Learn about the exciting new kid on the marketplace block, Kuai Commerce;  Shopee’s European exit; the state of the Spanish, Dutch, and German ecommerce markets; shifting consumer behaviors (away from Google and towards social media); “dark patterns” on online shops; and the top 10 most searched keywords on Amazon last month.

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The Latest Marketplace News

Meet the new marketplace helping European brands sell in the $1.7 trillion ecommerce market in China:KuaiKuai is the ‘new kid on the block’ of ecommerce. Conducting a successful business in China is quite complicated and challenging for most foreign (and especially Western) sellers, but Kuai Commerce is promising a piece of the 1.7 trillion dollar pie that is the Chinese ecommerce market. 

The London-based marketplace has high ambitions to help brands across Europe and the UK to sell to Gen Z consumers in China specifically. With a focus on the younger generation and social commerce, Kuai seems to be gaining momentum after having raised $2.4 million in their pre-seed funding round. They’ll be using the capital to grow operations, particularly in the field of Clean Beauty. Already, Kuai has a variety of Chinese influences backing them as investors, which is definitely a strategic move for a business hoping to succeed in the social commerce market.  

Kuai’s co-founder, Jonny Plein, shares, “Ecommerce in the West is having a tough moment but we believe we are working on the most lucrative opportunity of the next decade. Entering China with Kuai Commerce can be genuinely transformative for category-leading brands who are currently struggling for growth in their home markets.”

Spanish ecommerce is forecasted to grow 20% in 2023

Spanish shoppers are definitely shopping more and more online, especially when it comes to fashion, travel, and electronics. The country has been experiencing steady online sales growth over the past few years. 

In 2021, online sales in the country were worth over €57.7 billion (up 11.7% compared to 2020), while the European Ecommerce Report forecasts €65.3 billion in online sales by the end of 2023. 

According to data from the Spanish National Commission for Markets and Competition (CNMC), there were 312 million online transactions in the first quarter of 2022 alone. The fashion industry takes up 7.3% of total sales, while travel agencies come at a close second.

Shopee makes a European exit after a fall-out in India

While Shopee has been highly successful in many Asian markets, the Singaporean online marketplace’s quick expansion to Europe has backfired.

Shopee entered Europe in late 2021. Now, just a little over a year after, Shopee has canceled operations in France, is now leaving Poland, and is saying goodbye to the European market as a whole. The marketplace has also recently pulled out of India, where Shopee’s mother company, Ltd. Sea, lost more than $16 billion of its value due to recent regulations affecting the gaming and entertainment industry, one of Sea’s biggest sources of revenue. Overall, Sea has taken a massive hit, going from $200 billion in 2021 to just $27 billion in 2022, which makes Shopee’s European exit come at no surprise. 

Dutch and German online markets are in a downwards trend 

During the height of COVID-19, physical stores closed, online shopping spiked, and ecommerce experienced significant market growth. Now, with inflation reaching a record high in 2022 and various market uncertainties in the mix, consumers are more reluctant than ever to spend their time shopping online. 

In the Netherlands

Based on data from Statistics Netherlands, online revenue in the Netherlands decreased 7.6% in 2022 compared to 2021, with pure online stores having experienced 5.8% lower revenues and multi-channel sellers with a 9.6% decrease. 

Non-food and electronics categories took a particular hit, experiencing 18% and 17% lower turnover respectively. 

In Germany

At the end of last 2022, German online sales dipped for the first time since 2014. While digital services like travel and events increased by almost 40% in 2022, online sales of physical goods made 9% less in revenue compared to the year prior.

Online sales of physical goods in Germany made 9% less revenue last year. Digital services such as travel and events, on the other hand, increased by nearly 40%. 

German shoppers are diversifying their shopping portals

Customer behavior in Germany is noticeably shifting, particularly when it comes to Google’s shopping and comparison sites that are 10% less popular than they were in 2019. According to Statista Global Consumer Outlook, German shoppers are using social media and video websites like YouTube more and more when it comes to product research, especially as a heavy reliance on reviews grows. 

In 2019, almost 70% of German shoppers used search engines like Google before making a purchase. Since then, that number is down 60%. While Google is still the largest channel for shoppers currently, it’s definitely not the fastest growing. When it comes to popularity growth, research shows that compared to 2019 numbers, social media is up 7%, video sites like Youtube are up 4%, and Google has dipped 28% (from 33%).

The EU will now tax user sales on marketplaces

Sellers on marketplaces like Amazon, Bol.com, Vinted, eBay, and more will now have to report sales made on their platforms by end users to the tax authorities as part of the new Platform Tax Transparency Act (DAC7). This is applicable to sellers who make over EUR2,000 or over 30 transactions per year, whether the platform is located in the EU or not. This means the taxes are based on the country where the end user is buying the goods, and not where the platform itself resides or is headquartered. 

According to the German government, DAC7 aims to make “economic activities of vendors on digital platforms transparent for tax authorities” and that sellers profiting on these platforms should be taxed “equally and lawfully”. The DAC7 is also meant to help fight tax abuse, for example via joint tax audits.

‘Dark patterns’ on online shops

Dark patterns are tricks or deceptions used in websites and apps to make end users do or experience things that they didn’t mean to do. Such as: to shop, to sign up for something, to stop from unsubscribing, etc. For example, when you find it’s easier to subscribe to something than it is to cancel it, or you’ve checked out an item believing it’s limited edition or on sale for at a certain price, only to find out about all of the hidden costs or false advertising, then you’ve encountering a dark pattern. However, not all dark patterns are designed purposefully or maliciously, which doesn’t help with how incredibly common they are.

According to the European Commission, almost 40% of online shops in Europe are reported to use ‘dark patterns’ in a study including 399 online stores in 23 EU countries. Some of the most common forms of dark patterns they encountered are about withholding information such as through hidden costs, false countdowns, or incomplete details to lure users into subscribing to something.

The Top 10 Most Searched Keywords on Amazon in Europe and the UK (January 2022)

Every month (since June 2022), Incubeta shares the top most searched on Amazon keywords for Spain, Germany, France, the UK, Italy, the Netherlands, and Sweden. Check out what consumers were searching for the most last January.

The Top 10 Most Searched Keywords on Amazon – Germany 

1. spannbettlaken
2. harry potter
3. lego
4. ps5
5. faschingskostüme damen
6. nintendo switch
7. diamond painting
8. avatar
9. kostüm damen
10. wasserkocher

In English

1. fitted sheet
2. harry potter
3. lego
4. ps5
5. carnival costumes ladies
6. nintendo switch
7. diamond painting
8. avatar
9. costume ladies
10. kettle

The Top 10 Most Searched Keywords on Amazon – Spain

1. venta de sofás baratos
2. auriculares inalambricos
3. alexa
4. prendas interiores de mujer
5. abrigos modernos
6. auriculares inalambricos bluetooth
7. agenda 2023
8. cascos inalambricos bluetooth
9. iphone super baratos 
10. reloj inteligente mujer

In English

1. sale of cheap sofas
2. wireless headphones
3. alexa
4. women’s underwear
5. modern coats
6. wireless bluetooth headphones
7. agenda 2023
8. wireless bluetooth headphones
9. super cheap iphone
10. smart watch woman

The Top 10 Most Searched Keywords on Amazon – France

1. écrans pc
2. ps5
3. saint valentin
4. ssd
5. lego
6. samsung
7. coque iphone 11
8. iphone 
9. montre connectée femme
10. coque iphone 13

In English

1. pc screens
2. ps5
3. valentine’s day
4. ssd
5. lego
6. samsung
7. iphone 11 case
8. iphone
9. women connected watch
10. iphone 13 case

The Top 10 Most Searched Keywords on Amazon – United Kingdom

1. water bottle 
2. lego
3. air fryers
4. spare prince harry
5. dehumidifier
6. headphones
7. iphone 13 case
8. valentines gifts for him
9. prime drink
10. 2023 diary

The Top 10 Most Searched Keywords on Amazon – Italy

1. smartphone 
2. cappotto giubbotto donna
3. cuffie bluetooth
4. borsa color cuoio
5. amartwatch
6. alexa 
7. agenda 2023
8. ps5 
9. lego
10. calza befana

In English

1. smartphone
2. women’s jacket coat
3. bluetooth headphones
4. leather bag
5. smart watches
6. alexa
7. agenda 2023
8. ps5
9. lego
10. baby stocking

The Top 10 Most Searched Keywords on Amazon – Netherlands

1. lego 
2. playstation 5
3. misteri box
4. alexa 
5. ps5 
6. ps5 buy 
7. oplaadbare wandlamp
8. lego star wars
9. mistery boxe
10. nintendo switch

In English

1. lego
2. play station 5
3. mystery box
4. alexa
5. ps5
6. ps5 buy
7. rechargeable wall lamp
8. lego star wars
9. mystery box
10. nintendo switches

The Top 10 Most Searched Keywords on Amazon – Sweden

1. *
2. protein powder
3. lego
4. lego star wars
5. airfryer 
6. squishmallows
7. alexa
8. dieselvärmare
9. ps5
10. vattenflaska

In English

1. *
2. protein powder
3. legos
4. lego star wars
5. air fryer
6. squishmallows
7. alexa
8. diesel heater
9. ps5
10. water bottle

Want to learn more?

To read more marketplace updates or get in touch with one of our experts, visit our Marketplace Solutions page here.