The projection by the latest Ecommerce Foundation report on e-commerce in Europe is in. The growth is projected to be 13.6% over last year. That means that e-commerce in Europe will be worth €621 billion by the end of 2019, up from €547 billion last year.
E-commerce is still gaining ground. With the amount of revenues from it poised to increase by 13.6%, it will be up to €621 billion if what the latest Ecommerce Foundation report is correct. Here is a bit of information from ecommercenews.eu, followed by how the UK fits into the mix, taking the impending Brexit into account.
As previously stated, Scandinavian countries are ranking high, with Denmark taking first place for ease of doing business. Sweden, Denmark and Finland can all be found in the top 10 of the global Logistics Performance Index.
Who Shopped Online?
Consumers who use the Internet and shopped online last year is different from country to country. In countries like Switzerland, the United Kingdom and Denmark, it is over 85%, whilst countries like Romania and Ukraine show that less than 26% shopped online last year.
European E-commerce Showing 13% Growth
In B2C e-commerce here in Europe, the revenues are set to hit €621 billion. If that number turns out to be correct, the growth rate is over 13%. According to the report by the Ecommerce Foundation, most of the turnover is generated in Western Europe (66%). Eastern Europe only accounts for €23 billion of the €547 billion total from last year.
Online Shopper Spending
Western Europeans generate the highest turnover in e-commerce in Europe, but Northern Europe is the place with the highest spending per online shopper, which is €2,046 per year. The average expenditure for the Europe as a whole was €1,346 last year, which is set to grow to €1,464 by the end of 2019.
European Internet penetration is at 82.5%. Western and Northern Europe are the regions with the highest Internet presentation, at 92.3% and 93.3% respectively. Between the countries, there are still major differences regarding this, e.g. Iceland has an Internet penetration of 99%, whilst Ukraine only has 64% of the population with access to the Internet.
Many, many consumers like shopping online in Europe. There will always be those who prefer to see products, making use of the bricks-and-mortar stores that still line the streets in city-centres all over Europe. People in Kosovo and Montenegro are more likely to avoid shopping online, whilst Poles only have 2% of the population who prefer stationary shops to the Internet. In Denmark and the Netherlands, the sentiment is similar, with 11% of the people preferring physical shops; the United Kingdom 10%. How is Brexit affecting e-commerce revenues there?
British E-commerce Update
With e-commerce set to reach €200 billion in 2019, Brexit will cause many changes to the island country. The United Kingdom is desperately trying to reach a deal with the European Union, but if they are unable to accomplish this, which looks more and more like the case, a hard Brexit is imminent. Here is a list of what could be expected if this very dangerous event comes to pass (thanks to channelengine):
- Customs formalities and possibly longer waiting times at the border
- Declaration of exports will become necessary
- VAT rules will apply to the export of goods to non-EU countries
- Export documents will be required and need to be filled in properly
- Product requirements will naturally change the longer the United Kingdom is out of the EU.
A lot more information can be found at channelengine.com, where the woes of Brexit can be seen in more detail.