Austria stands for an A in the DACH shortage. With over 9,159,993 inhabitants (preliminary estimates as of 1 January 2024), this country is divided into eight federal states and is a member of the European Union, Schengen zone, and the United Nations.
Austria is recognized for its robust economy, with a GDP of $519,71 bln in 2023. Moreover, its GDP is projected to increase by in total of 91.7 billion U.S. dollars (+16.95 percent) between 2024 and 2029.
What about its e-commerce market details? 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 Austrian e-commerce market is experiencing robust growth, with the value predicted to reach $19.6 billion in 2024. This growth represents an increase from previous years and highlights the expanding online shopping landscape in Austria. By 2028, the market is expected to further grow to $24.6 billion.
The largest sector in the Austrian e-commerce market is Electronics, accounting for 22.1% of the total revenue. This sector was projected to generate approximately $2,906.4 million by 2024. Following Electronics, the top sectors are:
- Hobby & Leisure sector, which covers 20.9% of the Austrian e-commerce revenue
- Fashion – 18.3%
- Furniture & Homeware – 14%
- DIY – 10.1%
- Care Products – 9.2%
- and Grocery – covers 5.5% of the total Austrian e-commerce revenue
In May 2024, amazon.de ranked first among Ecommerce & Shopping websites in Austria. At the podium are also willhaben.at, and ebay.at – ranking in 3rd place. The 4th place is occupied by temu.com, and the top five are rounded out by geizhals.at.
These figures indicate a thriving e-commerce environment in Austria, driven by diverse product categories and the strong presence of e-commerce sites like Amazon and eBay.
Consumer behavior in Austria
At the start of 2024, Austria had 8.58 million internet users, representing a penetration rate of 95.7% of the total population. The median age of Austria’s population is 43.2 years, with a substantial portion of the population spread across various age groups. For example:
- 5.1% people are between 20 and 24,
- 7.9% people are between 55 and 69,
- 20.5% are aged 65 and above.
This indicates an aging population.
Austrian consumers love cross-border shopping. In one year, Austrian online spending grew by 5 percent, hitting 10.6 billion euros. And over half of all spending is made in foreign webshops. This trend is driven by the availability of a wider range of products and competitive prices.
Consumer behavior in Austria is also characterized by a heightened focus on value and sustainability. 42% of Austrian consumers are most likely to have made a significant or complete shift toward a sustainable lifestyle. This is not just about shopping but a change in their entire lives. Thus, many consumers are now more inclined to purchase from brands that demonstrate social responsibility and sustainable practices.
Additionally, Austrian companies and consumers are adapting to the integration of advanced technologies in their shopping experiences. Innovations such as augmented reality (AR) and virtual reality (VR) are becoming more prevalent as they allow consumers to engage with products in a more immersive manner and reduce the need for costly returns.
Payment preferences in Austria
In 2024, Austrian consumers exhibit diverse payment preferences, reflecting both traditional and modern methods. The most popular are online payment services like PayPal, Google Pay, and Klarna, which remain a dominant force due to their ease of use and widespread acceptance.
Austrians also show a strong preference for invoice-based payments. Invoices are crucial for Austrian consumers primarily due to the security and flexibility they offer in the purchasing process. Additionally, buyers take advantage of credit cards, debit cards, direct debit, prepaid cards, cash in advance, and cash on delivery.
However, another widely used payment method is the EPS (e-payment standard) system, which allows secure online bank transfers directly from Austrian bank accounts. This method is particularly favored for its security and integration with local banks, making it a trusted choice among consumers. With three million Austrian bank account holders, EPS is a trusted payment solution in the DACH region’s payment ecosystem.
Payment safety
The cybersecurity market is one of the fastest-growing ICT sub-sectors in Austria, with an estimated market volume of $745 million by 2028.
This country has established specialized anti-fraud units within the Federal Ministry of Finance. These units, including the Anti-Fraud Office and Financial Police, work to detect and prevent fraud, ensuring the protection of consumers and businesses.
Also, Austria enforces strict data protection regulations, aligned with the EU’s General Data Protection Regulation (GDPR), to safeguard consumer information and prevent misuse.
Social media in e-commerce in Austria
At the start of 2024, Austria had 7.32 million social media users, equating to 81.6% of the total population. This significant engagement underscores the importance of social media platforms in the daily lives of Austrians.
The prevalence of mobile devices significantly influences social media usage, with 12.92 million active cellular mobile connections in Austria – it’s more than the total population. This indicates that many users maintain multiple connections, likely separating personal and professional use. This mobile connectivity supports the high engagement rates on social media platforms, allowing users to stay connected on the go.
Among the top 5 most used social media are WhatsApp, Facebook, Instagram, Facebook Messenger, and TikTok.
Austrians’ social media behavior highlights a preference for visual and interactive content. Platforms like Instagram and TikTok have seen substantial growth, with TikTok’s user base increasing by 19.7% in the past year. This trend reflects a broader shift towards short-form video content and interactive media, which are becoming central to social media engagement. Brands and marketers are increasingly leveraging these platforms to reach a younger, more dynamic audience.
So, to reach potential customers here, you should create an account on Facebook, bet on Instagram, communicate via WhatsApp, or be present on TikTok. It’s your choice.
Logistics in e-commerce in Austria
The Austrian e-commerce market couldn’t thrive without support from logistics and fulfillment services. This country hosts a substantial number of companies active in the transport and logistics sector, with over 40,829 businesses employing approximately 225,512 people in 2022.
Moreover, Austrian storage and warehousing revenues were projected to reach about $1,272.7 million by 2023. What will it be like this year? As a result of the current economic downturn, the market is slowing down. There is a lower demand for top locations in general and peripheral locations have a harder time finding tenants.
This trend is expected to reverse in 2024, and no new records will be set. Rental figures have already declined in other European countries. For the first time in Vienna, this became evident in the second half of 2023. The current space turnover is expected to be around 180,000 sq m, and due to the high pipeline, completion performance will exceed space turnover.
The trend towards sustainable logistics solutions is gaining momentum in Austria. Many consumers prefer environmentally friendly shipping options, such as CO2-neutral delivery services, which are increasingly being offered by logistics providers. In 2022, the most eco-conscious shoppers online were those aged over 55 years.
Austria is still home to a number of major international logistics companies, including Gebrueder Weiss GmbH, LKW Walter Internationale Transportorganisation AG, and Cargo-Partner Group Holding AG.
To sum up
Austria presents a dynamic and promising environment for e-commerce businesses. With a high internet penetration rate and a growing number of online shoppers, the market is well-primed for digital retail. Moreover, Austria’s diverse population, characterized by a significant inclination towards cross-border shopping, offers ample opportunities for businesses to tap into a broad and varied customer base.
As a part of the DACH region, Austria shows some similarities with other countries. Logistics is at a very high level as in Germany, although its location differs greatly from that of the former. Also, just like the Swiss, Austrians like to spend their time online.
If you want to get to know the other DACH countries better – these articles about Germany and Switzerland are for you.
And if you’re hungry for more knowledge, subscribe to our newsletter for more industry insights.
