As cross-border ecommerce in Europe continues growing, many online sellers are interested in entering the German market. But expanding internationally requires preparation. Online sellers should consider the character of the German consumer, says Andreas Giese, CEO of Dexport.
Ecommerce in Germany is one of the most established online retail markets in Europe. Last year, it reached a total online turnover of 83.1 billion euros. This makes it an interesting market for cross-border sellers. With the large market share of marketplaces like Amazon and Otto, online retailers entering the market often choose to sell on a marketplace.
Consumer-oriented approach
However, online sellers need to think about characteristics of German consumers, says Andreas Giese, CEO of Dexport, a marketing agency for Germany. He explains: “purchases are not made impulsively, but are carefully considered. Trust is not a bonus, it is a prerequisite.” This requires a specific approach.
According to the marketing agency, around 70 percent of German marketing executives are increasing their investment in social media. Social platforms are often the new discovery point of ecommerce, especially for younger shoppers like Gen Z and millennials.
‘Social media is the start of the funnel’
“For brands, this means that social media form the start of the funnel”, says Giese. “Not with polished campaigns or exaggerated claims, but with content that feels credible and relatable. German consumers are skeptical of perfect AI-generated visuals and marketing language that sounds too good to be true.”
‘User-generated content can act as social proof’
Brands should utilize user-generated content instead. “This shows real people in real situations and acts as social proof. It lowers the trust barrier and aligns with the rational mindset of the German consumer, who looks for evidence first and allows emotion only afterwards.”
Marketplaces serve for customer acquisition
The next step in the funnel is customer acquisition through marketplaces. As 63 percent of European shoppers buy there, it is a good place to find customers. However, competition is also fierce, which puts pressure on margins.
This is why the online store remains essential. “An online store’s own website remains essential and it is the place where margins, repeat purchases and brand loyalty are realized. But, one hard requirement applies here: mobile first.”
New regulations
This year, several new regulations will come into effect in Germany and Europe, making cross-border ecommerce more complicated. For example, there is a European customs reform, which has removed the customs exemption that was applicable to goods with a value of up to 150 euros.
‘Non-compliance directly impacts conversion among consumers who expect certainty’
Europe is also introducing a handling fee for packages entering the European Union. And on top of that, Germany is also introducing a mandatory cancellation button. “Non-compliance not only creates legal risk, but also directly impacts conversion among consumers who expect certainty”, says Giese.
