The European e-commerce market has emerged from the competition of giants such as Amazon, and various platforms have been competing fiercely in categories, sales and user base. In addition to the well-known Amazon, there are some highly watched platforms, among which TEMU has attracted the attention of the industry with its unique super price model and rapidly expanding business scale.
1. Amazon: Global expansion of market giants.
Amazon has always been one of the giants in the European e-commerce market, with revenue of 489 billion euros in 2022, and its main markets cover the UK, Germany, Italy and France. It occupies the e-commerce market in most European countries, not only ranking first in sales, but also has a huge advantage in user visits. Among Amazon’s retail sellers, one-third sell products directly on the platform, including leading brands of many well-known retailers.
Fashion apparel and accessories dominate sales on the Amazon platform, accounting for 36% of total sales, followed by consumer electronics. Amazon has established a strong position in fulfillment services, including delivery, logistics and payment services, providing full-link services for merchants of all sizes.
2. TEMU: Super price model sweeps Europe.
TEMU, an e-commerce platform from China, has rapidly risen in the European market with its super price model. TEMU provides European consumers with goods at very competitive prices through the M2C model of direct factory-to-consumer connection. Its products are almost all from factories, attracting a large number of consumers, although there are almost no big brands sold among the top 1000 retailers in Europe.
TEMU currently operates in countries such as France, Germany, Italy, the Netherlands, Spain and the United Kingdom, heralding its rapid expansion in the European market. Consumers’ love for TEMU has led to a continuous increase in the number of platform consumers throughout Europe, further challenging traditional e-commerce platforms.
3. AliExpress: The cross-border choice for the European market.
AliExpress is very popular in the European market, with a turnover of 119.4 billion euros in 2022. About 20% of the top 1000 retailers in Europe sell products on the website, mainly multi-category comprehensive platforms. AliExpress has not only expanded in Europe, but also improved its global fast delivery capabilities by investing in warehouses, and its services can be delivered to all parts of the world within 40 days.
However, AliExpress still has a small share of the EU market and needs to deal with multiple challenges such as geopolitical conflicts and the depreciation of the euro.
4. Wish: A platform that alternates between hot and cold.
Although Wish has 600 million consumers, merchants in the European market seem to have cooled down their enthusiasm for it. Among the top 1,000 retailers and brands in Europe, only 4% of merchants sell products directly on the website. Wish operates in 60 countries around the world, connecting 250,000 merchants and 600 million registered users, but merchants in the European market account for a small proportion.
5. Allegro: A leader in the Polish e-commerce market.
Allegro dominates the Polish e-commerce market, with 135,000 merchants and 22 million visits. 30% of the top 1,000 retailers in Europe sell products on its website, mainly fashion clothing and accessories, and consumer electronics. Although the platform mainly serves the Polish market, it has attracted brands and retailers from countries such as the UK, the US and Germany.
6. eBay: Pioneer of the auction model.
As a pioneer in the e-commerce market model, eBay, although once the second largest retailer in Europe after Amazon, has now been surpassed by Poland’s Allegro in terms of sales. The platform sells a wide range of goods, covering multiple categories such as fashion clothing, consumer electronics, sports and leisure. Although eBay’s share of the European market is relatively small, through strategic adjustments, it has increased the development of high-end goods and provided more services for the collectibles trading market.
7. OTTO: A leader in the German e-commerce market.
OTTO is a leader in the German market, generating revenue of approximately $17 billion in 2022, making it the second largest seller in the German market after Amazon. OTTO is open to partners through OTTO Marken, providing exposure opportunities for approximately 7 million sellers and brands. On OTTO Marken, 2% of the Top 1,000 retailers and brands in Europe have set up accounts for sales, adding new impetus to its business scale.
8. Zalando: The e-commerce platform of a fashion giant.
Zalando is now a giant in the fashion industry, with more than 51 million active consumers in 25 countries. More than 10% of Europe’s top 1,000 retailers and brands sell on Zalando, mainly fashion clothing and accessories, sports and casual clothing. Zalando’s multi-category comprehensive platform has attracted a large number of consumers and provided a broad market for merchants.
Conclusion:
The European e-commerce market is highly competitive, and each platform has unique advantages in different fields. Amazon has reached the top of the market with its globalization and complete full-link services, while TEMU has become a new darling with its super prices and rapid expansion momentum. Other platforms such as AliExpress, Allegro, eBay, OTTO, Wish and Zalando also have their own characteristics, and together they have built a diversified e-commerce ecosystem in Europe.