In the rapidly evolving world of e-commerce, marketplaces continue to play a dominant role in shaping cross-border trade across Europe. A recent report reveals that online marketplaces now account for a staggering 69% of European cross-border sales. At the same time, British online retailers are experiencing a notable recovery, with spending at major UK online stores seeing a 3.2% increase in September 2024 compared to the same month last year. This growth marks the first significant rise since April 2021, signaling a positive turning point in the UK’s e-commerce market after over three years of stagnation.
Marketplaces Drive Cross-Border Sales Across Europe
In the financial year 2023/2024, European cross-border e-commerce sales hit 326 billion euros, with a substantial 69% (or 225 billion euros) coming from online marketplaces. These platforms have become indispensable for businesses looking to expand their reach beyond local markets. Marketplaces such as Amazon, eBay, and other regional platforms allow sellers to connect with millions of buyers across different countries, simplifying the process of cross-border selling.
According to the “Top 100 Cross-Border Marketplaces Europe” report from Cross-Border Commerce Europe, the top 10 marketplaces alone generated more than half of the total marketplace-driven turnover. The complete top 100 list of marketplaces generated a combined turnover of 197.01 billion euros, reflecting a year-on-year growth of 39.29%.
However, experts predict that the share of cross-border sales through marketplaces may slightly decline from 69% to 67.9% by 2025. This anticipated drop could indicate that as the market matures, more businesses may explore developing their own cross-border sales channels, reducing their reliance on third-party platforms.
UK Online Retailers See Positive Growth After Years of Decline
In the United Kingdom, e-commerce is showing signs of recovery after nearly three and a half years of decline. According to the IMRG Online Retail Index, which tracks the performance of 220 major market players, British online spending in September 2024 was 3.2% higher than in the same month last year. This marks the first growth since April 2021, signaling a potential turning point for the UK’s online retail market.
The growth was especially evident during the first two weeks of September, when traffic and conversion rates increased significantly for many retailers. This renewed consumer interest in online shopping could be attributed to a combination of factors, including better marketing strategies, improved customer experience, and the overall stabilization of the post-pandemic economy.
A Positive Outlook for European and UK E-Commerce
The dominance of marketplaces in European cross-border sales and the recent growth in UK online retail suggest that the e-commerce sector is entering a new phase of stability and growth. Marketplaces remain a crucial channel for businesses to access global customers, while the UK’s recovery points to a brighter future for domestic online retail.
For businesses looking to capitalize on these trends, platforms like DMSMatrix offer solutions that simplify cross-border selling. By enabling sellers to manage their operations across more than 40 global marketplaces, DMSMatrix helps businesses streamline their logistics, reach new customers, and grow their international presence—all from one easy-to-use platform.
As e-commerce continues to expand, having the right tools and strategies in place will be key for businesses seeking to take advantage of the opportunities that lie ahead.