Online shopping becoming increasingly popular
Destatis, 18 December 2009
Purchases by individuals via internet
For those who wish to avoid the Christmas hustle and bustle in overcrowded cities, online shopping is an attractive alternative. However, online purchases are getting increasingly popular in Germany not only before Christmas. More than half (55%) of the approximately 54 million internet users aged 10 years or over ordered goods or services online at least once in the first quarter of 2009, while in 2002 the share was just one third. Especially persons aged between 25 and 54 years often use the internet as a shopping platform. In that age group, just 15% of the internet users had never bought goods or services through the web. In the comparative group of those aged 55 or over, the share was 35%.
Clothing and sporting goods particularly popular in online shopping
Clothing and sporting goods are highly popular among online purchasers as 55% of the internet users indicated to have purchased such goods via the internet in 2009 (2008: 48%). Other private consumer durables that were in strong demand are furniture and toys: Products of that category were ordered by 48% of the internet purchasers in the twelve months preceding the survey period. In the last few years, online shoppers have developed a strong preference for tourism services. The share of persons booking via the internet holiday accommodation (e.g. hotels) as well as rail, air or bus tickets for holiday trips rose to 35% and 36%, respectively, in 2009. The share of persons ordering tickets for events online was 37%.
For other products and services, the internet has not achieved the same strong position as a source of supply. Persons using the internet indicated that they still prefer shops and local banks for food (15%) as well as for shares, insurances and other financial services (12%), respectively.
Table: Purchases and orders via internet
14% of the total turnover in Germany achieved through e-commerce
Despite increasing online purchases made by consumers, there are still relatively few enterprises selling through electronic platforms. Their number has been stagnant at about 12% since 2005. When considering only the enterprises with internet access, the share was 15% in 2008. The enterprises actually selling products or services through the internet or other computer-assisted networks in 2008 achieved about 39% of their total turnover (2005: 30%) through that channel. When measured by the total turnover of all enterprises in Germany, the share of turnover achieved through e-commerce was as much as some 14% in 2008 (2005: 12%).
Security and data protection: Major issues in electronic commerce
PC use without online sales
Among the enterprises using computers, 53% indicated in January 2009 that the reason for their reluctance to use electronic commerce was that their products or services were not suited for online sale. 33% would have to restructure their business process and 32% of the enterprises made the experience that customers do not use such offers. Other reasons mentioned are security concerns, logistics problems or uncertainty regarding the legal framework conditions.
Especially those reasons show that security and data protection are major issues in electronic commerce. Especially in the online ordering process, where sensitive customer information such as credit card data is transmitted, the protection of data against unauthorised reading, copying or falsifying should be the first priority. Using encryption protocols such as SSL (Secure Sockets Layer) or TLS (Transport Layer Security), data transmission on the internet can be secured. Nevertheless, in January 2009, just 31% of the enterprises selling products or services through their website guaranteed their customers encrypted data transmission and thus optimal security in the ordering process.
Security and data protection concerns can also discourage many potential online customers. In the ICT survey of 2009, 32% of the internet users indicated security concerns as their reason for avoiding online purchases, and 27% of the internet users also mentioned data protection concerns. The reasons mentioned most frequently for not buying online were: "No need" (53%) and "prefer going to a shop" (51%).
Innovative payment systems may enhance e-commerce acceptance
Opening up new electronic distribution channels requires at the same time developing innovative payment systems which combine various payment methods and offer several payment options to the customers. On the one hand, especially small providers refuse purchases against invoice as they are afraid of not receiving payments, on the other hand many customers are reluctant to transmit their credit card data via internet.
It is therefore necessary, in addition to the traditional payment options, to develop and offer new, internet-based payment systems covering the requirement profile of that new and additional market and enhancing the acceptance of e-commerce.
58% of the enterprises accepting only offline payment
For reference year 2008, 36% of the enterprises performing sales through a website offered their customers online payment which is integrated into the ordering procedure. Customers may pay directly via credit card, PayPal, e-cash or direct debit. However, even if – in e-commerce – trade is performed online, payment does not necessarily have to be online, too. 58% of the enterprises accepted offline payment only. For those enterprises, the invoice may be paid only through cash on delivery, bank transfer or cheque. 29% of the enterprises accepted both payment methods in parallel.
Author:
Oliver Bauer und Sebastian Czajka - Federal Statistical Office
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