In this article, we take a deep dive into the sales performance of Germany's two largest e-commerce platforms: Amazon.de and Otto.de. The analysis covers Gross Merchandise Volume (GMV) data for the years 2023/2024 and compares the growth rates of both platforms.
Otto Group, which also includes online stores such as About You and Bonprix, recorded a revenue decrease of approximately 9% in the 2023/24 fiscal year compared to the previous year. However, Otto.de's marketplace alone generated GMV of 6.5 billion euros, reflecting a year-over-year increase of 2%. This growth is particularly noteworthy given the challenging economic environment and declining consumer spending both in Germany and across other markets.
Table: Otto.de GMV in 2022-2024
A range of macroeconomic factors underlie the trends observed. Otto Group representatives have highlighted the negative impact of declining consumption levels and global economic uncertainties, both of which have weighed on consumer spending. Nevertheless, they emphasized that, despite these challenges, Otto.de achieved stable GMV growth of 2%, demonstrating the platform's strength and resilience.
Amazon does not disclose direct GMV figures, instead providing net sales data that allows for rough estimates only. According to sources like Forbes and eCommerceDB, Amazon's global GMV in 2023 was estimated to range between $700 and $750 billion. For the German market specifically, Amazon’s estimated GMV in 2023 ranged from €46.3 to €56.9 billion.
Table: Estimated Amazon GMV for 2022 to 2023
Amazon's financial report for the fourth quarter of 2023 reveals that the company achieved global revenue of $149.2 billion, representing a 9% increase compared to the fourth quarter of 2022. The product sales segment generated $93.3 billion in this quarter, marking an 8% year-over-year increase. The services segment, which includes Marketplace commissions, AWS, and Prime subscriptions, reached $55.9 billion, reflecting an 11% increase compared to the same period in the previous year.
Based on Amazon’s quarterly reports, we can estimate that GMV in Germany grew significantly in 2023, reaching approximately €47.1 billion. Trend analysis shows that GMV growth in 2023 was around 13%, indicating dynamic platform expansion compared to the previous year, when GMV stood at approximately €41.65 billion.
Table: Comparison of GMV for Otto.de and Amazon.de in 2023
The results show that Amazon.de’s GMV is approximately seven to eight times larger than that of Otto.de. Furthermore, Amazon.de is growing six times faster than Otto.de. In 2023, Amazon.de's GMV grew by 13%, while Otto.de recorded only a 2% increase. As a result, the gap between these two marketplaces continues to widen.
Otto Group’s management points to challenging consumer conditions as the main factor behind the sales decline. Amazon, however, despite facing similar challenges, managed to maintain and increase its performance thanks to its global scale and diversified service portfolio.
Amazon's product sales grew by 8% year-over-year, reaching $93.3 billion in the fourth quarter of 2023. The services segment grew by 11%, reaching $55.9 billion. The largest growth was observed in segments such as AWS (Amazon Web Services), which continues to expand dynamically due to the increasing demand for cloud services.
Table: Amazon Sales Segment Growth in Q4 2023
Analyzing data for the German market shows that the growth of Amazon.de's GMV in 2023 was primarily driven by the increasing demand for online shopping and the expansion of both product and service offerings. As the leading e-commerce platform in Germany, Amazon.de effectively attracts new customers while maintaining the loyalty of existing ones, which results in dynamic GMV growth.
Although this article focuses on Amazon.de and Otto, we must not forget the third major player in the German e-commerce market – eBay.de. In Q1 2024, eBay.de outperformed Otto, although still lagging behind Amazon (Business of Apps).
In 2023, eBay.de generated GMV of around $10 billion, making it one of the largest marketplaces in Germany, just behind Amazon.de. In Q1 2024, eBay.de reported GMV of $18.6 billion globally, reflecting a 1% year-over-year growth. Advertising on the eBay platform increased by 20%, indicating higher spending by sellers to promote their products.
In terms of GMV, eBay outperforms Otto. In 2023, eBay.de generated approximately $10 billion, while Otto.de achieved GMV of €6.5 billion (around $7.1 billion). Both platforms attract different market segments – eBay focuses on a wide range of products, including both new and used items, while Otto is more oriented toward fashion, home goods, and electronics (eBay Inc.).
Times have significantly changed for eBay. Many sellers complain of lower sales and smaller average baskets than they experienced 10 or even 15 years ago. On one hand, this is due to the growing market share of Amazon, which offers consumers a much smoother and hassle-free experience, with fewer conflicts with sellers. Additionally, the rising competition from platforms such as Otto and Kaufland is also playing a role.
For a long time, eBay believed it didn’t need to change as it was a strong market player. However, with the increasing competition, primarily from Amazon, and inflation, eBay is slowly being sidelined. Nevertheless, it is not the end for eBay – despite facing challenges, it is likely to remain relevant for a long time. Given how the e-commerce market is evolving and the new challenges arising, such as competition from Chinese platforms like Temu, eBay may still find a way to adapt and reclaim its position at the top.
Together with Otto, eBay attracts sellers and buyers depending on the product category. While Amazon.de dominates the German market, eBay and Otto offer diverse selling opportunities and target different consumer segments. Along with Otto, eBay contributes to the diversification of the market and provides sellers with alternative platforms that may be better suited to specific product and demographic needs.
The rising role of Kaufland.de in the German e-commerce market should also be noted. Kaufland.de, part of the Schwarz Group, is rapidly developing its e-commerce platform and offers a wide range of products, from groceries to electronics. Their strategy includes intensive online expansion and integration with other sales channels, attracting more and more sellers and consumers.
An analysis of the sales results of Amazon.de and Otto.de shows a clear dominance of Amazon in the German market. Although Otto.de shows some growth, the pace of development and the scale of Amazon's operations means that the gap between these platforms continues to grow. For Polish cross-border sellers, Amazon.de remains a key sales channel offering the greatest potential for growth.
Both Amazon and Otto face challenges arising from global consumer trends and macroeconomic factors. However, due to its strong market position and constant innovation, Amazon.de shows a greater ability to adapt and grow, making it a more attractive platform for sellers seeking a dynamic and expanding market.
For Polish cross-border sellers, Otto, eBay, and Kaufland.de are important platforms alongside Amazon.de, offering wide opportunities to reach German consumers. Although eBay and Kaufland do not match Amazon in scale, their importance in the German market remains significant, especially in certain product categories.
For sellers, it is important to monitor these trends and adjust sales strategies to changing market conditions. Cooperation with dominant platforms like Amazon can bring significant benefits, particularly in the context of growing competition and demanding consumers. Otto.de, although an important player in the German market, cannot compete with the growth dynamics of Amazon.de, which makes Amazon the number one platform for many cross-border sellers.
Wondering if Amazon, Otto, eBay, or Kaufland are the best fit for your business? Let us analyze your options and guide you to the right platform for growth in the German market. ☝️ Get your free analysis through this form or via email at CEO@expan.do.
Sources used in the article:
🔎 Amazon vs. Otto – How Big is Amazon Really?
🔎 Marketplace Pulse – Amazon GMV Analysis (February 2024)
🔎 EHI Retail Institute – 2023 German E-commerce
🔎Carpathia AG – Amazon GMV Estimations (February 2023)
Share this article on a social media.
