In 2023, the European cross-border e-commerce market experienced significant growth, achieving a turnover of 237 billion euros, marking a substantial 32 percent increase compared to the previous year. European online retailers played a pivotal role, contributing 107 billion euros to this cross-border turnover.
By contrast, in 2022, the European cross-border e-commerce sector was valued at 179 billion euros, with online stores generating 105.5 billion euros in cross-border sales, setting a record high at the time. The following year saw a modest increase of 1.4 percent, bringing the total cross-border turnover to 107 billion euros.
The broader European B2C e-commerce market witnessed robust activity, reaching a total turnover of 741 billion euros, reflecting a notable 13 percent increase from the previous year. Cross-border transactions accounted for a significant 32 percent share of all online sales across Europe.
These insights are drawn from the latest ‘TOP 500 B2C Cross-Border Retail Europe’ report by Cross-Border Commerce Europe, an annual ranking of the largest 500 European online stores excluding travel.
Despite the overall growth in cross-border sales, the top 500 European online sellers faced challenges in 2023. Intense competition from US and Chinese brands, coupled with economic instability, led to an 18 percent decrease in Gross Merchandise Value (GMV) for these top players, totaling 50 billion euros.
According to the report, Ikea emerged as the top European cross-border seller, achieving 5.2 billion euros in turnover. Collectively, the top 10 companies represented 19 percent of the total sales within the top 500 rankings.
Following closely behind Ikea in the cross-border e-commerce ranks are fashion powerhouses H&M and Zalando. H&M secured the second-place position with a significant, but unspecified, cross-border turnover. Zalando rounded out the top three, demonstrating the continued strength of online fashion retail in the European market.
To summarize, the cross-border e-commerce market in Europe experienced significant growth in 2023, driven by substantial contributions from key European countries. Despite encountering challenges, the market’s overall expansion underscores a resilient and evolving e-commerce landscape across Europe. Looking ahead, the prospects for international e-commerce retail in Europe are promising, boosted by efficient transportation networks and the facilitative policies of the EU Single Market for cross-border transactions. Continued advancements, including incentives like free shipping, are poised to enhance customer participation further.
Read further: News, cross-border, e-commerce, European ecommerce
