Recently, Amazon commissioned a report to examine the economic effects of ecommerce in Europe. The results found that European households have collectively saved €891 billion (over $1 trillion) over the last five years, and that there’s a link between ecommerce and inflation control.
This may be due to factors like ecommerce driving competition and having lower operating costs than traditional retail, which help companies offer more affordable and stable prices to consumers.
Ecommerce Contributes to Household Savings in Europe
The research and report, which was conducted by The European House – Ambrosetti (TEHA) and commissioned by Amazon, found that European families are experiencing financial relief through ecommerce shopping.
It found that European households saved €891 billion (over $1 trillion) over the last five years by shopping online. This means that each household in Europe saved an average of €880 (over $1,000) annually. These are substantial savings and certainly help families stick to their budgets and enjoy some relief during stressful financial periods.
The savings may be the result of greater competition and lower operating costs in ecommerce, which pressure companies into offering more affordable prices to customers.
The research also dove deep into the online purchasing behaviors of European shoppers, and found that:
- 70% of online shoppers are buying clothing, accessories, or footwear.
- 56% are buying multimedia services.
- 46% are buying subscriptions to streaming services.
- 38% are buying event tickets.
- 33% are paying for food deliveries.
- 31% are buying cosmetic, beauty, or wellness products.
Speaking about the results of the research, Amazon’s Chief Global Affairs and Legal Officer, David Zapolsky, said that:
“At Amazon, we’re proud to contribute to this positive economic effect. Our investments across Europe, from infrastructure to job creation, support this disinflationary effect. Our commitment to low prices, along with initiatives like Prime Day, Prime Big Deals Day, Black Friday, and Everyday Essentials, offers significant savings and helps European families stretch their budgets further, especially during challenging economic times.”
Digital Commerce Helps Economic Stability
In addition to helping families save more money, the report also stated that there’s a clear relationship between ecommerce and inflation control. It found that for every one percentage point increase in the share of online shoppers, inflation decreases by as much as 0.073 percentage points.
This effect is largely due to online prices generally being lower and more stable than offline prices. In fact, from 2020 to 2025, the online prices in Europe were 6.9 percentage points lower than offline.
The Rise of Ecommerce is Reshaping Retail and Increasing Competition
The impact that ecommerce is having on the retail market as a whole can’t go unnoticed, and it’s completely shifting the industry as we know it. According to data, ecommerce sales currently make up over 16% of total retail sales, and this is expected to go up to 22.5% by 2028.
While these percentages may seem small, they actually represent a massive amount of sales. In fact, in 2025, global retail ecommerce sales are expected to reach higher than $4.3 trillion worldwide, and rise even more over the next few years.
As we briefly mentioned earlier, ecommerce also creates a more competitive environment. As a result, businesses are willing to drop prices and offer deals to capture customers from their competitors, which often equals better pricing and more options for consumers.
If ecommerce brands aren’t willing to roll with the punches and keep up with competitors, they can easily be left in the dust.
Staying Relevant in a Competitive Ecommerce Landscape
While a competitive landscape is great for consumers, it may make things challenging for ecommerce brands. These companies need to always be on their toes and be aware of shifting pricing or market trends.
In addition to being agile and staying on top of pricing and market trends, there are several other things that companies can do to remain competitive in the dynamic ecommerce industry:
- Offer personalized recommendations or deals based on data like past interactions, interests, or online behavior.
- Provide quick delivery, so customers can get their hands on your products as soon as possible.
- Make your website or online store as user-friendly as possible, and improve your search and navigation to make it easy for shoppers to find what they’re looking for.
- Ensure your customer service is top-notch and responsive to build as much trust/loyalty as possible with your customers.
- Analyze successful competitors in your industry and monitor the tools or strategies they use to attract and retain customers.
