International e-commerce trends 2025: What European businesses need to stay competitive
E-commerce is entering a new era of radical transformation. Technology is advancing rapidly, consumers are demanding more personalised and sustainable experiences, and global dynamics are imposing unexpected challenges.
For European businesses, it’s not just about adapting—it’s about seizing this revolution to lead the market.
In 2025, e-commerce won’t just be an alternative to traditional retail—it will be at the core of brand-consumer relationships. Businesses must anticipate trends like augmented reality, subscription models, social commerce, and artificial intelligence. At the same time, sustainability and innovative logistics strategies will be essential to remain competitive in an ever-changing global landscape.
Are you ready to understand the trends shaping the future of e-commerce? This article not only explores them but also provides practical insights to help your business not just survive, but thrive in this disruptive market.
Augmented and Virtual Reality: Innovation that wins customers
Augmented reality (AR) and virtual reality (VR) are no longer futuristic concepts—they are already transforming the shopping experience.
According to a Deloitte study, using AR in e-commerce can increase conversion rates by 20-27% and reduce returns by offering virtual try-on experiences. Companies like IKEA and Nike have successfully implemented these technologies.
Even for small businesses, basic AR tools integrated into social media platforms can significantly enhance engagement and sales.
Subscription models: From one-time buyers to loyal customers
Subscription-based shopping is growing exponentially. From food to beauty products, recurring, personalised experiences help retain customers and generate steady revenue.
A Subscription E-commerce Market Report shows that subscribers generate significantly higher revenue—for instance, $256 per beauty subscriber compared to $102 from non-subscribers.
Additionally, AI-driven personalisation is enhancing customer engagement, with 28% of businesses that integrate customised subscription models seeing an increase of $2.2 billion in market value.
Social commerce & influencer marketing: Meet customers where they are
By 2025, social commerce will be even more vital for brands aiming to reach their target audiences.
Platforms like Instagram and TikTok will continue to be key players, allowing users to purchase products directly within the app.
A recent study highlights that influencer marketing ROI will average $6.50 for every $1 spent, demonstrating its effectiveness in driving engagement.
Micro-influencers, with smaller but highly engaged audiences, will lead the way, accounting for 50% of influencer marketing interactions. Meanwhile, TikTok will capture 25% of influencer marketing campaigns, reinforcing the need for brands to adapt their strategies across multiple platforms.
To maximise impact, brands must focus on collaborating with authentic influencers who align with their values and deliver personalised content.
Sustainability: A top priority for the new generation
Sustainability is no longer a secondary concern—it’s becoming a core demand from consumers, especially younger generations.
Sales of sustainable products are growing seven times faster than those of conventional products, driven by consumer preferences for brands using recyclable, biodegradable, or reusable packaging.
A survey shows that over 60% of Gen Z and Millennials are willing to pay 10% more for eco-friendly products.
Additionally, 61% of consumers report that climate change is negatively impacting their health, increasing the demand for brands with strong sustainability commitments.
Digital payments: Make it simple or lose customers
Payment methods are evolving. Digital wallets like PayPal and Apple Pay are becoming more widely used, while Buy Now, Pay Later (BNPL) services allow customers to pay in instalments, boosting conversion rates.
Global data shows that digital wallets accounted for 50% of e-commerce transactions in 2023, and this share is expected to continue growing due to their convenience, speed, and security.
Friendshoring & resilient supply chains
"Friendshoring" refers to relocating operations to allied countries to minimise geopolitical risks. For European businesses, strengthening trade relations with stable partners can ensure supply chain continuity during uncertain times.
Industries such as technology and renewable energy are already implementing friendshoring strategies, ensuring supply security and regulatory alignment. Government initiatives like the CHIPS Act in the US highlight how countries are prioritising local production and strategic international partnerships to increase economic resilience.
Artificial Intelligence: Beyond chatbots
AI is no longer just a nice-to-have—it’s becoming an essential tool for personalisation, price optimisation, and trend prediction.
Examples include:
- AI-powered recommendations increasing conversion rates by suggesting products based on customer behaviour.
- Advanced chatbots and virtual assistants improving customer service and engagement.
- AI-driven A/B testing and dynamic pricing strategies significantly boosting ROI for e-commerce brands.
A McKinsey study highlights how AI reduces cart abandonment and increases average order values by implementing smarter cross-selling and upselling techniques.
E-commerce in 2025: It’s about more than just selling
E-commerce is not just about selling products—it’s about connecting with customers on their terms.
With Europe’s diverse consumer landscape and growing sustainability expectations, businesses have a unique opportunity to lead this transformation.
Embrace technology, listen to your consumers, and prioritise ethical business practices.
That way, you won’t just survive 2025—you’ll thrive.