Europe Ecommerce Report Shows Marketplace Growth, Key Trends

Joanna Perry

November 16, 2020

Markets across the world have borne the burdens of the Covid-19 pandemic, and where that is especially apparent is in the European market.

Europe’s retail industry has struggled significantly during 2020. However, the pandemic has also been a catalyst for online sales, pushing European shoppers in more mature markets to buy online more than ever and shoppers in less mature markets to buy online for the first time. Brands that don’t already have eyes on Europe should pay attention—its online shopping audience competes only with China in size.

A new report from Pattern’s European team showcases the effects of the pandemic on the market, the biggest winners, and what US brands already in the European market or looking to join the European market should know.

European shopper habits in 2020

Across the board, European shoppers are spending more time shopping online. In Western and Northern Europe, e-shopping penetration rates are the highest, while in Eastern and Southern Europe, particularly Spain and Italy, more shoppers are trying online shopping for the first time in a trend we anticipate will stick.

While we don’t yet have a complete view of the year, the following snapshot of data hints at the level of penetration across markets in 2020: in the UK, the percentage of grocery shopping bought online rose from 7% of the total in February 2020 to 13.5% of the total in July 2020.

Ecommerce in Europe Profile | Pattern EU Report

The direct-to-consumer shift

Brands within and outside of Europe are taking notice of D2C trends. According to Lego Director for Ecommerce Strategy & Growth Kasper Thams, “Europe has a much more fragmented offline retail landscape, and many of the strong offline players are moving online.”

A trend we’re seeing this year is that brands are placing more focus on their direct-to-consumer websites rather than third-party online or omnichannel retailers. These sites are being used to complement existing channels rather than compete with them.

The rise of marketplaces in Europe

One of the most noteworthy trends we’re seeing in 2020 is the rise in popularity of online marketplaces. Compared to the US or China, Europe has been slower to take to marketplaces, but they’re becoming an increasingly important online route of entry for brands across the globe attempting to get a slice of the European market.

In the past few years, and especially in 2020, online marketplaces in Europe have attracted significant traffic and seen high visitor engagement that has translated into sales. They accounted for 59% of the 143 billion euros spent on cross-border ecommerce by Europeans in 2019, according to Cross-Border Commerce Europe.

While Thams doesn’t believe marketplaces will become as dominant in Europe as they’ve become in the US and China, he does believe brands need to get the formula right for their other channels or they’ll miss out on the coming ecommerce growth. The marketplace brands should be looking at especially close is Amazon.


During lockdown, European consumers turned to Amazon en masse for their shopping due to its convenience, delivery, and prices. There are nearly 300 million unique visitors on Amazon’s six main European sites each month, and the platform’s traffic has risen in every European market during 2020, with visits up by 17% in the UK and 9% in Germany between March and August 2020. Amazon is estimated to have a circa 30% share of the UK and Germany ecommerce markets.

Amazon Growth in Europe | Pattern EU Report

Amazon’s fulfillment capabilities—particularly its next-day delivery—and its ability to offer in-demand goods at consistently lower prices than competitor retailers has been central to its success in the region. During lockdown, top selling categories on the platform ranged from Consumer Electronics, Toys & Games, Health & Beauty, and Home & Kitchen, all reflecting the “stay-at-home” shift.

At Pattern, we’ve seen similarly high numbers with our own Amazon brands in the region. There is significant interest in Amazon as a sales channel from brands in less digitally mature markets. With the imminent launch of the marketplace in Poland and Sweden, we anticipate Amazon’s market share within Europe will continue to grow.

Snapshots of the top three European markets in 2020

1. United Kingdom

The UK has a population of 68 million, and 87% of the population bought online in October. Online sales in August were up 43.5% year over year in the country. Since lockdown measures began in March in the UK, there’s been a huge shift toward online channels and sales have been sustained in the country., eBay, and Argos are the top three shopping sites by traffic. Omnichannel retailers also saw online sales rise 70.5% year over year in the UK, partly because many retailers launched Covid-secure click-and-collect services to get around slow delivery times.

Ecommerce in the United Kingdom Profile | Pattern EU Report

2. Germany

Germany has Europe’s largest online shopping audience and presents a significant sales opportunity for brands, especially as the German economy has suffered less than others in 2020.

The pandemic has accelerated the digitalization of retail in Germany at every level. All of the top three shopping sites in Germany are marketplaces, with Amazon once again retaining the number one spot, and marketplaces accounted for at least 40% of German online sales even before the pandemic.

Ecommerce in Germany Profile | Pattern EU Report

3. France

France is another mature marketplace in Europe that’s seen heightened competition on sites like Amazon and eBay due to retail closures. It’s estimated that retail ecommerce sales in France will rise by 17.1% by the end of the year, with the increase driven by the nation’s strict lockdown restrictions in comparison to other European markets.

Ecommerce in France Profile | Pattern EU Report

How Pattern can get you into Europe

Higher ecommerce penetration rates are here to stay in the European market, but with the rise of online marketplaces in Europe, and particularly Amazon, retailers and brands must differentiate through the customer experience they provide on the websites if they want these channels to deliver incremental sales.

Success in the region requires a balancing act of multiple online channels to service customers. That’s where Pattern comes in.

Pattern operates from ten locations globally in the ecommerce space. We connect you with teams on the ground who have the resources and technology to get you into the market and help you provide a stellar ecommerce customer service experience.

To learn more about international ecommerce and how your brand can flourish in the ecommerce space, contact us using the form below.

To access our full EU Ecommerce findings, download the report here.

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Global Ecommerce Weekly News: 27th September 2022

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters]( Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail]( --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News]( Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News]( --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail]( DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail]( The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](

How an Amazon SEO Agency Should Be Serving Your Brand

How an Amazon SEO Agency Should Be Serving Your Brand

If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.

Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.

At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise  are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead. 

What is an Amazon SEO Agency?

An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.

A great Amazon SEO Agency partner will:

Prioritize Your Success

Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance

Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS. 

To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.

Provide Detailed Competitive Insight

A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.

It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.

Reduce Your Ad Spend Over Time

Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins. 

Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.

Amazon SEO Optimization and More

As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.

Contact us to learn more about our SEO optimization services.

Global Ecommerce: Weekly News (20th September 2022)

Global Ecommerce Weekly News: 20th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to raise pay and add extra work benefits for delivery drivers Following the rise in fuel prices and protests by Amazon workers, the ecommerce giant is raising its delivery drivers’ pay and adding more work benefits. Amazon has mentioned that it will be investing $450 million into rate increases along with an education program and a Delivery Service Partners program. [Read more on Charged Retail]( Amazon announces it will give away shipping software to merchants at no cost Amazon has recently announced that it will be giving ecommerce merchants free software to manage shopper orders on and off its platform as it extends its reach. The ecommerce giant will be ending monthly costs for sellers using Veeqo, a shipping software it recently acquired and instead offer to them a new, free shipping software. [Read more on Charged Retail]( --- Other Marketplace News --- Walmart unveils new virtual fitting rooms In an effort to drive clothing sales, Walmart has launched virtual fitting rooms while competitors reduce spending amid the cost of living crisis. The virtual try-on tool can be used by Walmart customers to virtually measure the clothing items and see how the products would look on them. Shoppers will now be able to see how over 270,000 clothing items on Walmart’s ecommerce site would look on their bodies. [Read more on Charged Retail]( THG slashes sales and profit expectations The Hut Group has slashed its forecasts for 2022 as rising interest rates, inflation and energy costs take a toll on consumers. Previously, THG estimated its sales growth to be between 22-25% but after a recent evaluation, has lowered this prediction to between 10-15%. Initial predictions did not take into account the negative effects of ceasing sales in Russia and Ukraine along with the impact that the cost-of-living has had on consumer spending. [Read more on Charged Retail]( --- Other Ecommerce News --- DHL and Post Office team up to provide click and collect services Through a partnership between delivery company, DHL and Post Office, a new click and collect service is to be tested at Post Offices before rolling out to over 1000 branches across the UK. Online shoppers will now have the option of choosing their local Post Office as a collection point, and DHL will fulfil the delivery aspect, opening up networks for both parties. [Read more on Charged Retail]( US consumer watchdog plans to further regulate the BNPL sector The US Consumer Financial Protection Bureau (CFPB) has raised concerns regarding the collection of consumer data and the fast-growing nature of the BNPL sector, which includes companies such as Affirm and Klarna. The CFPB is worried that these companies could be negatively impacting consumers’ financial health and aims to put better regulations in place to ensure consumers are safe and empowered. [Read more on Charged Retail]( Japanese ecommerce market estimated to grow by 6.9% in 2022 The ecommerce market in Japan, largely dominated by domestic online retailers including Reakuten and Mercari, is set to reach $194.3 billion USD in 2022, after seeing an annual compound growth rate of 5.2% between 2018 and 2021. This makes Japan the fourth leading ecommerce market globally, following China, the US, and the UK. [Read more on Charged Retail]( Ecommerce brands are spending more on TikTok ads TikTok may soon be surpassing Facebook and Google as the most lucrative advertising channel, with ecommerce brands spending 60% more on TikTok ads in Q2. Facebook is still ahead as the top choice for ecommerce advertisers but only grew by 5.6% from Q1, while Google grew 20.5% in Q2, and Snap declined 10.8% in Q2. [Read more on SearchEngineLand](