Let’s start with a pop quiz.
- How many European countries is Amazon present?
- What is Amazon’s biggest European market?
- How many monthly views does Amazon receive in Europe?
'Drumroll' - here’s the answers: a) 8. b) Germany - €31.6 billion (2021). c) 1.1 billion (2022)
While Amazon might be the standard bearer for marketplaces in Europe, it’s clearly not the only show in town. In fact, 80% of Amazon sellers also sell on other platforms as there’s such a wide array of opportunities. So - where else can you go?
European marketplaces overview
Europe and the United States are roughly similar in size (10.5m km2 vs 9.8m km2), but Europe has over double the number of people (750m vs 332m). This population density along with high rates of internet access, great transport links and above average purchasing power make fertile ground for online marketplaces. In particular, the geographically small UK comes behind only the US and China in terms of global e-commerce spend and has the highest per capita e-commerce spend in the world.
When it comes to European marketplaces:
- There are 57 Europe-based online marketplaces with 1 million+ views per month.
- These 57 European marketplaces receive a total 3.8 billion views per month.
- 50% of online shoppers in Europe use marketplaces
But ‘Europe’ is not one entity. Each market has its own rules and regulations, and also its favourite marketplaces, such as Trendyol in Turkey (223 million monthly views) and Allegro in Poland (200 million). There is also a wide range of marketplaces with specific product categories, such as fashion (i.e. Zalando), homeware (i.e. ManoMano), arts & crafts (i.e. Etsy) and electronics (i.e. digitec).
5 European marketplaces you should know about
Allegro
Amazon has been selling in Poland since 2014, but doesn’t even come close to Poland’s largest ecommerce site: Allegro. With 1.14 billion euros in revenue in 2021 and nearly 20 million customers, Allegro serves over 50% of the EU’s fifth largest population with goods ranging from office and electronics to homeware and cosmetics. If you’re able to offer competitive pricing, Allegro offers fantastic access to a growing market and also offers sellers easy storage, shipping and returns through its Fulfilment by Allegro service.
Monthly views: 201 million
Commission: 4-16%
Zalando
Focusing exclusively on fashion, Zalando has grown into a European marketplace giant since its inception in 2008 with over 10 billion euros in revenue in 2021. Germany-based, but Europe-wide, Zalando operates in 23 European markets and offers a Zalando Fulfilment Service (ZFS) and Pay-Per-Click advertising program in its marketplace.
Monthly views: 170 million (2022)
Commission: 5-25%
Otto
Otto was created before the first desktop computer (way back in 1949), but has used its experience to grow into one of Germany’s largest ecommerce platforms. Selling most major product categories to customers in the EU’s most populous country, the Otto Group also entered the fashion ecommerce space with ABOUT YOU in 2022, which has become one of the fastest-growing platforms in Europe. Great for mid-market fashion sellers, although all Otto sellers must have a business registered in Germany, German tax ID and German-speaking customer service.
Monthly views: 53 million (2022)
Commission: 7-18% per item + monthly base fee of €39.90
Bol.com
A marketplace with high exposure in the low country, bol.com operates almost entirely in the Netherlands with some overflow in Belgium. Focusing primarily on books, toys and electronics, it’s one of the most trusted e-commerce sites in a wealthy yet small European country (17.5 million people with an average salary of €40,000). Sellers used to Amazon’s FBA should take advantage of its Logistic Via Bol.com (LVB) fulfilment service.
Monthly views: 74 million (2022)
Commission: Fixed charge €1-3 + 7-18% commission (25% for jewellery)
OnBuy
Not many marketplaces feature in the Deloitte Fast 50, but after 479% growth between 2017-2021, that’s exactly where OnBuy ended up. UK-based with 35 million products, OnBuy’s discount marketplace offers 7 million customers deals across 6000 product categories including health, beauty, toys and games. It’s a great place for brands to offload stock at a knockdown price.
Monthly views: 4 million
Commission: Between 7% - 13.5% (minimum fee £0.25)
Which European marketplaces are right for you?
When weighing up which European marketplaces might work for your products, it’s important to look at three core criteria: suitability, viability and profitability.
- Suitability - Make sure the marketplace aligns with your short-term objectives. For example, if you want to build brand awareness, you want to sell on sites with lots of monthly traffic (i.e. Allegro), but if you want to offload stock, it might be better to choose discount sites (i.e. OnBuy).
- Viability - Europe is made up of 40+ countries, each with its own unique set of regulations and selling challenges. For each potential marketplace, you should consider whether the logistics, compliance, tax regulations and support associated with selling your products is even possible.
- Profitability - While commission costs are an important factor, it’s not the only fee to consider. From shipping, delivery and warehousing to management, integration and operating models, you should work out if it’s going to be financially beneficial.
For more advice, check out our blog on selecting global marketplaces or get in touch directly with eManaged.
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