Austrian online shoppers prefer home delivery. Parcel stations and post offices lag far behind, while same-day delivery remains a niche offering used by only 3% of customers regularly. Transparency in delivery costs remains a top concern, and unclear fees are a major deterrent for many.
Returns: A growing challenge
One significant issue facing ecommerce – both local and international – is the rising rate of returns. The Austrian return rate now stands at 56%, meaning more than half of all online shoppers have returned at least one item in the past year. This not only affects retailer profitability but also raises concerns about environmental impact due to increased packaging and shipping waste.
The rise of fraudulent online shops
Another alarming trend is the increasing number of fraudulent “ghost shops”—fake online stores that mimic legitimate retailers. According to the Austrian Institute for Applied Telecommunications (ÖIAT), between January and April 2025, over 36,000 deceptive advertisements directed consumers to 71 fake websites. These ads reached nearly 30 million users in Austria and a total of 85.9 million people across the EU.
Despite consumer reports, platforms often remove only the advertisement and not the profile behind it, allowing fake sellers to continue operating. Authorities are calling for a stronger and more coordinated response across the European Union to combat this growing threat.
Calls for fairer regulation
Business leaders and advocacy groups argue that the current system creates an uneven playing field. Domestic retailers are subject to extensive compliance, environmental regulations, and reporting duties, while some foreign entities shipping into the EU do not face the same obligations.
A key focus is the €150 duty-free threshold for imports from non-EU countries. Although it’s scheduled to end in 2028, Austrian trade representatives are demanding its immediate abolishment. They are also pushing for enhanced enforcement of EU product safety standards and more robust oversight of market behavior to ensure equitable competition.
Austria in a European context
Austria’s ecommerce penetration—71% of people aged 16–74—sits slightly below the EU average of 72% and well behind Germany (78%), Ireland (95%), and the Netherlands (94%). This suggests room for digital retail growth domestically, but also reflects the challenges Austrian businesses face in competing against aggressive international marketing and pricing strategies.
Next steps for Austria’s retail future
To protect the long-term health of the domestic economy, stakeholders across Austria are urging swift action. This includes:
- Harmonizing regulations for foreign online retailers in Austria and EU-based sellers
- Closing tax and import duty loopholes
- Cracking down on fraudulent advertising and fake shops
- Supporting local ecommerce platforms through innovation and infrastructure
Rainer Trefelik, chairman of the Federal Trade Division of WKÖ, summarizes the concern: “This is not a healthy development. If we want fair competition, then everyone who sells into the EU must play by the same rules.”
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