Structure of the German Online Retail Market
Germany's online retail market can broadly be divided into marketplace sales and direct-to-consumer (D2C) operations.
According to forecasts by the German E-Commerce and Distance Selling Trade Association (bevh/HDE-related market data sources), the German online retail market remains one of the largest in Europe, and Korean companies continue to show strong interest in entering the market.
| Category | Marketplace Sales | D2C Store |
| Representative Platforms | Amazon.de, Otto, Zalando | Shopify, WooCommerce, custom-built store |
| Scope of Legal Obligations | Certain obligations shared with the platform | Seller bears primary responsibility |
| Brand Control | Limited | High |
| German-Language Operations | Platform interface may be utilized | German-language website generally required |
Both models are subject to German law and EU regulations when targeting German consumers.
However, the scope of legal obligations and the party responsible for compliance may differ depending on the sales model selected.
Key Legal Issues When Selling Through Marketplaces
VAT Registration Obligations
Once a seller begins selling through a German marketplace such as Amazon.de, German VAT registration may become necessary.
In particular, VAT registration is generally required where the seller:
- uses a warehouse located in Germany, including FBA; or
- directly ships goods to German consumers under circumstances triggering German VAT obligations.
Continuing to sell without proper registration may result in retroactive tax assessments and administrative penalties imposed by the German tax authority (Finanzamt).
Compliance with the General Product Safety Regulation (GPSR)
Under the EU General Product Safety Regulation (GPSR), which has applied since December 2024, certain products placed on the EU market may require the designation of an EU-based Responsible Person.
For Korean manufacturers selling directly through Amazon.de, appointment of an EU-based Responsible Person may therefore be required depending on the product category and supply structure.
Risk of Legal Warning Letters (Abmahnung)
Germany has an active system under which competitors, consumer associations, or other eligible parties may send formal legal warning letters known as an Abmahnung for certain violations.
Common grounds include:
- inaccurate or misleading product descriptions;
- missing or incomplete return information; and
- improper price disclosures.
An Abmahnung may result in settlement payments, undertakings to cease and desist, or litigation.
For this reason, preventive review before commencing sales is generally more cost-efficient than responding after a violation has occurred.
Key Legal Issues When Operating a D2C Store
Legal Notice Requirement (Impressum)
A company operating its own online store in Germany must generally provide an Impressum, or legal notice, on its website.
The Impressum should typically include information such as:
- company name;
- name of the representative;
- contact details;
- commercial registration information; and
- VAT identification number, where applicable.
It should also be placed in a location that is readily accessible, generally within no more than two clicks from the main page.
Right of Withdrawal (Widerrufsrecht)
Under German consumer protection law, online consumers generally have the right to withdraw from a purchase within 14 days without providing a reason.
A D2C store must clearly inform consumers of this right before purchase.
If the withdrawal notice is omitted or defective, the withdrawal period may be extended significantly, in some cases by up to 12 months and 14 days.
GDPR Compliance
Once a D2C store collects personal data from German consumers, the GDPR becomes directly relevant.
The company should implement appropriate compliance measures for matters such as:
- privacy notices;
- cookie consent banners;
- data-processing records; and
- lawful processing of customer data.
Serious GDPR violations may result in administrative fines of up to 4% of worldwide annual turnover or EUR 20 million, whichever is higher.
Compliance Obligations That Apply Regardless of the Sales Model
| Compliance Item | Key Requirement |
| VAT Registration and Filing | Registration with the German tax authority and ongoing filings; OSS may be available for certain cross-border EU sales |
| GPSR Responsible Person | EU-based Responsible Person details may need to be displayed on the product or packaging |
| Packaging Registration (LUCID) | Registration with the LUCID Packaging Register and participation in a dual system; non-compliance may result in sales restrictions |
| Electrical Equipment Registration (ElektroG) | Products containing electrical or electronic components may require registration with the Stiftung EAR |
Prepare with DECENT Law Firm
Once a sales structure has been launched, changing it can be costly and operationally difficult.
Attempting to apply legal requirements retroactively after sales have started may create structural problems and can also lead to unexpected disputes, including Abmahnung claims.
DECENT Law Firm's Global Business Practice Team provides practical legal support throughout the German e-commerce market-entry process, including:
- structuring marketplace and D2C sales models;
- VAT registration strategy;
- GPSR Responsible Person arrangements;
- review of D2C website legal notices and consumer-law disclosures; and
- broader compliance review before launch.
If your company is considering entering the German online retail market, we recommend reviewing the legal structure before commencing sales.