German eCommerce: Localisation tips for largest EU market

Ranking in seventh place in the top 10 global eCommerce markets, and boasting the largest ecommerce market in Europe, Germany offers a great opportunity for UK brands considering international expansion.

However, marketing in Germany presents unique challenges for foreign brands to navigate if they want to be successful in this diverse eCommerce landscape.

Brands must grasp a deep understanding of cultural nuances, consumer behaviour, and local preferences – elements that are often overlooked. But as we’ve discussed in our earlier introductory article about the importance of understanding cultural differences in international marketing, these are crucial aspects of an effective website localisation strategy for any overseas target market.

Our first country specific guide explained how to succeed in international marketing in China, the largest eCommerce market in the world. This time we switch our focus to our German neighbours who boast the the largest market in the EU. We’ll explore the key aspects of cultural localisation for ecommerce businesses aiming to thrive in Germany. From adapting your marketing strategies and aligning with German cultural values, to leveraging native eCommerce marketplaces, social media platforms, and payment methods, we’ll cover all the essential steps to ensure your brand resonates with local consumers.

By the end of this article, you'll have the insights and tools necessary to navigate the complexities of the German market and build a strong, culturally localised ecommerce presence.

What does eCommerce in Germany look like today?

How does culture impact online shopping in Germany?

eCommerce marketplaces and social media marketing in Germany

eCommerce website localisation considerations for a German audience

Final thoughts

What does eCommerce in Germany look like today?

Germany belongs to the top ecommerce markets in Europe, so should be considered by brands expanding internationally. The consumer goods market is higher than any other EU country due to a low unemployment rate and affluent population.

Ecommerce in Germany is growing fast, especially with the over 50’s demographic; a large group boasting strong purchasing power. Demand is on the rise in mobile commerce, social media shopping, and innovative omni channel retailing.

Amazon, eBay, and local online retailer of fashion and lifestyle products Otto are the most popular B2C online marketplaces in Germany. While Amazon.com and eBay.com scoop first and second place, amazon.de takes sixth place in the most visited ecommerce stores by monthly traffic across the globe, with 340 million visitors.

In the German ecommerce B2C market, fashion is the most popular product category, dominating online purchases in 2023 and accounting for $23.38 billion US dollars in eCommerce revenue, followed by electronics.

Image Source : Datareportal.com

Germany is home to some of the world’s leading trade fairs, across all consumer sectors. Examples include Berlin Fashion Week (streetwear & sustainable fashion), Ambiente Frankfurt (living, dining & gifting), Inhorgenta Munich (luxury & jewellery), and Kind und Jugend Cologne (Baby & child). Major growth sectors so far this decade also include homeware and interiors, personal care, cosmetics, DIY, and gardening. eCommerce brands may also be interested in attending the country’s most significant E-Commerce Expo in Berlin each February, which welcomes over 11,000 visitors and over 290 exhibitors.

How does culture impact online shopping in Germany?

Shopping online in Germany has become so popular in recent years that over 90% of the population aged 16-64 regularly visit shopping sites and apps, according to a recent survey conducted by consumer research firm GWI.

German’s like to shop locally and value German brands, which are synonymous with quality and reliability. German consumers are known for their thorough research and expectation for high quality products and durable items that last. They don’t tolerate defects or discrepancies between product descriptions, product instructions, and the actual item. Online retailers need to provide comprehensive and clear product information. They must ensure there are no mistakes in website content or printed instructions sent with the package regarding product usage or assembly instructions. These errors are more than likely to act as a red flag and alienate German shoppers.

Germans can be cautious and price-sensitive buyers who like to see, touch, and try out products before they commit to a purchase. While quality is important, so is value for money, free fast delivery, easy returns, loyalty points and a simple checkout experience. Germans will often compare prices across different platforms to seek the best value. They will often buy multiple items online to compare at home before making a final decision, which might explain the high importance (65.8%) placed on free delivery as the top online purchase driver. They will also read and value positive reviews as part of their research before making a purchase decision. Germans are also very data sensitive, so they don’t  to like giving away payment details to obscure or unknown companies. Credit card and PayPal payment options are a must to assist with conversions in the German online shopping market as we will discuss further later.

The good news for UK, US, and Chinese merchants selling into Germany is that those nations top the list for where German online shoppers buy from, when purchasing from international retailers.

Image Source : Datareportal.com

eCommerce marketplaces and social media marketing in Germany

 Whilst global players Amazon.de and eBay dominate the online marketplace in Germany, eCommerce merchants should also consider other popular established native German marketplaces like Otto.de, Zalando.de, and Kaufland.de.

Otto

Based in Hamburg, this is the largest German marketplace, operating in over 20 countries, mostly throughout Europe, and focussing on fashion, home goods, electronics, and more. Otto is a widely used and trusted local brand with a loyal customer base and reach in various product categories. Whilst there’s no monthly listing fees, merchants need to pay a one-time registration fee of €10,000, and commission rates of between 15-50%.

Zalando

Based in Berlin and operating in 25 EU markets, Zalando is a leading online retailer offering shoes, fashion, beauty, and lifestyle products. Brands offering other products will not be accepted and must offer free returns within their 100 day returns policy.

Kaufland (“Buy-land”)

Formerly known as Real.de, and part of the Schwarz group that owns Lidl, this German hypermarket offers a broad product range from groceries to electronics. Merchants need to pay a fixed monthly fee of €39.95, and commission rates vary between 4-16% depending on the product category.

In terms of leading social media platforms with German shoppers, Facebook tops the list for older generations, and Instagram and TikTok for younger generations.65% of 18-26 year olds make purchases used these platforms in 2023, and often use social media as inspiration when shopping online, emphasising its potential to influence purchasing decisions of Generation Z shoppers.

Image Source : Datareportal.com

eCommerce website localisation considerations for a German audience

When expanding into the German market, UK eCommerce brands need to craft a very specific localisation strategy to resonate with German consumers who like a no-fuss, efficient and direct approach to marketing. Beyond simply translating content, effective localisation here involves adapting your website to align with the cultural preferences, shopping habits, and legal requirements of German customers. This not only enhances user experience but also builds trust and increases conversion rates. In this section, we'll explore key localisation considerations to help your eCommerce website appeal to a German audience and succeed in this competitive market.

Website design

Germans prefer a clean, efficient design with a focus on functionality and technical specifications. Germans like to research products and services before buying, and will value straightforward and detailed information, focussing on factual product details and specifications. Germans want quality assurance – highlight quality and durability of your products. They want to know your product is reliable and made well.

Whilst Germans are open to new technologies, they appreciate functional technology that enhances the shopping experience. Features like detailed product filters, virtual try-ons, and AR/VR applications can appeal to this market if they add clear value to the site.

Language

95% of the population speak German, so website content should be fully translated, including all product descriptions, customer service interactions, and legal information. Germans appreciate accuracy and clarity when it comes to communication. Use formal and precise language, and avoid idioms or colloquial expressions which often don’t translate well into German.

Payment methods

Bank transfers and invoicing are still the most popular payment method in Germany. That said, since Germans are concerned about their data privacy, brands offering a guest checkout experience and payment via e-wallet will also do well with some German shoppers online.

It’s best practice to offer a variety of payment options including PayPal, SEPA direct debit, and invoice payments (Kauf und Rechnung), as Germans prefer trusted and secure payment methods. If you don’t accept these, don’t expect a high conversion rate from German consumers.

Shipping & Return policies

It may come as no surprise that Germany’s eCommerce logistics network is highly efficient, with DHL, Hermes, GLS, and UPS dominating. Germans expect fast, reliable, and varied shipping options, transparency around shipping costs, and detailed tracking information.

It’s important to note that return rates for online purchases in Germany are higher than some other countries at 11%. Returns usually involve clothing which doesn’t fit, or damaged items, which is supported by robust local consumer protection laws that favour the buyer. This makes it easier  to return goods if they don’t meet high expectations. Germans expect a hassle-free, no questions asked, free returns policy, and speedy refunds once the item has been returned.

Marketing messaging

Displaying trust signals like security badges, certifications, and guarantees prominently is important for German consumers who are cautious about online security and data privacy. Direct and fact-based advertising is preferred. Transparency and data security are important. Product certifications and seals of approval from recognised bodies like TÜV can help. Make sure your website complies with the strict German regulations on data privacy (GDPR), offers accurate pricing, and transparent shipping and returns policies.

Customer Service

A high standard of polite and efficient customer service is expected. Germans expect clear, concise, and prompt communication via multiple options such as phone, email, and live chat. Germans also expect clear policies to help manage consumer expectations and reduce confusion. Brands should make sure shipping and returns policies, and detailed FAQs are robust and clearly visible on the store.

Legal requirements

Any eCommerce site operating in or selling into Germany must adhere to strict legal requirements covering various aspects of data protection, consumer rights, packaging and recycling, and transparency. In addition to the standard policy requirements like privacy, cookies, Ts&Cs, shipping and returns, consumer rights information, secure checkout process and accessibility. Here’s a brief overview of other legal requirements which are specific to the German market:

Impressum - Legal Notice – Similar to UK company information required on a website, this is a mandatory disclosure of information about the website owner, including the company’s name, address, contact information, and VAT identification number. It also requires details about the company’s legal representatives. This is to ensure transparency and provide users with a way to contact with the website owner.

Datenschutzerklärung - Privacy policy – A document outlining how personal data is collected, stored, used, and protected. This must detail how and why data is processed, third party sharing, cookies usage, and users’ rights regarding their data. It must comply with EU GDPR regulations.

VerpackG - German Packaging Act – Mandatory compliance since 2019 which imposes specific environmental packaging requirements on businesses, with the aim of reducing waste and improving recycling rates. Failure to comply can result in hefty fines, so brands will need to factor in additional costs for registration, administration, and environmentally friendly packaging into product pricing for the German market.

ElectroG - German Electrical and Electronic Equipment Act – Sets out strict rules for collecting old end-of-life electronics for some retailers selling electronic equipment of certain sizes, with the aim of improving waste management and product recycling. Online retailers are not exempt and hefty fines can be incurred if merchants don’t follow the rules.

EU VAT regulations – Brands selling into Germany must comply with German and EU VAT regulations. Read more about how EU VAT rules affect UK ecommerce brands post Brexit.

Seasonal trends 

Much like in other western countries, Christmas is the most significant gift-giving season for Germans, with a month-long spending spree on themed promotions, gift sets with seasonal packaging, decorations, food, and holiday-related products.

Important German calendar dates for ecommerce brands to consider

Similar to the UK calendar, other notable German calendar dates for eCommerce brands to be aware of include:

Easter (March or April)

A time for family gatherings in Germany, with increased spending on gifts, sweets, chocolate, Easter eggs, decorations and festive food.

Mother’s and Father’s Days (May and June)

Like in the UK, the sales of gifts, flowers, chocolates and personalised items prevail.

Summer sales (June-August)

Summer sales online see an increase in purchasing of seasonal clothing, including travel gear, and outdoor equipment. Brands promote discounts on summer apparel, holiday packages, and outdoor products, with end-of-season promotions to clear stock.

Oktoberfest season (from Mid-August – early October)

This popular festival season takes place mostly in southern Germany, starting in the middle of August and concluding early October with Octoberfest Munich. It traditionally originated from Bavaria in 1810 to celebrate the marriage of the prince of Bavaria, and has grown into one of the most famous German traditions across the globe. Festivities focus on traditional beers and Bavarian food, and people wear traditional Bavarian clothing (Dirndls and Lederhosen). Brands capitalise on Oktoberfest-themed promotions, offering related merchandise, and leveraging the festive atmosphere for marketing campaigns.

Black Friday and Cyber Monday

Originating in the US but now a global phenomenon, these November dates have become increasingly popular amongst German consumers.They expect significant discounts, and heavy advertising prevails to sell everything from fashion and beauty to electronics and tech related products.

Final thoughts

Adapting to cultural differences isn't just a strategy; it's a must for succeeding in the global e-commerce market.

Getting to grips with and respecting these differences can make your international expansion much more successful. By doing your homework and truly understanding how your target audience behaves, you’ll be well-equipped to craft a solid international eCommerce marketing plan that hits home locally and boosts sales worldwide.

Look out for our next country specific eCommerce guide as we focus on doing business in Japan.In the meantime, check out the Department for Business & Trade’s individual market guides for more information on export opportunities and selling to these and other countries worldwide.

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