Europe is one of the world’s largest and fastest-evolving e-commerce regions in 2026. Online sales are expected to grow significantly through the end of the decade, driven by mobile commerce, sustainability preferences, live shopping, and cross-border demand. However, despite this growth, the region presents significant challenges for sellers: navigating regulatory frameworks across EU member states requires considerable resources, while marketplace saturation in established markets intensifies competition and can limit profitability for new entrants. Furthermore, differences in payment preferences and delivery options add operational complexity for cross-border businesses. Nevertheless, new opportunities are emerging in less mature markets, where growth potential may offset these obstacles. This guide addresses growth statistics, customer patterns, and practical strategies. Continue reading for a deeper look!
Europe’s e-commerce market size and future growth
Europe’s e-commerce sector enters 2026 with strong momentum. Sales revenue is projected to grow significantly over the next few years.
- E-commerce revenue in Europe’s top five economies is forecast to increase from approximately $631.9 billion in 2023 to $902.3 billion by 2027, representing near double-digit growth.
- Long-term forecasts indicate the market may exceed €1 trillion in total retail online sales by 2030.
- Independent research projects that Europe’s e-commerce market could grow at a CAGR of 18–19% through 2030.
Despite this growth, Europe’s e-commerce landscape remains geographically diverse. Western European markets such as the United Kingdom, Germany, and France account for most revenue, while Southern, Central, and Eastern European markets are among the fastest-growing year over year.
Key market participation trends include:
- The Netherlands, the UK, Sweden, and Denmark have some of the highest online shopping participation rates in Europe.
- In contrast, Italy and Portugal currently have lower e-commerce participation but are experiencing rapid online adoption.
- A growing number of European consumers shop across borders, with approximately 32% of consumers in major economies purchasing from sellers in other EU countries.
- According to a 2025 report from IPC, 53 percent of online shoppers in Europe purchased from domestic sellers, highlighting the continued importance of local markets in cross-border strategies.
The dominance of mobile commerce
- In Spain, approximately 75% of shoppers use mobile devices to buy online, while in Italy, about 72% do so.
- Across Europe, nearly 60% of e-commerce transactions currently originate on mobile, with forecasts indicating this may grow to 75% by 2027.
In light of this trend, e-commerce businesses should prioritize mobile-first optimization by ensuring product listings are easily navigable on small screens, simplifying the checkout process for mobile devices, and offering mobile-friendly payment options. Implementing these practical measures will enhance user experience and increase conversion rates among the growing segment of mobile shoppers.
Eco-conscious buyer habits in Europe
A report from TGM Research notes that nearly two-thirds (61%) of European online shoppers always or often consider the eco-friendliness of a product’s packaging. Sellers who use recyclable materials, reduce their fulfillment carbon footprint, or clearly communicate sustainability efforts often achieve stronger engagement and stand out in the market.
Growth prospects in developing markets
Established markets such as the UK, Germany, and France bring considerable scale but can be challenging for new sellers due to market saturation. For businesses considering expansion, this dynamic suggests that targeting less saturated, high-growth emerging markets may offer greater opportunities for entry and long-term development. According to Business Forum, emerging markets in Europe, such as Poland and Romania, are experiencing rapid e-commerce growth, with Romania now ranking third among EU countries in Central and Eastern Europe by e-commerce value, following Poland and the Czech Republic.
Smaller markets such as Bulgaria, Greece, and Ireland are among the highest-growth markets between 2024 and 2028, offering geographic diversification opportunities.
What Europe’s consumers are buying
Across European online marketplaces, the most popular product categories in 2024 are expected to remain strong drivers of e-commerce volume through 2026 and beyond.
Smaller and mid-sized countries in Southern and Eastern Europe, such as Greece, Portugal, and Poland, show considerable opportunities for future growth, with notable increases in user penetration, signaling broader opportunities beyond the largest economies.
Best logistics practices for e-commerce businesses in Europe in 2026
Reshaping logistics for the circular economy
Most European cities have implemented low-emission zones that restrict traditional delivery vans. Logistics strategies now incorporate micro fulfillment centers and cargo bike deliveries for the final mile.
Returns processes are being redesigned to fit the circular economy model. Instead of shipping returns back to a central hub in another country, partnerships with local shops and resale platforms are established. This approach reduces carbon footprint and creates a secondary revenue stream from refurbished goods. Modern European consumers value brands that take responsibility for the entire product lifecycle, not just the point of sale.
Offering a variety of delivery and return options
E-commerce businesses that leverage a diverse array of delivery and return options as strategic growth levers can achieve higher conversion rates and reduce customer issues. By treating these elements as critical components ofcustomer experience and profit margin, companies can strategically use data to refine offerings by market, location, basket value, and product type. This approach necessitates alignment among e-commerce, store, and supply chain teams to ensure that operational capabilities meet customer expectations. Additionally, collaborating with logistics partners enables access to a range of options such as pickup points, lockers, and eco-friendly choices without adding complexity, thereby boosting competitive advantage.
Advice for an exceptional delivery experience
To deliver an excellent customer experience and avoid dissatisfaction, retailers should treat delivery and returns as a structured product rather than just a list of shipping methods. They should build and maintain a portfolio of delivery and return options that includes home delivery, out-of-home locations such as lockers and pickup points, and in-store services.
Last-mile delivery
The last mile, which is the final step of delivery, represents around 60–70% of total delivery costs and is becoming more challenging as cities introduce congestion limits, emission rules, and tighter access policies. Across Europe, studies and city pilots show that using out-of-home delivery options such as lockers and pick-up points can greatly reduce delivery costs, cut CO2 emissions, and lower the number of failed delivery attempts by consolidating volumes and reducing driving distance. Failed deliveries can cost retailers up to €2.50 per delivery in handling and refund processing, which highlights the importance of efficient delivery solutions in maintaining profitability. In dense urban areas, carriers are increasingly using electric vans, cargo bikes, and micro-hubs to comply with low-emission zones and improve efficiency, supported by better routing and consolidation tools. While robots and drones continue to attract attention, their use remains limited to small pilots and will not significantly impact everyday delivery in the near term. For retailers, the priority is practical execution: offering customers clear out-of-home choices at checkout, working with carriers that operate clean fleets and understand local city rules, and defining achievable delivery promises based on urban constraints. Retailers that do this can reduce costs, avoid failed deliveries and refunds, improve sustainability, and deliver a more reliable customer experience.
Smart forecasting tools
The adoption of predictive tools is essential for retailers operating in the European landscape, given the natural complexity of its multi-node, multi-modal networks. Unlike other markets, European logistics include complex cross-border movements and customs requirements that demand high levels of precision. Furthermore, the region faces frequent process interruptions due to climate events and geopolitical shifts.
Planners and supply chain teams will use early signals, such as demand trends, weather, promotions, or supplier delays, to place inventory in the right locations, determine the fastest or cheapest way to deliver orders, and navigate logistics hurdles with greater accuracy.
Most platforms focus on connecting systems and automating shipping execution, generating labels, managing tracking events, presenting delivery options, and applying basic carrier selection rules. While this infrastructure is essential, it is no longer enough to compete on cost, service quality, resilience, and sustainability.
Transform your deliveries into a strategic advantage
Elogy adds an intelligence layer to delivery operations, transforming delivery into a strategic advantage and helping retailers deliver better outcomes at scale. By reducing average shipping costs, eLogy not only enhances efficiency but also enables retailers to adopt a more cost-effective approach.
Faster, Smarter Shipping with eLogy SmartShip™
AI automatically selects the best courier based on location, day, and package type — guaranteeing the optimal balance of speed and cost.
Worry-Free Cash on Delivery
Collections across Europe are handled automatically, with real-time balance and reconciliation updates on the platform.
No Surprise Costs
Full control over shipments, returns, and collections with a clear, detailed dashboard to monitor every transaction in real time.
Strategic Warehouses Across Europe
Place your stock in optimized logistics hubs to reduce delivery times and shipping costs.
Total Automation
An AI-driven software that orchestrates shipments, manages returns, and optimizes orders — with no errors and no waste.
Integrated Customer Care
Customer support via WhatsApp and call center directly from the platform to respond to inquiries, boost loyalty, and increase upsells.
Limitless Integration
Easily connect your e-commerce (Shopify, WooCommerce, Magento, and more) in just a few clicks, thanks to advanced APIs and Webhooks.
Partnership with Top Couriers
eLogy partners with DHL, GLS, DPD, SDA, and more to ensure maximum reliability — with every shipment optimized by eLogy SmartShip™.
FAQ
Is Europe a good market for e-commerce expansion in 2026?
Yes. Europe remains a top global e-commerce region, with strong projected growth and diverse market opportunities despite regulatory complexity and marketplace saturation.
What payment trend should sellers prioritize?
Mobile commerce continues to rise. Optimizing checkout and payment options for mobile users is critical, given that mobile constitutes the majority of online transactions.
Which product categories perform best online in Europe?
Fashion, electronics, hobbies & leisure, furniture & homeware, and footwear are among the top marketplace categories.
Are cross-border sales important in Europe?
Yes. Nearly one-third of shoppers in major European markets purchase from sellers in other countries, pointing to powerful cross-border demand potential.
