European cross-border B2C e-commerce tops €100bn with strong growth ahead
The European cross-border B2C e-commerce market grew at a double-digit rate to more than €100 billion last year, and could nearly double again by 2022, according to an in-depth report from Cross-Border Commerce Europe.
B2C cross-border commerce in 16 countries in Northern, Western and South Europe increased by 14% to €108.75 billion (excluding travel) in 2019, the second edition of the platform’s ‘TOP 500 Cross-Border Retail Europe’ ranking of the best 500 European cross-border online shops showed.
This was 23.5% of the total €462 billion worth of B2C e-commerce sales (excl. travel) in these countries (which comprise 14 EU member states, Switzerland and Norway). With a total e-commerce market size (incl, travel) of €562 billion, these countries represent the overwhelming share of the overall €658 billion European B2C e-commerce market (28 countries, including Central and Eastern European states).
In comparison, the US e-commerce market was worth €528 billion in 2019, according to the report. This means that total e-commerce sales in both the EU16 and the EU28 regions exceed those of the USA.
Looking ahead, the report, which was supported by FedEx Express and Worldline, predicted that cross-border e-commerce sales in the EU16 countries could nearly double over the next three years, from €132 billion (including travel sales) last year to €163 billion in 2020 and €245 billion in 2022.
“28% of Europeans appreciate the convenience of cross-border eCommerce. Despite Brexit and the spread of the coronavirus pandemic, they firmly believe in a promising future for cross-border e-commerce in Europe,” the report’s authors wrote.
UK, Germany and France are biggest cross-border markets in Europe
Unsurprisingly, the three largest e-commerce markets in Europe also generate the biggest cross-border revenues, the report showed. These are the UK (cross-border €24bn, total €168 bn); Germany (cross-border €19bn, total €111bn); and France (cross-border €15bn, total €103 bn).
Spain was fourth in both categories, with cross-border revenues of €8 billion out of €33 billion total sales. Switzerland was the fifth-largest cross-border e-commerce market in Europe with sales of €5 billion, while the Netherlands was the fifth-largest overall market with turnover of €29 billion.
European retailers gain share from non-Europeans
In terms of retailers, European firms collectively outsold rivals from other parts of the world, including the USA and China, and increased their market share by 3%, the report also showed. Sellers based in the EU generated 55% of cross-border trade compared to 45% by retailers from outside the EU.
Within the EU16, sellers from the 16 countries accounted for 58% (€63bn) of the €108.75 billion total cross-border sales compared to 42% for sellers from other countries. The Top 500 EU 16 sellers generated total cross-border sales of €39.7 billion out of this total while smaller retailers accounted for sales of €23.3 billion.
In the TOP 500 ranking, 25 marketplaces represented a turnover of €10.5 billion in 2019 or 26.4% of total sales, and an increase of 17% compared to 2018. This segment, which is growing faster than the average market, is one of the big winners for this second edition of the ranking.
Regarding retailers outside the European Union, 80% of cross-border sales are generated through ‘marketplaces’ with Amazon as leader with its €32 billion sales.
Ikea is new number one
Among individual retailers, Ikea increased cross-border B2C e-commerce sales by 21% to €4.6 billion in 2019, and moved up one place to become the new number one in the Top 500 ranking. Fashion retailers H&M and Zara were second and third, followed by new entrant Lego in fourth place. The rest of the top 10 comprised Nespresso, C&A, Zalando, Vivino, Smyths Toys and Tomtom.
The ‘Top 500 Cross-Border Retail Europe’ ranking is based on online cross-border sales in Europe, SEO indicators, the number of active countries, figures for cross-border visitors and other parameters including brand, search data, available languages, currencies and payment methods along with local availability (including transport services).
“I want to warmly thank our research team and partners FedEx Express and Worldline for their support in establishing this new ranking. It makes the best European players in cross-border eCommerce transparent and stimulates the entire retail industry,” said Carine Moitier, the founder of CBCommerce.eu.
Cross-Border Commerce Europe describes itself as ‘the European network and knowledge platform’ for all eCommerce and omnichannel players present in at least three countries in Europe.
