What: European e-commerce turnover grew by 7% in 2024, reaching €842 billion, driven by digital transformation, regulatory shifts, and evolving consumer preferences.

Why it is important: The development reflects both the opportunities and pressures facing European retail, with technology and circular economy strategies emerging as key differentiators

European e-commerce achieved a 7% increase in turnover in 2024, reaching €842 billion and reflecting the sector’s remarkable ability to adapt to shifting market conditions and regulatory demands. This growth is exemplified by France, where online sales surged to €175.3 billion, now representing 11% of the country’s total retail sales and underscoring the digital transformation underway across the continent. However, the broader retail sector faces significant distress, particularly in Germany, as weak discretionary spending and tighter credit conditions weigh on traditional retail models. Regulatory changes are also reshaping the landscape: the EU’s introduction of new customs fees and platform liability measures, along with the Omnibus Simplification Package’s reduction of sustainability reporting requirements, are forcing retailers to balance compliance with operational agility. Technology investments are proving crucial, with AI-driven operations and innovative logistics solutions delivering measurable gains in profitability and customer experience. Regional disparities remain, with mature markets like France contrasting with more vulnerable regions. At the same time, the rise of second-hand and circular economy options signals a fundamental shift in consumer values and retail strategies.

IADS Notes: The robust growth of European e-commerce in 2024 is reflected in France’s record €175.3 billion in online sales, which marked a 9.6% year-on-year increase and signaled a new balance between digital and traditional retail (Ecommerce Europe, March 2025; Journal du Net, February 2025). Despite this momentum, the sector faces mounting distress, particularly in Germany, where weak discretionary spending and tightening credit conditions have made retail the most distressed sector in the region (BoF, June 2025). Regulatory changes are reshaping competition, with the EU introducing new customs fees and platform liability measures in response to the rise of Chinese e-commerce platforms (GDI, August 2025), and the Omnibus Simplification Package reducing sustainability reporting requirements by 80% (Vogue Business, April 2025). Technology-driven transformation is accelerating, as AI-driven operations and logistics innovations deliver measurable gains, though only a minority of retailers have scaled these solutions effectively (Zebra, October 2025; Journal du Net, February 2025). The mainstreaming of second-hand and circular economy practices is also reshaping retail models, as nearly a quarter of global consumers now purchase secondhand items and one-third prioritize eco-friendliness (Retail Asia, December 2024; The Retail Bulletin, March 2025).

European E-commerce Report 2025: New growth in European e-commerce indicates sector’s ability to adapt and reinvent - Press release

European E-commerce Report 2025: New growth in European e-commerce indicates sector’s ability to adapt and reinvent - Full report