News

European Cross-Border E-Commerce Reaches New Heights in 2024

With Europe’s boundaries becoming virtually transparent in the context of online shopping, 2024 was an exceptional year for international e-commerce. The European cross-border e-commerce sector reached an incredible €326 billion in 2023–2024, with online marketplaces accounting for €225 billion. Online buyers are embracing global brands, eco-friendly solutions, and simplified digital experiences. These trends are creating both a surge in competition and new opportunities for marketplaces to innovate.

2024 in Review

  • Record Revenues

Many of the top 100 European marketplaces reported double-digit revenue increases as a result of their cross-border expansion. With substantial sales volumes, Amazon and Zalando are leading, followed by eBay and Vinted, which also had excellent results. This growth arises from increased demand for unique products and greater customer confidence in cross-border transactions.

  • Regional Performance Trends

Western Europe remains a leader in revenue generation, particularly in markets like Germany, France, and the UK. Northern and Eastern Europe are experiencing faster growth rates. This is largely due to marketplaces optimizing logistics to reach these regions efficiently.

  • Sustainability, a Revenue Driver

Customers are spending more money at marketplaces that prioritize eco-friendly practices as a result of their focus on sustainable shopping. With sustainability at the forefront of the secondhand market, Vinted and Vestiaire Collective are seeing remarkable growth as market leaders. These platforms report increased revenue and engagement from customers looking to make environmentally friendly decisions.

  • Amazon’s Market Dominance Is Challenged by Chinese Giants

Multichannel tactics and the growth of Chinese marketplaces like Shein and Temu are driving a rapid transformation in the e-commerce sector. As sellers expand their platforms, Amazon, which used to dominate the market, faces new difficulties.

With innovative business strategies that prioritize direct-from-manufacturer sales, aggressive pricing, and social media marketing, Shein and Temu are redefining competition in the global market. In addition to challenging Western approaches, their quick expansion draws regulatory attention to their effects on regional companies, labor laws, and consumer safety.

Challenges and Future Opportunities

With a combined market share of more than half, dominant platforms like Amazon and eBay still hold a sizable portion of the market. However, signs of market maturing are beginning to appear as the marketplace share of total e-commerce GMV is predicted to decrease from 69% to 67.9% by 2025. Additionally, marketplaces are increasingly critical in cross-border sales, accounting for 69% of Europe’s cross-border sales and driving higher international demand. This is largely due to their established infrastructure, which enables consumers to easily engage in cross-border shopping.

Despite these indications, the industry’s potential is still strong. Leading companies are tackling the ongoing logistical and legal obstacles that cross-border e-commerce faces by establishing local collaborations, growing regional warehouses, and expediting customs procedures. As overall cross-border GMV is projected to rise with nearly 97.30% of shoppers expected to engage in cross-border transactions by 2025, the opportunities for continued growth remain substantial.

Vaiva Zdanoviciute

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