Would you like to know how the Germans’ online behavior is evolving and what has changed in this topic in 2023?
Well, with the E-Commerce Report 2023: Deutschland from Nexi Nets, we can answer that.
This report dives deep into the state of e-commerce in Germany. It takes us closer to key trends, consumer behaviors, and preference shifts that redefine how Germans engage with online stores, what they buy, and why they buy it.
If you’re an e-commerce entrepreneur, a digital marketer, or just curious about the changes in German customers, this article is for you. We will show you key takeaways that give a clearer picture of where the industry is heading and how to stay ahead of the curve.
Want to know more? If so, stay with us or read the full report here.
Germans’ online behavior
It’s quite clear that online shopping is no longer just a trend in Germany — it’s a way of life. A whopping 89% of respondents reported that they had made at least one online purchase in the past 28 days. This figure isn’t just impressive. It’s a testament to how deeply ingrained online shopping has become in daily life. What’s more intriguing is that this behavior spans across all age groups, though there are some differences worth noting.
The chart below shows the percentage of people who have shopped online in the last 28 days by gender. The numbers suggest a growing interest among men (Männer) in utilizing online shopping platforms.
The proportion of online shoppers is high across all generations. The Gen Z generation is the most active online shoppers, but here’s a twist: Baby Boomers are catching up fast! In fact, they’re shopping online more frequently than Gen X, which might be a bit surprising.
The question is: Could it be that older generations are becoming more comfortable with technology, or perhaps the convenience factor is just too good to pass up?
Here’s the percentage of people who have shopped online in the last 28 days by age.
What are people buying online?
The report highlights that physical goods still dominate and make up 48% of all online spending. Clothing remains a top category (with expenses of 23.2 billion euros), although there has been a notable decline in spending on apparel, down by 15% compared to 2022. In contrast, categories such as white goods and shoes have seen increases of 23% and 9%, respectively. The trend indicates a diversification in consumer spending habits, with a move toward essential and durable goods.
Below is a chart showing the largest spending on physical goods: clothing, white goods, and footwear.
Another fascinating trend is the rise in service-based online purchases. There’s been a big increase in spending on services like streaming, insurance, tickets, and even online courses. This change suggests that consumers are increasingly looking for convenience and efficiency in areas beyond just tangible goods.
After all, why not book a holiday or renew your insurance with a few clicks?
Below is a chart of the largest spending on services: insurance, streaming services, and event tickets, which are the three largest categories.
Regarding holidays, travel is another huge winner in online shopping. Spending on travel-related services jumped by 31%, which is quite significant. The three Travel categories that German customers spend the most money on are:
- Hotels – 31.0 billion euros
- Flights – 25.5 billion euros
- Charters and vacations €18.8 billion.
When asked what else they were spending money on, respondents answered, among other things, tickets/monthly passes, cruises, train tickets, car rentals, etc.
Why do people prefer shopping online?
The report points to several key reasons, with convenience and ease topping the list. About 27% of respondents mentioned that shopping online is just easier, while 17% appreciated the wider selection of available products. Price is another major factor, with 16% citing lower prices as a reason for shopping online.
The top reasons for buying are as follows:
- Convenience 27%
- Greater choice 17%
- Lower prices 16%
- Saved time 11%
- Independence from opening hours 10%
- Easier price comparison 9%
- No crowds 3%
- More special/individual options 3%
- No queuing 2%
Yet, it’s not all about the deals. There’s also a growing desire for unique and personalized items, which online shopping caters to quite well. People enjoy access to niche products they might not find in their local stores. And they love that they can do it all without leaving the comfort of their homes.
What do all these insights mean for businesses? If you’re in the e-commerce space, especially in Germany, these statistics are gold. For example, understanding that convenience, variety, and competitive pricing are driving factors can help you tailor your offerings to meet consumer needs. And if you’re thinking about expanding your product range or venturing into services, now might be the perfect time.
Preferences of German consumers
Everyone has unique preferences shaped by their experiences, values, and cultural backgrounds. And recognizing them is necessary for personal growth and better communication with others.
Payments
German consumers have consistently preferred how they pay for their online purchases. The most favored method is e-wallets (like PayPal), which account for 36%. This support for e-wallets has remained stable compared to 2022 and indicates a strong attachment. The other favorable methods are:
- Purchase on account 22%
- Credit card (e.g. MasterCard, Visa) 10%
- SEPA direct debit 7%
- Online bank transfer (e.g. SofortÜberweisung) 7%
- Mobile payment wallets (e.g. Apple Pay, Google Pay) 5%
- Debit card (e.g. giro card, Maestro) 4%
- Prepayment 2%
- Payment in installments 2%
- Cash on delivery 1%
- Customer card with payment function (e.g. Breuninger Card, IKEA Family) 1%
- Don’t know 3%
It’s interesting to see that even with the increasing availability of mobile payment solutions like Apple Pay and Google Pay, these only account for 5% of transactions. With that, we need to say that traditional methods still hold strong appeal.
The reasons behind these choices are rooted in simplicity, security, and speed, with 58% of respondents citing ease of use as the primary reason for their choice of payment method, followed by security (46%) and speed (43%).
The below list and image show the main reasons for choosing a particular payment method:
- Simplicity 58%
- Safety 46%
- Speed 43%
- Habit 18%
- I would like to pay later 6%
- Cheapness 2%
- Bonus points 1%
- Don’t know 1%
- Other 2%
Local vs. global shopping
German shoppers continue to exhibit a strong preference for local shopping, with 78% stating that they primarily shop from local online stores. This preference is driven by a desire to support small or local businesses, which 37% of respondents mentioned as a key factor.
Additionally, 27% feel that shopping locally is more personal and familiar, which adds to their comfort level.
However, consumers are increasingly looking to explore global options, particularly when looking for better prices (cited by 54% of those who shop internationally) or a broader selection of products (33%). The convenience of finding items not available locally also plays a role, as mentioned by 32% of the respondents.
Despite the appeal of international shopping, there are still significant barriers. They include:
- Complicated returns 33%
- Long delivery times 33%
- Customs 32%
Shipping = sustainability
When it comes to shipping, German consumers overwhelmingly prefer home delivery, with 83% choosing this option. This preference is even more pronounced in countries like Switzerland (85%) and Austria (84%). Other options, like pickup from a nearby station or in-store pickup, are much less popular – they account for only about 5% of preferences.
Sustainability is becoming an increasingly important factor in purchasing decisions. There’s a noticeable shift towards greener shopping practices, especially among younger generations. However, there’s still a long way to go – 48% of respondents indicate they want more sustainable options from online retailers.
Here is the percentage of people who value ecological responsibility in their online store:
When sustainable options are available, 64% of consumers opt for them, though the cost is still a big deal.
Also, many shoppers are ready to choose longer delivery times or minimal packaging to reduce environmental impact. Further, 53% of them state a preference for minimal packaging and 33% for environmentally friendly return processes.
Key points from Nexi Nets report about e-commerce in Germany
- 89% of Germans utilize online shopping regularly, which highlights its popularity and convenience.
- Total e-commerce spending in Germany reached €244.4 billion in 2023, with 48% of expenditures on physical goods.
- The e-wallet payment method, particularly PayPal, remains the most preferred among German consumers (47%). It indicates a trend towards digital payments.
- The growth rate of overall online expenditure was at 10% in 2023, with the travel sector experiencing the highest growth at 31% compared to 2022.
- There has been a notable increase in the purchase of tickets for events and services, which suggests a shift in consumer preferences.
- Sustainability is increasingly important for consumers, with over half expressing the need for eco-friendly shipping options.
- Local shopping remains significant, as 78% of respondents report purchasing from local merchants, despite a slight increase in purchases from international online stores.
Conclusion
After reviewing the insights from the Nexi Nets E-Commerce Report 2023, it’s clear that German consumers are evolving really fast. Their preferences for convenience, fast services, digital payments, sustainability, and personalized experiences push businesses to innovate and adapt. For e-commerce players, this means staying attuned to these trends and responding with agility and precision.
And what can you do now?
Leverage these insights to position yourself better and meet the expectations of these digital-savvy consumers.
Good luck!
