The median is 2 million euros! The average annual sales of online sellers in West Germany are 46 times higher than those in East Germany!

Median €2 million Average annual sales of online sellers in West Germany 46x higher than in East Germany

According to Business Dialogue, most of the e-commerce sellers in Germany are located in the western regions of North Rhine-Westphalia (22%) and Bavaria (17%). Only 1.75% come from the eastern region of Thuringia and 1% from Mecklenburg-Western Pomerania.

These data come from the first German e-commerce atlas, a study by IbiResearch, Amazon Germany, and the German E-Commerce and Mail Order Association (Bevh). The study describes e-commerce throughout Germany and investigates regional framework conditions for e-commerce activity, economic structure differences, and retail companies.

Differences in Average Annual Turnover

The study shows that online sellers in West Germany have an average annual turnover of 29.39 million euros. In contrast, online sellers in East Germany have an income of only 6.37 million euros. The average number of employees for West German sellers (29 people) is also higher than for East German sellers (13 people).

Overview of German Distribution Online Sellers

“Different regions in Germany are exploring the potential of digitization in very different ways. This is dramatic because digitization should offer opportunities for structurally weak regions, especially in terms of catching up economically. Although the Internet was invented in 1990, the year of reunification, companies in the East and West were technically starting from scratch, but successful distribution now seems very uneven,” explained Martin Groß-Albenhausen, deputy general manager of Bevh.

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Marketplaces are Important Accelerators

This study considered approximately 100,000 online companies. However, it also includes more than 10,000 companies selling products on marketplaces such as Amazon, eBay, Otto, and/or Kaufland. The report indicates that marketplaces are important accelerators for digital retailing.

The median turnover of e-commerce sellers is 2 million euros, higher than the median turnover of all online sellers in Germany (slightly higher than 1 million euros). In addition, the average number of employees for sellers in the market is 31.1, while the average number for all e-commerce companies is 27.1. Only 17.8% of sellers on e-commerce platforms have a negative asset ratio, while this proportion for all e-commerce companies in Germany is 19.8%.

BusinessDialogue learned that Markus Schöberl, Director of Seller Services at Amazon Germany, said: “I think the results of this study are very important because I believe they indicate that there is a backlog in promotion for small and medium-sized online retailers in eastern Germany. Only by ensuring similar start-up and growth framework conditions nationwide can all entrepreneurs and customers benefit from the advantages of e-commerce.”

Editor: Estella/BusinessDialogue

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