Market Research Report
Western Europe e-commerce Retail Market Research and Forecast 2018-2023
|Published by||Orion Market Research Pvt Ltd||Product code||670582|
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|Western Europe e-commerce Retail Market Research and Forecast 2018-2023|
|Published: July 28, 2018||Content info:||
The e-commerce retail sales in Western Europe is expected to grow modestly during the forecast period. The e-commerce retail market of Western Europe has been influenced by various pivotal factors which includes significant use of internet, growing smartphone users, excellent logistics system and smooth connectivity & transportation between the nations. Majority of the Western Europe countries such as France, Spain and Germany have massive internet users which creates demand for e-commerce companies to reach out to the masses. Significant number of internet users provides larger target market to the e-commerce companies and increases the scope of sale. Increasing exclusive launch of products through online stores also motivates the e-commerce retail market. Exclusive launch of products such as smartphone, smart TV and other electronic gadgets creates hype for the product and attracts potential customers.
Moreover, Western Europe has significant logistic systems and smooth road connectivity that promotes e-commerce retail market across the region. It enables the logistics companies to serve larger market and allows the companies to expand business. Cohesive government regulations and inter country ties enables the e-commerce retail market to grow significantly. Western Europe countries also provides better and smooth inter country exchange of goods which helps in better transportation of goods between the nations. The vast target market of the region also allows the companies to take advantage by cutting cost through bulk purchase of goods. Whereas direct distribution channel increases the profit margin of the e-commerce companies and allows them to transfer the price benefit to their customers.
However, expensive workforce and high cost for reverse logistics may affect the market growth in Western Europe market. The companies have the challenge of dealing with the expensive workforce in the market as it increases their expenditure on employees, logistics, transport, delivery and so forth. The companies have greater challenge of high cost for return and replacement of the products. If the product return increases it not only increases the expenditure for reverse logistics but it also means that the company had lost the sales. UK remains to be the largest e-commerce retail market in Western Europe followed by Germany due to increased internet penetration and rising smartphone users. E-commerce sales in Russia is also growing modestly due to cost reduction due to exemption of custom duty on small parcel coming to Russia. Whereas the Russian retailors that import their goods has to pay various tariffs. Italy is among the fastest growing e-commerce market in Western Europe with majority of the customer preferring for prepaid products.
The major companies serving the e-commerce market of Western Europe includes Zalando, Amazon.com Inc., Next, Metro Group, Home Retail Group, J Sainsbury, Ocado, Tesco, eBay, John Lewis, Carrefour, Auchan, Royal Ahold and many more. E-commerce companies in Western Europe are focusing on providing various online payment options as majority of the customers prefers paying online through various modes such as Credit card, Digital wallets and debit cards. Where digital wallets are highly preferred method for payment. Companies such as Amazon started providing their own digital wallet called Amazon pay and Metro group invested in Yoyo wallet a London based digital wallet company.