Stable growth for ecommerce in Central Europe

Online spending in Central Europe is expected to grow by 8 percent this year, with a similar growth rate forecast for next year. The increase is mainly driven by existing online shoppers placing orders more frequently.

This is according to a new report from ECDB and Mastercard, covering eleven countries. Overall, ecommerce in Central Europe is growing steadily after a pandemic-driven boom and several years of stagnation.

Long-term planning confidence

According to the research partners, online spending in the region will increase from 191.3 billion euros last year to 206.6 billion euros this year, reaching 223.5 billion euros in 2027. “As projected annual growth converges around 8 percent, Central Europe’s ecommerce market is entering a more stable and predictable phase, improving long-term planning confidence.”

Germany and the rest

Growth in Central Europe is broadly in line with the European average, but differences between countries remain significant. Germany is by far the largest market. According to ECDB and Mastercard, ecommerce in Germany – described just last week as the growth engine of retail – is set to grow by just under 8 percent this year. Switzerland is expected to see a similar increase, while ecommerce in Austria is expected to grow slightly faster.

Higher growth rates in Poland and Greece

Poland, the region’s second-largest ecommerce market, is expected to grow by around 9 percent. In Greece, growth is forecast at approximately 11 percent. Online spending is growing even faster in the small island nation of Malta. “Across Central Europe, ecommerce markets show a clear connection between online penetration and growth”, the report states, although there are some exceptions.

Retention focus

Buying frequency is the most important growth driver for online retailers in Central Europe, according to ECDB and Mastercard. The report describes it as “the battleground for ecommerce growth”.

Buying frequency becomes the new battleground

The number of purchases per customer is increasing much faster than either the number of online shoppers or the average amount spent per order. This suggests that customer retention is becoming strategically important for online retailers in the region.

Cross-border shares

The report also includes data on the share of cross-border ecommerce spending in individual countries. This share is highest in Austria, where 44 percent of online spending flows to foreign webshops, and lowest in Malta. Germany also appears to be highly self-sufficient. Amazon.de, despite being owned by an American company, is classified as a domestic player in this context.