The German ecommerce market is growing. In fact, the German Retail Association (HDE) forecasts sales of over €92 billion for 2025, which is a record high. One way for a business to benefit from this increase is to open an online shop.

In this article, we explain how to open an online shop in Germany, including legal requirements, marketing, and costs associated with operation.

What’s in this article?

• What are the legal requirements for an online shop in Germany?
  
• How to open an online shop
  
• Payment preferences and delivery expectations in Germany
  
• How can you market your online shop?
  
• What are the costs involved in opening an online shop?
  

What are the legal requirements for an online shop in Germany?

Those who want to open an online shop in Germany must meet certain legal requirements. Here are the most important ones:

Correct product and price information

A legally compliant online shop must present products in a clear, complete, and truthful way. This includes precise descriptions for relevant features:

• Manufacturer information
  
• Dimensions
  
• Color
  
• Function
  
• Quality
  
• Condition
  

Depending on the product type, additional information might be required, such as material or technical details. The information is intended to help potential customers make informed decisions with accurate and complete information about products.

Product images are another important part of the presentation. Businesses should clearly photograph each product and include multiple perspectives. If a photo shows additional items that are not part of the offer, this must be clearly indicated. Possible deviations in color or material (e.g., in the case of natural products) should also be communicated to avoid misunderstandings.

The business should show the total price of the product, including value-added tax (VAT) and other price components (see Section 3 of the Price Indication Ordinance [PAngV]). If the units of measure vary, the business should also state the base price. Shipping costs must be clearly visible before the customer completes the purchase. The costs can appear directly on the product page or be easily found elsewhere in the shop.

Reliable shipping information

Online shops in Germany must provide clear delivery information. Vague terms—such as “expected” or “usual” delivery—are not permitted. More specific statements are preferable, such as “delivery in approximately 3–5 business days.” The shipping options (e.g., standard or express) and the delivery areas or restrictions must also be clearly visible.

Transparent payment terms

To be legally compliant, an online shop must provide clear and transparent information regarding payment methods. This includes a list of all accepted payment methods and information about payment due dates. It must be obvious to customers that they are committing to payment by clicking the order button. Therefore, the order button must be clearly labeled (e.g., with “Order and pay,” “Buy,” or “Buy now”). Vague phrases—such as “Order” or “Continue”—are not permitted, according to Section 312j of the German Civil Code (BGB).

All relevant payment information must be clearly presented to the customer before completing the order. Article 246a of the Introductory Act to the BGB, outlines the following requirements, among others:

• Important product features
  
• Total price, including taxes and shipping costs
  
• Term and termination conditions for recurring services
  
• Minimum contract term
  

This information ensures customers make their purchasing decisions with full awareness and also protects retailers from disputes.

After clicking on the purchase button, retailers must send a complete order confirmation by email. This must contain all contract contents, including general terms and conditions (GTC) and a cancellation policy.

Visible cancellation policy

According to Sections 355 and 356 of the BGB, a customer has the right to withdraw from the purchase contract within 14 days without a reason. This information must be clearly visible in the online shop and included in the order confirmation. If the cancellation policy is not communicated or is communicated incorrectly, the period is automatically extended by a full year.

However, according to Section 312g of the BGB, there are also exceptions to the right of withdrawal. For example, there is no right of withdrawal for goods sealed to protect health or hygiene if their seal has been removed. This could be the case with certain medical and cosmetic products. The right of withdrawal also does not apply to individually manufactured, personalized, or perishable goods. In addition, the right of withdrawal is generally not offered for B2B transactions.

Clear general terms and conditions (GTC)

German businesses that operate a website must meet other requirements in addition to those mentioned above. One of these is the GTC, which must be clearly stated and regularly adapted to legal developments. These can include changes in customer or data protection law. In addition, the BGB prohibits clauses that contain unreasonable disadvantages for customers (see Section 307 of the BGB).

The GTC must be easily accessible on the website—both on the homepage and during the payment process. Before making a purchase, customers must have the opportunity to read the GTC and actively accept it (e.g., by ticking a box). The GTC should also be storable and made available in text form upon delivery, at the latest.

Complete legal notice

Those opening an online shop or offering digital services for commercial purposes are required to provide a legal notice, according to Section 5 of the Digital Services Act (DDG). It must be accessible from every subpage within one click and is usually visible in the footer of the website.

The legal notice must contain certain information:

• Name
  
• Address
  
• Business structure
  
• Authorized representatives
  
• Contact information
  
• VAT identification number (VAT ID), if available
  
• Commercial register number, if available
  

Comprehensive privacy policy

The General Data Protection Regulation (GDPR) obliges online shop owners to have privacy policies. The privacy policy must disclose what personal data the business collects, why and how it uses the data, and what rights customers have. Similar to the legal notice, it must be easily accessible and contain certain information, as outlined in Article 13 of the GDPR.

How to open an online shop

If you want to open your own online store, you should follow the steps below:

Develop a business concept

Before you open your own online shop, you need a well-planned concept. Consider what you want to sell, which could include physical products, digital goods, or services. Determine which target group you want to address and how to best reach them. Market research can help realistically assess opportunities and risks. In addition, you can examine your competition to determine how other providers position themselves within the market.

Ideally, you should create a business plan that includes pricing strategies, sales channels, and marketing measures. Other information—such as sales forecasts, investment costs, and profitability calculations—are also important for your plan and are necessary if you apply for funding or a bank loan.

Clarify the legal foundation

If you want to open an online shop, you must register your business with the relevant trade office. Decide on a business structure, and apply for a tax number from the tax office. Next, check whether the small scale entrepreneur rule applies to you (see Section 19 of the German VAT Act [UStG]). In addition, you must make the necessary preparations to fulfill the legal obligations mentioned above.

Define a logistics strategy

Figure out how to get your products to your customers as efficiently and reliably as possible. This can impact the profitability of your online shop and customer satisfaction. Small shops often start with their own shipping when order volume is manageable. The alternative is specialized service providers who take care of storage, shipping, and returns processing. Outsourcing can reduce your effort while increasing costs and making you dependent on the service quality of third parties.

Prepare accounting

Large and small shops can have a high number of transactions that need to be correctly documented. Depending on the business structure and the amount of revenue, you must either use cash-basis accounting (EUR) or double-entry bookkeeping. Stripe Invoicing helps you with the invoicing process. Among other things, you can automate your invoicing and send invoices online in just a few clicks. If you need support with recurring billing and subscription management, you can use Stripe Billing.

In addition, you should set up payment processing with solutions such as Stripe Payments or Stripe Checkout. With Checkout, you can integrate a prebuilt payment form into your website or redirect customers to a page hosted by Stripe. This way, you can accept payments easily, quickly, and securely.

Select a shop system

The shop system is the heart of your online business. There are three basic options you can choose from:

• Service providers: This is the simplest option, as it does not require programming knowledge. These shops are easy to use, but they cost money and are limited in design.

• Open source systems: These systems offer more freedom but are more complex to set up. You will need either your own information technology (IT) knowledge or support from developers.

• Individual solutions: With this option, you program the shop or hire someone to do it. You have maximum freedom of design but must expect higher costs. You should also ensure your system is able to grow while remaining stable, even if your product range or number of visitors increases. With this method, it is also important to integrate payment providers, accounting software, and logistics services.

If you don’t want to open your own online shop, you can use sales platforms, such as Amazon, eBay, or Etsy. These offer an uncomplicated start, a wide reach, and existing payment and shipping processes. However, you will pay fees for each transaction and have limited control over how your brand is presented to the public. In addition, you are in direct competition with other providers on the same platform and must comply with the platform’s policies, such as terms and conditions, legal notices, and cancellation policies.

Integrate an enterprise resource planning (ERP) system

An ERP system links all central business processes—from purchasing, warehousing, and sales to accounting and customer management. It ensures that you keep track of everything, especially when the shop grows and manual processes become more complex.

For small shops, a simple inventory management solution that handles items, inventory, and orders is often sufficient. This can be connected to shop systems and automates many processes. For medium and large online shops, introducing a complete ERP system can be a smart investment.

Fill the online shop

Once you have completed all legal and technical preparations, you can fill your online shop with products. Use high-quality product photos, detailed descriptions, and an intuitive shop structure. Ideally, use filters and search functions so your customers can quickly find the products they seek.

Payment preferences and delivery expectations in Germany

If you open your own online shop, you might want to examine the purchasing patterns of your future customers. In particular, payment preferences and shipping expectations can significantly influence a customer’s decision to buy. This can also impact the economic success of your shop.

Payment options

In a survey of European customers in 2022, 86% said they are very likely to abandon an online order if they cannot pay using their preferred method. Therefore, online shops should ideally offer a wide range of payment options. Two particularly popular payment options in Germany are payment on invoice and direct debit.

According to the EHI Retail Institute study “Online Payment 2024,” the following payment methods are used most frequently for ecommerce transactions in Germany:

• Payment on invoice: 26.7%
  
• Direct debit: 16.7%
  
• Credit and debit cards: 11.4%
  
• Transfers and prepayments: 4.8%
  
• Installment payments: 3.9%
  
• Payment upon collection: 3.7%
  

With Stripe Payments, you can offer your customers more than 100 different payment methods as well as a fast, one-click checkout. Payment methods are displayed dynamically depending on the customer’s location, allowing customers to choose their preferred local payment method.

Delivery terms

Delivery also plays a central role in customer satisfaction and the success of an online shop. Large retailers often deliver within one or two days; some offer same-day service. Small retailers usually do not have the necessary resources to transport goods to customers within a few hours. These resources include warehouses and logistics centers located throughout Germany, which enable short delivery routes. In this case, retailers rely on external shipping partners to ensure the fastest possible delivery.

An international study by the retail consultancy Retail Economics shows that 57% of shoppers expect to receive their order within a maximum of two days. According to an EHI study, delivery time is one of the decisive criteria for three-quarters of German retailers when choosing a shipping service provider. The study’s researchers also conclude that there is sometimes a connection between delivery time and return rate. The longer customers wait for their ordered goods, the greater the risk they will ultimately refuse to accept the order or return the item.

Regardless of the specific delivery time, retailers should always provide their customers with comprehensive information about when the goods will arrive. Therefore, it is advisable to link inventory and shipping partners to customer communication. Nearly a quarter of German customers consider a lack of shipment tracking a reason not to purchase online.

How can you market your online shop?

To build visibility and trust, marketing your online shop is important. Ideally, this includes a combination of search engine optimization (SEO), search engine advertising (SEA), affiliate marketing, and social media.

SEO and SEA

Many purchases begin with search engines. Businesses that appear on the first page of search results are more likely to gain customers than those that don’t. Focusing on SEO from the start can help customers discover your business. On your website, use relevant keywords that your target audience might search for. Also, ensure short loading times and structured content that is informative and easy to read. Links from third-party sites that point to your online shop are also helpful for a good ranking in search engines.

SEO takes time, but SEA might deliver faster results. With this method, you can pay to have your ads placed on search engine results pages, which makes it particularly useful for new shops that want to attract their first visitors. To do so, you should research relevant keywords and write appealing ad copy that piques customers’ interests. Be aware that each time a potential customer clicks on your ad, you incur costs. Therefore, it is also important to set a monthly SEA budget.

Banners, affiliate marketing, and social media

Another option is banner advertising on thematically relevant websites or blogs. With this method, you usually pay a flat rate or a performance-related fee.

With affiliate marketing, you provide banners, text links, or other advertising material, and website operators can integrate them into their homepages. The website operators typically earn a small commission on sales you make from visitors to their sites.

Finally, you can also use social networks to market your online shop. With social media marketing, you can draw attention and interaction to your business. It is important for you to choose suitable platforms for your shop or products. Social media sites such as Instagram and Pinterest are particularly suitable for visually strong products. Apps such as TikTok allow you to specifically target younger audiences. You should also create an editorial calendar, post regularly, and respond to comments or messages.

What are the costs involved in opening an online shop?

The costs of opening an online shop vary greatly depending on your business model, shop platform, desired range of functions, degree of customization, and professional support. Here are the most important cost points:

• Domain name and web hosting
  
• Shop software or platform fees
  
• Design and layout (e.g., templates, individual web design)
  
• Development and technical implementation
  
• Payment provider integration (e.g., transaction fees, setup costs)
  
• Security certificates (e.g., secure sockets layer [SSL] certificate)
  
• Legal protection (e.g., terms and conditions, privacy policy, legal notice, legal advice)
  
• Product photography and descriptions
  
• Marketing and advertising (e.g., SEO, SEA, affiliate marketing, social media)
  
• Logistics and shipping (e.g., packaging, shipping service providers, warehousing)
  
• Maintenance and technical support
  
• Accounting and tax consulting