Austrians place four in five orders with foreign stores
Parcel volumes in Austria are growing significantly. However, the majority of packages, around 80 percent of the total, come from abroad. Amazon accounts for a large share of this parcel surge, and the influence of Chinese platforms is increasing. Local online retailers are losing out.
This is the conclusion of a joint report by Österreichische Post (Austrian Post) and Handelsverband Österreich (Austrian Retail Association). While ecommerce in Austria is well-established – 71 percent of physical retailers now sell online, compared to just a quarter in 2019 – the lion’s share of online consumer spending is flowing into the pockets of foreign ecommerce companies.
Lost added value
“About 80 percent of all ecommerce packages come from abroad. For Austria, this added value is primarily lost to foreign trade”, said Peter Umundum, Deputy CEO of Austrian Post. Market leader Amazon accounts for an astonishing 25 to 30 percent of the domestic parcel volume.
Amazon accounts for 25 to 30% of all parcels.
Chinese platforms such as AliExpress, Shein, and Temu reportedly account for 5 to 10 percent of the Austrian parcel volume.
Competitiveness
The organizations behind the report hope to boost the competitiveness of local players in their own market. Austrian Post supports domestic retailers with modular fulfillment, a pick-up service, delivery, and IT integrations, according to Umundum. He also points to Shöpping.at, the ecommerce platform of the postal service that aggregates the offerings of various Austrian online sellers. In the coming months, these sellers will receive support and discounts on their sales activities in Germany, where Amazon rival Shöpping.at is also launching.
Shöpping.at is launching in Germany in November.
Earlier research showed that the approximately 6 million Austrian online shoppers can choose from more than twelve thousand domestic online shops. Nevertheless, most of their online purchases come from foreign providers. “A dramatic development”, said Rainer Will, director of the Austrian Retail Association. “Austrians thus finance approximately 150,000 jobs abroad.”
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