Online shopping continues to boom in Germany – and two Asian platforms are reshaping the market. According to the study “E-Commerce Market Germany 2025” by retail research institute EHI and data platform ECDB, Shein has become one of the country’s largest online retailers.
The fast-fashion giant jumped from 18th to 7th place in the ranking, generating €1.1 billion in sales in 2024 – an 18 percent increase compared to the previous year.
Meanwhile, Chinese marketplace Temu has seen an even steeper rise. Its gross merchandise volume in Germany nearly quadrupled to €3.4 billion, propelling the platform from 11th to 5th place in the marketplace category.
Why German consumers flock to Temu and Shein
“Temu and Shein are striking a chord with German shoppers through low prices, gamified shopping elements and an enormous variety of products,” explained EHI analyst Lars Hofacker.
Their rapid ascent reflects a shift in consumer behavior toward budget-friendly and entertainment-driven shopping experiences.
Both platforms belong to the fastest-growing segment of cross-border e-commerce, which increasingly challenges established retailers on price and variety.
Established players hold top spots
Despite their rise, traditional leaders still dominate. Amazon, Otto and Zalando maintained the top three positions among online shops.
In the marketplace category, Amazon remains far ahead of competitors, followed by eBay, Otto and Zalando.
Other Asian entrants, such as Aliexpress and Shein, also secured places in the top 10.
Growth is also evident in specialized sectors. Shop Apotheke and supermarket chain Rewe climbed into the top ranks (8th and 9th place) thanks to changes in consumer habits.
Germans are ordering groceries online more frequently, and the digital prescription (E-Rezept) has fueled pharmacy sales.
Criticism over unfair competition and consumer risks
While popular, Temu and Shein are under mounting scrutiny. Politicians, trade associations and consumer watchdogs criticize quality issues, lack of product controls and unfair competition, calling for tighter regulation.
“We cannot just keep talking – action is urgently needed,” warned Alexander von Preen, president of the German Retail Association.
“Otherwise, this unfair competition will drive many domestic retailers and producers out of business.”
The European Commission has already launched proceedings against Temu, citing a high risk of unsafe or illegal products, including baby toys and electronics that do not meet EU safety standards. Temu could face significant fines.
Shein, too, has come under pressure from Brussels. Regulators accuse the company of misleading consumers with incomplete or confusing product information. Both companies insist they are cooperating with authorities to improve compliance.
A balancing act for the future
The meteoric rise of Temu and Shein highlights both the appeal and the risks of globalized e-commerce.
Their ability to attract millions of German consumers with unbeatable prices and massive assortments is undeniable.
Yet their continued growth will depend on how well they adapt to European consumer protection and market regulations.
