9/2/2024
February 9, 2024
2023 witnessed a 10.5% growth in France's e-commerce sector, reaching €159.9 billion, despite product sales declining by 1.8%. Service sales soared by 20%, driven by consumer shifts towards essential goods and leisure amidst inflation and environmental concerns.
The French e-commerce sector experienced a significant shift in 2023, marking a year of contrasting fortunes for product and service sales online. Overall, the sector boasted a revenue of €159.9 billion, reflecting a 10.5% increase from the previous year. Despite a slight decline in product sales by 1.8%, the service sector surged by 20%, demonstrating the evolving consumer preferences in the face of inflation and environmental concerns.
The total number of transactions on the internet reached 2.35 billion, a 4.9% increase from 2022, with the average shopping basket also growing by 5.4%. However, the dynamics within the sector varied significantly. Product sales continued their downward trend from 2022, culminating in a €61.2 billion revenue, while service sales thrived, driven by a 12% increase in transactions and a 7% rise in the average basket value to €75.
Inflation, although slowing since April 2023, remained a significant factor influencing online shopping behaviors. Consumers became more discerning, balancing their spending between essential goods, leisure activities, and savings, showing a preference for essential food items and leisure while reducing spending on sectors with readily available second-hand options or those subject to fluctuating renewal cycles.
The Fevad's quarterly report, based on data from a hundred leading websites through its iCE 100 panel, revealed a nuanced picture of the e-commerce landscape. Product sales on the panel grew by 0.6%, indicating a stabilization after the sharp declines of 2022. However, non-food product orders dropped by 9%, with the overall revenue buoyed slightly by a 3% increase in the average basket.
Certain categories like Beauty and Furniture/Decoration fared relatively better, while Fashion/Textile and Technical Products/Appliances continued to face declines. The Food/Grocery sector, affected by a 12% inflation, saw an 11% increase in revenue, according to NielsenIQ.
The Travel-Tourism websites benefited from favorable consumption shifts, witnessing a 13% revenue increase. Meanwhile, sales to professionals and marketplace activities (third-party sales) showed signs of slowing, with a modest 4% growth and a slight 1% decline, respectively.
Source: Fevad
