Exorigo Upos analysis: Western Europe leads the e-commerce market by far with 80% compared to 55% in Eastern Europe

25 July 2024
  • Western European shoppers spend an average of €85 per transaction, while Eastern European consumers spend €55
  • A significant portion of the elderly population is online shopping in Western Europe, while in Eastern Europe, most online shoppers are young
  • Eastern European shoppers are more price-sensitive than Western 

Western Europe boasts a notably higher e-commerce penetration rate compared to its Eastern counterpart, according to Exorigo Upos, the Polish company that provides IT technology solutions for the retail sector. 

An analysis carried out by the company showed that in 2023 the e-commerce penetration rate in Western Europe was approximately 80%, a significant lead over Eastern Europe, which stands at around 55%. 

„This disparity highlights the more mature online retail market in Western European countries like the UK, Germany, and France, where digital shopping has become an integral part of consumer behavior. However, Eastern Europe is catching up and gradually growing, thanks to the increase in smartphone use, the expansion of Internet access, and the emergence of local e-commerce platforms. We also see more and more retailers interested in innovative solutions that offer significant development opportunities such as those in the Exorigo Upos portfolio that provides companies with support in IT services, development of e-commerce platforms, and implementation of omnichannel strategies”, stated Marek Nowakowski, General Manager Exorigo-Upos România.

Over the past five years, Western Europe has witnessed a substantial shift in online shopping habits. Consumers in this region increasingly prefer online shopping due to convenience, a wider range of products, and competitive pricing. The COVID-19 pandemic accelerated this trend, pushing online sales to grow by over 25% annually between 2020 and 2022. In contrast, Eastern Europe is experiencing a more gradual change. The region has seen an annual growth rate of around 15% in online shopping, driven by increasing internet penetration and improving digital literacy.

The data analysed by Exorigo Upos that in terms of product categories, Western European consumers predominantly purchase fashion items, electronics, and home goods online. Fashion alone accounts for about 35% of total e-commerce sales in the region. On the other hand, Eastern European shoppers show a higher propensity for purchasing electronics, followed by fashion and beauty products. Electronics represent nearly 40% of online purchases in Eastern Europe, underscoring a different set of consumer priorities.

According to the Polish company, several factors drive e-commerce growth in Western Europe, including high internet penetration, robust logistics infrastructure, and consumer trust in online payment systems. 

However, barriers such as high competition and stringent regulatory requirements can pose challenges. Conversely, in Eastern Europe, the main growth drivers are increasing smartphone usage, expanding internet access, and the rise of local e-commerce platforms. Barriers in this region include underdeveloped logistics networks and lower consumer trust in online transactions.

When it comes to average order values, Exorigo Upos identified that Western European shoppers tend to spend more per transaction, with an average order value of around €85. Eastern European consumers, while increasingly engaging in online shopping, spend an average of €55 per order. This difference can be attributed to varying economic conditions and disposable incomes between the regions.

In terms of payments Western European consumers predominantly use credit cards, digital wallets like PayPal, and Buy Now, Pay Later (BNPL) options for online payments. In Eastern Europe, while credit cards are also popular, there is a significant usage of cash on delivery (COD) and local e-payment systems. For example, in Poland, systems like BLIK are widely used for their convenience and security.

Mobile shopping is on the rise in both regions, but Western Europe leads with a higher adoption rate. Approximately 60% of online transactions in Western Europe are made via mobile devices. In Eastern Europe, this figure is closer to 40%, though it is rapidly increasing as more consumers gain access to smartphones and mobile internet.

Demographically, Western European online shoppers are more diverse, with a significant portion of the elderly population participating in online shopping. In Eastern Europe, the majority of online shoppers are younger, primarily in the 18-35 age group, reflecting a youthful, tech-savvy consumer base.

Delivery expectations also differ notably. Western European consumers prioritize fast and reliable delivery services, with many expecting next-day delivery options. In contrast, Eastern European shoppers are more price-sensitive and are willing to wait longer for deliveries if it means lower shipping costs.

Exorigo Upos remains committed to providing advanced technology solutions and specialized consulting that can help drive e-commerce growth in Eastern Europe and Western Europe. With extensive e-commerce and retail expertise, Exorigo Upos remains a reliable partner for companies looking to expand and optimize their online presence and connect there offline and online channels, providing sellers with reliable omnichannel solutions.  

About Exorigo Upos

Exorigo-Upos S.A. is a Polish technology company with an international presence, specializing in strategic IT consulting and digital transformation. The company provides applications, develops software and provides maintenance and support services. Exorigo-Upos executes complex projects that support business growth by selecting the most suitable ecosystems and technology services.

With a team of about 1,000 specialists, the company has been providing IT solutions for over 30 years. As an omnichannel partner for major players in the retail industry, it contributes to the harmonious integration of offline and online environments. At the same time, the company distinguishes itself as the largest service center for payment terminals in Poland, with an estimated market share of 40%.

Exorigo-Upos expands its operations through its own subsidiaries in countries such as Romania, UK, Czech Republic, Slovakia, Ukraine and Australia, offering a wide range of services in three essential areas: omnichannel devices, software and technological ecosystems, IT services. The company provides advanced e-commerce solutions supporting businesses in digital transformation and implementing an omnichannel strategy.

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*This is a Press release.

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Exorigo Upos analysis: Western Europe leads the e-commerce market by far with 80% compared to 55% in Eastern Europe

25 July 2024
  • Western European shoppers spend an average of €85 per transaction, while Eastern European consumers spend €55
  • A significant portion of the elderly population is online shopping in Western Europe, while in Eastern Europe, most online shoppers are young
  • Eastern European shoppers are more price-sensitive than Western 

Western Europe boasts a notably higher e-commerce penetration rate compared to its Eastern counterpart, according to Exorigo Upos, the Polish company that provides IT technology solutions for the retail sector. 

An analysis carried out by the company showed that in 2023 the e-commerce penetration rate in Western Europe was approximately 80%, a significant lead over Eastern Europe, which stands at around 55%. 

„This disparity highlights the more mature online retail market in Western European countries like the UK, Germany, and France, where digital shopping has become an integral part of consumer behavior. However, Eastern Europe is catching up and gradually growing, thanks to the increase in smartphone use, the expansion of Internet access, and the emergence of local e-commerce platforms. We also see more and more retailers interested in innovative solutions that offer significant development opportunities such as those in the Exorigo Upos portfolio that provides companies with support in IT services, development of e-commerce platforms, and implementation of omnichannel strategies”, stated Marek Nowakowski, General Manager Exorigo-Upos România.

Over the past five years, Western Europe has witnessed a substantial shift in online shopping habits. Consumers in this region increasingly prefer online shopping due to convenience, a wider range of products, and competitive pricing. The COVID-19 pandemic accelerated this trend, pushing online sales to grow by over 25% annually between 2020 and 2022. In contrast, Eastern Europe is experiencing a more gradual change. The region has seen an annual growth rate of around 15% in online shopping, driven by increasing internet penetration and improving digital literacy.

The data analysed by Exorigo Upos that in terms of product categories, Western European consumers predominantly purchase fashion items, electronics, and home goods online. Fashion alone accounts for about 35% of total e-commerce sales in the region. On the other hand, Eastern European shoppers show a higher propensity for purchasing electronics, followed by fashion and beauty products. Electronics represent nearly 40% of online purchases in Eastern Europe, underscoring a different set of consumer priorities.

According to the Polish company, several factors drive e-commerce growth in Western Europe, including high internet penetration, robust logistics infrastructure, and consumer trust in online payment systems. 

However, barriers such as high competition and stringent regulatory requirements can pose challenges. Conversely, in Eastern Europe, the main growth drivers are increasing smartphone usage, expanding internet access, and the rise of local e-commerce platforms. Barriers in this region include underdeveloped logistics networks and lower consumer trust in online transactions.

When it comes to average order values, Exorigo Upos identified that Western European shoppers tend to spend more per transaction, with an average order value of around €85. Eastern European consumers, while increasingly engaging in online shopping, spend an average of €55 per order. This difference can be attributed to varying economic conditions and disposable incomes between the regions.

In terms of payments Western European consumers predominantly use credit cards, digital wallets like PayPal, and Buy Now, Pay Later (BNPL) options for online payments. In Eastern Europe, while credit cards are also popular, there is a significant usage of cash on delivery (COD) and local e-payment systems. For example, in Poland, systems like BLIK are widely used for their convenience and security.

Mobile shopping is on the rise in both regions, but Western Europe leads with a higher adoption rate. Approximately 60% of online transactions in Western Europe are made via mobile devices. In Eastern Europe, this figure is closer to 40%, though it is rapidly increasing as more consumers gain access to smartphones and mobile internet.

Demographically, Western European online shoppers are more diverse, with a significant portion of the elderly population participating in online shopping. In Eastern Europe, the majority of online shoppers are younger, primarily in the 18-35 age group, reflecting a youthful, tech-savvy consumer base.

Delivery expectations also differ notably. Western European consumers prioritize fast and reliable delivery services, with many expecting next-day delivery options. In contrast, Eastern European shoppers are more price-sensitive and are willing to wait longer for deliveries if it means lower shipping costs.

Exorigo Upos remains committed to providing advanced technology solutions and specialized consulting that can help drive e-commerce growth in Eastern Europe and Western Europe. With extensive e-commerce and retail expertise, Exorigo Upos remains a reliable partner for companies looking to expand and optimize their online presence and connect there offline and online channels, providing sellers with reliable omnichannel solutions.  

About Exorigo Upos

Exorigo-Upos S.A. is a Polish technology company with an international presence, specializing in strategic IT consulting and digital transformation. The company provides applications, develops software and provides maintenance and support services. Exorigo-Upos executes complex projects that support business growth by selecting the most suitable ecosystems and technology services.

With a team of about 1,000 specialists, the company has been providing IT solutions for over 30 years. As an omnichannel partner for major players in the retail industry, it contributes to the harmonious integration of offline and online environments. At the same time, the company distinguishes itself as the largest service center for payment terminals in Poland, with an estimated market share of 40%.

Exorigo-Upos expands its operations through its own subsidiaries in countries such as Romania, UK, Czech Republic, Slovakia, Ukraine and Australia, offering a wide range of services in three essential areas: omnichannel devices, software and technological ecosystems, IT services. The company provides advanced e-commerce solutions supporting businesses in digital transformation and implementing an omnichannel strategy.

__

*This is a Press release.

Comments
Read more...

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