Europe is complex. One market on paper. Many unique markets in practice. This rich variety makes it difficult for fashion brands and retailers to unlock Europe’s full potential. Explore European consumers' diverse expectations regarding the convenience of online shopping, and dive deeper into exclusive market insights to better steer your business.
How it’s done in Europe
Europe holds incredible potential for brands and retailers, with over 600 million people spending around 450 billion EUR on fashion and lifestyle in 2023. However, only 28% of these sales happen online, lower than in China (31%) and the US (39%) (Boston Consulting Group, proprietary model, February 2024). What’s keeping European consumers from shopping online more often?
Unlike the US, where two main languages, a single currency and a few logistics providers simplify operations, Europe is highly complex with over 40 countries, 30 languages, 30 currencies, numerous preferred payment methods, and a wide variety of local carriers.
From an incredibly intricate payment landscape to a multitude of delivery options, European consumers have distinct convenience expectations that vary from country to country. Germans predominantly prefer home delivery, whereas Polish consumers favour collection lockers. Scandinavians lean towards mobile payments, while Italians feel more comfortable to use cash on delivery. This variation means there is no one-size-fits-all solution for brands.
Additionally, the presence of multiple sales channels – with a pan-European reach on the one hand and local relevance on the other – requires brands to adopt a multi-channel strategy to reach their target audience. Understanding and navigating these challenges is vital for brands looking to expand in Europe.
What European customers expect from e-commerce
Grasping the local consumer preferences in Europe is essential for brands aiming to succeed in this diverse landscape. We asked 28,000 respondents across all Zalando markets about their convenience expectations. Here is what we found out.
Delivery preferences of online shoppers
Delivery preferences vary widely across Europe, with two favoured options being home delivery and parcel locker pick-up.
Zooming deeper into the results:
Consumers in the DACH region show a strong preference for home delivery, with 88% of Swiss consumers, 85% of Germans and 82% of Austrians favouring this option. Similarly, home delivery is popular in other relevant European markets, like the Netherlands (81%), the UK (76%), Italy (75%), Spain (66%) and France (65%).
On the other hand, consumers in Eastern Europe and the Baltics prefer the convenience of parcel lockers. In countries like Estonia (86%), Poland (83%), Lithuania (82%), Latvia (80%) and the Czech Republic (54%) that is the preferred option.
In Scandinavia, the landscape is more divided. Swedish (54%) and Norwegian (58%) consumers prefer home delivery, Finnish customers (72%) opt for a parcel locker pick-up while Danish shoppers (55%) prefer a pick-up point, like a post office or a shop.
Additional delivery expectations
But not only the delivery destination is a key trend in understanding the individual consumer preferences. For brands and retailers, it is also crucial to determine which type of delivery services their clients prefer. Our focused consumer research showed that free delivery (82%) and bundled orders (43%) make it to the top of that list.
European consumers have clear expectations when it comes to delivery times as well. A significant portion (37%) considers a reasonable delivery time to be three days. Meanwhile, 28% of respondents believe that delivery should take no more than two days. This highlights the importance of efficient logistics and the ability to meet fast delivery demands to stay competitive in the market.
There are exceptions, though – according to our research among customers in Germany, Austria, and the Netherlands, the majority are willing to wait longer if their orders are bundled. Specifically, 82% of customers expressed interest in receiving all their items in one delivery, even if it means an additional 2-3 days of waiting time. This preference is largely motivated by sustainability concerns, with many customers prioritizing reduced environmental impact over faster shipping.
Preferred carriers of European shoppers
Up to 24% of customers report abandoning their cart in case of limited delivery options. The best way to unlock local delivery nuances is to partner with relevant last-mile providers. Established, country-specific services are often the most popular in European markets – for instance, PostNord is a trusted carrier in the Nordics, while DHL is widely favoured in Germany. Offering familiar and reliable delivery options can significantly enhance the consumer experience, fostering trust and satisfaction.
Preferences for ways of returning goods
Similarly to delivery preferences, each country in Europe has its own favourite way of handling returns. On a global scale, 57% of consumers prefer drop-off points for their returns, while 36% favour parcel lockers. This trend is consistent across various European markets, with notable exceptions in the Baltics and parts of Eastern Europe where parcel lockers are significantly more popular.
Let’s dive deeper into the results:
Preference for parcel lockers can be observed in the Baltics, with Estonian (85%), Latvian (79%), and Lithuanian (75%) shoppers preferring that method. Similarly in Poland, 80% of consumers show a strong inclination towards this method of handling their returns.
The Scandinavian market is more split, with Finnish consumers (65%) favouring parcel lockers and Danish shoppers opting for drop-off points. Swedish and Norwegian consumers are nearly evenly split, with 56% and 64% respectively preferring drop-off points.
In Germany, drop-off points are more popular, with 64% of consumers preferring this option. The Netherlands also shows a higher preference for drop-off points, with 67% of consumers choosing this method.
On average fashion & lifestyle industry experiences 50% return rates. According to our data, roughly ⅓ of all returns are size-related. Products with the highest return rates include dresses, skirts and shoes.
Additionally, European consumers expect an average of 7 days to get reimbursed for their return. According to our research in Germany, France, Italy, The Netherlands and Poland both “easy to return” and “smooth reimbursement process” are the top 5 factors driving re-purchase intent.
Common payment methods for online purchases
The diversity within the payment landscape is perhaps one of Europe's most defining features. Globally preferred methods like PayPal (44%) and credit cards (38%) are widely used, but some additional locally-relevant preferences can be observed like invoice orders (21%) or choosing Klarna at the checkout (20%), a popular buy-now-pay-later service.
And, although it flies under the radar in much of Northern Europe, many customers in Southern and Eastern Europe prefer cash on delivery as a payment option. By offering that option at the checkout brands and retailers can unlock additional demand.
Another local nuance is the growing popularity of direct bank transfer services, known as account-to-account (A2A) payment providers, like BLIK, across some of the most important European markets.
Recognising these local preferences and offering the appropriate payment options is crucial for brands to succeed in the European market.
Understanding the user journey of European consumers
To understand the sales journey of European customers, it is important to gain insights into the channels they are using. Consumers are increasingly looking for fashion inspiration across social media (63%) and Google (29%), which means that a strong online presence is no longer an option – it’s a must.
It doesn’t end there – 75% of Europeans start their search to buy fashion online as well, including the most relevant markets like DACH, Scandinavia, Spain, Italy, and the UK.
More than half (58%) of surveyed markets start their journey on multi-brand destinations to shop for fashion, beauty & lifestyle products making them essential to widen your reach and never miss the sale.
Navigating multiple sales channels
In each European market, there are a few leading platforms that dominate the e-commerce space. Pan-European players like Zalando and Amazon offer broad reach across multiple countries, proving invaluable for brands aiming to establish a wide presence. However, local platforms also play a crucial role. For example, Bol is a dominant player in Benelux, La Redoute holds a significant market share in France and ASOS is highly relevant in the UK. These local platforms are deeply ingrained in their respective markets, offering unique advantages such as established customer bases and tailored services that resonate with local consumers. Overall, marketplaces are a great place for businesses to test new markets and assortments, and to learn more about local consumer preferences.
In addition to the broad channel mix, many brands operate their own webshops, which are vital for maintaining direct relationships with customers. These webshops provide brands with control over the customer experience, from browsing to purchase to delivery, allowing them to offer personalised services and gather valuable customer data.
The key to success in Europe lies in a multi-channel strategy that combines the reach of pan-European platforms with the local expertise of regional players and the personalised experience of branded webshops. This approach ensures that brands can meet the diverse needs of European consumers while maximising their market potential.
How one stock pool can benefit your business
While Europe is home to a very fashion & lifestyle-driven population and gives brands big opportunities, it is also a challenging market. As a result, brands and retailers face significant challenges when serving customers across markets and channels in Europe.
Firstly, they need dozens of integrations, both on the channel and the market level. They have to map out their data, connect to each individual channel, and integrate into dozens of payment providers and last-mile carriers to provide a localised experience in each market.
Secondly, they end up with split inventories. Some of the stock sits with marketplaces, some in brands’ own warehouses, and the rest with third-party logistics providers – making it difficult to move stock between different channels and markets, leading to overstock in some channels and going out-of-stock in others.
Lastly, brands struggle with a lack of transparency and insights into their online business as a whole. They have to deal with multiple dashboards and siloed product intelligence, unable to connect product performance to trading and inventory management decisions.
Over the past 15 years, Zalando has successfully expanded across Europe, gaining valuable experience, building a unique technical backbone, and investing in a pan-European logistics network tailored to fashion and lifestyle. With ZEOS, Zalando’s B2B business, you can now use these capabilities, multi-channel. It all boils down to the power of one:
One integration: Tap into our ecosystem of key partnerships with one integration across your e-commerce journey. Connect to relevant marketplaces. Deliver locally with the best last-mile carriers.
One stock pool: Have all of your orders fulfilled from one inventory pool. No more stock splitting. Demand-based stock distribution across our 12 fulfilment centres and 20 return centres, so you’re always close to your customers.
One control panel: Take control of your inventory. See stock movements. Optimize based on insights. Drive your business forward, right from your laptop.
Dreaming of European expansion in an efficient and profitable way? Let's make it a reality! Connect with us today to discover our bespoke solutions designed to catapult your business to new heights in Europe's bustling markets. We're here to simplify the complexities and fuel your success with our expert guidance and unwavering support. Ready to thrive? Let's get started!
