When it comes to cross-border commerce, Europe is a global powerhouse. In 2023, European cross-border sales online reached a whopping 237 billion Euros, according to a report by Cross Border Commerce Europe.
Above all else, that demonstrates the massive opportunity for European online stores. In this article, we’ll dig deeper into the findings and explore how your business can capitalise on the European market
The Cross Border Commerce Europe report
The findings mentioned above are part of an annual report by Cross Border Commerce Europe. ‘TOP 500 Cross-Border Retail Europe’ ranks the top 500 players in European eCommerce as well as providing an overview of the cross-border market as a whole.
They found that cross-border sales totalled 237 billion Euros in 2023, without including travel across Europe. Most importantly, this was a significant increase of 32% compared to the 2022 figures.
Cross-border turnover isn’t just a small added extra for online stores. It accounts for almost a third of the money online stores generated. In 2023, total B2C turnover for online sellers reached 741 billion Euros, of which cross-border turnover makes up 32%.
So, who are the ‘top players’?
It will come as no surprise that IKEA is ranked first for cross-border sales throughout Europe. The flat-pack furniture giants have a strong presence across the continent with physical stores in over 30 European countries, from Iceland down to Cyprus. The appeal of Scandinavian furniture isn’t limited to IKEA though, with competitors Jysk in at number six.
There are several top players in the fashion sector with Zalando, H&M, and Zara ranked second, third and fifth, respectively. Other notable names include Lego at number four and Lidl in at seventh. Adidas took the ninth spot, meaning there were three German online stores in the top 10.
The top ten stores represent 19% of total sales for the top 500 businesses. They also reflect the overall picture when it comes to product categories. Home, garden, and DIY products have a 13.3% market share, bettered only by fashion, jewellery, and footwear with 39%.
A slight decline for the top 500
While B2C sales reached 237 billion Euros in cross-border turnover, the report also reveals a decrease for the top 500 eCommerce brands. This is put down to strong competition from new Chinese brands like TEMU and Shein, as well as US companies, which have better scalability and agility than their European counterparts.
Cross-border turnover by country
While Europe generated 237 billion Euros as a whole, it’s also interesting to look at which countries are rolling in cross-border revenue. At the top of the list is Germany. German online stores generated 43 billion euros, while France gained an annual ranking of second with 32 billion Euros in sales.
The UK and Spain were third and fourth, respectively, with 28 billion and 18 billion Euros. Dutch online stores completed the top five with 7 billion Euros and 45% growth from 2022 to 2023.
In terms of the EU versus other European markets, the former was responsible for 130 billion Euros of the cross-border eCommerce total. The remaining 106 billion Euros was generated by online shopping in non-EU countries.
Why the UK is struggling with European cross-border eCommerce
When comparing different countries for eCommerce turnover, it’s worth looking at growth too. That’s because most nations saw a record-high amount of turnover from cross-border online shopping in 2023. Compared to 2022, Germany saw an increase of 28%, France’s total increased by 30%, and Spain’s cross-border total rose by 50%.
While the United Kingdom was amongst the top five countries for cross-border online shopping, its total actually fell by 2% from 2022 to 2023. This slight decrease in cross-border turnover has been put down to Brexit issues, including import and export duties, complex VAT regulations, and logistics difficulties which often increase delivery costs.
In short, fewer European customers are buying from the UK – and vice-versa – because it takes longer and costs more. Solutions are needed in the long run to stop the UK falling behind other European markets for cross-border online sales.
How a fulfillment centre can help
Fortunately, there is a light at the end of the tunnel for British retailers that want to sell to international customers in the EU. Partnering with an EU fulfillment centre allows you to ship and store products in bulk. Doing so minimises the administrative burden and potential for delays when moving products between the UK and EU.
Ireland is the ideal location thanks to its proximity to the UK and continued EU membership. It’s quick, easy, and cost-effective to move stock to an Irish fulfillment centre. From there, it can be picked, packed, and shipped as orders come in. With Autofulfil, you don’t even have to send any information our way – we’ll integrate our inventory management system with your eCommerce platforms.
As well as reducing hassle on your end, it makes European cross-border selling more practical. Consumers are more likely to choose your products and stay loyal to your brand when you offer faster delivery at a lower cost. As positive reviews continue to come in, you can grow your market share and stay ahead of other companies selling similar products.
These benefits aren’t just for British businesses. Brands in other countries can use Autofulfil to reach the Irish market in an equally quick, easy, and cost-effective way – especially lucrative now it’s worth over 5 billion Euros. Rather than struggling to cope as your order volumes grow, simply outsource fulfillment to our capable team and watch your turnover grow.
Grow your European cross-border sales
Whether you’re a British brand looking to penetrate the EU marketplace or a European seller targeting Ireland, Autofulfil provides a simple way to circumnavigate borders and get your products to consumers quickly.
To find out more, don’t hesitate to contact our team. Request a quote today, and we’ll get in touch with a custom proposal for your brand.
