E-Commerce in Europe: 2020’s Irreversible Growth

What happens in the world of e-commerce when you combine consumerism and a global pandemic? As we’ve come to learn, irreversible market-shifting trends. As 2020 comes to a close, PostNord has shared their report, “E-commerce in Europe 2020.” In this article, we take a deeper look at the report and e-commerce in Europe: where it’s been, where it is, and where it’s going.

E-Commerce in Europe: The Past

In 2019, Europe’s share of the global e-commerce market was about 10 percent, or $349 billion. That same year, e-commerce grew by 10.2 percent in Western Europe and 14.5 percent in Eastern Europe. While 10.2 percent may not seem that high, this can be attributed to the fact that e-commerce in Western European countries is relatively mature. But with a combination of increased demand due to a global pandemic as well as increased capacity, what has 2020 revealed?

E-Commerce in Europe: The Present

In the year of the pandemic, the market saw a significant increase in e-commerce sales; 293 million consumers shopped online in the past year—up from 286 million the year before. What’s more, there was a clear correlation between anxiety over COVID-19 and consumer spending. As anxiety over the pandemic increased, so too did online shopping. This points to the likelihood that consumers changed their shopping habits in large part due to social distancing measures, embracing e-commerce more:

Source: PostNord report, “E-commerce in Europe 2020”

E-Commerce in the UK: Moving Up in the Global Ranks

While 2020 has seen tremendous change for e-commerce, the UK has been setting the stage for this growth for years. Currently, the country holds third place globally as an e-commerce market, behind the US and China. One of the driving forces behind consumer shifts to online is same-day delivery: this year the UK became the first country outside of the US to host Amazon Shipping.

When the UK imposed a lockdown in March, there was a surge in online shopping. How much of a surge? Roughly one third, which means that 20 million of the 50 million online consumers in the UK started shopping online more often, and that’s not limited to specific categories: in recent years, the UK has emerged as a key player in the online grocery shopping segment. So, while we know that the pandemic caused increases of online shopping to begin with, the country’s already-established outlet helped allow them to scale and meet demand.

E-Commerce in Europe: The Future

With all the growth that’s happened, what can we expect in the coming years? Although the pandemic has driven much of the shift in the e-commerce space, there is still a tie between COVID and conservation efforts. Consumers are still becoming more environmentally conscientious, so sustainability is key. But what about another factor to consider: speedy delivery? While demand and expectations for quick deliveries may vary by country, one thing is for certain: e-retailers like Amazon have driven the faster delivery trend and have created a shift in consumer expectations, which will likely continue. And given the resources needed to fulfill those deliveries, the demands to meet sustainability goals while measuring up to speedy delivery expectations may be at odds with one another.

E-Commerce in Europe: Returns

As we’ve seen, there is a shift in the way consumers are now getting their goods. But what can we expect regarding returns of the goods they don’t want or need? As what goes up must come down, what arrives and is not wanted must go back. As retailers adapt to a new method of consumer shopping, they must also prepare for a new method of returns driven as a result of consumer tactics such as bracketing—buying multiple versions of the same item to ensure they get the best product. How can retailers prepare for the wave while managing their bottom line as well as meeting increased demand for sustainability? By developing the proper secondary market solution.

The Power of the Secondary Market

In a world of excess stock and discount sales, retailers and brands can harness the power of the secondary market and develop strategies that serve their goals. How can they do that? By partnering with B-Stock Solutions. We develop marketplaces that are customized, integrated, and scaled based on each retailer’s unique needs to sell returned, excess, or other secondary market inventory. They also allow total control over who is buying the inventory and how it enters the secondary market. Here’s how it works:

Higher Pricing

If executed effectively, a B2B marketplace solution offsets substantial loss for returned or excess inventory, even comparable to reprocessing back on shelf or returning to the vendor. By setting up an online auction dynamic where specifically targeted buyers compete to buy your merchandise, pricing goes up.

Channel Control

Exposure to the right buyers ensures there is no confusion between primary (a-stock) or secondary (b-stock) channels and that your brand remains secure. By marketing to a database of targeted, vetted secondary market buyers, you can control who sees your merchandise and who is allowed to buy it.

Velocity

A larger buyer base made up of the right buyers allows you to move inventory as needed—regardless of volume, time of year, or product category.

Online Auction Dynamic

Increased competition through auctions means higher pricing; it also drives velocity, creates a sense of urgency and excitement. Auctions also mean no offline negotiating: you’ll be able to extract buyers’ highest willingness to pay and have real data on secondary market prices.

Sustainability

Bypass the landfill. A robust buyer base exists for just about every product regardless of condition, style, or brand. From salvage and discount store owners to online sellers to mom-and-pop shops, refurbishers and exporters, you’ll have direct access to a large buyer pool.

To learn more, watch Head of Business Development, EMEA, Giorgio Vitale give his take on the growth of e-commerce. You can also read our blog article about 2020’s vision for the industry. And if you’re ready to tap into the growing re-commerce market, get in touch with Giorgio.