Are you thinking about cracking the German e-commerce market? With nearly €80 billion in online sales in 2023, Germany’s love for digital shopping is only growing.
But it’s not just about jumping on Amazon or Otto and calling it a day.
The competition is tough, and the stakes are high – especially when categories like electronics and fashion dominate.
Meanwhile, inflation is shaking consumer habits, leaving businesses to navigate a shifting landscape.
Keep reading if you’re ready to take on one of Europe’s hottest online marketplaces.
How to enter the German e-commerce market? Best research-based tips
We’ve gathered insider tips to help you make a real splash in this booming market:
Category: Understanding the Market and Audience
#1 Know your audience
German shoppers love a bargain. With 66% spending extra time hunting for deals, price is their top priority.
Make affordability your focus, whether through competitive pricing or highlighting second-hand options.
Bonus tip: emphasize sustainability—it’s a big deal in Germany and pairs perfectly with budget-conscious shopping.
Understand it better – an imaginary situation:
Imagine launching a new online marketplace in Germany with trendy, high-end products. You’ve put much into sleek branding and premium pricing, but sales are barely trickling in. Why? German shoppers prioritize bargains—66% actively search for the best deals. Without competitive pricing or value-driven campaigns, you’ll struggle to get noticed. A competitor introducing second-hand or discounted options steals your potential customers, leaving you to wonder why your premium pitch didn’t land.
#2 Highlight value, not just products
Inflation has shoppers prioritizing value over splurges. Focus on showing how your marketplace saves money while still delivering quality. Deals, discounts, and bundles can help you stand out. Don’t forget to mention how second-hand or refurbished goods contribute to a sustainable lifestyle.
Understand it better – an imaginary situation:
Imagine offering a line of top-notch electronics in Germany, thinking that quality alone will draw in buyers. Instead, your competitors selling refurbished versions at lower prices outsell you by a mile. Why? Shoppers under inflation pressures are prioritizing value over newness. You could have tapped into the mindset that defines much of the German market by highlighting how refurbished goods save money and support sustainability.
#3 Speak their language
German marketing is about substance over flash. While puns and quirky wordplay might work elsewhere, Germans value reliability and dry humor. Your tone matters, too. In Berlin’s tech circles, casual language like “Du” might be fine, but anything less than the formal “Sie” can be unprofessional in more traditional regions or industries. Knowing when to adapt is key—partnering with local talent can help you get it right.
Understand it better – an imaginary situation:
Imagine you’re a tech company launching in Germany with a sleek ad campaign full of quirky wordplay and emojis. In Berlin’s startup scene, your ads get some traction. But in Bavaria, potential customers find your informal tone unprofessional, and engagement is non-existent. Worse, a B2B client points out that using “Du” in your emails was seen as disrespectful. Adapting your tone for each audience could’ve saved the day—and the clients.
#4 Localize your product categories
Some industries dominate German e-commerce, like electronics, fashion, food, and cosmetics. If you plan to sell, align your inventory with these popular categories to match market demand. But remember, what works in one country may not translate—do your homework to understand local tastes and trends before you list your products.
Understand it better – an imaginary situation:
You stock your online store with niche items that sell well in your home country, like artisanal teas or unique stationery. Sales are nonexistent while your competitors selling electronics and cosmetics thrive. German shoppers simply aren’t looking for your products. A quick look at local market trends could have saved you from sitting on unsold inventory.
#5 Don’t overlook cultural details
Little things can make or break a sale. Germans are particular about their phone number formats and may skip entering apartment numbers altogether. If your site forces customers to enter information they don’t usually share, they might abandon their cart. Keep forms flexible and tailored to the local norms to reduce friction during checkout.
Understand it better – an imaginary situation:
You copy your registration form from another market, requiring complete addresses and international phone formats. German customers hit roadblocks entering their local phone numbers or skipping apartment numbers, and the cart abandonment rate spikes. Tailoring your forms to German norms could have kept those sales—and the trust of your customers.
Check this out: German customer profile – everything you need to know
Category: Building Trust and Credibility
#6 Build trust through transparency
Concerns about counterfeits are real, with 22% of shoppers wary of fakes. Be upfront about product quality and authentication processes. Use tools like product verification and social proof to ease these fears. Sharing behind-the-scenes details on social media can also help build trust and reassure your audience.
Understand it better – an imaginary situation:
You start gaining traction in Germany, but suddenly, reviews pop up accusing your platform of selling counterfeit products. Sales stall and customers hesitate to return. This is a common scenario in Germany, where 22% of shoppers are cautious about authenticity. A marketplace with visible product verification or behind-the-scenes videos showing the authentication process builds trust. Without transparency, you risk losing credibility—and customers.
#7 Build trust from the start
German consumers are cautious, and trust doesn’t come easy. 37% of German consumers consider a brand’s trustworthiness a critical factor in their purchasing decisions, significantly higher than in many other countries. Before committing, they’ll check your company’s reputation, location, and GDPR compliance. Transparency is non-negotiable—have a clear impressum page with your business details on all channels. Localized reviews also go a long way in building credibility. Remember, these shoppers value security, so showing you take data protection seriously isn’t optional—it’s expected.
Understand it better – an imaginary situation:
Your e-commerce store launched in Germany, but sales are sluggish. A potential customer searches for your contact information and notices your site is missing an impressum page. They check your reviews and find none from local customers. Worse, your privacy policy is vague about GDPR compliance. This lack of transparency leads them to abandon their cart and choose a more trustworthy competitor.
#8 Nail the legal requirements
Entering the German e-commerce market means complying with strict rules, including having an impressum page. This isn’t optional—it’s a legal requirement that must include your business details, VAT number, and reachable contact information. Missing or incomplete information can lead to fines or consumer distrust. The “Pay Now” button also needs to state that it triggers payment clearly, so double-check your site meets these regulations.
Understand it better – an imaginary situation:
Your website launches in Germany, but you skip adding an impressum page. Within weeks, authorities issued a fine, and confused customers emailed asking, “Who even runs this store?” To make things worse, your checkout page lacks a clear “Pay Now” button, leading to abandoned carts. Following German legal standards could have saved you money—and your reputation.
Check this out: e-commerce laws in Germany
Category: Optimizing Online Presence
#9 Use AI to connect with shoppers
AI can take your customer experience to the next level. Personalized recommendations and more innovative search options help shoppers find what they need quickly. Highlight these features in your marketing to show how your platform meets their expectations while making online shopping more intuitive.
Understand it better – an imaginary situation:
Suppose your marketplace feels like a catalog—organized but generic. Meanwhile, a competitor uses AI to recommend personalized products based on browsing habits. German shoppers, who are increasingly tech-savvy, flock to that platform because it understands their needs. Missing the AI trend leaves your marketplace outdated while competitors win over shoppers with intelligent, intuitive experiences.
Check this out: the importance of AI
#10 Get social and stay engaged
Social media isn’t just for promotion – it’s where you can connect directly with your audience. Use it to address common concerns, share user experiences, and show your product verification process. You’ll build credibility and keep shoppers returning by staying active and responsive.
Understand it better – an imaginary situation:
You’ve launched your platform but treat social media as an afterthought, only posting occasional updates. In contrast, your competitor frequently interacts with followers, addresses concerns about authenticity, and showcases user-generated content. They turn their social media pages into a community hub while your platform feels detached. Active engagement isn’t just about staying visible—it’s about building relationships that keep shoppers loyal.
#11 Use social, but don’t overshare
Germans are active on platforms like Facebook, Instagram, and LinkedIn but value their privacy. Compared to audiences in the US or UK, they’re less likely to overshare or engage openly. Focus on meaningful content and avoid being pushy. For B2B, consider Xing—it’s like Germany’s LinkedIn and a great way to reach professionals.
Understand it better – an imaginary situation:
You launch a social media campaign in Germany and flood your Instagram with flashy posts about discounts. But instead of engagement, you get silence. Germans, who are more reserved on social platforms, find your tone too pushy and your posts irrelevant. Meanwhile, your competitor quietly posts thoughtful, informative content about product quality and earns their trust. You realize less is more when connecting with German shoppers on social media.
Check this out: social media meets e-commerce
#12 Email works wonders
While social media is great, Germans often engage more directly in email. It’s so good that email advertising ad spend is constantly growing in Germany, and the average open rates are looking great for many sectors. A well-thought-out email campaign can keep your brand on their radar while building trust. Just remember—localize it, keep it relevant, and be transparent about how you handle their data.
Understand it better – an imaginary situation:
You send out a one-size-fits-all email campaign boasting big savings and peppered with bold calls to action. The tone feels generic, and there’s no personalization for the German market. Recipients feel like another number on your list and don’t bother clicking through. By localizing your email, using relevant offers, and being transparent about your data practices, you could’ve kept their interest—and built trust over time.
Check this out: retail & email marketing: interview with Daniel Hikel
#13 Localize everything
Imagine a German shopper exploring your website in their native language, only to hit a checkout page that’s untranslated or confusing. That’s a dealbreaker.
61% of German consumers believe that brands must offer an end-to-end customer experience in their native language, encompassing everything from product promotion to customer service interactions.
Everything needs to feel seamless for German audiences, from your homepage to emails. Keep the journey smooth and consistent, or you risk losing the trust you worked so hard to build.
Understand it better – an imaginary situation:
A German shopper is browsing your site and loves your products, all described in perfect German. But when they reach the checkout page, everything is in English. Confused and frustrated, they hesitate to enter their payment details and leave without buying anything. A fully localized experience would’ve made the process seamless and kept them engaged to the very end.
Check this out: why localizing your store pays off
Category: Practicalities and Logistics
#14 Understand the local payment habits
In Germany, convenience doesn’t always trump tradition. While PayPal, Mastercard, and VISA dominate online payment methods, cash payments are still a strong preference for 66% of stores. If you’re entering the market, you must offer a mix of modern and traditional payment options. Ignoring this could mean losing customers who stick to familiar, trusted methods. Sofort payments, which connect directly to online banking, are another popular choice you should include.
Understand it better – an imaginary situation:
You launched an e-commerce store in Germany that offered PayPal and card payments but skipped cash and Sofort banking. Sales start okay but hit a wall when customers leave during checkout. Feedback rolls in: “Where’s the option to pay with cash on delivery?” and “Why can’t I use my online banking?” Without these trusted payment methods, your audience moves to competitors who cater to their habits.
Check this out: a guide to payment methods used by German e-commerce businesses
#15 Adapt your delivery strategy
Free shipping, tracking, and free returns aren’t just perks—they’re expectations for German shoppers. You might struggle to compete if your delivery options don’t meet these standards—partner with trusted courier services like DHL, Hermes, or DPD to cover the basics. For added convenience, consider using parcel lockers or pickup points, a significant draw for busy German customers.
Understand it better – an imaginary situation:
Imagine offering standard shipping with no tracking or returns. Orders start to trickle in, but customer complaints flood your inbox. “Why can’t I return this for free?” and “How do I know where my package is?” Germans expect convenience and reliability from delivery options. Competitors using DHL or offering click-and-collect at nearby locations quickly steal your market share.
#16 Pay attention to mobile shoppers
With over 69.1 million Germans using smartphones in 2024 and 85% having internet access on mobile, your site needs to work seamlessly on all devices. A clunky or unresponsive mobile experience could frustrate potential customers. Whether they’re browsing or buying, your site has to feel smooth and intuitive on smaller screens.
Understand it better – an imaginary situation:
Your site looks great on desktop but takes forever to load on a smartphone. Mobile shoppers, frustrated by the lag, leave before seeing your products. Meanwhile, your competitors with optimized mobile sites enjoy steady conversions. With over 62.5 million Germans using smartphones, you missed a massive audience.
Check this out: the state of mobile commerce
#17 Make shipping easy for customers
German shoppers are used to flexibility regarding delivery and pickup options. DHL alone has 36,000 points where customers can collect their parcels. To stand out, offer services like click-and-collect or multiple delivery locations. This convenience can make all the difference when deciding between you and a competitor.
Understand it better – an imaginary situation:
You decide to handle shipping yourself, offering limited delivery points and no pickup options. A customer emails, saying, “Why can’t I collect this at my local parcel shop?” With 36,000 DHL pickup points in Germany, not offering flexible options puts you at a clear disadvantage. Customers simply opt for competitors who make their lives easier.
Category: Legal and Tax Considerations
#18 Keep tax obligations in mind
Selling in Germany might come with tax responsibilities, especially if you store goods or exceed VAT sales limits. Registering for VAT or using the VAT OSS procedure is often part of the process. If you don’t handle these details correctly, you could face penalties. Make sure you’re up-to-date on what’s required for compliance to avoid surprises.
Understand it better – an imaginary situation:
You start storing goods in a German warehouse without registering for VAT. Things run smoothly until you get a letter from tax authorities demanding back payments and penalties. Worse, your listings get flagged on marketplaces for non-compliance. Staying on top of VAT and OSS requirements would have saved you from this costly mistake.
Wrap up
Take these tips, start strategizing, and bring your A-game.
With the right approach, you can carve out your place in one of Europe’s most lucrative e-commerce hubs.
The German market is waiting—are you ready to make your move?
***
