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Germany is the 6th most profitable ecommerce market globally, according to eCommerceDB. A nation that enjoys online shopping, Germany could be an ideal place to start a dropshipping business.
Country information
Location
Germany, also known as the Federal Republic of Germany, is a large and developed country in northern-central Europe. It neighbours the Netherlands, Belgium, Luxembourg, France, Switzerland, Austria, the Czech Republic, Poland, and Denmark.
Population
Germany had a population of 86.3 million in 2023, as per Britannica. In 2022, the World Bank ranked Germany as the 19th largest population in the world (behind Turkey, but ahead of Thailand).
Wealth
The Organisation for Economic Cooperation and Development (OECD) states that the average German disposable income is USD 39,971. This is comfortably higher than the average of USD 30,490. Household net wealth is USD 304,307, which is slightly less than the average of USD 323,960. Germany is the 21st richest country in the world, as published by Global Finance Magazine in 2024.
Language
The official language is German as spoken by over 95% of the population. English is spoken by 4 out of 5 Germans, making it the number one country in Europe for the number of non-native English speakers. Due to the high level of immigration and international students in Germany, it would be beneficial to offer English as well as German as languages for a dropshipping store.
Dropshipping in Germany
How is the ecommerce market?
- Germany's ecommerce market is forecast to be worth USD 100.9 billion in 2024 (Statista, 2024).
- It is expected to see a compound annual growth rate (CAGR) of 11.2% between 2024 and 2029 (Mordor Intelligence, 2023).
- The German ecommerce market will be worth USD 132.2 billion in 2028 (Statista, 2024).
- Germany had a digital buyer penetration rate of 80% in 2022, the third largest in the world (International Trade Association, 2023).
- There were 67.22 million Germans who bought goods online in 2023 (Data Reportal, 2023).
- The average annual revenue per German online consumer was USD 1,719 in 2023 (Data Reportal, 2023).
- The digital buyer penetration rate is expected to reach 98% by 2028 (Statista, 2024).
Germany has a robust ecommerce market with a high number of online shoppers. Consumers in this country are trusting of ecommerce retailers and purchasing online. VML's The Future Shopper Report 2023 found that Germans don't worry about purchasing from an online retailer that also has physical shops compared to other countries, making it highly likely that a dropshipping business would be well-received.
What are the benefits of starting a business in Germany?
- Strong, stable economy with low corruption The largest economy in the EU
- German and foreign entrepreneurs are eligible to apply for grants and reduced-interest loans
- Highly skilled workforce
- Germany was ranked as the 7th best country in the world for startups in 2023, according to Statista
- Germany has 40 cities in the top 1,000 worldwide for startup culture, according to
- StartupBlink's Global Startup Ecosystem Index 2023
Starting a business in Germany has many benefits, however, the complicated bureaucracy system and taxes are often remarked as causing difficulties.
How much do German online shoppers spend?
Germans are big spenders compared to online shoppers elsewhere in the world. VML's The Future Shopper Report 2023 found that Germans are willing to spend the highest amount on a single product – USD 749 to be exact. That is double the average of USD 378. If you're considering a dropshipping business in Germany, you have a high chance of success selling big-ticket items.
How often do the Germans shop online?
Almost 24% of Germans in a Statista survey said they shop online multiple times per month in 2023. Not shy with ecommerce, Germans are happy to browse and purchase items from the internet quite frequently. 5% of German respondents said they shop online at least once a week, while 16% buy online once a month.
Product categories with high sales
Germany's online annual spending is split into the following categories of consumer goods, as per Data Reportal, 2023:
| Rank | Retail category | Revenue in 2022 |
| 1 | Fashion | USD 32.7 billion |
| 2 | Electronics | USD 19.7 billion |
| 3 | Toys, hobby, and DIY | USD 17.3 billion |
| 4 | Furniture | USD 17.0 billion |
| 5 | Personal and household care | USD 14.6 billion |
| 6 | Physical media | USD 5.7 billion |
| 7 | Food | USD 5.3 billion |
| 8 | Beverages | USD 3.2 billion |
Furniture is one of the top four most popular online products to buy in Germany. Consider dropshipping with a furniture ecommerce retailer, such as vidaXL.
Top ecommerce players in Germany
According to Similarweb, the most popular ecommerce players in Germany in January 2024 are listed in the following table:
| Rank | Ecommerce retailer | Category |
| 1 | Amazon.de | Online marketplace |
| 2 | eBay.de | Online marketplace |
| 3 | Kleinanzeigen.de | Online classified ads |
| 4 | Otto.de | Online marketplace |
| 5 | Idealo.de | Price comparison |
Media Markt for electronics and Zalando for fashion are also big players online. Find out others in our article covering the top ecommerce retailers in Germany.
Internet penetration in Germany
Germany is digitally connected with regular internet users. In 2023, Germany had an internet penetration rate of 93.1% (77.53 million citizens) compared to the global average of 64.4%, says Data Reportal.
Germans spend 5 hours and 12 minutes browsing the internet across all devices. Slightly more internet time is spent on laptops and PCs (52.2%) rather than smartphones (47.8%).
Use of smartphones
Internet Retailing's Germany Ecommerce 2022 Report found that 58% of German consumers bought products online via smartphones. However, this figure was even higher in a 2022 Statista survey, where 66% of German respondents said they used a smartphone for online purchases.
In 2022, Amazon was the 4th mobile app with the most number of active monthly users, according to Data Reportal. EBay followed in 8th place.
That being said, it's critical to make sure your dropshipping website design is responsive for mobile users.
Delivery services in Germany
Deutsche Post is the national postal service in Germany. Popular courier services include DHL, DPD, GLS, UPS, Hermes, FedEx, and Kuehne + Nagel.
EcommerceDB reports that free shipping is the most important to German Baby Boomers (34%), followed by Gen X (28%), Millennials (26%), and least of all Gen Z (12%). Fast shipping is the most desired by German Millennials and Gen X (28%), followed by Baby Boomers (27%), however, it is of almost no importance to Gen Z (16%).
Fast and free delivery with flexible and free or low-cost returns is a great way to impress German customers. The dropshippingXL programme offers free delivery to German customers from European warehouses. The flexible returns policy offers refunds within 30 days, or a full product replacement is available within six months.
What is dropshipping?
Dropshipping is an online retail business model with low startup costs. Dropshippers use a dropshipping programme that offers them a catalogue of products to advertise and sell online. Warehousing, packing and shipping are taken care of by the manufacturer.
Try dropshipping with dropshippingXL by vidaXL. When you make a sale, we send it to your customers directly from our Polish and Dutch warehouses.
In summary
Germany is a country with confidence in online shopping. The ecommerce market is well-established and consumers frequently make purchases on the internet. Germans have a high disposable income and are less price-sensitive. They are interested in sustainability, online businesses with good customer ratings, and online retailers with websites that perform well on smartphones.
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