France isn’t just about fine wine and high fashion. It’s also a powerhouse in the digital marketplace. Did you know that as of 2023, France ranked as the third-largest e-commerce market in Europe? That’s right, nestled right behind Germany and the UK, France has carved out a significant niche in the digital world.
As one of Europe’s leading digital marketplaces, France presents a unique blend of tradition and innovation, making it an essential study for anyone interested in the intersection of technology and commerce.
In this article, you will find out how French e-commerce is doing and what are the biggest strengths and flaws of this market.
E-commerce overview
E-commerce in France is booming. The French e-commerce sector was worth €159.9 billion in 2023. This is an increase of 10.5% compared to the previous year (€144.7 billion in 2022.) This growth indicates a vibrant digital market landscape despite various economic pressures. Moreover, online product sales fell by 1.8% compared to 2022 (€61.2 billion,) but the services sector recorded a 20% increase over last year. In addition, 2023 saw 2.35 billion online transactions, it’s an increase of 4.9%.
So, yes, the numbers are quite impressive. But what’s fueling this impressive growth, you might ask? Well, it boils down to a few pivotal factors. The digital infrastructure in France is continually improving, which simplifies online transactions and enhances user experience. Moreover, French consumers are increasingly tech-savvy and turn more frequently to online platforms for their shopping needs. They are driven by convenience and the ability to quickly compare prices and products.
Heading into the details of French e-commerce, you’ll be fascinated to see how the numbers stack up. Projected revenues for 2024 are set to hit around $69.19 billion. This number reflects a vibrant market driven by innovation and consumer engagement. The projected growth rate from 2024 to 2029 stands at an annual increase of 8.18% and aims to reach a whopping $102.50 billion by the end of the period. These figures are a testament to the robust momentum this sector enjoys.
The biggest sector is Fashion — its revenue was estimated at $30 billion. In this segment, Vinted was the most visited fashion and apparel website in 2023. This second-hand online marketplace overtook such global giants as Zalando and ASOS. What was the result? A boom in C2C e-commerce and the rise of online marketplaces for buying and selling used products online. And the proof? In April 2023, the leboncoin.fr website recorded monthly traffic of nearly 127 million visitors. As a result, e-retailers had to respond to growing consumer demand for lower prices and more sustainable sales.
Source: datareportal.com
The online fashion shopping fever shows no signs of slowing down. On the contrary, forecasts suggest that e-commerce will add up to more than one-third of the country’s total apparel sales by 2025.
The top three e-commerce stores in France are Amazon, Shein, and Veepee. amazon.fr leads this market with revenues of US$5,781.1 million in 2023.
Source: ecommercedb.com
Consumers behavior
As of early 2024, France had a population of 64.82 million people, with more than 3% more women than men. Here are the highlights.
Source: datareportal.com
In January 2024, there were 60.80 million internet users in France. On the other hand, the number of e-commerce users in France in 2024 is projected to be as high as 34.74 million. It’s an increase of 1.7 million from 2023. Now, that’s a significant leap that shows that more people are getting comfortable with the idea of shopping online.
Here is the number of e-commerce users in selected European countries from 2019 to 2029 (in millions.)
Source: Statista
User penetration is another interesting aspect to consider. Expected to be at 54.7% in 2024, it’s projected to climb to 64.1% by 2029. Meanwhile, at the beginning of 2024, France’s Internet penetration rate was 93.8% of the total population. The average revenue per user (ARPU) is also predicted to grow to $2.28k annually by 2029. This volume highlights more frequent use of e-commerce and more substantial transactions.
French consumers are considered a consumption group, but this is about to change. In 2024, French consumers’ behavior shows a clear trend towards cautious spending amid rising economic pressures. As the costs of living continue to escalate, driven by inflation and increased energy prices, the majority of the French populace is opting to tighten their belts.
2024 is marked by a significant shift towards financial prudence, with 70% of French individuals planning to curtail their spending, down slightly from 75-80% in 2023. This cautious approach even extends to essential expenses for some, with about 30% cutting back on basics to afford leisure or equipment expenses for themselves or their loved ones.
The main economic concern for the French in 2024 remains the rising prices of goods and services (highlighted by 74% of the population) and soaring energy costs, troubling 66%. This stress significantly affects purchasing behaviors and influences not only day-to-day spending but also plans for future expenditures.
Despite the overall mood of restraint, 62% of French consumers still look forward to indulging in good food, which they view as both a necessary and pleasurable expense. Similarly, 54% expect to enjoy leisure and cultural activities, suggesting that while discretionary spending on items like clothing, home decor, and high-tech products is limited (with only 25% to 39% planning such pleasure purchases), spending on food and culture remains a priority.
And how about returns in France? The most returned online purchases by category are Clothing — 19% in 2023 speak for themselves.
Payment
In 2023, the six essential payment methods in France were credit/debit cards, digital/mobile wallets, mobile contactless payments, checks, BNPL, and bank transfers. Here they are:
Source: inai.io
Credit/Debit Cards
Most French still prefer swiping or inserting their cards for online purchases. The Carte Bancaire system, which includes familiar faces like Visa and Mastercard, is the go-to option.
Digital/Mobile Wallets
Digital and mobile wallets have really taken off. It’s all about speed and convenience, and who doesn’t love that? Paylib is a big player here, that allows folks to link their cards supported by the Carte Bancaire system. And of course, international giants like Google Pay, Apple Pay, and PayPal are also winning hearts, with 41% of consumers opting for PayPal when shopping online.
Mobile Contactless Payments
Now, this is where it gets even more modern. The French are all about tapping their phones or smartwatches to pay. Services like Monese and Revolut shake things up and offer easy alternatives to traditional banking. Not to forget, banking apps from big names like BNP Paribas are making waves too.
Checks
Here’s a twist — checks are still in play. They might seem a bit old school, but many merchants keep them on the roster to encourage all types of consumers to shop. One big perk? No transaction fees on checks. That’s always a nice bonus.
Buy Now, Pay Later (BNPL)
BNPL schemes are skyrocketing in popularity. This method is a lifesaver if you want to spread out payments for those pricier purchases, and it’s not just about Klarna or Afterpay anymore. Even big names like PayPal and Apple Pay are jumping on the BNPL bandwagon and offer flexible payment plans to keep up with the trend.
Bank Transfers
Many in France still use good old bank transfers. It’s reliable, though not the quickest or most convenient. Watch out for those fees, especially if you’re transferring money across borders or even just across banks domestically.
Source: datareportal.com
Social media
According to DataReportal, there were 50.70 million active social media user identities in France in January 2024. However, note that while this figure is impressive, it represents a slight decline from the previous year — a decrease of 1.4 million users or about -2.7%. Despite the decline, the French population is still actively engaging with social media. Specifically, 78.2% of the total population was active on social media platforms at the start of 2024.
Source: datareportal.com
For the adult demographic, the numbers are even more pronounced. There were 44.70 million users aged 18 and above actively using social media, which accounted for 86.9 percent of the entire adult population. This high penetration rate highlights how ingrained social media is among French people.
Here are the main reasons for using social media:
Source: datareportal.com
What’s more, the rise of social media shopping and shopping via live streaming is strongly influencing the e-commerce landscape in France. Also, with “shoppable tags” on Instagram, shoppers can directly click the tags of products they like in a post on Instagram and buy them through the app. In a 2022 study, a quarter of French shoppers reported that they had made a purchase on social media at least once.
If e-commerce providers want to reach potential customers, they should be present on such platforms like Facebook, Instagram, Snapchat, and TikTok. Communicators like WhatsApp and Messenger are also incredibly important.
Source: datareportal.com
Logistics
France’s logistics infrastructure is robust and comprehensive, which facilitate extensive trade not only within Europe but also with Asia, Africa, and the Middle East. This country boasts the largest road network in Europe, with over 1 million kilometers of roads. This includes a significant stretch of motorways (11,400 kilometers.) This extensive network ensures efficient overland transportation for goods across the country and to neighboring nations.
The country’s strategic access to the Mediterranean through five major port facilities is a huge advantage. Coupled with having the longest coastline in Europe, at 5,000 kilometers, France’s ports serve as crucial gateways for maritime trade, linking Europe to global markets. Also, with nearly 8,500 kilometers of navigable waterways, France has Europe’s largest network, which supports inland freight movement and reduces the load on road transport.
France is home to both major French logistics firms like GEODIS, FM Logistics, and STEF, and significant foreign players such as UPS, DHL, FedEx, and Maersk. The expansion of these companies within France attests to its strategic importance as a logistics hub.
Source: businessfrance.fr
However, the real estate logistics market saw a mixed performance in 2023. While there was a 24% year-on-year decrease in the volume of transactions from the previous year, the activity remained aligned with the ten-year average, which shows stability in the sector. Investments in logistics real estate dipped significantly in 2023, but with numerous transactions underway, there are positive indicators for 2024.
To sum up
E-commerce in France is highly developed, and consumers take advantage of this. French people like to buy online, and that is obvious. It is also a well-known fact that French people are quite consumerists, but they are aware of that and try to do better for our planet.
The French e-commerce scene adapts quickly to new trends while maintaining a strong connection to the needs and preferences of its consumers. So, whether you’re a retailer, a marketer, or just a curious observer, there’s plenty to learn from this dynamic market.
Thanks to this quick overview of France, we hope that we helped you understand how e-commerce should act to win French customers’ hearts.
