Why is Germany a great choice for your online business expansion?
Germany is a particularly inviting destination for online entrepreneurs and retailers. The country boasts a substantial and expanding eCommerce industry, with nearly 70 million individuals shopping online and generating around $100 billion in eCommerce revenue. (source: Statista)
The effects of globalization are becoming more evident as eCommerce continues to expand. With widespread internet availability and ongoing advancements in technology, entrepreneurs now have the opportunity of reaching a global audience.
If you're thinking of expanding your online business to Europe, here we'll show you why Germany is an excellent choice.
Why Germany is the best destination for your online business
Germany is a key player in the European eCommerce landscape, as evidenced by its high number of active shoppers and significant revenue generated.
In addition to its large market size, online entrepreneurs and online sellers should consider entering the German eCommerce market for the following reasons:
Consumer buying power
Germany is a great option for your online business since it's characterized by its high consumer spending.
According to Growth from Knowledge (GfK), German consumers had an average per capita purchasing power of €24,807 in 2022.
High demand for high-quality products
Accordingly, German consumers are amongst the most demanding in the world. Online shoppers in Germany are known for their inclination toward high-quality products. Hence, making German eCommerce an ideal online business for your premium products or brands.
Established logistics infrastructure
Similar to the United States, Germany has a well-developed logistics infrastructure, making it much easier for business owners to ship their products to customers.
This is evident by Germany's ranking as the top country in logistics for three consecutive years, as determined by the World Bank.
Germany offers its most advanced transportation infrastructure to help businesses provide quick and efficient services. The country also houses Europe's largest logistics market. Thus, making it an ideal marketplace for online sellers who wish to penetrate the European market.
Flourishing mobile commerce
Online shopping in Germany has been increasingly performed via mobile devices like smartphones and tablets. Since consumers in Germany are adept at using smartphones to buy things online, online sellers and entrepreneurs are afforded additional opportunities for their businesses to reach more customers.
Diversification
Another reason why online sellers should consider the German market for their online business is diversification.
Selling in Germany can help online sellers diversify their customer base. It can also help reduce dependence on a single online business, thus reducing business risk.
Increasing your eCommerce sales in Germany
When you enter Germany's ecommerce market, there are specific modifications you should observe to boost online sales. Some of the avenues for improvement and key strategies to consider include the following:
Optimization
A great start includes optimizing your business to adapt to German SEO. Before you start offering your products to German consumers, you should first understand the consumers' unique search habits and preferences.
It means starting your German SEO strategy from scratch. Some of the processes involved in this optimization include localizing your business strategy, finding your German competitors, localizing your content, and more.
Keywords
Concerning the preceding discussion, you should also adjust your keywords to fit the German market.
To do so, you will need to perform localized keyword research to help you with your expansion strategy.
Once you have identified the essential keywords, you should use them in your product titles and description to improve the visibility of your product or brand in German search engines result pages.
Payment methods
When venturing into an international online business like that of Germany, you should also consider your business' payment method. Online sellers in Germany should make it easier for German customers to make purchases.
Therefore, it is necessary for you likewise to include popular German payment methods such as Giropay, Sofort, and SEPA.
Additionally, you can incorporate an advanced credit card solution with real-time transaction monitoring and integration capabilities for your corporate or business transactions.
Social Media
Engage with German consumers through social media. Tap the power of popular social media platforms such as Facebook and Instagram to connect with potential customers while increasing your brand visibility in the local marketplace.
You can take advantage of advertising tools on both Facebook and Instagram to increase your brand following. These advertising tools are highly customizable and easy to track and measure. Thus, providing you with a highly effective ad campaign.
Influencers
In relation to the use of social media, you should also consider influencer marketing if you wish to make your products or brand quickly known in the German marketplace. Influencer marketing is now a mainstream form of online marketing that your business should be familiar with.
When selecting an influencer to promote your brand or products, the engagement rate should be considered, as it is critical in determining the influencer that best fits your brand.
Sustainability
Since Germany is one of the world's most sustainable industrialized nations, your business should take practical steps to preserve the environment.
Try reducing packaging waste or using products for your business operation with low environmental impact. You will likely attract eco-friendly consumerism advocates by showing consumers that you genuinely care for the environment.
Customer service
Whether you are operating in the German eCommerce market or not, you should always keep high-quality customer service at all times.
Providing German consumers with an exceptional online experience can help you increase sales while building brand loyalty.
In order to provide the best customer service, you should understand the concept of German customer service culture.
One way to keep up with this customer service culture is to make your interaction precise, generally keeping it straight to the point. Avoid superficial conversations when dealing with customers as much as possible. Keep in mind that German consumers value time and efficiency.
Pricing
Product pricing is a vital component of your marketing approach. If you wish to penetrate a particular market, you identify and implement a dependable pricing strategy.
You should be able to offer competitive prices to online shoppers. To do so, you can use repricing software for your business to automate price adjustments.
In particular, Amazon sellers utilize AI Amazon repricers to adjust their listing prices to a competitive price point.
Additional benefits of entering the German e-commerce market
For international sellers looking to enter the German eCommerce market, selling on Amazon is a great option. Amazon.de is the leading eCommerce platform in Germany, with net sales of $18,556 million in 2021.
By selling products on Amazon Germany, you can easily access the German market and take advantage of the various tools, resources, and services offered by Amazon to establish your brand presence in the eCommerce field quickly.
Another option is to become a seller on Otto, which is the second-largest eCommerce platform in Germany. Like Amazon, Otto also provides sellers with tools and resources to effectively reach German consumers.
