Europe’s online shopping market is still growing, but not as fast as before. According to the latest European E-commerce Report 2026, ecommerce sales across the continent are forecast to rise by 5% in 2026, reaching €961 billion ($1.07 trillion). This marks a slowdown from the 7% growth seen in 2025, when online consumer spending hit €911 billion ($1.02 trillion).
The figures come from a joint report by Ecommerce Europe and EuroCommerce, two leading industry groups that track online retail across 38 European countries. While 5% growth may sound modest, it reflects a market that is becoming more mature. After years of rapid expansion, especially during and after the pandemic, growth is now steadier and more sustainable. In real terms, after adjusting for inflation, the 2026 growth rate is expected to be around 3%.
One of the most important takeaways from the report is that growth is uneven across Europe. Western Europe, which accounts for 57% of total ecommerce turnover, recorded the slowest growth at just 5% in 2025. Northern and Central Europe grew a bit faster, at 6% and 8% respectively.
The real story, however, is in Eastern Europe. This region was the fastest-growing just a year ago, with 14% growth in 2025 and 18% in 2024. But that boom is cooling down sharply. In 2026, nominal growth in Eastern Europe is expected to fall to only 5%. Even worse, because of high inflation, real spending, what people can actually buy with their money, is forecast to drop by 1%. This shows how economic pressures are hitting some parts of Europe harder than others.
Southern Europe remains a bright spot, with 11% growth in 2025, driven by countries like Greece, where 8 in 10 internet users now shop online.
Alongside the numbers, the report carries a clear message to EU policymakers: the rules of the game need to be fairer. Ecommerce Europe and EuroCommerce are urging Brussels to cut red tape and make sure that both European and non-European sellers follow the same rules. Their concern is that some overseas platforms may not be held to the same standards, creating an uneven playing field for local businesses.
By simplifying regulations and enforcing them consistently, the industry believes Europe can unlock more growth and protect its own retailers.
For online sellers, the message is clear: the easy growth days are over. Success in 2026 and beyond will depend on efficiency, smart pricing, and understanding local markets. Profitability, not just sales volume, is becoming the top priority.
For China-based ecommerce platforms like Alibaba Group Holding Ltd. (NYSE: BABA), establishing a stronger footprint across Europe would help in their global expansion efforts.
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