Austria stands for an A in the DACH shortage. In 2019, 8 859 992 people were lining here. Austria comprises eight federal states. This country belongs to the European Union, the Schengen zone, and the United Nations. Austria is seen as one of the richest countries. Its GDP amounted to $455.3 billion in 2018.
What about its e-commerce market? Do Austrians shop online very often? Do they have any habits? We discussed all the Austrian e-commerce aspects below.
E-commerce in Austria – overview
The value of Austrian e-commerce is predicted to reach US$6,969m this year. Market value in 2024 is predicted to hit US$8,818m. The largest sector here is Fashion, it covered 30% of the revenue. It is predicted that this segment’s market volume will reach US$2,134m in 2020. The fashion segment is followed by Electronics and Media that cover 28%, Toys, Hobby and DIY – 20%, Furniture and Appliances – 14%. The last one brings 8& of revenue and it is Food and Personal Care segment.
The most popular e-commerce here is amazon.de. The second place belongs to willhaben.at and the podium is closed by ebay.at.
Zalando is also quite popular among Austrian customers. It is the leader when it comes to the fashion industry in the whole DACH region. In 2018, it increased sales by 18.3%.
Consumers behaviour in Austria
Austrian consumers love to do cross-border shopping. More than half of their online expenses are made to buy items from abroad. Austria is one of the few countries where the domestic e-commerce turnover is much lower than the foreign one. This is mainly due to the fact that most of the most popular retailers are based abroad, and have not yet decided to open a branch in Austria. A great example here is the retail giant Amazon. Austrians buy on the German site and it is from there that goods are shipped. The most popular destinations of Austrians’ purchases are Germany, Italy, Switzerland, China and the Czech Republic.
These consumers do not return goods very often. Perhaps it is not only a matter of successful purchases but also a short return time. In Austria, there is only one week to return the bought items. If you want to win the hearts of consumers in this country – they will surely appreciate the 14-day return period.
For Austrian consumers, the price is an important aspect. It is a similar situation when it comes to the brand and its awareness. These aspects contribute to the perception of this society as consumerists. If the manufacturer promises them a better product, they are willing to pay extra. Austrians like to buy online and do not save on products of well-known brands.
Nevertheless, they can appreciate native products. They care about ecological awareness and sustainability.
Access to the Internet is quite common in Austria, which is why its residents use it so willingly. People aged 16-24 are the biggest fans, but the age group 25-34 shows only a little less enthusiasm.
Payment preferences in Austria
Austrians bet on cards and open invoices. About 31% of transactions are paid by cards, while invoices cover 28% of them. Card payments are expected to grow in popularity and stand for 32% of all transactions in 2021.
What is worth noting, as, in Switzerland, debit cards are much more popular here than credit cards. There are 1.12 debit cards per one inhabitant, and 0.39 in the case of credit cards.
Another interesting aspect – as many as 81% of consumers prefer to pay cash on delivery. It shows that Austrians just like Swiss like to have some backup money in the pocket.
Digital wallets are a solution that is gaining popularity all over the world. Austria follows the global trend. As much as 25% growth in this segment is expected by 2021. Speaking of digital wallets, it is impossible to ignore PayPal, which is used in 15% of transactions. Google Pay or Apple Pay can boast of more and more fans. The former one is already available in Austria, while Apple is still working on this matter. Bank transfers (SOFORT) are also quite a popular solution – as many as 80% of Austrian retailers accept this payment method, and consumers appreciate this option.
Austria can feel relatively safe online. Fraud is experienced by only 1% of online shoppers. This result is below the European average (2%). The biggest threat in the Austrian network is identity fraud. Thanks to EMPACT (European Multidisciplinary Platform Against Criminal Threats), consumers can feel safer. This initiative is very active in connection with intranet and payment frauds.
Social media in e-commerce in Austria
There are 7.90 million Austrian people online, and this number is still growing. These people like to be online – they spend more than 5 hours per day, surfing on the Internet.
So when it comes to social media – YouTube is the king here. But WhatsApp and Facebook have their fans too. So, to be in touch with potential customers here, you should create a YouTube channel or make an account on Facebook and be active there. Your choice.
Logistics in e-commerce in Austria
Logistics in Austria is concentrated in the areas of the capital city – Vienna. There are above 5000 sqm of warehouses in this country! Not all the surface is located in Vienna. On the South of the country, there is located Cargo Center Graz. The major logistics route is the transport corridor which links the eastern and western part of the country.
Austria is the country which is the key when it comes to international logistics. Thanks to the route through Austria, the travel time between, for example, the Czech Republic and Slovenia is significantly reduced. The country’s geographic location has many advantages that benefit its many neighbours.
Logistics in Austria is well-ranked. It is placed at the third place when it comes to the competence and quality of its services. It has a slightly higher result than Germany, which is considered a logistic dream.
The most popular logistics provider in Austria are Austria Österreichische Post, DHL and DPD. The first is the most frequently chose option when it comes to online shopping. 47% of online retailers choose it as a courier company to transport their products.
To sum up
Austria as a part of the DACH region shows some similarities with other countries. Logistics is at a very high level as in Germany, although its location differs significantly from that in Germany. Just like the Swiss, Austrians like to spend their time online and their favourite payment method is debit cards. But there are also differences – like approach to consumerism. If you want to get to know the other DACH countries better – these articles about Germany and Switzerland are for you.