Europe

Temu and DHL Group have signed a Memorandum of Understanding. The companies say they aim to support the growth of SMEs in established markets as well as in growth markets. DHL will utilize its logistics expertise to support Temu's operations in Europe, including its local-to-local model.

The European online DIY market reached a revenue of 66 billion euros last year. Compared to the total market of online and offline DIY sales, the online share was 17 percent. The total market value came to 388 billion euros.

The European Commission has conducted an investigation into online traders of second-hand goods. A majority of the companies involved in the so-called sweep may be in breach of European consumer rights and will be further investigated.

Zalando looks back on a successful year, with higher revenue, increased profits, and more customers. The company expects growth acceleration, driven by its successful ecosystem strategy. Zalando will also expand into three new countries this year: Portugal, Greece, and Bulgaria.

Ecommerce giant Amazon is reportedly eyeing an expansion of its discount storefront, called Amazon Haul. It is supposed to compete with cheap ecommerce platforms like Temu and Shein. It is planning to launch Haul in Europe later this year.

Of the world’s 250 largest ecommerce companies, 95 have their headquarters in Europe. That is three more than in North and South America combined and significantly more than in Asia. Within our continent, Germany hosts the most headquarters.

Last year, 96 percent of Irish internet users made online purchases. The country has the biggest percentage of online shoppers, compared to other European countries. The Netherlands and Denmark also have high percentages, with 94 and 91 percent respectively.

The European Parliament has approved a revision of VAT rules. As a result, online platforms will be liable for VAT payments if their sales partners do not fulfill this obligation. The reform aims to prevent unfair competition and combat VAT fraud. Businesses will save billions on costs, according to policymakers in Brussels.

Between 2024 and 2029, Forrester is predicting an increase in online sales in Europe. It expects that online sales will grow from 389 billion euros in 2024, to 565 billion euros in 2029. Online sales will also take up a larger share of the total retail sales.

The EU aims to curb the influx of unsafe products entering the European market via ecommerce platforms such as Temu, Shein, and Amazon. Brussels wants to make these platforms liable for dangerous or illegal products sold online. There are also plans to establish a new EU customs authority.

At least 47 percent of shoppers start their product search on marketplaces. The share of shoppers doing that is even higher in the United Kingdom, with 54 percent. This means that marketplaces are more often used to find products than search engines or brand websites.

Chinese online marketplace Temu has recently started using local warehouses in Europe. In the future, the company wants 80 percent of all European orders to be shipped from local warehouses.

OnBuy, a popular cashback marketplace from the United Kingdom, has quietly begun its European expansion. The business reports 30 percent day-on-day sales growth in key European markets, with a rapidly growing backlog of retailers.

Ecommerce giant Amazon has released a study indicating that joining the Climate Pledge Friendly program results in a 12.5 percent increase in sales for sellers on the marketplace. Especially products with low visibility profit from the program.

After two years of declining revenue, Zalando has regained its growth path. Revenue grew by an estimated 3.9 percent to 10.5 billion euros last year, setting a new record. The company has again revised its profit forecast upwards.