European ecommerce sales in Germany continue to rise, with the German Retail Federation (HDE) projecting a 4.3% increase in online revenue this year. That would bring total sales to 96.3 billion euros, outpacing the 1.6% growth expected for physical stores. The federation calls ecommerce the “growth engine of retail,” a label driven by the rise of online platforms. These sites already accounted for 56.7% of online sales last year, and their share is expected to grow again, though at a slower pace.
Marketplaces dominate, but not all sales stay local
While online platforms are expanding their influence, not all of their growth benefits German businesses. A significant portion of online spending flows through international sites. Shein and Temu, two Chinese retailers, generated 4.7 billion euros in sales within Germany last year. A study by the HDE estimates these companies drain billions from the local economy annually.
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German consumers increasingly buy from foreign online stores. Nearly two-thirds (65%) of shoppers have purchased from international sites, with almost half of those (49%) choosing Chinese retailers. That means over 30% of Germans use platforms like Shein or Temu. Stephan Tromp, HDE’s deputy managing director, highlights the challenge: “Fair competition is still missing for companies like Shein and Temu. Stronger action from policymakers is needed.”
Enforcement gaps raise concerns
Tromp emphasizes the need for enforceable regulations and penalties. He argues that current measures fail to deter violations. “Every participant must assume violations will be detected,” he says. The HDE warns that without intervention, the imbalance between local and foreign retailers could worsen. Smaller German businesses are already struggling, with many reporting declining revenues in recent years.
Amazon remains the dominant force in Germany’s online retail sector. The company achieved record sales last year, growing 12.3% in its largest European market. A chart from the HDE Online Monitor 2026 illustrates Amazon’s overwhelming share of the market. This concentration of power raises questions about competition and consumer choice.
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Smaller retailers face an uphill battle. Many have seen revenue declines as larger platforms capture more market share. The HDE points to a broader trend: a growing share of online spending is concentrated among a few major players. While this benefits some, it leaves room for concerns about sustainability and innovation in the sector.
Call for policy changes
The HDE’s findings emphasize a paradox: ecommerce is driving retail growth, but much of the economic benefit is leaving Germany. The federation urges regulators to act, citing the need for stricter enforcement of competition laws. Without changes, the gap between local and international retailers could widen further. For now, the market remains a mix of opportunity and challenge, with policymakers facing pressure to address the growing influence of global platforms.