Bender, Benedict | Korjahn, Nicolas | Abendroth, Adrian | Fattah-Weil, Jasmin | Rojahn, Marcel | Ulrich, Marc | Schummel, Philip | Gronau, Norbert

Market study trading platforms 2023/2024

Abstract

As central interfaces in various sectors, retail platforms are shaping consumer behaviour. The German Retail Association (HDE) estimates that around 50% of e-commerce sales in Germany are generated via these platforms. Amazon dominates the market with a share of 78%, with the marketplace business accounting for the lion's share at 67% (HDE Handelsverband Deutschland, 2022). The business model of trading platforms is based on charging fees from transactions between buyers and sellers. The platform retains a share of each transaction and forwards the rest to the seller. This study is based on the analysis of 116 e-commerce companies, 22 of which operate their own platforms. Trading platforms are present in different market segments. Generalist platforms lead with a share of 35%, closely followed by specialised segments such as "Toys & Baby" (33%) and "Sports & Outdoor" (29%). Assessment of trading platforms: The majority of sellers and customers see advantages in using trading platforms. A survey of 30 companies that are active as sellers on platforms shows that Amazon is the most frequently used platform. Motivation and selection criteria: The main motivations for participating in trading platforms are increased sales, market presence and simplified operations. The most important selection criteria for a platform are the accessible market, cost structure, product range and customer groups. Business as a seller: Trading platforms offer various additional functions that can significantly influence the benefits for sellers. These include logistics, marketing and analysis functions. Access requirements vary, with service level requirements, particularly in customer service, posing a challenge. Costs and pricing strategies: Commission costs are a critical factor for sellers on trading platforms. These costs represent the proportion of the sales price that is paid to the platform. On average, commission costs are 12%, but can vary between 5% and 45% depending on the platform and product category. However, the commission usually ranges between 5% and 15%. In view of these varying commission costs, many sellers adjust their prices. Around 48% of sellers keep prices the same as in their own online shop, 44% charge higher prices and the remaining 8% offer their products at more favourable prices on trading platforms. The study shows that trading platforms offer significant advantages for both sellers and customers, but the challenges in terms of costs, service requirements and pricing strategies must be taken into account. Amazon dominates the German market. The selection of a suitable platform depends on various factors, with the right balance between market presence, costs and features offered being crucial.