DMSMatrix is preparing its clients for the significant growth projected in the European e-commerce market over the next five years. Recent research from Forrester predicts a 45% surge in online sales across Europe, rising from €389 billion in 2024 to €565 billion by 2029. This anticipated growth presents both opportunities and challenges for businesses engaged in cross-border trade.

Forrester’s report, which focused on the five largest Western European economies (France, Germany, Italy, Spain, and the United Kingdom), indicates a robust compound annual growth rate (CAGR) of 7.8% for online sales between 2023 and 2029. This figure, while slightly lower than the 9.2% CAGR projected in Forrester’s 2023 report, still represents substantial expansion in the digital marketplace. By 2029, online sales are expected to account for nearly 21% of all retail sales in these key European markets, a significant jump from 16% in 2024.

This surge in online activity contrasts sharply with the projected growth of offline retail, which Forrester forecasts to increase at a CAGR of just 1.7% through 2029. This slowdown in traditional retail growth, down from 4.1% in 2023 and 8.9% in 2022, underscores the accelerating shift towards digital commerce.

The UK is poised to lead the charge in European e-commerce, with online sales predicted to reach €207 billion (£176 billion) by 2029, up from €152 billion (£130 billion) in 2023. Germany and France are also expected to see substantial growth. German online sales are forecast to rise to €146 billion by 2029 from €97 billion in 2023, while French online sales are projected to reach €106 billion, increasing from €73 billion in 2023.

“The projected growth in European e-commerce presents a significant opportunity for businesses worldwide,” said Sudeep Singh, President of DMSMatrix “However, capitalizing on this growth requires careful planning and execution. Businesses need to be prepared to handle increased order volumes, navigate complex logistics, and ensure compliance with varying regulations across different European countries.”

DMSMatrix is proactively enhancing its suite of solutions to help businesses navigate this dynamic landscape. These enhancements include:

• Optimized Feed Preparation: DMSMatrix is refining its feed preparation services to ensure businesses can seamlessly integrate their product catalogs and data with various European marketplaces and platforms. This includes robust data transformation and validation tools to meet the specific requirements of each market.
• EU Returns Solution: Recognizing the importance of a smooth returns process in driving customer satisfaction, DMSMatrix is bolstering its EU Returns Solution. This includes streamlined logistics, automated label generation, and multi-lingual support to facilitate easy and efficient returns for European customers.
• Merchant of Record (MOR) Services: For businesses seeking to simplify their expansion into Europe, DMSMatrix’s MOR services provide a comprehensive solution for managing payments, taxes, and compliance across different jurisdictions. This allows businesses to focus on sales and marketing without the complexities of local regulations.
• Global VAT Management: Navigating the intricacies of VAT across different European countries can be a major challenge. DMSMatrix is enhancing its Global VAT Management solution to provide automated VAT calculations, filing, and recovery services, ensuring businesses remain compliant and optimize their tax liabilities.

DMSMatrix is working closely with its clients to help them prepare for this projected growth, offering tailored solutions and expert guidance to ensure they can effectively reach and serve European customers. The company is confident that its enhanced offerings will enable businesses to capitalize on the significant opportunities presented by the expanding European e-commerce landscape.