News • 14.09.2022

Is German e-commerce in good shape before the recession?

Feed Marketing Report 2022 confirms good prospects for German retail even in difficult times

According to the freshly released Feed Marketing Report 2022, German online stores have a very strong stand in multichannel presence, with retailers advertising across 3.6 channels on average, compared to the global benchmark of 3.2. And against their neighbors in the south, they are outperforming Switzerland (3.2) but underperforming Austria (3.9). When it comes to product availability, Germany is inline with the global average (16.7% of products out of stock), and again outperforming Switzerland (25% of products out of stock).

The beginning of the Feed Marketing Report 2022 infographic...
Source: DataFeedWatch

Feed Marketing Report 2022 (FMR 2022) finds that German e-commerce holds a very strong multi-channel presence, with retailers advertising on 3.6 channels against the global average of 3.2, which is 12.5% higher than the rest of the world. The report shows German merchants to be very active in promoting, advertising, and selling their products across different channels, platforms, and marketplaces. 

“Strong multi-channel strategies allow finding customers in various niches and increase advertising effectiveness”, explains Jacques van der Wilt, General Manager Feed Marketing at Cart.com. “Focusing on channels that work is one of the proven tactics that will be used during economic slowdown by many online stores. German merchants have very good knowledge of different channels which now they can monetize even more”.

Retail businesses stand to face new economic challenges

According to the Bloomberg monthly survey of economists in July, the probability of a recession now stands at 47.5%, compared to only 20% in March. Retail brands are bound to shift strategies as they gradually move past the COVID-led supply issues to face the challenge of climbing global inflation, the latter paired with consumers re-prioritizing their daily expenditures. 

The entire Feed Marketing Report 2022 graphic can be viewed here.

A full new landscape of today’s e-commerce:

  • Retailers respond to rising inflation by discounting 26.49% of all products advertised. The Fashion sector takes the lead at 37%, and the Health & Beauty and Furniture sectors are close behind with roughly 33% discounted inventory each.
  • On average, only 16% of products are out-of-stock, but some industries are especially hard hit, like Vehicle & Parts (57%) and Sporting Goods (40%)
  • Nearly 65% of e-commerce businesses reduce the size of their advertised product catalogs to prevent budget waste. With price shining as the top determinant of whether a product gets cast aside.
  • Size makes a big difference in multi-channel strategies - retailers with the largest product offering advertise on 5x more channels than the average online shop.
  • Affiliate advertising channels (such as AWIN) stand out as an outlier in the sales channel stack of an average retailer, with only 11% of sellers utilizing them. 

“Most retailers continue to lean on the search-based [over 90% of merchants] and social channels [54%] as the foundation of their online presence.” says van der Wilt. “However, with the looming recession and declining performance on meta channels like Facebook or Instagram, we expect the affiliate channels to grow in popularity. They pose a cost-effective way for retailers to bulletproof their revenue streams. And that’s what they need right now.”

Where is the e-commerce market headed?

Despite the economic slowdown, Morgan Stanley forecasts that global e-commerce sales in 2022 will reach the 3.3 trillion dollar mark. With this new set of challenges on the horizon and the unfaltering growth of global eCommerce, businesses are bound to look for new ways of optimizing their advertising operations. How? 

Find answers by downloading the Feed Marketing Report 2022 here.

Source: DataFeedWatch

related articles:

popular articles:

Thumbnail-Photo: Launch of Walmart Land and Walmart’s Universe of Play...
14.10.2022   #omnichannel #food retail

Launch of Walmart Land and Walmart’s Universe of Play

Roblox community members can check out the Walmart ‘isles’ to collect verch, catch top music artists and unlock exclusive interactive content

Recently, Walmart announced the launch of two new immersive experiences in the metaverse mega-platform, Roblox. Called Walmart Land and Walmart’s Universe of Play, the spaces offer unique interactive content and entertainment for customers, ...

Thumbnail-Photo: How convenience stores can drive shopper loyalty in 2022...
08.09.2022   #customer satisfaction #app

How convenience stores can drive shopper loyalty in 2022

Convenience, prices, loyalty programs – how to retain customers

According to this year’s Convenience Store Trends Report from Intouch Insight Ltd., convenience does not trump brand loyalty for today’s consumers. For example, when it comes to their cup of joe, 70% of shoppers would seek out their ...

Thumbnail-Photo: #DWMF Europe for top-level digital marketing insights...
09.08.2022   #digital marketing #event

#DWMF Europe for top-level digital marketing insights

DMWF Europe at the RAI in Amsterdam on 21-22 November

DMWF Europe returns to the RAI, Amsterdam on 21-22 November, for a must-see hybrid conference and exhibition bringing together the brightest minds in digital marketing. It’s three days of top-level strategic content, digital marketing ...

Thumbnail-Photo: In-store marketing measures: the variety of recipes is a challenge, too...
01.09.2022   #POS marketing #digital marketing

In-store marketing measures: the variety of recipes is a challenge, too

With the right seasoning, you can inspire customers and increase sales

In-store marketing measures are versatile and effective ingredients; from audio and scent marketing to visual merchandising and store design, the possibilities for adding a pinch of salt to the shopping experience are almost endless.Our "retail ...

Thumbnail-Photo: retail salsa – Spice up your community
21.09.2022   #online trading #brick and mortar retail

retail salsa – Spice up your community

THE virtual webtalk for retailers, suppliers and retail experts

Be a flavor mixer and spice up your customers' shopper journey with the webtalk format "retail salsa"

Thumbnail-Photo: Online grocery has plateaued as a part of the shopper’s total...
17.08.2022   #online trading #e-commerce

Online grocery has plateaued as a part of the shopper’s total repertoire

Curbside pick-up and delivery of digital orders continue to shrink as retailers return to boost in-store performance

The number of retail customers using buy online pickup in-store (BOPIS) “all the time” declined by one-third (45% down to 32%) last year and is expected to shrink further in 2022. Shoppers relying on home delivery of groceries purchased ...

Thumbnail-Photo: Canto unveils Media Delivery Cloud
01.09.2022   #e-commerce #digital marketing

Canto unveils Media Delivery Cloud

Directly connect digital assets across e-commerce and web platforms

Canto, a leading provider of digital asset management (DAM) software, released Media Delivery Cloud, a new solution that enables customers to directly connect images from their Canto library to their website, e-commerce platform and other content ...

Thumbnail-Photo: EuroShop 2023 – Prime time event of the global retail industry...
06.09.2022   #retail #digitization

EuroShop 2023 – Prime time event of the global retail industry

Hot topics that move retail now and in the future – from 26 February to 2 March 2023

Despite a turbulent climate EuroShop 2020 proved a resounding success. 94,339 visitors from 142 countries travelled to the Rhine to learn from 2,287 exhibitors from 56 nations about all aspects, innovations and trends in the global retail world. And ...

Thumbnail-Photo: 6 disruptive ideas for sales promotion in retail...
22.08.2022   #digital signage #consulting

6 disruptive ideas for sales promotion in retail

If you want to sell, you have to captivate, convince and inspire

"Creating a bridge between the product and the shopper" – that’s how one interviewee describes the goal of their marketing efforts. These diverse activities range from talking robots to virtual stores to treasure hunts. ...

Thumbnail-Photo: E-Commerce Berlin Expo 2023
21.11.2022   #e-commerce #retail

E-Commerce Berlin Expo 2023

Be inspired by e-commerce trends, use cases, forecasts and presentations from leading industry experts

The E-Commerce Berlin Expo is the largest pure-play e-commerce event in the capital city of Germany. The conference attracts over 8,000 visitors and more than 200 exhibitors, making it an insightful e-commerce fest. ...

Supplier

Canto GmbH
Canto GmbH
Lietzenburger Str. 46
10789 Berlin
iXtenso - retail trends
iXtenso - retail trends
Heilsbachstraße 22-24
53123 Bonn
EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf
salsify
salsify
7 rue de Madrid
75008 Paris