What are the 10 best European countries for ecommerce startups?
Unlike many industries in the past year, eCommerce has thrived and revenue within the market is predicted to top £361,305m in 2021.
Across the continent, annual growth rates are expected to reach 5.2%, which means startups and growing brands can take full advantage of the opportunities that many European countries provide.
Attributing to the growth are some of the biggest eCommerce startups in the world: Lithuanian online marketplace Vinted, Swedish food waste fighter Karma, Estonian ride-hailing app Bolt and – of course – the British takeaway staple Deliveroo.
New research from hosting.co.uk has ranked 30 countries across Europe to see which is the best for entrepreneurs to begin a consumer facing ecommerce startup. To determine the ranking hosting.co.uk looked at economic health, business environment, infrastructure setups, government tax incentives and the success history of eCommerce startups in each country.
They then scored each country on the quality of the startup environment to give an overall ‘hosting.co.uk score’ out of 10, ranking all 30 accordingly.
The top 10 countries in Europe for an eCommerce startup are:
- United Kingdom
- Germany, Netherlands
- Ireland, Sweden, Lithuania, Italy
Taking the top spot was the United Kingdom (UK) with a score of 8. The predicted GDP growth for 2021 is 4.2% and although there is no specific Reduced Corporate Income Tax Rates for Small Businesses in the UK, the standard rate is reasonable at 19%. There are also a number of other government programmes to help startups, including ‘Start Up Loan’ which includes free support when writing a business plan and up to 12 months of free mentoring. The UK’s infrastructure is well developed, and the importance of transport and energy is reflected in the country’s investment strategy, with future investment being geared towards these two sectors in projects like the HS2 and the Elizabeth Line in London.
Some of the most prosperous ecommerce startups have also been launched in the UK, which is testament to the country’s receptiveness to up and coming platforms. In 2020 takeaway app Deliveroo thrived; the number of riders doubled from 25,000 to 50,000 and 20,000 new restaurants joined the platform. Meal kit retailer Gousto is another ecommerce startup that thrived throughout last year, with their revenues for the first six months of 2020 surpassing the sales reported for the whole of 2019. Some other successful ecommerce startups from the UK include Depop, Cazoo, Gymshark and Elvie.
Bottom of the overall ranking was Serbia. Whilst some impressive tech startups have come out of Serbia, the country’s lower ranking was largely due to its less developed infrastructure, poor predicted GDP growth and business environment.
CEO of hosting.co.uk Frederick Schiwek said: “Ecommerce has thrived in the past year and it’s great to see some of the best platforms coming out of Europe. Silicon Valley used to be perceived as the center of startups but the past few years have shown how well equipped countries across the continent are to support these businesses – with the coronavirus pandemic escalating this even further.”