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1. Kenner Soft Service
Germany's eCommerce IT
market review
LIOF ONLINE 2021

2. • Review IT market in Germany
• E-commerce technologys
• Obstacles on the German market
• Salary revision
• Sales methodology and lead classification
Agenda

3. More 10 years work in Germany
ecommerce software developing
About me
Oleksandr Novytskyi, PhD
CTO Kenner Soft Service GmbH
• Automation process of code development
and delivery
• Implementation and supporting CI/CD
processes.
• Automatization QA
• Hiring, training and evaluating employees

4. E-Commerce
Internet users who bought or ordered good or services
for private use
(% of people who used internet in the previous 12 months)
Source datasets: isoc_ec_ibuy and isoc_ec_ib20

5. E-Commerce
eCommerce Usage Distribution
Source https://trends.builtwith.com/

6. E-Commerce
eCommerce Usage Distribution
Source https://trends.builtwith.com/
Source https://trends.builtwith.com/

7. E-Commerce
Popular technology for ecommerce
Technology Websites % Amount local agency Competition level
Ecwid 79,804 18.56 7960
Shopify 63,985 14.88 5590
WooCommerce
Checkout
45,247 10.52 16 100
Shopware 34,892 8.12 38 400 High
Wix Stores 24,152 5.62 1750
ePages 18,605 4.33 29 800
Gambio 13,235 3.08 1400 Low
Magento 12,838 2.99 65 800 High

8. Interesting direction
Ecommerce:
Shopware, Oxid, Magento
CRM, ERP, PIM Systems:
Salesforce, SAP, Akeneo
Programmiersprachen:
Java, PHP, Python, .net, Node.js, React, Vue
Technology:
DevOps, BigData, Machine Learning & AI

9. E-Commerce
Closed
technology stacks Oxid eSales, Shopware,
Gambio, xt:Commerce
Language barrier
only good level of German language is
accepted
Competition
Total count of local agencies are high
Long Sales
The sale phase is too long, more than 6
months
Decision making
Any making decision process is longer than
you can imagine
Obstacles on the German market

10. E-Commerce
Freelancer rates from Germany 2020
Source https://www.lyncronize.de/stundensatzvergleich-entwickler

11. Developing
80 euro/hour
DevOps
100 euro/hour
SEO
100 euro/hour
Consulting/PM
100 euro/hour
Developer for day
800 euro/day.
QA
70 euro/hour
Agency rates from Germany 2020

12. E-Commerce
Average offered salary by experience and role
Source https://cult.honeypot.io/developer-salary-report-2021/developer-salaries-germany-2021

13. Requirements for success of the project
The estimate must
include
all expenses and risks
Quality is
more important than
speed
Decency in payments
is not the strongest point
of some customers

14. Why is it important to open a company in
Germany
Trust from potential customer A lot of banks from Germany do
not allow pay to Ukraine using by IBAN
Easy to pay and allow
connecting SEPA-Lastschrift
VAT is available for return
Responsibility according to the
German law
If you don’t have law address
you can’t buy a phone number

15. E-Commerce
Expenses for maintaining a company
Corporation tax + Trade tax 30 % from revenue
Accounting services from 200 euro/month
Bank 100 euro/month
Phone 40 euro/month
Post address 50 euro/month

16. E-Commerce
Ways of looking for new customers
• Twago aka Upwork
• Xing
• LinkedIn
• Personal Recommendation
• Cold call – is gray zone

17. E-Commerce
Lead classification
Profitable online shops
• Estimate traffic by SEO tools
• Analyzing Trusted shop
Owner identification
• https://www.northdata.de/
Technology identification
• Buildwith
• Wappalyzer

18. E-Commerce
Type of company
• AG 50.000,00 EUR
• GmbH 25.000,00 EUR
• GmbH & Co. KG 25.000,00 EUR
• UG (1-Euro-GmbH)
• KG (at least 2 founders) , UG & Co. KG

19. E-Commerce
For example https://www.moebel-shop.de/

20. E-Commerce
Advice
• Avoid poor German
• Comply with legal requirements (Show that you have
nothing to hide and disclose all information about your
company in an "Impressum")
• German address & entity
• Study the customer carefully before work

21. Novytskyi Oleksandr
+49 721 957 946 70
o.novytskyi@kennersoft.de
https://www.linkedin.com/in/oleksandr-novytskyi/