Cross-border sales to account for 10 per cent of all online sales in Europe


Cross-border sales to account for 10 per cent of all online sales in Europe

Cross-border sales in Europe are set to reach €36 billion
in 2013 and account for 10.6 per cent of total online sales in the
region, according to the latest figures from IMRG. This is up
from the €26 billion estimated in 2012.

UK retailers are the most successful in trading across borders
with international consumers spending £7.4 billion with UK
online retailers in 2012-a total set to exceed £10 billion
this year.

Overall, online sales in Europe are expected to reach €191
billion by 2017, up from €112 billion in 2012-reflecting an
11 per cent compound annual growth rate (CAGR) over the next five
years. According to figures from Forrester’s latest EU and US
online retail sales forecasts, by 2017, US online retail sales
will hit $370 billion, up from $231 billion in 2012, at 9 per cent
CAGR.

“While online sales in Europe will fall short of the
European Commission’s ambition to create a single digital market,
online growth will still outstrip offline growth. As wallet share
shifts gradually to the web, eCommerce will naturally come to be
regarded as more and more critical to national economies,”
writes Martin Gill, Forrester principal analyst, in his new
report.

Other key predictions from the European online retail sales
forecast, which covers 17 countries, suggest that while online
retail in mature markets like the UK and Sweden will continue to
grow, the rate of growth will begin to slow. Although “far
from the saturation point”, notes the Forrester research
“the UK, in particular, has passed beyond the boom years and
local retailers must invest in optimisation and innovation to
stay competitive”. In contrast, southern Europe will see
strong double-digit growth in the next five year. Spain, in
particular, will see an 18 per cent CAGR during the period.

Looking at which categories will thrive online in the next five
years, Forrester estimates that by 2017 more than half of all
spending on music and DVDs will be online, as will more than
one-quarter of all spending on books. By 2017, shoppers across
Europe will spend almost €10 billion online on food and
drink, as grocers across Europe will emulate the online success
already seen in the UK.

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