43% German online retailers dissatisfied with market

A large share of German online store owners are dissatisfied with developments in the German ecommerce market. Strict regulations in the country about online sales seem to be the biggest hurdle for sellers, at least 60 percent of sellers are dissatisfied by the legal framework.

These data come from a study by Uptain, which tries to give insight into how online retailers in Germany view the current ecommerce market. In 2024, online spending increased 1.1 percent in Germany. This was the first increase in German ecommerce after two years of decline.

Strict regulations in Germany

Still, only 18 percent of online store owners in Germany say they are satisfied with current market trends and developments. Another 43 percent are dissatisfied or even very dissatisfied. And more than a third (38 percent) say they are indifferent.

33% of shop owners are very dissatisfied with the German legal framework

The biggest cause for the dissatisfaction seems to be the German laws on ecommerce. A third (33 percent) of shop owners said they are very dissatisfied with laws on data protection, return policy, transparency and product safety.

The fact that complying with these rules requires high effort could be an explanation. The researchers also think that restrictions on tracking, retargeting and personalization play a role.

Risks posed by foreign platforms

As previous reports already indicated, Germany is the biggest European market for Temu and Shein in terms of users and turnover, respectively. At the same time, these platforms seem able to bypass European ecommerce rules, giving them an unfair advantage. The German government even announced that it was working on an action plan last year, to create a level playing field.

In this new study, 42 percent of respondents think that these Chinese shopping platforms pose a risk for their own online store. However, almost half (49 percent) did not see a significant risk. It seems that the perceived risk is influenced by the industry and business model of online retailers.

‘German ecommerce market is tough’

“The German ecommerce market is tough for shop owners. In addition to saturated markets, the strict regulations are a particular problem. It is therefore particularly frustrating that foreign low-cost providers can ignore these laws with impunity and thereby gain valuable market share. In order to strengthen the German market in the long term, simpler but consistently implemented regulations are needed”, said Julian Craemer, CEO and founder of Uptain.