The e-commerce sector in the DACH region – Germany, Austria, and Switzerland – is once again showing signs of life. After enduring years of disruption, uncertainty, and fluctuating consumer sentiment, the market is now on a growth trajectory. However, a closer look reveals a significant divide: while large, established e-commerce players are thriving, small online shops are increasingly left behind.
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This contrast is clearly demonstrated in the latest study by Uptain, which analyzed real-time data from over 10 million users across hundreds of small online shops. The focus of this analysis was on small online shops in the DACH region between Q3 2023 and Q1 2025.
Despite overall market growth, small retailers are facing declining revenue, fewer visitors, and growing structural disadvantages. These findings raise critical questions about the future competitiveness and sustainability of small online shops in the DACH region.
Market growth is not universal
On the surface, things are looking up for e-commerce in the DACH region. Industry forecasts remain positive, and key economic indicators suggest renewed consumer interest in digital shopping. However, this growth is not shared equally. The uptain report finds that the lion’s share of this rebound is benefiting established players with well-known brands, broad logistics networks, and significant marketing resources.
In contrast, small online shops – often the heart of local entrepreneurship and niche product offerings – are struggling. The data reveals a consistent decline in sales across recent quarters. In Q1 2025, the median revenue of small online shops dropped to just €12,558, the lowest figure recorded in recent reporting periods.
Declining sales reflect larger structural trends
This downward trend in revenue is not an isolated incident. Instead, it reflects a broader shift in how consumers shop, what they expect, and where they choose to spend their money. In times of economic uncertainty, consumers tend to gravitate toward familiar, trusted brands. Larger online retailers often have the advantage of brand recognition, competitive pricing, seamless logistics, and advanced personalization – all of which foster consumer confidence and loyalty.
Smaller shops, on the other hand, are often unable to offer perks like free shipping, flexible installment payments, or no-hassle return policies. These expectations are quickly becoming standard in the eyes of consumers, but meeting them poses substantial logistical and financial challenges for small-scale operations.
Visitor decline precedes revenue drop
The decline in revenue is strongly linked to a fall in web traffic. Visitor numbers to small online shops have been decreasing, often before revenue figures begin to drop. This finding is particularly important, as it indicates that the issue is not necessarily within the online stores themselves – such as pricing, design, or usability – but in the inability to attract traffic in the first place.
This lack of visitors may be due to a combination of factors. Among them are a reduced willingness to buy in uncertain times, a shift in consumer preference toward bigger platforms, and crucially the superior marketing presence of large competitors. As SEO, online advertising, and social media marketing become more competitive and expensive, smaller retailers struggle to make their voices heard in the digital noise.
Order values up, but conversion rates down
Not all indicators are in decline. The median order value has increased slightly, which at first glance might suggest positive news. However, this effect is largely neutralized by a decline in conversion rates – the percentage of visitors who complete a purchase.
The higher order values may be influenced by inflation and rising costs rather than a true increase in consumer purchasing power or intent. Across various industries, prices have increased in recent quarters, and this naturally reflects in online shopping carts. But if fewer visitors are converting into buyers, the net effect on sales is either stagnant or negative.
Moreover, the lower conversion rate points toward waning purchasing interest, even when consumers do visit small online shops. In practical terms, this means that not only are fewer people arriving at these websites, but those who do are less likely to buy.
Consumer expectations are harder to meet
One of the most challenging aspects for small online shops in the DACH region is keeping up with rising consumer expectations. Free shipping, next-day delivery, installment payment options, and generous return policies are now the norm on platforms like Amazon, Zalando, and others.
Meeting these standards requires infrastructure, logistical capacity, and financial flexibility – areas where larger companies thrive due to economies of scale. For small online shops, offering the same conditions can quickly become unprofitable, if not outright impossible.
As a result, consumers who may have once supported smaller or niche retailers are increasingly opting for convenience and predictability offered by bigger players. This shift further amplifies the revenue gap and limits the competitive positioning of small shops.
A market increasingly dominated by big players
Julian Craemer, CEO and founder of uptain, puts it plainly: “The current situation is worrying for small online shops. Sales are declining even though the overall market is growing. This demonstrates the increasing dominance of the big players. It’s becoming increasingly complex and expensive to bring visitors to the website. This makes it all the more important that visitors actually convert.”
His insight underscores the need for a dual strategy: driving qualified traffic while optimizing for maximum conversion. In this environment, small online shops must be more deliberate than ever in how they design their customer journey and deploy their marketing budgets.
What can small shops do to compete?
Although the landscape is becoming more difficult, there are still strategies small online shops can adopt to improve their standing:
- Conversion optimization tools: Utilizing technologies like exit-intent popups and triggered emails -as offered by uptain – can help recover abandoned carts and improve conversion rates without additional ad spend.
- SEO niche targeting: Instead of competing for broad, expensive keywords, small shops can focus on highly targeted, long-tail keywords specific to their niche or regional base.
- Email marketing and retargeting: Building strong email lists and leveraging retargeting can help bring back visitors who didn’t convert the first time.
- Transparency and trust: Displaying clear shipping conditions, reviews, and secure checkout options can help reduce friction and build consumer trust.
- Partnerships and collaborations: Collaborating with influencers or other small brands can expand reach and drive new traffic at relatively low cost.
Conclusion: Urgency for adaptation
While e-commerce in the DACH region is clearly recovering and growing, the reality for small online shops is sobering. They are facing declining visitor numbers, stagnant or falling sales, and intense pressure from dominant market players.
The uptain report paints a clear picture: unless small online retailers act quickly and strategically, they risk becoming invisible in a rapidly consolidating marketplace. The good news is that data-driven tools and targeted strategies still offer a path forward – if used wisely.
Small online shops may not be able to outspend the giants, but with precision, creativity, and focus on the customer experience, they can still carve out sustainable and loyal niches in an evolving digital economy.
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