E-retailers operating in Germany’s e-commerce market are dissatisfied with market conditions. A large portion of e-retailers unhappy with developments in the market report that strict regulations are negatively affecting their sales. At least 60% are also dissatisfied with the current legal framework!
Uptain has published a study offering insights into how e-retailers in Germany assess the current e-commerce market. According to the report, e-commerce spending in Germany increased by 1.1% in 2024. This marks the first growth seen in Germany’s e-commerce market after two years of decline.
Strict Regulations in Germany’s E-Commerce Market
According to the report:
- Only 18% of e-retailers in Germany are satisfied with the current market trends and developments.
- 43% of online retailers expressed significant dissatisfaction.
- 38% of participants indicated they were neutral.
- 33% of store owners expressed strong dissatisfaction with German e-commerce laws.
E-Retailers Complain About Strict Rules
The primary reason for the dissatisfaction among e-retailers in the German e-commerce market is attributed to strict rules governing the sector. 33% of e-store owners stated they are largely dissatisfied with legal regulations regarding data protection, return policies, transparency, and product safety.
Meanwhile, complying with German e-commerce laws requires significant effort, which could explain the dissatisfaction of e-retailers. Researchers also believe that restrictions on tracking, retargeting, and personalization are contributing factors to this frustration.
Germany: The Largest Market for East Asian Platforms
On the other hand, Germany is considered the largest market in Europe for East Asian e-commerce platforms such as Temu and Shein. These platforms have been accused of gaining an unfair advantage by disregarding European e-commerce laws. The German government announced in 2024 that it is working on an action plan to create equal competitive conditions within the ecosystem, including cross-border e-commerce.
According to the study, 42% of participants believe Chinese shopping platforms pose a risk to their own stores. However, 49% stated that these platforms do not represent a serious threat. It appears that the perceived risk is directly linked to the e-retailers’ industry and business model.
“The German E-Commerce Market is Challenging”
Julian Craemer, CEO and founder of Uptain, commented on the study: “The German e-commerce market is quite challenging for store owners. In addition to a saturated market, strict regulations are a significant issue. What’s even more frustrating is that foreign low-cost providers are gaining valuable market share by not adhering to these laws, without facing consequences. To strengthen the German market in the long run, simpler but consistently applied regulations are needed.”
