European eCommerce Market Size 2024: Worth 1 Trillion Dollars SoonTable of ContentsIntroductionPost-Pandemic Resilience in European eCommerceLeading eCommerce Markets in EuropeConsumer Preferences and Payment MethodsEconomic Impact of eCommerce in EuropeConclusionFAQIntroductionAs the global landscape of retail continues to evolve, the European eCommerce market stands as a testament to resilience and growth. Once significantly boosted by the COVID-19 pandemic, eCommerce in Europe has seen remarkable expansion, with projections anticipating the market to approach the 1 trillion-dollar mark by 2024. We'll explore various aspects of this burgeoning market: key insights, top regional markets, product categories, and payment preferences.Post-Pandemic Resilience in European eCommerceEuropean eCommerce experienced a significant surge between 2019 and 2021, with sales escalating sharply by 66%. Although this momentum faced a slight setback in 2022 due to market saturation and economic factors like inflation, the market is regaining its pace. Projections indicate that by 2028, the European eCommerce market could potentially hit nearly $955 billion.Leading eCommerce Markets in Europe1. United KingdomThe United Kingdom boasts the largest eCommerce market in Europe and ranks third globally. In 2023, online retail accounted for 26% of the UK's retail sector—a figure expected to rise to 31% by 2028. The UK market is dominated by Amazon.co.uk, which posted $16.1 billion in revenues in 2023. Key market segments include:Fashion: 28% of revenuesElectronics: 16%Hobby & Leisure: 15%Grocery and Homecare: 13% and 9% respectivelyDIY: 7%Preferred payment methods in the UK are led by VISA and Mastercard, utilized by 97% of consumers. Popular shipping providers beside Royal Mail (56%) include DPD, DHL, UPS, and Parcel Force.2. GermanyGermany, Europe’s second-largest eCommerce market, is a powerful entity on the global stage, ranking sixth overall. Online retail captures 17% of Germany's total retail, projected to grow to 21% by 2028. Leading the eCommerce stage is Amazon.de with a revenue of $17.1 billion in 2023. Key market segments are:Fashion: 24% of revenuesHobby & Leisure: 24%Electronics: 22%Furniture & Homeware: 10%Grocery and DIY: 7% and 5% respectivelyPayment preferences see a strong lead by PayPal at 93%, followed by VISA and Mastercard at 82% each. DHL dominates shipping services, handling 86% of deliveries.3. FranceRanking ninth globally, France's eCommerce market holds a 17% share of its retail market, poised to grow to 21% by 2028. Amazon.fr is the market leader with $5.8 billion in revenue for 2023. Key segments include:Hobby & Leisure: 23% of revenuesGrocery: 20%Fashion: 16%Electronics: 13%DIY: 12%Payment roles in France are shared predominantly between VISA and Mastercard (96%), along with widespread adoption of PayPal (79%) and bank transfers (51%). La Poste leads shipping, managing 68% of logistics.4. RussiaRussia stands as the fourth-largest eCommerce market in Europe, with online retail comprising 9% of its retail sector, expected to rise to 12% by 2028. Wildberries.ru reigns with $5.9 billion in revenue in 2023. Important sectors include:Electronics: 23% of revenuesHobby & Leisure: 22%Fashion: 19%Furniture & Homeware: 12%DIY and Grocery: 8%Preferred payment methods are VISA and Mastercard at 84%, with a significant preference for cash on delivery at 71%.5. ItalyItaly's eCommerce market, ranking 13th globally, covers 12% of its retail, forecasted to grow to 17% by 2028. Amazon.it leads with $5.6 billion in revenue. Key markets are:Hobby & Leisure: 26% of revenuesElectronics: 21%Fashion: 18%Furniture & Homeware: 12%DIY and Grocery: 9% and 6%Payment preferences feature VISA and Mastercard at 95%, PayPal at 91%, and significant cash on delivery use at 52%.Consumer Preferences and Payment MethodsPopular Product CategoriesFashion continues to lead the European eCommerce market, accounting for 21.6% of total revenues. This is followed closely by Electronics and Hobby & Leisure, each near the 20% mark. Other significant categories include Furniture & Homeware, Food, and Personal Care, each roughly contributing around 9-10% in market shares.Rising Sub-CategoriesDelving deeper, Consumer Electronics and Apparel emerge as the leaders in sub-categories, garnering up to 14% and 12.7% of market share respectively. Other notable sub-categories are Media, Furniture, Food, Personal Care, and Tools & Construction Supplies, each contributing 4-6%.Payment Preferences Across EuropeDigital wallets dominate as the favored payment method for online shopping across Europe, with the UK leading at a 38% share. Account-to-account transfers also exhibit growing popularity, particularly in Poland, the Netherlands, and Sweden. Buy Now Pay Later (BNPL) options find favor in Germany and Sweden, while credit cards hold the top spot in Turkey. Cash on delivery, although less common, is significantly employed in Turkey.Economic Impact of eCommerce in EuropeThe role of eCommerce in national economies varies, with Ireland, Czechia, and Belgium exhibiting the highest revenue shares of eCommerce businesses, at 33%, 30%, and 29% respectively. The United Kingdom, however, leads when comparing eCommerce market size by GDP, with online retail making up 9.3%. Other notable countries include Denmark and Greece, where eCommerce sectors contribute significantly to GDP.ConclusionEurope's eCommerce market, resilient and resourceful, is on a robust path towards hitting the 1 trillion-dollar mark. With fashion and electronics leading the charge, and digital wallets revolutionizing payment methods, the landscape is dynamic and growing. Whether you're a business eyeing new markets or a consumer exploring shopping options, understanding these trends and regional specificities is crucial to harnessing the full potential of European eCommerce.FAQWhat is the largest eCommerce market in Europe?The United Kingdom is the largest eCommerce market in Europe and ranks third globally, behind China and the U.S. In 2023, online retail accounted for 26% of the UK’s retail market, with Amazon.co.uk leading the sector.What is the trend in eCommerce in the EU?The EU's eCommerce trend indicates substantial growth, particularly during the pandemic era, with market sales climbing from $423 billion in 2019 to $702 billion in 2021. Although there was a slight decline in 2022, the market is once again on an upward trajectory.What is the forecast for European eCommerce?The forecast for European eCommerce is encouraging, with expectations of steady growth. Sales are projected to reach $745 billion by the end of 2023 and nearly $955 billion by 2028.