Cross-Border Commerce Europe, has launched a study that maps the 100 best global marketplaces in the sector with a zoom on their cross-border performance in Europe. The total cross-border eCommerce market in Europe, including the United Kingdom, Switzerland and Norway, represents a turnover of €198,5 billion in 2020 (excluding travel), of which €115.4 billion, or 58 per cent, is generated by marketplaces. Amazon and eBay have the lion’s share with expectedly a turnover of €44.3 billion and €22.8 billion in 2020, driving more than half of the market. The TOP 100 Cross-Border Marketplaces realise €100 billion in turnover throughout Europe. During the COVID-19 pandemic, marketplaces grew with an amazing 37.5 per cent, supported by C2C marketplaces. This growth is expected to continue in 2021, reaching 65 per cent of cross-border online sales in Europe by 2025.
The ranking is based on four parameters:
- Cross-border online sales in Europe (28 countries in Europe including UK, Switzerland and Norway)
- SEO indicators for cross-border performance
- A cross-border score determined on the number of covered countries
- Number and percentage of cross-border visits
Four additional weighted parameters refine the ranking:
- Type of marketplaces business models (B2B – B2C – P2P – C2C – …)
- Pan-European brand strategies
- AI & Big Data strategies
- Type and number of services offered to the customers
This study takes into account all types – B2C, B2B, C2C, P2P – of online platforms and covers all sectors except travel and sharing economy.
The TOP 10 Global Cross-Border Marketplaces operating in Europe:
– TOP 1: eBay (USA)
– TOP 2: AliExpress (China)
– TOP 3: Amazon (USA)
– TOP 4: Etsy (USA)
– TOP 5: Vinted (Lithuania)
– TOP 6: OLX (The Netherlands)
– TOP 7: Wish (USA)
– TOP 8: Discogs (USA)
– TOP 9: Zalando (Germany)
– TOP 10: Uber Eats (USA)
From the newcomers and climbers in the TOP 10, we can distinguish several market trends in 2020.
C2C and second-hand fashion
OLX, newcomer in the TOP 10 with classified ads websites in several European countries and Vinted, Europe’s largest online C2C marketplace dedicated to second-hand fashion climbing 2 positions; both have a focus on C2C second-hand. It is estimated that, by 2028, resale will be 1,5 times bigger than fast fashion and second-hand items will account for 11% of people’s wardrobes. Millennials and Gen Z are driving this growth, as ages 18-37 buy 2,5 times more second-hand items than other age groups. The C2C share of used goods (pre-owned), will grow from 43 per cent to 50 per cent.
Food marketplaces
Another marketplace that reached the TOP 10 is Uber Eats. Due to the COVID-19 pandemic, the food sector and especially food delivery reached all-time highs. Another example of a strong cross-border player in this sector is the Dutch marketplace Takeaway.com that ended up right outside the TOP 10. Takeaway.com said investment programmes in the legacy Just Eat markets had been so successful that expectations for 2021 are even higher. The management now expects full-year order growth of 45 per cent.
Zalando: the European cross-border fashion platform
Newcomer and strong climber in the TOP 10 is Zalando. They are the strongest European cross-border fashion marketplace and experienced 30.4 per cent growth in their business volume in fiscal year 2020 with 10.6 billion euros in sales and over 5 billion euros cross-border in Europe. The active customer base has grown by 25 per cent over the past year, reaching 38.7 million internet users. Zalando is now moving forward with a clear objective: capture 10 per cent of the European fashion market.
Boosted by the COVID-19 pandemic, the TOP 100 Cross-Border Marketplaces realised an unprecedented turnover of €100 billion in 2020 throughout Europe
An increase of 37.5 per cent YTD: the growth was particularly strong in Q4 2020 for the omnichannel retailer’s marketplaces (growth +44 per cent YTD) and the C2C marketplaces (growth +50 per cent YTD). The TOP 100 marketplaces marketshare represents 86.5 per cent of the total marketplaces’ turnover.
New European VAT rules
The European Commission and the European Parliament have published the new VAT rules for B2C e-commerce on July 1st, regulating import VAT on lower-value goods (€22) traded for example on online platforms such as AliExpress and Wish. These new rules will facilitate EU B2C cross-border trades and ensure fair competition for EU sellers. And it will also combat VAT fraud.
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