Which of the ten leading eCommerce nations offers the most inexpensive products in online retail?
This question was pursued by the Pepper.com social commerce group in a comparison of Amazon prices. The result is that online shopping in Germany is among the cheapest, closely following behind China. These projections seem to be confirmed, since German eCommerce is booming now as ever. Why do customers prefer to buy online? How can this knowledge be applied to your retailing? We offer you a short update on the online shopping nation of Germany.
Online shopping: In Germany you can buy cheapest on the Internet
The Pepper.com social commerce group in June of this year conducted a comparison of Amazon prices for 240 products over a total of 15 product categories. The aim of the analysis was to find out how affordable the products in German online retail compared with the ten leading eCommerce nations.
For an average of 59 euros, Germans can buy one of the 240 products in the sample range and therefore stand almost 17% below the international average.
Italy, the UK, Spain, France and the USA, on the other hand, are comparatively more expensive with an average of 60 euros. The highest priced are Asian countries such as India, at around 84 euros, and Japan, at about 103 euros. The exception, however, was China, with the Middle Kingdom representing the cheapest online shopping nation at 51 euros.
Germany continues to grow strongly in online retail
German eCommerce is characterised by unaltered high growth. Purchasers not only inform themselves online about products, but often also choose the easy way and order via the Internet. This saves them the trip to a stationary shop, where they are also offered a smaller selection. Until 2019, a sales increase of twelve percent per annum is expected, meaning that the total sales volume in Germany alone will grow to 70 billion euros.
As the most important reason for online purchase, half of respondents in a Statista survey stated the low prices on the Internet. Online purchase would also be faster and easier, as well as being done for rational reasons. Purchase in the stationary sector, on the other hand, is characterised by emotional aspects. Customers can touch and then directly carry the products away, making the shopping experience more personal for them. As a result, online retailers are increasingly turning towards an omnichannel strategy and connecting together their online and offline channels.
Why online shopping in Germany is among the cheapest
The Pepper Group comes to the conclusion that the average gross monthly income of nations is the reason for growth in online retail. For Asians, online shopping is lesser because of the lower gross income and its correspondingly lower purchasing power. Indian consumers would have to spend 70.5 percent of their monthly gross on buying one of the 240 products here. In comparison, however, German buyers would only have to pay 1.72 percent of their gross income.
Compare the prices of your competitors in eCommerce
The results of the 2017 Online Monitor from the trade association show that more than half of German online shoppers act selectively. They link together offline and online channels.
On the Internet, a comparison using pricing search engines is easier than ever before. Many buyers thus tend to compare prices online before buying and formulate here their decision for or against a product.
As an online retailer, you should therefore constantly compare your prices and product ranges with those of your competitors. In national eCommerce above all you will gain a long-term competitive advantage through pricing. With an expected increase in sales of twelve percent per annum, profits can still be skimmed from the market through price monitoring.
Intelligent software solutions like blackbee help you to collect large volumes of price and product data online. Use this to perform active and dynamic price management to successfully compete in German eCommerce.
Do you want to strengthen your position in retail and monitor the prices of your competitors? Test blackbee now!