‘Ecommerce remains the growth engine of German retail’

Online spending in Germany continues to grow. The German Retail Federation (HDE) forecasts nominal ecommerce revenue to increase by 4.3 percent this year, reaching 96.3 billion euros. According to HDE, sales generated by physical stores will grow by only 1.6 percent.

The federation therefore describes ecommerce as the “growth engine of retail”. Marketplaces remain particularly popular among German online shoppers. Last year, they already accounted for 56.7 percent of all online sales. Their share is expected to increase again this year, although growth has slowed.

International platforms

While ecommerce may be driving retail growth, this does not necessarily mean that German retailers are benefiting. A large share of online spending takes place on major international platforms without the involvement of German sellers. According to HDE, Shein and Temu together generate approximately 4.7 billion euros in sales in Germany. A recent study commissioned by the federation found that these Chinese platforms drain billions of euros from the local economy each year.

Shein and Temu account for 4.7 billion euros in sales

According to HDE, 65 percent of German consumers have purchased from a foreign online store at least once. Among these cross-border shoppers, nearly half (49 percent) have bought from a Chinese retailer. This means that more than three in ten Germans have experience shopping on Chinese platforms.

Fair competition

Stephan Tromp, Deputy Managing Director of HDE, points to the high level of dynamism in the marketplace sector and the importance of fair competition. “Unfortunately, this is still not the case for companies such as Shein and Temu. Policymakers need to take significantly stronger action. There must be consistent and meaningful penalties, but also regulations that can be clearly enforced, so that every participant must assume that violations will actually be detected.”

Market concentration in Germany

An increasing share of Germany’s online consumer spending is flowing to a small group of major players, with Amazon by far the most dominant. Last year, the American company once again achieved a record revenue in Germany, its largest European market, growing sales by 12.3 percent compared with the previous year.

The chart below, taken from the HDE Online Monitor 2026, illustrates Amazon’s dominance. At the same time, many smaller online retailers in Germany have seen their revenue decline in recent years.