Smaller online businesses in Germany, Austria, and Switzerland are not benefiting from the restored growth in online spending. On the contrary, their revenue is decreasing. “It is becoming increasingly difficult for smaller online stores to maintain their position in the market.”
This is according to Julian Craemer, the founder and CEO of Uptain. The online optimization agency conducted research into the revenue development of smaller online retailers in the DACH region.
Increased online spending
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After years of decline, consumer online spending in Germany is once again on the rise. In 2024, spending reached 80.6 billion euros, an increase of 1.1 percent. Stronger growth is expected this year, as reported by the Bundesverband E-Commerce und Versandhandel Deutschland (bevh). Consumers in neighboring Austria and Switzerland are also spending more online.
Decline for smaller shops
Yet, smaller online shops are not benefiting from this positive revenue development, according to Uptain’s data. Their median revenue in the first three months of this year was 12,558 euros, compared to 13,760 euros in the first quarter of 2023. The difference is 9 percent, which amounts to 400 euros per month.
The average online store lost 400 euros per month
In uncertain times like these, consumers often opt for established providers, which is part of Uptain’s explanation. Additionally, customers are increasingly looking for free shipping and free returns, which small online retailers typically cannot afford to offer. Uptain-boss Craemer advises online stores to invest in conversion optimization as traffic to their websites declines.
Amazon in Germany
Amazon is by far the largest online sales platform in Germany, with a total revenue of 39.6 billion dollars and an even larger trade volume. The market leader grew by 8.7 percent last year in Germany, partly due to a significant rise in advertising sales. In Austria, Amazon’s market share is even over 40 percent.
Amazon’s dominance grows
Amazon is growing faster than the online market in DACH, and smaller and medium-sized online sellers on that platform contribute to that growth. They also benefit outside of their home countries, according to European boss Mariangela Marseglia last week regarding the 127,000 European SMEs selling on Amazon: “Thanks to a company like Amazon, their job is simplified because we allow them to export to foreign countries in a very easy way.”
‘We are not a killer’
On the other hand, Amazon’s advertising and logistics services are increasingly pulling budget away from smaller local competitors, both in Germany and other countries. This is a choice that SMEs make themselves. “We are not a killer”, said Marseglia. “We are actually an ally, a catalyst for their growth.”
