Damon Mcknight
With a large and active consumer market, Austria is an attractive prospect for online merchants looking to expand internationally. The country boasts 6,953,400 internet users, 81.10% internet penetration, and a population of 8,751,820, with German as the spoken language and the Euro as the currency. Mobile e-commerce is significant in Austria, and online stores must be mobile-optimized to provide a seamless buying experience. Local marketing and SEO are essential to driving Austrian traffic to your website, and localizing your store in German with prices in Euros will enable your store to be indexed in Austrian search engines. To increase your chances of selling successfully in Austria, it is also important to offer local payment methods such as payment against invoice, credit cards, and PayPal.
| Characteristics | Values |
|---|---|
| Language | German |
| Currency | Euro |
| Population | 8,751,820 |
| Internet users | 6,953,400 |
| Internet penetration | 81.10% |
| Median age | 44 |
| GDP (PPP) | 439,575 (millions of Current Int$) |
| GDP (nominal) | 416,845 (US$MM) |
| GDP (PPP) per capita | 49,247 Int$ |
| GDP (nominal) per capita | 47,290 US$ |
| Real GDP growth rate | 2.30% |
| Top online payment methods | Payment against invoice, credit cards, and PayPal |
| Online marketplace | Willhaben.at, Etsy.com, Geizhals.at, Zalando.at, Gebrueder-goetz.at, Universal.at |
| Car sales | Private or through a dealer |
| Flea markets | Available |
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What You'll Learn
Localize your store for the Austrian market
Localizing your store for the Austrian market is essential to ensure a seamless shopping experience for Austrian buyers. Here are some key considerations for localizing your store:
Language and Currency: Austria's official language is German, so ensure all product descriptions, marketing materials, and customer support are available in German. Additionally, the currency used in Austria is the Euro (EUR), so make sure all prices, shipping fees, and taxes are displayed in Euros.
Payment Methods: Offering preferred local payment methods is crucial for a successful checkout process. The top online payment methods in Austria include payment against invoice, credit cards, and PayPal. Not supporting common payment methods can result in abandoned shopping carts and lost sales.
Mobile Optimization: Mobile e-commerce is increasingly popular in Austria and is expected to surpass desktop usage. Therefore, optimizing your online store for mobile users is essential. Ensure your website is mobile-friendly, easy to navigate, and provides a smooth purchasing experience on smartphones and tablets.
Local Marketing and SEO: To drive Austrian traffic to your website, focus on local marketing and SEO strategies. Use keywords and phrases in German that are commonly searched for in Austria and optimize your website content to align with Austrian search engine algorithms.
Legal Compliance: Ensure that your online store complies with Austrian e-commerce laws, including Terms of Service and Returns policies. Understand the local regulations and consumer rights to avoid any legal issues.
Shipping and Taxes: To ensure quick and smooth delivery, include local duties and taxes in your product prices. Clearly state your shipping policies, including any additional charges, estimated delivery times, and return policies.
By localizing your store for the Austrian market, you will be able to provide a familiar and user-friendly shopping experience for Austrian customers, increasing your conversion rates and overall success in the Austrian e-commerce market.
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Optimize for mobile
Mobile optimization is a key part of your ecommerce strategy for Austria. Mobile ecommerce already makes up a significant proportion of the Austrian market and is likely to surpass desktop usage within the next 12 months.
To optimize for mobile, you should ensure your website has a mobile-first design. This means quick load times, smooth navigation, and easy interaction. Your website should automatically adjust to fit any screen size, from smartphone to tablet to desktop, without requiring users to zoom or scroll to see content. To do this, you can eliminate desktop-only features that clutter the mobile experience, like complex animations or tiny icons.
You should also prioritize conversion paths and optimize critical actions, such as signing up or making a purchase, by making these processes as simple and intuitive as possible. Keep visuals clean and functional, with a simple layout, well-spaced elements, and clear calls-to-action. Regularly test your site on mobile devices to identify potential pain points in the user journey and make adjustments based on feedback to enhance accessibility and ease of navigation.
Finally, don't forget to localize your store for the Austrian market. This means having a version of your store in German and Euros, which will enable your store to be indexed in Austrian search engines and generate free organic traffic.
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Offer preferred payment methods
When selling in Austria, it is important to offer your customers their preferred payment methods. Failure to do so will result in a lower conversion rate as customers will abandon their shopping carts if they cannot pay with their preferred method.
Card Payments
Both credit and debit card payments are popular in Austria, especially for online shopping. According to a report by JP Morgan, card payments make up 35% of all online payments. Austrians prefer debit cards to credit cards, with 1.12 debit cards per capita compared to just 0.39 credit cards. Mastercard has 80% of the card market share in Austria, with Visa taking 18% and American Express 1%.
Bank Transfers
Bank transfers are another popular payment method in Austria, accounting for 32% of all online transactions according to Statista. The most widely used system is the Electronic Payment System (EPS), which is offered by more than 80% of merchants. This enables customers to pay online directly from their bank accounts. Other bank transfer services like Trustly and Sofort are also used in Austria, but less frequently.
Digital Wallets
Digital wallets are one of the fastest-growing payment methods in Austria, especially for online transactions. According to JP Morgan, digital wallets make up around 25% of all online transactions. The most commonly used digital wallets in Austria are PayPal, Amazon Pay, Apple Pay, Skrill, and Google Pay.
Buy Now, Pay Later (BNPL)
The use of BNPL services is rapidly increasing in Austria, especially for online purchases. The most common BNPL services in Austria are Klarna and Ratepay.
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Calculate and display local taxes and duties
When selling in Austria, it is important to understand the local taxes and duties, as well as how they are calculated, to ensure compliance with regulations and to provide upfront pricing to customers.
Customs Duties
Customs duties are taxes imposed on goods entering or leaving a country. They are collected by customs officials as government revenue and to protect local industries. Most duties are paid by the importer, while export duties are paid by the exporter. The rates of customs duties vary depending on the type of goods and are determined by the HS code, a commodity code used by customs to classify the product type.
Value-Added Tax (VAT)
VAT is a common tax charged on goods bought and sold for use or consumption in a country. In Austria, VAT is known as Ust and is calculated by taking the value of the shipment contents (including freight charges, duty, and landing fees) and multiplying it by the applicable VAT rate. The VAT rate varies depending on the product being shipped.
Import Taxes
Import taxes are assessed on goods entering the country. In Austria, import duty and taxes are calculated using the CIF method, which takes into account the value of the imported goods and shipping costs. The import duty rate varies for each category of goods and is determined by the HS code and the country of origin.
Excise Taxes
Excise taxes are imposed on specific products, such as petroleum, tobacco, and alcoholic beverages. In Austria, excise taxes on tobacco products can range from 13% to 47% of the price, while excise taxes on alcoholic beverages vary depending on the type of alcohol.
Real Estate Taxes
Austria also has various real estate taxes, such as land tax ("Grundsteuer"), which is calculated based on the estimated land value, and building permit fees, which are typically reduced for cashless payments. Additionally, there is a stamp duty imposed on certain legally predefined transactions, such as lease contracts and assignments of receivables.
Calculating and Displaying Local Taxes and Duties
To calculate the total taxes and duties for a shipment to Austria, follow these steps:
- Determine the applicable duty percentage rate for the goods being shipped based on the HS code and country of origin.
- Calculate the taxable value of the shipment by adding up the value of the goods, freight costs, insurance, and any additional costs.
- Multiply the taxable value by the duty rate to find the amount of duty payable.
- Determine the VAT rate for the product being shipped.
- Calculate the VAT amount by multiplying the total value of the shipment (including freight charges, duty, and landing fees) by the applicable VAT rate.
- Add up the duty, VAT, and any other applicable taxes or charges, such as excise taxes or brokerage fees, to find the total taxes and duties payable.
- Display the breakdown of taxes and duties to the customer to provide upfront pricing.
It is important to include detailed information on the commercial invoice, such as the HS code, an accurate description of the goods, and their value, to facilitate the calculation of taxes and duties by customs authorities and avoid unexpected costs.
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Market via Google Ads
Google Ads, previously known as Google AdWords, is a powerful tool for businesses looking to promote their products or services online in Austria. Google Ads enables advertisers to create and display ads on Google's search engine and across the Google Display Network.
To get started with Google Ads in Austria, there are a few key steps to follow:
- Create a Google Ads account: Sign up for a Google Ads account and set up your payment information. You can choose between automatic payments, which are charged monthly and include surcharges, or manual payments, which allow you to pay in advance and manage your budget more closely.
- Set up your campaign: Decide on your campaign goals, target audience, budget, and schedule. You can choose to target specific keywords, locations, and demographics to ensure your ads reach the right people.
- Create your ads: Design your ads according to Google's specifications, including text, images, and any other relevant information. Your ads should be tailored to your target audience and highlight the unique selling points of your product or service.
- localisation: Localise your ads by translating them into German and Austrian Sign Language. Ensure that your website and listings are localised for the Austrian market, including product descriptions in German, correct local sizes, and prices in Euros.
- Enable international shipping: If you are selling physical products, enable international shipping through a global carrier and include international shipping prices in your Austrian product feed.
- Verify your business: Complete Google's advertiser verification program by providing basic information about your business, legal name, address, and any supporting documents. This will give your business a "`verified`" badge and increase transparency for users.
- Monitor and optimise: Regularly check the performance of your Google Ads campaigns and make adjustments as needed. You can use tools like Google Analytics to track your campaigns' effectiveness and optimise your ads over time.
- Digital Services Tax (DST): Austria has implemented a 5% DST fee for ads served in the country, which is added to your invoice or statement. This fee is separate from other taxes, such as VAT.
- Target Vienna: With 7 million internet users in Austria, the capital city of Vienna is likely to be a key market. Consider targeting your ad campaigns towards this area for potentially powerful results.
- Free Google Shopping Ads: Google transitioned its Google Shopping Ads platform to a global ecommerce ecosystem, allowing merchants to sell their products for free in certain markets, including Austria. To qualify, you need to create an Austrian feed and localise your website and listings for the Austrian market.
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Frequently asked questions
Some popular online marketplaces in Austria include:
- Willhaben.at: A free classifieds platform with over 9 million monthly visitors.
- Geizhals.at: A price comparison platform with over 1.2 million monthly visitors.
- Zalando.at: An online fashion and lifestyle platform with over 1 million monthly visitors.
- Gebrueder-goetz.at: An online shoe and fashion retailer with over 800,000 monthly visitors.
- Universal.at: An online department store with over 700,000 monthly visitors.
It is important to localise your store for the Austrian market, including offering your store in German and displaying prices in Euros. You should also consider the top online payment methods in Austria, which include payment against invoice, credit cards, and PayPal.
Cars in Austria can be sold privately or through a dealer.
