E-commerce information platform Cross-Border Commerce Europe (CBCommerce.eu) has launched an annual analysis of European-owned Cross-Border B2C Marketplaces.
The first edition of 'The Top 20 Cross-Border Marketplaces of Europe' maps the best Marketplaces in the sector, zooming in on their Cross-Border performance.
“I want to thank the partners (Worldline, Oney, Mondial Relay, DPD, …) and the members of Cross-Border Commerce Europe who have put all their energy into this new and long-awaited study. It will stimulate the European-owned Marketplaces,” commented Carine Moitier, founder of CBCommerce.eu.
The study reveals that European-owned Marketplaces generated a turnover of €9 billion in 2018 (excluding travel). This compares with a turnover of €42 billion for cross-border marketplaces in Europe as a whole, Amazon's share of the total being €28 billion.
The turnover of European-owned cross-border Marketplaces is expected to grow by more than 50% by 2020, reaching €15 billion.
The study ranked Germany's Zalando as the number one marketplace.
CBCommerce.eu explained that the Top 20 Cross-Border Marketplaces of Europe is a compilation of cross-border data of European marketplaces websites and rankings are based on four parameters: cross-border online sales in Europe (16 countries in Western Europe, including the UK); SEO indicators for cross-border performance; a cross-border score determined by the number of countries covered; and the number and percentage of cross-border visits.
There are four additional weighted parameters that refine the ranking: type of marketplaces’ business models (B2B, B2C, P2P, C2C) : pan-European marketplaces’ brand strategies ; AI (Artificial Intelligence) and 'Big Data' marketplaces’ strategies and type and number of services offered to the marketplaces’ customers.
The study takes into account B2C online platforms, all sectors combined, excluding travel, that offer at least two of the following three services: payment, storage and logistics.
Farfetch, Asos, Zalando, Fnac, La Redoute, Spartoo, Otto, Pixmania, Fruugo and Deliveroo are included in the analysis. Miinto, a B2B network with fashion stores without logistics services, and Takeaway are, on the other hand, excluded.
Most Marketplaces offer a portfolio of 'Retail as a Service' services: transport, return management, flow management, cloud computing, payment and online marketing.
In the study's cross-Border ranking, the Top 5 European owned B2C Marketplaces are as follows: Zalando, Fruugo, Asos, Farfetch and Carrefour.
CBCommerce.eu highlights that the European Cross-Border trade (excluding travel) amounted to €95 billion in 2018, with 55% generated by European players and 45% by non-EU retailers.
European owned Marketplaces represent a Cross-Border turnover of €9 billion, which represents only 17% of the total Cross-Border market in Europe worth €52.25 billion.
For retailers outside the European Union, 80% of the Cross-Border turnover is generated by Marketplaces. Pure players such as Amazon (€28 billion), Wish, AliExpress, Etsy and eBay represent more than a third of the total €95 billion, leaving behind the European-owned Marketplaces with €9 billion.
However, CBCommerce.eu underlines that significant growth is forecast for European-owned Marketplaces, with turnover estimated to increase by more than 50% to €15 billion by 2020, supported by three pillars:
“Firstly, the most important Cross-Border Marketplaces in the EU markets, namely Fnac (France), Spartoo (France), Zalando (Germany, Fruugo (UK), Pixmania (France), Farfetch and Asos (UK), Bytbil (Norway), Mobile.de (Germany) and Coolshop (Denmark) will experience strong organic growth, while on average 50% of their turnover is generated by sales from third parties. This share is expected to grow further.
“Secondly, EU Marketplaces that operate locally, look for growth opportunities beyond their borders: 2dehands and 2ememain (Belgium), Marktplaats and Bol.com (Netherlands), On Buy and Flubit (UK), CDiscount, La Redoute, Priceminister (France), Otto.de (Germany), eMag (Eastern Europe), Fyndiq (Sweden), Worten.pt (Portugal), Clasohlson (Sweden), Wilhaben.at (Austria), Gigantti and Verkkokauppa (Finland), Allegro (Poland), Jofogas.hu (Hungary) and Real.de (Germany).
In France, Amazon has a market share of 14.2% in e-commerce without travel, followed by CDiscount (7.8%). Only 5% of Amazon’s e-commerce is realized in France, compared to 95% for Cdiscount, CBCommerce.eu noted.
In the Netherlands, Bol.com is planning to expand to new geographical areas. The Marketplace is its leading growth engine. Today, 23.000 e-tailers sell on Bol.com.
Thirdly, CBCommerce.eu expects the emergence of new European niche markets by 2020.
“They are now very popular in the United States and the United Kingdom, such as: Newegg for the global electronics market, Reverb for musicians, Zibbet for independent artists, artisans and vintage collectors, Houzz for interior designers, Wayfair selling home accessories and furniture, toys and multimedia products and Folksy for crafts.”
The e-commerce information platform points out that the share of Marketplaces in Cross-Border B2C e-commerce continues to increase.
“Consumers prefer Marketplaces because of their frequent and repeated orders. They are for the most part 'Prime' members and therefore very loyal. Marketplaces go beyond brands and retailers in almost all dimensions of consumer preferences, including product quality, uniqueness, availability and price. Consumers search directly for products on Marketplaces before using Google.”
It said the the European Commission and Parliament issued a proposal for new legislation last March to make online platforms more transparent.
“The main objective of this Regulation is to provide consumers and retail customers with detailed information on general terms and conditions of sale. A boost to stimulate purchases and sales on Marketplaces.”
