What’s driving e-commerce success in the DACH region?
We know the exact answer to this question.
WBR Insights surveyed 150 e-commerce leaders in Q4 of 2023 to uncover key challenges and strategies shaping the future of online retail. With participants from Germany (55%), Switzerland (35%), and Austria (10%), this report dives into the innovative solutions helping retailers thrive.
From navigating marketplaces to leveraging AI and mastering social media, WBR Insights and ChannelEngine reveal how to overcome obstacles and seize opportunities in an evolving industry.
Check out the original report here, or read the essentials with us!
Fundamentals about the German e-commerce market 2024
Germany is a heavyweight in the global e-commerce arena. It’s the 6th largest market worldwide and offers a stable foundation for sellers thanks to a 4.5% annual growth rate.
That’s no small feat in an industry that’s always shifting.
German e-commerce thrives on its robust infrastructure and booming online marketplace scene. Van Hofwegen, Director of Sales EMEA at ChannelEngine, believes these marketplaces are becoming indispensable for success, especially as third-party (3P) selling surges. By 2028, 3P sellers are expected to make up 88% of all marketplace sales and snag 59% of the total e-commerce market share worldwide.
Thus, this trend is like a wake-up call for brands to rethink their strategies.
Tech is also front and center – German retailers are turning to tools like ChannelEngine to handle listings, inventory, and orders efficiently. Why? That’s simple: because staying ahead in this space requires resilience, and advanced tech makes that possible. Strategic partnerships also became valuable, as they bring in cutting-edge innovations without distracting you from your core operations.
Then there’s AI, shaking things up in ways we couldn’t imagine just a few years ago. AI-powered product bundling, especially, is an exciting step that helps brands compete in an evolving market.
OK, there’s a lot going on, but what are the conclusions?
Takeaway #1: For DACH online retailers, the lesson is clear: embrace change. Namely, use tech to streamline operations, partner up smartly, and keep an eye on the trends driving the market forward. With these fundamentals in mind, you’re not just competing. You’re thriving in a market packed with potential.
That’s it in a word of introduction, now let’s focus on specific insights.
E-commerce leaders’ insights
The German e-commerce landscape is a dynamic and complex ecosystem. Here, your success hinges on staying adaptable and focused.
Fortunately, we know the insights of top industry leaders who reveal how companies are transforming strategies, leveraging markets, and overcoming challenges to achieve growth.
Want to learn more about them?
So, enjoy!
Supercharge marketplace strategy
Highlight: Marketplaces are no longer just an option. They’re becoming a necessity for e-commerce businesses.
70% of businesses are now exploring marketplace opportunities, with 15% already active and another 15% planning to dive in within the next year.
Source: Research report 2024: Insights from top German ecommerce leaders, ChannelEngine & WBR Insights
“This indicates a growing trend of businesses recognising the strategic value of online marketplaces for reaching broader audiences and diversifying their market presence, whether on a domestic or international scale,” says Van Hofwegen.
Takeaway #2: It’s a great time to integrate marketplaces into your business to stay competitive.
Let’s go further: why are marketplaces such a big deal?
For starters, they drive traffic, boost sales, and increase brand exposure. 63% of leaders aim to increase sales and revenue with online marketplaces, while 67% prioritize expanding into new markets. But it’s not just about numbers.
Van Hofwegen highlights another crucial point: 69% of respondents are focused on enhancing the customer experience with marketplaces. Such tools have just become key to creating customer loyalty.
Source: Research report 2024: Insights from top German ecommerce leaders, ChannelEngine & WBR Insights
However, challenges like customer support consistency (62%) and product content management (59%) are real roadblocks.
Anja Rodionova, Head of Marketing at Fashionette AG, explains:
“The quality of product data and images varies strongly from merchant to merchant, which makes it difficult for the marketplace operator to ensure a consistent experience for their customers.”
This challenge affects how brands are perceived and underscores the need for strong product data and seamless communication. And addressing these problems requires strategic investments in some good approaches, tactics, and technology.
Due to this, Tunahan Yildiz, Business Development Director at DAC Group, highlights a customer-first focus, noting:
“A customer-first approach is clearly at the forefront for companies venturing into new online marketplaces, reflecting a strategic commitment to customer satisfaction. (…) This, in return, will naturally elevate your sales and revenue, which are important for continuous growth.”
On the other hand, Rodionova offers an intriguing perspective on market expansion:
“The whole world wasn’t affected by the cost of living and energy crisis to the same extent. This means for many companies struggling with declining demand in Europe, other countries might be a good opportunity. And marketplaces offer a comparably easy way to enter a new market and generate some first learnings on the market fit at a small scale.”
Takeaway #3: Your brand can really navigate declining demand in Europe by looking at international marketplaces for growth.
Takeaway #4: Marketplaces can be complex. But with the right strategy and tools, they offer unparalleled opportunities to grow revenue, tap into new markets, and build strong customer relationships.
What to do next?
For retailers, the future lies in combining marketplace strategies with innovative tools. With the right solutions, the daunting task of juggling multiple marketplaces becomes manageable.
💡 Tip:
Want to hear more expert opinions and gain actionable insights? Join us at the E-commerce Berlin Expo 2025 on February 19-20. It’s a must-attend event where you can connect with industry leaders, explore cutting-edge strategies, and get inspired to drive your business forward. Don’t miss this opportunity!
Redesign personalized shopping with a human touch
Highlight: AI is revolutionizing e-commerce, but in Germany, businesses are still figuring out how to harness its full potential.
Despite the global buzz around AI, only 5% (!!!) of German e-commerce leaders feel satisfied with their AI implementations.
Surprising? Yes. But it shows there’s massive room for growth. A solid 79% of respondents admit they see some benefits but acknowledge there’s still a long way to go.
So, what’s holding them back?
For one, costs are steep. A whopping 71% of leaders struggle with high initial investments, and 68% feel they lack quality data to maximize AI’s impact.
Source: Research report 2024: Insights from top German ecommerce leaders, ChannelEngine & WBR Insights
Ben Moll, Managing Director at DAC Group Germany, highlights this challenge but also sees solutions:
“The integration of AI within organisations is evidently challenged by high initial costs, data quality, and system compatibility, yet these are critical hurdles to overcome in the pursuit of long-term efficiency and innovation. Fortunately, there are many organisations such as ours that help with AI integrations on an efficient basis, removing long cycles in the process and streamlining operational action points.”
Despite this, leaders are positive about AI and find many use cases for it. Nearly half (46%) are already leveraging tools like ChatGPT for personalized marketing, 35% are optimizing logistics with AI, and 31% are using it for content generation.
Source: Research report 2024: Insights from top German ecommerce leaders, ChannelEngine & WBR Insights
Takeaway #5: Leaders are optimistic about AI’s ability to create personalized shopping experiences.
Tunahan Yildiz underscores this potential:
“To maximize the benefits of AI, businesses should focus on enhancing personalized customer experiences and streamlining operations.”
But as powerful as AI is, it comes with risks. Security concerns, ethical questions, and customer trust are common challenges.
Courtney Harvey, Conference Director at eTail Germany 2024, points out:
“It’s imperative to keep an eye on the latest guidelines when it comes to data collection and ensuring that human supervision is a key part of their AI strategy until we know more about how AI can help, not hinder us.”
Another hurdle? Balancing the tech with a human touch. Customers want AI to enhance, not replace, the personal connection they value. Here, Sarah Sunderbrink, Teamlead Social Media at Zooplus, gets it:
“We always ensure our team is trained to know how to capitalize on AI while maintaining our data and GDPR policy as well as being authentic and on-brand, especially when it comes to content creation.”
Takeaway #6: AI isn’t a one-size-fits-all solution. Start small, test use cases, and align your AI strategy with clear business goals.
As Courtney Austermehle, CMO of Constructor, says:
“2023 was the year of AI hype; now it’s time for retailers to move past the gimmicky phase, align AI technology to strategic business goals, and measure its impacts.”
What to do next?
Experiment. The future of AI in German e-commerce lies in striking the right balance: harnessing its power for personalization while keeping the human touch alive.
Use the power of social and strengthen brand identity
Highlight: Social media is the stage where brands build loyalty, drive engagement, and, ultimately, make sales.
But staying relevant? That’s the real challenge.
ChannelEngine survey results show that 66% of businesses feel confident with their social strategies. Nevertheless, only 10% claim to be “very confident.”
Why? Because creating engaging content and keeping up with ever-changing trends isn’t easy. Social platforms evolve constantly, and brands need to keep up or risk being left behind.
Source: Research report 2024: Insights from top German ecommerce leaders, ChannelEngine & WBR Insights
“I believe they are more likely to be ‘rather confident’ than ‘very confident’ as we consistently face changes in the social media environment – new channels, new features and algorithm changes,” says Sarah Sunderbrink.
Her advice? Stay user-centric: give your audience content they actually want to see.
But let’s talk about platforms. Which social platforms leaders were using to grow their brand and community identity?
The answers were no surprise: Facebook (83%) and Instagram (77%) remain top choices, but TikTok is shaking things up, with 50% of respondents (the same number as for the YouTube platform) calling it a key tool for connecting with younger shoppers.
Source: Research report 2024: Insights from top German ecommerce leaders, ChannelEngine & WBR Insights
“I’m surprised to see TikTok matching YouTube for this. TikTok has been a major platform that can send videos viral in minutes,” explains Courtney Harvey. However, she points out that crafting content for TikTok can be time-consuming compared to more traditional platforms.
Takeaway #7: Whether you’re going viral on TikTok or sticking with Facebook, tailor your content to the platform. Adjust your materials so they won’t be too long or of little value.
But a good aspect was noted by Anja Rodionova:
“I think when we look at this result, we must consider the fact that respondents from different industries and business models were taking part in the survey. The relevance of specific social media channels is highly dependent on the industry sector and the company’s focus.”
However, it’s not just about platforms. What matters here are the techniques used to stand out on platforms. The survey showed that brands are most turning to:
- paid ads (48%)
- influencer partnerships (47%)
- and personalized content (64%) to stand out.
Here are all the results:
Source: Research report 2024: Insights from top German ecommerce leaders, ChannelEngine & WBR Insights
Courtney Harvey says:
“Retailers can use paid ads on social media platforms to ensure their products reach their target market which makes it more likely to turn into sales, so I’m not surprised this ranked very high. Personalised content is key in reaching your customers and telling them that you understand what they are looking for and can provide them with appropriate recommendations.”
How can you turn this insight into an advantage? ⬇️
Takeaway #8: With a thoughtful mix of organic and paid strategies, your brand can cut through the clutter.
What to do next?
Focus on platforms that align with your audience and fine-tune your content. And remember: social media success doesn’t mean being everywhere. It rather means being where your customers are and speaking their language.
The next move is yours!
For German and DACH retailers, the insights gathered in this report reveal a roadmap to thriving in the German e-commerce landscape.
As you saw, embracing marketplace strategies isn’t optional anymore. Not since 70% of businesses are exploring its opportunities. Marketplaces are just essential for driving growth, reaching broader audiences, and maintaining relevance in 2025 and beyond.
Leveraging tools like AI and technology for personalized shopping experiences adds a layer of customer connection while optimizing operations. But don’t focus only on tech. You need to balance innovation with human oversight and ensure authenticity and customer trust.
Social media remains a critical space for brand-building. Retailers can fine-tune their approach by aligning platform choices with audience behavior and using a mix of organic and paid strategies to cut through the noise.
International expansion also presents growth opportunities, allowing retailers to explore new markets and mitigate local challenges.
Ultimately, the secret to success lies in staying agile: adopt new tools, refine strategies, and always keep the customer at the core of your decisions.
The E-commerce Berlin Expo 2025 is your chance to dive deeper into the world of e-commerce and connect with top industry experts.
This unique event promises unmatched opportunities to learn, network, and discover the latest trends shaping the market. Mark your calendar and join us in Berlin – it’s the ultimate event to supercharge your e-commerce journey.
See you there!
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