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The battle of e-commerce platforms: What drives success for German SMEs

The Battle of E-Commerce Platforms: What Drives Success for German SMEs

 
There are so many options. So many e-commerce platforms. Each shouting about being the best.

For German SMEs, the stakes are higher than ever, so they need to choose the best platform carefully. To make it the backbone of their online business, to power every sale, to improve customer interaction.

Platforms like Shopify make waves with their simplicity and scalability. Shopware brings that local touch, and JTL encourages with its nice prices. But here’s the kicker – you must figure out which platform is right for you.

In this article, based on uptain insights, we’re cutting through the noise. We’re diving into what makes these platforms tick, why in-house platforms are fading, and how German SMEs can make the wisest choice to drive their success.

Why choosing the right platform is crucial for German SMEs

Choosing the right e-commerce platform is a massive deal for German SMEs. That’s primarily because it lays the foundation for long-term success. 

Think about it: your platform is not only for customers to shop. It is more like a place where your brand lives online, how your customers interact with you, and how you handle everything from orders to inventory. 

Pick the wrong one, and you’re in for a world of frustration down the line.

One of the big reasons this choice matters is scalability. As your business grows, so do your needs. More traffic, more products, more everything – and your platform has to keep up. If it doesn’t, you’re stuck spending time and money switching to something else later, and no one wants that.

Another key area? Customer experience

The platform you choose plays a huge role in how smooth and enjoyable shopping is for your customers. A clunky interface, slow load times, or limited payment options can drive people straight to your competitors. On the flip side, a platform that’s easy to use and customizable lets you stand out, build trust, and keep customers coming back.

Then there’s the backend stuff—inventory management, marketing tools, analytics. A good platform helps you run the entire operation efficiently. 

For German SMEs, compliance is another huge factor. Platforms need to handle local taxes, privacy laws, and other regulations, or you risk major headaches.

Ultimately, choosing the right platform is about future-proofing your business. It’s an investment in growth, efficiency, and customer loyalty.

Shopify’s ascent to dominance

In recent years, Shopify has emerged as a powerhouse in the German e-commerce landscape, particularly among small and medium-sized enterprises (SMEs). As of January 2025, Shopify leads the e-commerce software market in Germany, accounting for over a quarter of the market share.

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One of Shopify’s most appealing features is its user-friendly interface, which allows even those with limited technical expertise to set up and manage an online store efficiently. The platform offers a variety of customizable templates and enables businesses to create a professional online presence. Without the need for extensive coding knowledge.

➡️ Read about Shopify SEO: Best practices that promise more sales.

Shopify’s scalability is another factor contributing to its popularity. The platform supports businesses as they grow, offering various plans and features that can be upgraded to accommodate increased traffic and sales volumes. 

So yes, this flexibility makes it an attractive option for SMEs planning for long-term expansion.

The platform also has integrated payment solutions. They simplify transactions for both merchants and customers. With support for multiple payment gateways and currencies, Shopify enables German SMEs to cater to a diverse customer base, including international buyers.

Generally speaking, Shopify is one of the most intriguing e-commerce platforms for the German SMB. But what about its alternatives?

Shopware: the local contender with a global vision

Sure, Shopify’s made some big moves, but let’s not overlook Shopware – a homegrown German platform that’s still holding its own in the market.

  • As of 2022, Shopware achieved a market share of 12% among the top 1,000 online stores in Germany (it was the market leader for the third consecutive time.)
  • In 2024, the turnover was expected to reach 78.3 billion euros. 
  • In 2025, Shopware is warming up. It has a 3% market share. 

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Shopware’s success can be attributed to its deep understanding of the German market and its commitment to meeting the specific needs of local businesses. The platform offers features tailored to comply with regional regulations and consumer preferences, providing a sense of security and reliability for German SMEs.

As an open-source platform, Shopware offers unparalleled flexibility and customization options. Businesses can modify and extend the platform’s functionalities to align with their unique requirements.

As well as Shopify, Shopware has cultivated a strong community of developers, partners, and users who contribute to its ecosystem. This collaborative environment fosters innovation and provides businesses with access to a wealth of resources.

In recent years, Shopware has attracted significant investments, including a $100 million funding round led by PayPal Holdings and The Carlyle Group. This financial backing has enabled Shopware to grow and expand its presence beyond the German market.

JTL: The Affordable All-Rounder

But German SMEs have a variety of platforms to choose from. Among these, JTL stands out as a cost-effective and comprehensive solution, particularly appealing to small and medium-sized enterprises seeking robust functionality without a hefty price tag.

One of JTL’s standout features is its seamless integration with enterprise resource planning (ERP) systems. This integration ensures that various business processes – such as inventory management, order processing, and customer relations – are synchronized in real-time. 

For SMEs, this means streamlined operations and reduced manual workload.

JTL offers a high degree of customizability, too. It enables businesses to tailor their online stores to specific needs and branding requirements. Their flexibility extends to various platform aspects, including design, functionality, and third-party integrations. 

Another significant factor contributing to JTL’s popularity among German SMEs is affordability. The platform provides a range of features at competitive pricing. It’s a smart choice for those who want big results without a big investment. 

Being a German-based platform, JTL offers strong local support, which is invaluable for SMEs operating within the country. 

In 2024, the company has achieved its highest-ever sales volume of 341,846 MT. It’s 42.25% more than in the 2023 FY.

💡 Note: Despite Shopify’s significant market share, local platforms (or those with local support) still remain crucial in the German e-commerce ecosystem. Shopware, for instance, is recognized for its flexibility and deep understanding of the local market, which appeals to businesses seeking tailored solutions. JTL, as we mentioned before, delivers top-notch local assistance.

The fall of in-house platforms

The e-commerce world is definitely seeing a big change—businesses are moving away from custom-built platforms and leaning into ready-made options like Shopify.

And honestly, it makes sense. 

This shift isn’t random; it’s happening because of a few key reasons:

#1 High costs

Custom e-commerce platforms require an initial investment in development. And then there are ongoing maintenance expenses. For SMEs, these costs can be prohibitive, diverting resources away from other critical areas such as marketing and product development. 

In contrast, platforms like Shopify and JTL offer subscription-based models with lower upfront costs. They often are more financially accessible.

#2 Scalability issues

As businesses grow, their e-commerce platforms need to grow with them to handle more traffic and bigger sales numbers. The thing is, custom platforms often can’t keep up without pouring more money into upgrades and development. And that can be a real pain for a growing business.

Ready-made solutions are designed to scale seamlessly. They provide SMEs with the flexibility to expand without significant technical hurdles.

#3 Rapid technological advancements

The pace of technological change in e-commerce is relentless. Keeping a custom platform up-to-date with the latest advancements requires continuous development efforts. 

In contrast, platforms like Shopify and Shopware regularly update their offerings. They ensure users have access to cutting-edge tools without additional effort. And the support is strong.

#4 Security concerns

Keeping strong security on a custom platform takes a ton of time and resources. And with cyber threats growing every day, businesses just can’t afford to leave any gaps in their e-commerce systems – it’s too big of a risk.

Established platforms invest heavily in security. They give users peace of mind and reduce the risk of data breaches.

The chart below shows the development of market shares of e-commerce platforms for German SME online shops from 2018 to 2024. Among them, Only Shopify, JTL, and WooCommerce saw a positive change in market share in %.


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Opportunities with modern platforms

The move away from custom platforms is shaking things up in a good way, creating plenty of opportunities for SMEs. For example, they can:

  1. Focus on core business activities. By leveraging ready-made solutions, businesses can allocate more time and resources to core activities such as product development and customer service.
  2. Access to advanced features. Modern platforms offer a plethora of features, including SEO tools, analytics, and marketing integrations, enabling SMEs to compete effectively in the digital marketplace.
  3. Faster time-to-market. Implementing a ready-made platform is significantly quicker than developing a custom solution, allowing businesses to launch and start generating revenue sooner.

Industry leaders weigh in

To gain a deeper understanding of this dynamic market, check out Julian Craemer’s opinion and insights into the future directions of e-commerce platforms in Germany.

Julian Craemer, CEO and founder of Uptain, offers a clear perspective on Shopify’s rapid rise in the German SME market.

“‘Shopify has managed to conquer the German SME online shop market with a simple user experience and strong marketing. In practice, it is still evident that local shop systems are lagging behind in many aspects. It seems unlikely that Shopify’s success will be slowed down in the next five years.”

As you can see, Craemer’s view emphasizes that Shopify’s accessibility and ease of use have been transformative. He notes that Shopify’s simplicity has enabled many small and medium-sized online stores to establish a digital presence with ease.

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Looking ahead, it’s pretty clear that Shopify isn’t slowing down anytime soon. 

Its growth in the German e-commerce space feels like a train that’s just picking up speed. Especially with how hard it is for local competitors to match everything word “local” brings. 

But that said, don’t count out Shopware and JTL just yet. They’ve got their own strengths (like catering to businesses that need specific features or solid local support) and that’s not something Shopify can always deliver. 

There’s room for all three to thrive, depending on what businesses are looking for.

Over to you

So, here’s the thing: Shopify, Shopware, and JTL each bring something unique to the table for German SMEs looking to step up their e-commerce game.

Whether you’re aiming for a quick, scalable setup or something a little more tailored, it really comes down to knowing what your business needs most.

Sure, custom-built platforms used to be all the rage for their flexibility and personalization, but let’s face it – times have changed. The high costs, maintenance headaches, and scaling issues have made them a tougher sell for most SMEs. That’s why platforms like Shopify, with their all-in-one simplicity, or local favorites like Shopware and JTL, are winning hearts and minds.

In the end, it’s all about finding a platform that works for you – one that supports your growth, fits your budget, and keeps your business running smoothly in this fast-moving digital world. 

The options are out there, so take your pick and start building something amazing!

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