If you aim to grow your business in foreign markets, you know that your online store needs to be translated into the languages used in those markets.
But did you know you should also localize your content to launch successfully in a new market, especially Germany?
What is e-commerce localization?
E-commerce localization is the process of tailoring online shopping experiences—such as e-commerce websites and apps, marketing campaigns, and customer support—to align with the cultural preferences of users in a different market.
If you decide to launch your brand in Germany, you must understand the prices for similar products and services, user habits, preferred payment methods, and shipping options. Providing customers with a shopping experience tailored to their needs shows them you understand and care for them.
As a result, you build trust in your brand and increase your sales potential. Companies that do not implement e-commerce localization may experience decreased conversion rates, lower website traffic, and customer service challenges.
What should you consider in your e-commerce localization strategy?
- Translation
- Cultural adaptation
- Payment methods
- Logistics
- Legal requirements
1. Translating your website into German
You might have heard that Germans are pretty proficient in English—or have experienced it yourself. They often tell you they barely speak it, only to surprise you with a nearly native-speaker level that makes you drop your pen. You might think you can simply offer your store in English and attract both English speakers and Germans—saving lots of time and money.
However, recent data suggests otherwise (pun intended). According to the 2020 “Can’t Read, Won’t Buy” survey by CSA Research:
- 65% of consumers prefer shopping in their native language.
- 40% won’t buy in other languages, even if they claim to be proficient in English.
Automated translations or hiring a native speaker?
While there are website plugins that promise easy automated translations, they often struggle when little context is provided (e.g., button texts, drop-downs, and CTAs). These plugins frequently create incorrect and misleading translations, frustrating website visitors. More importantly, Google might consider machine-translated websites as spam, which can affect your ranking.
Instead, hire a native German translator experienced in marketing and e-commerce. We offer localization services for Germany and other markets, ensuring that experienced native speakers translate your content.
2. Cultural Adaptation: What to Keep in Mind
Another important aspect beyond language is cultural adaptation. To provide your German customers with an excellent shopping experience, adapt your website in ways that resonate with their world.
Offering EUR payments
While it is technically possible for your German customers to pay in foreign currencies, it can incur extra costs for them. You don’t want your potential buyers to use an online currency converter just to see your product prices. Not all online shop systems offer the ability to sell in multiple currencies, so look for that feature.
Replacing visuals
Adapt your visuals to resonate with your audience. If you have location-oriented visuals, ensure they are appropriate for the German audience. For example, if you have pictures showing kids in British school uniforms, replace them with German equivalents or something neutral—unless highlighting your cultural roots is part of your marketing strategy. If you offer beauty or fashion products, include pictures showing models that reflect the local population.
Culture-specific events and traditions
A promo banner referring to a French holiday will not resonate well with your German audience and can even cause confusion. Instead, create a German calendar alongside your domestic marketing calendar for Germany-specific events you want to use for promotional offers.
Time zones
Considering time zones is especially important when providing delivery times, customer support hours, or time-limited offers (e.g., “sale ends at midnight”).
Adapting product range
Germans have different preferences regarding your product range, and products that are bestsellers in your home market could turn into shelf warmers in Germany. Germans usually dress differently than people from Spain, France, or the UK. They also might need different sizes than your domestic customers. They often prefer practical features in products and value sustainable, climate-friendly options. It’s crucial to make an informed decision on how to adapt your product range to the German taste.
Adapting measurements
If you sell products of different sizes, formats, and weights, use the metric system. Remember that UK sizes differ from US, Italian, or EU sizes. Ensure you have the correct measurements to minimize return rates.
3. Choosing the right payment methods for the German market
The purchasing phase is critical in the customer journey and requires maximum trust in your brand. You can build that trust by offering payment methods your German buyers are accustomed to. After all, you don’t want to lose a sale simply because your German customer couldn’t find their desired payment method.
According to the 2022 PayPal E-Commerce Index, PayPal is Germany’s most popular payment method. Forty-six percent of German respondents indicated using the payment provider for online purchases, the highest percentage of all countries surveyed.
Additionally, according to the study “Online-Payment 2023,” conducted by the EHI Retail Institute, payments with PayPal generate the highest turnover in Germany. This is followed by direct debit (SEPA) payments, credit cards, and invoices. Make sure to offer a variety of popular German payment methods to cater to your German customers’ different preferences.
4. Legal requirements for e-commerce in Germany
As an e-commerce business selling to Germany, there are several legal requirements for you to keep in mind.
- Legal notice (“Impressum”): According to German law, any German website must provide a so-called “Impressum,” a simple page on which you declare who is responsible for running the website and its content. You can usually find it linked in the footer of German websites.
- Data protection, GDPR: If you are selling in the EU already, you are probably familiar with GDPR and its requirements. Since its introduction in 2018, its compliance has been obligatory across the EU, including for businesses selling from outside the EU. (By the way, Most German customers are very cautious about sharing personal data. That means a strong data protection policy is a great way to create trust in your brand.)
- Terms and Conditions: You are not obligated to provide terms and conditions for your online store in Germany. However, it makes running your shop easier, you communicate professionalism and reliability, and your German customers will feel a lot safer with them.
- Consumer right of withdrawal: Your German buyer has the right to withdraw from their contract within 14 days after purchase without giving any reasons. As an online store operator, you must inform your customers about the right to withdraw before the order is placed.
- Geoblocking: According to the EU-wide geo-blocking regulation, you are not allowed to treat customers differently based on their nationality, place of residence, or place of business. That means, for example, no automated redirection to country-specific websites without their explicit consent; prices, offers, and payment methods must be the same for all your online shop visitors, no matter where they are based; no blocking of a country-specific page based on local data collected (users with a German IP address must be able to access the Italian version of your online store).
There might be more requirements for your specific case, so we suggest hiring experts to help you ensure compliance with them.
5. Shipping options popular in Germany
Germany has a well-established shipping infrastructure that ensures that your customers will receive their orders quickly.
Popular carriers are DHL, Deutsche Post, UPS, DPD, and Hermes – you can see them daily driving through German cities. They are established providers trusted by German consumers. Prices and services can vary, so it is worthwhile to check who best meets your specific needs.
Provide your German customers with accurate estimates regarding delivery times. Germans can have high expectations when it comes to this. This doesn’t mean you have to offer next-day delivery, but knowing exactly when to expect an order meets the German need for good time planning. To prevent disappointment and bad reviews, provide realistic time frames you can stick to. Also, consider offering your customers online tracking, providing real-time information on their order status.
Offering a free return is something that Germans will appreciate, but be prepared. They will often use this option. Big brands have accustomed them to ordering more products, especially clothing, to try on and pick the one that fits best.
Germany follows EU customs regulations. Additional regulations might apply to your specific products and services. Make sure to communicate any additional shipping and customs costs. Furthermore, depending on the goods delivered, a VAT of 19% or 7% may apply. Again, make sure to clearly communicate those costs before an order is placed. Full price transparency is a must for your German customers.
Launching business in Germany
Your German customers, their preferences, and their buying behaviors should be at the core of everything you do. By considering aspects such as translation, cultural adaptation, payment methods, legal requirements, and logistics, you can ensure that your brand quickly gains traction with German buyers, whether your business is big or small.
Of course, you don’t have to take this journey alone. Get in touch with us, and let’s discuss how to localize your online shop and make your launch in the German market as smooth and successful as possible.
Where to look for e-commerce localization services?
As a small or medium-sized business, you are in very good company in Germany. SMEs are the norm and highly valued by consumers and German business partners.
Moreover, Germany is constantly looking to increase its imports to balance out its excess exports, making businesses from abroad extra attractive.
Lastly, attending fairs in Germany can be a great starting point for introducing your own products and services to the German business landscape and getting an overview of potential competitors and business partners.
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