European ecommerce to grow 45% in 5 years
European online sales will surge from €389 billion in 2024 to €565 billion by 2029, accounting for 21% of total retail sales. While ecommerce is expected to grow at a 7.8% annual rate, offline retail will lag behind with just 1.7% annual growth. The UK will continue leading the market, with online sales making up 32% of total retail by 2029, followed by Germany (21%) and France (17%).
This rapid growth signals a major shift in consumer behavior, with shoppers increasingly turning to digital channels. To stay competitive, retailers must invest in advanced digital platforms, refine their omnichannel strategies, and enhance the customer experience across both online and offline touchpoints. The companies that successfully adapt to these trends will be best positioned for long-term success in Europe’s evolving ecommerce landscape.
Dex van Hofwegen
TikTok Shop introduces ‘Most Loved’ tag
TikTok is making in-app shopping more reliable with its new ‘Most Loved’ tag, designed to highlight top-rated products. Unlike standard star ratings, this badge considers customer feedback, return rates, shipping times, and overall satisfaction to showcase highly recommended products. The goal is to build trust among shoppers and encourage purchases by featuring items that have received strong community approval.
This move aligns with TikTok’s broader push into ecommerce, especially in Western markets. While TikTok’s Chinese counterpart has already generated over $500 billion in sales in 2024, its US and European operations are still catching up, with total sales surpassing $30 billion in the same period. By enhancing transparency and making product discovery easier, TikTok aims to replicate its ecommerce dominance globally and position itself as a key player in social commerce.
German online retailers frustrated by strict regulations
A new study reveals that 43% of German online retailers are unhappy with the current ecommerce landscape, citing strict regulations on data protection, returns, and product transparency as major hurdles. Compliance is not only costly but also time-consuming, making it harder for local businesses to compete. Adding to the frustration, foreign platforms like Shein and Temu appear to bypass these regulations, giving them a competitive edge and allowing them to grab more market share.
While Germany remains one of Europe’s largest ecommerce hubs, the slow growth rate and heavy regulatory burden have left many sellers struggling. Nearly one-third (33%) of retailers are highly dissatisfied with the legal framework, and 42% see platforms like Shein and Temu as direct threats to their business. To create a fairer playing field, industry experts argue for simplified yet consistently enforced regulations that protect local sellers while ensuring a competitive and thriving ecommerce environment.
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Nathan BenitAmazon’s dominance grows in Germany and the UK
Amazon once again outpaced ecommerce market growth in Germany (+8.7%) and the UK (+12.7%), with revenues hitting €39.6 billion and €36.7 billion respectively. While Germany remains Amazon’s most important international market, growth has slowed compared to 2023 due to increasing competition from Chinese platforms like Temu and Shein. In contrast, Amazon’s UK growth accelerated, proving its resilience through fast delivery and pickup expansion, with over 1 billion Prime orders delivered within 24 hours last year.
Globally, Amazon reported €617.5 billion in revenue, up 11% from 2023, and saw its net profit double to €57.1 billion. With its third-party seller services and retail media business thriving, Amazon continues to solidify its dominance despite rising competition and a rapidly evolving ecommerce landscape.
Google’s AI now generates human images for ads
Google’s Imagen 3 AI model is bringing human image generation to Google Ads, allowing advertisers to create realistic lifestyle imagery for Performance Max, Demand Gen, Display, and Apps campaigns. Marketers can now customize age, gender, and other demographic traits, making it easier to create diverse, on-brand ad content without costly photo shoots.
With AI-generated asset recommendations and built-in safeguards to prevent misuse, Google is balancing automation with creative control. This update reduces production costs, speeds up content creation, and provides businesses with more flexibility to test highly targeted, data-driven ad visuals. As AI continues to reshape digital marketing, this tool could be a game-changer for brands aiming to scale their ad campaigns efficiently.
🔍 Amazon retires TikTok-style ‘Inspire’ for AI chatbot ‘Rufus’
Amazon is shutting down Inspire, its TikTok-inspired shopping feed, in favor of Rufus, an AI-powered shopping assistant. Launched in 2022, Inspire was designed to compete with social commerce platforms like TikTok Shop, offering users shoppable video content from influencers. However, Amazon is now betting big on AI, integrating it across its shopping and cloud services instead of trying to lure users away from social platforms.
This move reflects a larger industry shift—rather than trying to replace social commerce platforms, Amazon aims to enhance the shopping experience within its own ecosystem. While social commerce remains key, Amazon’s investment in AI-driven shopping experiences highlights its strategy to personalize product discovery and streamline the purchase journey.
Social commerce strategies grow, but brands lack community engagement
A new study reveals that while 70% of global consumer brands have adopted social commerce strategies, nearly one-third still lack a clear plan, missing out on ecommerce opportunities. Instagram leads as the top social commerce platform (40%), with brands increasingly shifting budgets toward short-form video content on Reels (69%) and TikTok (66%) to drive engagement and sales.
However, brands are failing to foster online communities, with only 25% actively engaging with their audience. This represents a missed opportunity, as authentic interactions and proactive engagement are key to boosting algorithm visibility, building trust, and driving repeat purchases. As social commerce evolves, brands that prioritize both content and community management will be the ones that succeed in turning followers into loyal customers.
Jorrit Steinz🛒 Lidl becomes first UK supermarket to launch TikTok Shop
Lidl UK is making history as the first British supermarket to sell products directly through TikTok Shop, offering a high-protein sports bundle for just £5—a fraction of its £30+ value. With only 3,000 bundles available, this limited-time promotion serves as a publicity stunt while also donating proceeds to charity.
By tapping into TikTok’s growing influence on shopping behavior, Lidl is experimenting with social commerce as a way to introduce new product assortments. This move follows its previous “mystery box” campaign, which offered surprise packages at a discount. While this campaign is short-lived, it signals a larger shift toward integrating social platforms into retail strategies, especially as younger consumers embrace “shoppertainment” experiences.
Bol earns more than all its partner sellers for the first time
Bol, the Netherlands' leading online marketplace, saw 8.7% revenue growth in 2024, reaching €3.1 billion—a faster increase than its overall trade volume (+4.1%). This signals a shift back to first-party sales, with Bol now earning more from its own platform sales than from its partner sellers. Once focused on supporting third-party sellers, Bol’s own-brand products now account for over half of its sales, reducing the share of independent sellers. Meanwhile, its advertising and logistics services are expanding, generating additional revenue.
With fewer marketplace sellers (down to 47,000) and higher profits (€185 million in 2024, up 22%), Bol is positioning itself more like a traditional retailer rather than a pure marketplace. This strategic shift could impact third-party sellers, as the platform balances its own sales growth with partner offerings.
European Parliament approves VAT reform for online platforms
The European Parliament has approved a major VAT reform, making online platforms liable for VAT payments if their sellers fail to comply. Set to take effect by 2030, the rule aims to level the playing field, prevent VAT fraud, and save businesses billions in compliance costs.
Key updates include fully digitalized VAT reporting, mandatory online invoicing, and an expansion of the One Stop Shop (OSS) system, simplifying cross-border ecommerce. The reform is part of the ‘VAT in the Digital Age’ (ViDA) package, with the EU expecting to recover up to €11 billion annually in lost VAT revenue. For online sellers, these changes mean stricter compliance but also a more streamlined process for managing VAT across multiple EU countries.
⚖️ EU to hold platforms accountable for unsafe or illegal goods
The EU is stepping up enforcement against unsafe or counterfeit goods flooding the market from platforms like Temu, Shein, and Amazon, with plans to make online marketplaces liable for the products they sell. With 4.6 billion low-value parcels entering the EU in 2023 (mostly from China), regulators warn that over 85% fail to meet EU safety standards.
Proposed customs reforms will require platforms to submit product data before import, shifting legal responsibility from consumers to platforms. This means online retailers must collect VAT, ensure compliance, and adhere to EU safety standards—a significant change that could impact cross-border ecommerce. Additionally, the EU plans to remove the €150 import duty exemption by 2028, tightening controls on low-cost imports. As regulators push for fairer competition, these measures will likely reshape how international sellers operate within the EU.
Adidas to integrate Amazon’s Buy with Prime on its website and app
Adidas is the latest major brand to embrace Amazon’s Buy with Prime, allowing Prime members to use their Amazon accounts for checkout, tracking, and fulfillment directly on the Adidas website and app. Set to launch in spring 2025, this integration aims to boost conversion rates and enhance customer experience, following the success of Buy with Prime with brands like Fossil, Steve Madden, and Crocs' HeyDude.
The move comes as Adidas seeks to strengthen its ecommerce performance, after reporting a 3% decline in online revenue in Q3 2024, largely due to the discontinuation of its Yeezy partnership. However, excluding Yeezy sales, Adidas' ecommerce grew by 25%, signaling a shift toward full-price sales and reducing discounting activity. By integrating Amazon’s fulfillment benefits, Adidas is betting on faster delivery and seamless checkout to fuel its next phase of ecommerce growth.
Mitchell Alibaba reports strong Q3 revenue growth, driven by ecommerce and AI
Alibaba continues to outpace expectations, reporting $38.38 billion in revenue for Q3 2024, an 8% year-over-year increase, with net income surging 333% to $6.71 billion. The company’s international B2B ecommerce arm (AIDC) saw a 32% jump, reaching $5.17 billion, fueled by cross-border expansion and rising consumer demand.
AI is also playing a pivotal role in Alibaba’s growth. The company’s cloud computing division grew 13%, with AI-related products experiencing triple-digit growth for six consecutive quarters. Meanwhile, Alibaba’s retail platforms, Taobao and Tmall, saw a 9% increase in merchant revenue, driven by enhanced user engagement and monetization strategies. With a growing global footprint—including expansion into the Gulf and European markets—Alibaba is positioning itself as a leader in AI-driven commerce and international retail innovation.
