Record Online Sales in France: A Growing Trend in E-Commerce
According to the latest report from Fevad, French e-commerce has reached a record-breaking revenue of €175.3 billion in 2024, reflecting a 9.6% increase compared to the previous year. This growth is largely driven by a notable recovery in transactions and preliminary effects from inflation decline.
Impact of Inflation Decline on Online Consumption
The growth in e-commerce during 2024 stands in stark contrast to 2023, where inflation primarily fueled sales, particularly in essential services and consumer goods. This year, there has been a remarkable 10% increase in transaction volumes, demonstrating the robust vitality of the sector.
Despite some consumers exercising caution due to the economic climate, the declining inflation on essential expenditures combined with rising salaries has led to a resurgence in online shopping, especially for non-food basic consumer goods. The stability of the average basket value, holding steady at €68 year-on-year, along with a decrease in product sales, indicates a shift toward seeking more economical options by online shoppers.
Product Sales Rebound as Services Show Resilience
After two years of slow growth, product sales have bounced back to levels seen in 2021, immediately following the COVID crisis, reaching €66.9 billion with a growth of 6%. This rebound is accompanied by an unprecedented transaction volume of 1.28 billion, which marks an 11% increase.
In 2024, e-commerce’s share of retail has climbed to 11%, solidifying its place in consumer habits. Service sales have also maintained their momentum, expanding by 12% to total €108.4 billion. However, the inflationary effects that had previously boosted average basket values in 2022 and 2023 are beginning to wane, particularly in the travel and energy sectors.
The iCE100 panel, conducted by Fevad among leading online retailers, corroborates the findings of the 2024 e-commerce report, highlighting a stronger growth rate of 2% compared to 0.6% in 2023. The beauty sector continues to lead sales growth with a 4% increase, while leisure categories, including sports and gardening, also saw a 1% rise, and the fashion sector remained stable. The travel and leisure segment experienced a dynamic yet non-double digit growth rate of 4% in 2024.
More Frequent and Diverse Online Purchases
On average, each online shopper made more than one purchase per week, bringing total annual expenditures on products and services to €4,216. With a more mature market and an increasingly diverse offering, e-commerce continues to evolve within innovative brands and new consumption patterns, benefiting from a heightened digitalization of shopping habits.
As Marc Lolivier, General Delegate of Fevad, stated, “2024 marks a turning point in the development of French e-commerce, with the return of dynamic growth based on increased transaction volumes, reflecting the ever-increasing role of online commerce in consumers’ daily lives. This year also characterizes a rebalancing of growth between product and service sales.”
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