Ecommmerce continues to grow, but different than expected
Most European internet users shop online. Ecommerce is still growing, but slower than before. Last year, Europe’s online B2C total sales volume increased by 6 percent to 899 billion euros. The growth is slower than in 2021.
According to a report from Ecommerce and EuroCommerce, ecommerce in Europe grew 12 percent in 2021 compared to a year earlier. The measured growth in 2022 is a lot slower. Western Europe provided 67 percent of the total online sales volume. Eastern Europe only contributed 2 percent to this. The growth that is measured mainly occured in Eastern Europe.
Inflation as reason for stagnant growth
The fact that ecommerce is growing less rapidly than before is mainly the result of inflation. The higher prices ensure increasing sales volumes. This was partly compensated by strong growth in the services sectors. However, the volume of those services was lower in several countries.
We can expect recovery again this year. Inflation is decreasing. As a result, researchers expect another growth of 2 percent.
“Because inflation is decreasing, researchers still expect growth of 2 percent.”
AI gives ecommerce a boost
Ecommerce will account for 30 percent of total retail sales volumes in 2030. It is expected that new technology will lead to increasing online sales in the future. AI is currently being widely used to devise smart algorithms to predict customer demand. This ensures just enough stock and prevents waste. Second-hand sales are also becoming more common and ensure that ecommerce continues to grow.