German E-Commerce Costs Outrun Market Growth, A&M Warns
Munich – November 10, 2026 -- A retailer starting with a 2.5% EBIT margin slides into losses in its fourth year without countermeasures, according to a model calculation by consultancy Alvarez & Marsal (A&M) on German online retail.
Costs grow 2.2 percentage points faster than the German e-commerce market
A&M puts annual cost growth in German e-commerce at 6.1%, against market growth of 3.9%. The gap has widened continuously since 2023, according to the analysis. Higher logistics, personnel and IT costs weigh on profitability, as does the expense of winning new customers.
Customer acquisition costs climb about 9% a year
Under A&M's underlying assumptions, customer acquisition costs (CAC) rise by roughly 9% annually, making each additional sale more expensive to generate. Customer service, logistics, personnel and IT spending add to the cost base.