German Online Retail Competing: Study Reveals Opportunities to Counter Affordable Overseas Competitors
In the rapidly evolving world of online shopping, German retailers are distinguishing themselves from international platform providers by offering tailored, localized experiences and prioritizing sustainable practices, according to a new report from Nexi DACH.
Thomas Spreitzer, CEO of Nexi DACH, emphasizes the importance of trust, proximity to customers, and convenient, secure, and sustainable digital shopping experiences for local retailers. These factors can provide a significant competitive edge over generic international platforms.
One key area where German retailers excel is localized support and complex customizations. Many businesses in Germany prefer platforms like Shopware, which offer more tailored services compared to international SaaS solutions such as Shopify. High-volume German retailers often rely on proprietary platforms, which account for nearly half of e-commerce traffic in the country. These custom solutions allow retailers to tailor functionalities closely to their requirements, giving them a competitive edge.
Integration within strong local ecosystems is another factor that sets German retailers apart. Choosing platforms with robust developer communities, agencies, and plug-ins in Germany can provide better ongoing support and faster adaptation to local market trends.
Payment innovation and integration of local payment methods are also crucial. Collaborations with European PayTech companies like Nexi and participation in initiatives such as the European Payments Initiative (Wero) enable German retailers to offer payment methods tailored to local consumers' preferences, improving conversion and customer satisfaction.
Fast and secure payment methods are essential to German online shoppers, and retailers that offer flexible payment methods can increase conversion rates, customer loyalty, and prevent cart abandonment. E-wallets like PayPal, invoice purchase, and card payment are the most popular payment methods in Germany, with simplicity and security being key factors.
Sustainability is becoming increasingly important in online shopping in Germany, alongside fast delivery and easy return logistics. 28% of German online shoppers prefer environmentally friendly return processes, and 25% of shoppers are willing to accept longer delivery times for a better climate impact. Minimalistic packaging is desired by 57% of German online shoppers.
The report, conducted by Teleperformance on behalf of Nexi, indicates that 94% of Germans have made an online purchase in the last 28 days. Time-saving, ease of use, and the ability to shop independently of opening hours are the main reasons for online shopping in Germany. Around one in five respondents reported buying a hotel, parking fees, or train tickets online in the last 28 days, indicating strong growth in the "Travel and Mobility" segment.
Nexi supports businesses of all sizes with tailored payment solutions, omnichannel offerings, and API-based checkout systems. The company aims to help German retailers adapt to customer needs, make it an integral part of the customer journey, and become competitive and future-proof against new strategies from the East.
The full report, part of a pan-European survey involving over 28,000 participants in 11 countries, can be downloaded from the link: E-Commerce Report 2024 - Germany (). For press inquiries, contact Christian Drixler, Head of Internal and External Communication DACH, at +49 170 310 8978 or [email protected].
- In the competitive landscape of online shopping, German retailers are leveraging technology to set themselves apart by offering tailored, localized experiences, prioritizing sustainable practices, and integrating robust developer communities and local payment methods.
- To maintain a competitive edge, technology plays a crucial role in enabling German retailers to offer customized functionalities, innovative payment solutions, and sustainable practices that cater to the preferences of local consumers in the rapidly evolving world of online shopping.
