Austria E-commerce Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Austria E-commerce Market is Segmented by B2C ecommerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B ecommerce.

Market Snapshot

Austria E Commerce Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 5.8 %

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Market Overview

E-commerce (electronic commerce) refers to the selling and buying of products and services by transferring funds or information over an electronic network, mainly through the internet. The European e-commerce market has registered strong escalation over the last few years, offering exciting opportunities for online retailers across diverse sectors. Austria is one of Europe's major consumer markets and an important e-commerce market. The primary selling medium for distance selling in Austria is increased online shopping, including smartphone shopping.

  • The rapidly increasing urbanization and digitalization are the key factors driving the growth of the e-commerce market in Austria. The increased penetration of internet services and electronic devices like smartphones, tablets, and laptops has boosted the e-commerce market.
  • As a part of e-commerce growth in Austria, the government came up with new policies in 2021. For instance, In July 2021, VAT e-commerce packaging was introduced in the country. Similarly, The national transposition of the Omnibus-directive (New Deal for Consumers) and the directive on certain aspects concerning contracts for the availability of digital content and digital services and on certain aspects concerning contracts for the sale of goods, and significant upcoming e-commerce regulations at EU-level: DSA/DMA were also introduced.
  • According to Eurostat, from a survey before 2021, 90% of people aged between 16 to 74 in the European Union used the internet, of which 74% had ordered or purchased goods and services for personal use. Online shopping surged by one percentage point compared with the year 2020.
  • According to the European e-commerce Report 2021, a significant increase in e-shoppers can be seen in 2020 due to the government restrictions imposed during the Covid-19 pandemic, which compelled customers to shop online. Austria recorded 74% e-shoppers in the same year.

Scope of the Report

B2 B E-commerce and B2C E-commerce segment the Austria e-commerce market. By B2C E-commerce, the market studied is further subdivided into beauty & personal care, consumer electronics, fashion & apparel, food & beverage, and furniture & home. The report studies the impact of covid-19 on the studied market.

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Key Market Trends

Significant Growth in E-Commerce is Expected due to digital transformation

  • Digitalization is a tremendous opportunity for the current Covid -19 situation. It is revolutionizing the world of the profession, business structures, and value chains, as well as innovation and market structures. Most industries are switching toward using digital modes of retailing for their business. According to World Dank Data, approximately 88% of Austria's population is using the internet as of 2020. Internet usage and access have driven the usage of various electronic devices, facilitating e-commerce.
  • Technological advancements like the usage of 5G enable greater innovation and speed. The European Commission has approved a EUR 3 billion Austrian aid scheme under the Recovery and Resilience Facility (RRF) to support the rollout of passive infrastructure for broadband networks in the parts of Austria where there is no current network able to provide a minimum 100MBPS download speed. This initiative is a part of Austria's strategy to address the growing business needs in the context of the country's digitalization.
  • According to Ecommerce DB, the most often offered delivery service provider among online businesses in Austria is Osterreichische Post. Among those who said which service they use to convey their goods, 59% named Austrian Post as one of their options. Furthermore, DHL and DPD are among Austria's top three shipping service providers, with 30% and 15%, respectively.
  • Cross-border shopping is popular among Austrians. More than half of their online purchases are for things from other countries. Austria is one of the rare countries where local e-commerce sales are much lower than international sales. This is primarily because the majority of the most popular merchants are situated outside of Austria and have yet to decide to create a store there. Amazon is a fantastic example in this regard. Austrians buy on the German site, and products are transported from there. Germany, Italy, Switzerland, China, and the Czech Republic are Austrians' most popular shopping destinations.
Austria E Commerce Market Trends

Fashion is Expected to Hold a Significant Share

  • The concepts of e-commerce have revolutionized the fashion industry in multiple ways. Not only can the buyers shop from their homes, but they can also ensure that they can still keep their favored brands in their closets. Online shopping has increased in Austria too. According to the E-commerce news, Presently, 85% of Austrian customers shop online at least once a month, whereas 42% buy products online at least once a week.
  • Fashion enterprises are one of the most creative and vibrant sectors in Austria. They are present in everyday life of millions of individuals and act as representatives of Austrian values, such as creativity, culture, innovation, and craftsmanship. According to Meta Triad, the apparel and fashion industry was USD 1.5 trillion in 2020 and is projected to reach 2.25 trillion dollars by 2025. The Austria-based Meta Triads aims to accelerate the digital transformation of the whole apparel industry.
  • Price remains a significant factor when buying, whether affordable or luxury goods, now that online shopping has become a trend. Third-party online retailers continue to evolve and consolidate the market as well. The Austrian market has many key players in online retailing such as Amazon, Zalando, MediaMarkt, Universal, Otto, H&M, and many more.
  • According to E-commerce news Europe, Amazon generated a total net sales of EUR 1.1 billion in Austria due to its incomparable pricing. The e-commerce company is followed by Zalando with 328.7 million euros in net sales, followed by MediaMarkt with 144.3 million euros in net sales. This shows that online retailing is growing quickly in the Austrian e-commerce market.
Austria E Commerce Market Growth

Competitive Landscape

The Austria E-commerce Market is witnessing a rise in competitiveness among companies. The market consists of various major players, such as Amazon, Zalando, MediaMarkt, Universal, and Otto. In terms of market share, these significant players currently dominate the market. However, with increasing innovations in e-commerce, many companies are increasing their market presence by securing new contracts and tapping new markets.

  • In September 2021, Zalando, Europe's online fashion and lifestyle platform, announced its partnership with Not Just A Label, an international designer platform. The partnership will bring several emerging brands from diverse backgrounds to Zalando Designer, supporting Zalando's commitment to representing diverse brands and founders on its platform.
  • In February 2022, H&M announced the expansion of its second-hand fashion platform Sellpy in Austria. This platform will circulate used products across the customers, further promoting sustainable consumption.

Recent Developments

  • April 2022 - Shop Apotheke announced a strategic acquisition of FIRST A, a quick commerce player in the German pharmacy market. The acquisition will help the firm to enter the growing q-commerce market. It will also customer-centric platform strategy and strengthens its position as a one-stop shop in the pharmacy space.
  • April 2022 - Customers in Germany, Austria, and Switzerland will be able to use the "Pay Later 30" payment options attributed to a partnership between Klarna and the European eCommerce startup About You. Customers in the Netherlands, Denmark, Sweden, Belgium, Finland, and Norway have already been able to use Klarna payment services. Customers may pay for purchases 30 days after they make them with Klarna's "Pay Later 30" option, which the business claims is enough time to order, receive, try on, and return a piece of apparel. As a result, customers are no longer obligated to buy something before seeing if they like it or if it fits.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Key market trends and share of e-commerce of total Retail sector

    4. 4.4 Impact of COVID-19 on the e-commerce sales

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growth of the market during the COVID-19 Pandemic

      2. 5.1.2 Penetration of Internet and Smartphone Usage

    2. 5.2 Market Challenges

      1. 5.2.1 Stringent Regulatory Frameworks

    3. 5.3 Analysis of key demographic trends and patterns related to ecommerce industry in Austria (Coverage to include Population, Internet Penetration, ecommerce Penetration, Age & Income etc.)

    4. 5.4 Analysis of the key modes of transaction in the ecommerce industry in Austria (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)

    5. 5.5 Analysis of cross-border ecommerce industry in Austria (Current market value of cross-border & key trends)

    6. 5.6 Current positioning of country Austria in the ecommerce industry in region Europe

  6. 6. Market Segmentation

  7. 7. By B2C ecommerce

    1. 7.1 Market size (GMV) for the period of 2017-2027

    2. 7.2 Market Segmentation - by Application

      1. 7.2.1 Beauty & Personal Care

      2. 7.2.2 Consumer Electronics

      3. 7.2.3 Fashion & Apparel

      4. 7.2.4 Food & Beverage

      5. 7.2.5 Furniture & Home

      6. 7.2.6 Others (Toys, DIY, Media, etc.)

  8. 8. By B2B ecommerce

    1. 8.1 Market size for the period of 2017-2027

  9. 9. Competitive Landscape

    1. 9.1 Company Profiles

      1. 9.1.1 Amazon.com Inc.

      2. 9.1.2 Zalando

      3. 9.1.3 MediaMarkt

      4. 9.1.4 Universal

      5. 9.1.5 H&M

      6. 9.1.6 Otto

      7. 9.1.7 Shop Apotheke

      8. 9.1.8 Apple Inc.

      9. 9.1.9 XXXLutz

      10. 9.1.10 Electronic4you

    2. *List Not Exhaustive
  10. 10. Investment Analysis

  11. 11. Future Outlook of the Market

**Subject to Availability

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Frequently Asked Questions

The Austria E-commerce Market market is studied from 2020 - 2027.

The Austria E-commerce Market is growing at a CAGR of 5.8% over the next 5 years.

Amazon, Zalando, MediaMarkt, Universal, H&M are the major companies operating in Austria E-commerce Market.

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