German ecommerce shrinks 5 percent

Online sales of physical goods in Germany made 9 percent less revenue last year. Digital services such as travel and events, on the other hand, increased by nearly 40 percent. In total, German ecommerce generated just over 100 billion euros of revenue in 2022.

The new numbers were shared by Bevh, the German federal association for ecommerce. At the end of last year, German online sales also dipped for the first time since 2014. Just like most ecommerce markets, Germany is feeling the effects of consumer uncertainty.

Physical goods dipped 9 percent

Online retail in Germany has shrunk 5 percent in 2022. This is mostly due to lower sales of physical goods. This branch made 90.1 billion euros in gross revenue. That is a 9 percent decrease compared to the year before.

The dip is mostly due to lower sales of physical goods.

On the other hand, sales of digital services such as travel and event tickets came down to 11.25 billion euros. This is nearly 40 percent more than in 2021, when sales were at 8 billion euros.

Just over 100 billion euros total revenue

In total, German ecommerce in 2022 was worth 101.7 billion euros. Orders by telephone, fax and catalogues still account for another 1 billion euros, totaling at 102.7 billion euros.

Although it was not a good year for Germany’s online retailers, sales of physical goods was still up 25 percent compared to 2019. Digital services, on the other hand, dipped over 40 percent compared to pre-pandemic.

‘Insecurity combined with increased living costs’

“Online retail is also aware of the crisis”, says Bevh president Gero Furchheim. “The noticeable reluctance to buy, especially for things that are not immediately necessary, shows the current insecurity of people combined with the increased cost of living.”

If consumer sentiment improves, ecommerce will grow.”

He adds: “The choice, availability and transparency in online trading are valued by customers right now and satisfaction with online purchases is higher than ever. If the framework conditions and consumer sentiment improve, ecommerce will continue to grow at an above-average rate.”