What: Eurocommerce takes stock of the e-commerce business in Europe in 2023.

Why it is important: While e-commerce is back to the pre-pandemic trend line, it is still growing in spite of economic headwinds.

The 2023 European E-commerce Report provides insights into the size, growth, and trends of digital markets across 37 European countries. It includes data on internet penetration, online shoppers, and total B2C e-commerce turnover.

In 2022, total European B2C e-commerce grew to €899 billion, up 6% from €849 billion in 2021. Growth slowed from 12% in 2021 as online shopping cooled after COVID-19. Western Europe dominates with 67% market share. The UK, France, Germany and Spain are the top countries by turnover. Looking at inflation-adjusted growth, e-commerce declined 2% in 2022 due to economic shocks before recovering slightly in 2023.

Internet penetration in Europe reached 92% in 2022 versus 90% in 2021. Northern and Western Europe lead in internet adoption while Southern and Eastern Europe lag. E-shopper penetration held steady at 76% in 2022 after hyper-growth during COVID-19. Inflation has dampened online spending. Western Europe has the most online shoppers at 87%, followed by Northern and Central Europe.

Key challenges include the war in Ukraine and resulting inflation reducing consumer purchasing power. The digital divide between SMEs and large firms may widen without support for technology adoption. Opportunities lie in new technologies like AI and VR to enhance experiences, and seamless payments to facilitate shopping. Sustainability efforts are increasing via eco-friendly delivery networks, packaging, and limiting product returns.

Overall, the report shows continued e-commerce growth and internet adoption in Europe despite economic headwinds. Supporting small businesses and sustainable practices can help strengthen the resilience of European digital markets. Advanced technologies and improved logistics will likely drive further e-commerce penetration across the continent.

Eurocommerce releases its 2023 E-commerce report