The Freight Conundrum: Germany’s E-commerce Landscape Sees a Shift
In the last two years, the average shipping costs among Germany’s top 100 online retailers have witnessed a significant surge of 12%, escalating from 3.92 euros in 2022 to 4.39 euros in 2024. This increase has been accompanied by a notable decline in the number of companies offering free shipping as a standard practice, while return fees are becoming increasingly prevalent.
Logistical Costs: The Underlying Factor
An analysis conducted by Neuhandeln, a publication specializing in German e-commerce, reveals that this increase is directly linked to the high costs of transportation. The decline in online shopping volume in 2022 and 2023 led to financial challenges for many transport companies, exacerbated by rising energy and labor costs. As a result, shipping prices were adjusted, with the additional costs being passed on to the end consumers.
This situation reflects a global trend in e-commerce, where companies are seeking to optimize their processes and reduce loss margins. The EHI Institute, which ranks the country’s leading online retailers, had already warned about the need to review cost structures to ensure competitiveness in the sector.
The study also exposed a significant reduction in the offer of free shipping. While at the end of 2022, there were 16 major retailers offering cost-free shipping for all orders, this number dwindled to just seven by the end of 2024.
Furthermore, German consumers are facing a growing number of return fees. Approximately 23% of the leading retailers now charge for product returns, either in all cases (17%) or when the order does not reach a minimum value (6%).
Market Giants Adapt
Although the return policies of most leading retailers have not undergone significant changes, some of the market’s most important platforms have begun to adopt more restrictive measures. For instance, Amazon announced that only returns without packaging will remain free in Germany. Meanwhile, Zalando, known for its flexible return policy, recently reduced the return period for purchases in the country from 100 to 30 days.
In the face of this changing landscape, both consumers and retailers must adapt to the new reality of e-commerce in Germany, where rising logistical costs are prompting significant changes in shipping and return policies. As the market continues to evolve, it will be crucial for companies to find a balance between maintaining profitability and meeting consumer expectations, all while navigating the intricate web of logistical challenges and cost adjustments.
