The German e-commerce market consists mostly of online stores and marketplaces, which win the hearts of German consumers. One of the most prominent shopping stops for customers in the country is the Amazon marketplace. As we know, this is an American sales giant that attracts crowds of buyers.
But are you aware that in 2023, Amazon’s revenue in Germany reached as much as $37.59 billion? That’s $15.36 billion more than just four years back, in 2019! As a result, Germany ranked as Amazon’s second biggest market in 2023. The better was only the home state, with $395.41 billion.
But why are Germans so eager to buy on a site that is not really German?
We did our research and created this article about factors that most significantly influence amazon.de popularity across the German community.
Check out the results!
Marketplaces – pros and cons
Let’s start from the beginning, so marketplaces in general in Germany.
From a consumer point of view, a marketplace is a store where you can buy everything without leaving one domain. There are also a variety of payment methods, delivery options, and a transparent policy of returns, which is very comfortable for customers.
From the merchants’ side, there are many pros regarding marketplaces. German e-commerce is large, so it gives room for maneuver. As an example, marketplaces offer a more cost-effective way of reaching clients. They offer merchants a range of payment methods to choose from, as well as delivery options. What’s more, marketplaces make returns much easier to handle. And there is so much support from the marketplace during the whole sales process.
What can make merchants a little bit upset?
Well, marketplace fees can eat into profits, especially when you add up transaction fees, listing fees, and any additional costs for support services.
But you know, all good things cost.
Another drawback is the intense competition. With so many sellers on a single platform, it’s easy for products to get lost in the mix. To stand out, you might need to invest in paid advertising or offer heavy discounts. Plus, marketplaces usually display similar products side-by-side, making it easy for customers to compare prices and choose the cheapest option. Not necessarily yours.
Why Amazon.de is so popular?
All right, but let’s focus now on amazon.de itself.
Why is it so popular and appealing to German consumers?
First: Adaptation to the location
Germans want to shop in their native language. They feel more comfortable and safe when they see a website with .de domain. You can see it by the popularity of German e-commerce such as Otto, Zalando or eBay Kleinanzeigen. Amazon.de works on a German domain, and the entire site and product descriptions are in German.
But still, the first place belongs to the non-German marketplace, amazon.de.
Why is that? What does this e-commerce in Germany offer besides language and regional alignment?
Second: Meeting customer preferences
Importantly, Amazon’s content is adapted to the preferences of German customers. Product descriptions are quite long and focused on technical aspects. Germans value accuracy and such attention to detail reassures buyers that they make informed choices.
As reviews play a huge role in German buying decisions, amazon.de displays reviews prominently and allows customers to read feedback from other buyers – which, of course, contributes to higher trust and reliability.
Also, Germans tend to be thorough researchers who often take the time to dive into product descriptions and read user experiences before buying. By catering to this preference with thorough descriptions and extensive reviews, amazon.de makes German customers feel that their purchase decisions are well-supported and based only on reliable information.
Third: Logistics strategy
One of amazon.de’s major advantages is its highly efficient logistics network within Germany. Amazon has strategically placed fulfillment centers across the country, including key locations like Bad Hersfeld, Leipzig, and Graben, among others.
Also, thanks to Amazon’s Central Europe Programme, sellers can use Amazon’s entire network located in Germany, Poland and the Czech Republic to store their FBA and Small and Light inventory. This can even be a cheaper inventory storage solution.
In addition, Amazon’s logistics operations within Germany mean that products are subject to the same regulatory standards that apply to domestic goods. This resonates with German shoppers, who prioritize quality and adherence to local standards.
Fourth: Fast delivery and hassle-free returns
Amazon’s powerful logistics network allows the company to offer fast delivery options, including the ever-popular next-day or even same-day delivery. For German consumers, who are accustomed to high service standards and timely deliveries, this is a big plus. They know that their orders will arrive promptly without any lengthy international shipping times, which adds to Amazon’s appeal.
The logistics setup also makes Amazon returns hassle-free, another important factor for German shoppers. With a network of warehouses and local return hubs, customers can easily return items and be sure the refunds will be processed swiftly.
Looking at all the above information, it’s not surprising that average German consumers feel that they are buying from a German online store.
What do consumers buy on Amazon.de?
German SMEs sold over 750 million products via Amazon in 2023. That’s huge, but what did consumers buy?
For a better comparison, let’s focus on 2023 first. According to Amazon, in that year the top 5 best-selling categories were:
- Household goods
- Drugstore and personal care
- Clothing
- Office supplies
- Food and beverages
Now let’s look at the September 2024 data. The top categories include:
- Adult
- Video games, consoles and accessories
- Programming and developer software
- Computers, electronics and technology
- News and media
As you can see, consumer interest shifted significantly toward tech-related categories, including video games, developer software, and electronics. This means a rise in digital and entertainment-driven purchases.
What makes Amazon.de so special?
Amazon.de faces fierce competition in the German market. Just look at websites like eBay.de, Otto.de, and Idealo.de – they have solidified their presence by offering extensive product selections, price comparison tools, and a focus on consumer trust. There is also Etsy.com, that caters to those seeking unique, handmade products, or Temu.com with Aliexpress.com – they draw budget-conscious shoppers with low-cost items from international sellers.
Kleinanzeigen.de, on the other hand, resonates well with locals for second-hand and localized listings. And even grocery chains like Lidl.de have entered the e-commerce scene, catering to shoppers looking for reliable, cost-effective essentials online.
So, what makes amazon.de stand out amid this competition?
Many factors could be involved, like exceptional customer service. Amazon has invested not only in the necessary tools but also in training employees to ensure the highest level of customer service. As a result, customers appreciate the service and are satisfied with it.
Amazon’s advantage also lies in its deep integration with German consumer habits and diversity. Its extensive catalog covers almost every conceivable category, which is a great fit for those customers who want to have choices when shopping.
Another big pro for Amazon and its national websites (such as amazon.de) is its unique tools and services. We are talking, among other things, about options like tracking orders and returns, and Amazon Prime – a membership program that provides various benefits, including free shipping on eligible items, access to exclusive deals, and a library of movies, TV shows, and music.
Amazon’s social media profiles are also worth noting. Their social media presence is at the highest level, and when customers have issues while shopping, they can send a message or comment on a post and usually get a quick response with a solution.
We can go on and on enumerating: Amazon’s strong strategies, diversification, UX, logistics, streamlined shopping experience, a wide range of payment options, etc. They all help keep this marketplace and the whole business at the top despite some incidents and the growing local competition.
Conclusion
Amazon just knows the drill.
Its local adaptation, meeting customer demands, smooth logistics process, and flexible options have helped solidify its reputation for convenience and reliability among German consumers. Their approach makes it possible to deliver a seamless, trusted shopping experience that aligns well with the high expectations of German customers.
Now you know how to improve your e-commerce and take over Germans’ hearts. Learn from Amazon, set up your account in this marketplace, or adopt similar strategies. Just experiment and see what will work best with your audience.
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