European Online retail sales will reach €233.9 billion by 2018 for a 12-percent compound annual growth rate over a 5-year period, according to Forrester research. In 2013 Europe saw €134.9 billion in the sector.
“Western European online retail sales growth will continue to outperform overall retail sales through to 2018 and will increasingly come from sales completed over mobile devices like smartphones and tablets,” said Forrester analyst Michelle Beeson in her blog post about the forecast.
As American retailers see major increases in online sales as well, cloud computing for small retail will enable the SMB retail market to capitalize on European online spending.
With recent advancements in technology including social media and mobile cloud computing, retail markets are shrinking so that mom and pop shops in the U.S. can reach parts of the world they would not have been able to consider selling in just few years ago.
With full scale ERP solutions now in the cloud that are easily accessible and powerful, SMBs are able to handle multi-currency accounting, automated payments and sales tax; all of which would not have been possible just a few years ago.
Essentially, SMB retailers who are looking to expand rapidly with aggressive growth plans can now instantly expand their reach by going global and capitalizing on European online retail sales.
The Forrester research also found the following European online retail trends:
- Clothing sales will remain the strongest sector of European online retail while the grocery sector will prove to be the fastest growing.
- Southern European markets will show the fastest growth while Northern European markets will maintian larger online retail markets overall.
- Just under 50-percent of all online retail sales across the EU-7 will be made using a smartphone or tablet by 2018.