French e-commerce continues strong 20% growth in first half of 2011

E-commerce showed strong growth in France during the first half year of 2011 continuing lastyear’s positive trend with sales increasing 20% to €17.5 billion, according to a survey released

The study is based on information from 40 leading commercial websites participating in the Fevad/iCE panel and on information provided by the main payment services providers acting on behalf ofnearly 90,000 websites.

During the second quarter of this year, the 40 commercial websites saw their turnover rise by16% compared to the same period in 2010. The sales increase amounted to 13% over the first sixmonth of 2011.

In 2010, French online sales reached €31 billion compared to €25 billion in 2009 confirming thedynamic development of e-commerce in the country. Fevad expects French online sales to reach €37billion by the end of the year if growth can be maintained at the same pace of 20% throughout thesecond half of 2011.

Online sales of clothes (fashion apparel) have grown especially strongly so far this year. Aftera good start during the first quarter (+16%), growth continued in the second quarter at 17% boostedby good summer sales.

Sales of high-tech products grew 8% during the first six months which is slightly below theaverage due to the missing effect of the World Cup in 2011, Fevad explained.

Online retailers focusing on business customers have showed a more moderate increase of 5%during the first half year.

For the study, Fevad interviewed major payment services providers for a total of 89,500 sitesincluding Atos Worldline, SP-Plus (NCCC), Credit Mutuel-CIC, Monext, Ogone PayBox and Paypal. Thetransaction volumes handled via these platforms on behalf of the websites have increased 21% to168.5 million transactions for the first six months. The average amount of a transaction fell 3%during the second quarter this year compared to the high level of the last year’s second quarterfrom €93 to €90.

At the same time, the number of sites using the platforms continues to grow very rapidly by 28%or more than 20,000 new sites a year. At the end of June 2011, nearly 90,000 sites were counted andthe 100,000 mark is expected to be reached by 2012.

As the representative federation of e-commerce and distance selling in France, Fevad was foundedin 1957 and brings together over 530 companies and nearly 800 websites including the leadinge-commerce sites in the country.