Topic of the week – eCommerce Market in Finland
If you are looking at expanding into the Finnish eCommerce market, you are making a good decision. The market has a lot to offer and the potential keeps on increasing for retailers. Finland has an ever-expanding eCommerce market with more modern preferences amongst its consumers. New trends that you may already be familiar with are definitely worth keeping up to date with, especially in Finland. With a population of around 5.4 million inhabitants, around 4.1 million are online shoppers. That’s a huge market to tap into. It is worth noting that 79% of those users are aged between 25 – 34 years old, so it is no surprise that trendy delivery options and payment methods are catching on in Finland. If you want to find out more about the latest eCommerce trends in the Finnish market, just carry on reading!
User penetration rate for online shopping has risen by almost 10% since 2019 (pre-COVID levels) sitting at 73.8% at the end of 2022. This increase is predicted to continue into the coming years, forecasted to reach 74.5% by 2027. It is safe to say that the market looks to hold at a steady incline for the foreseeable future. While the domestic eCommerce market still dominates over cross-border purchases, the cross-border market is on the rise. Opportunities continue to arise as cross-border eCommerce revenue increased by over 15% between 2020 and 2021 at 4.5 billion euros. Currently in 2023 the cross-border market has a 4.3% share of the total Finnish eCommerce market revenue. In 2021 46% of online shoppers made purchases from other EU sellers outside of Finland while a further 20% purchased online from sellers in non-EU countries.
The top stores in Finland might surprise you. While Amazon maintain top spots in a variety of countries, over the last few years they have been surpassed in Finland. Online marketplace Verkkokauppa dominate with £272.8 million USD eCommerce net sales in 2022 closely followed by the online grocery marketplace K-ruoka at $246.8 million USD. K-ruoka have grown by 32.9% over the last year moving up the ranks and overtaking Gigantti, another online marketplace, who were the second most popular store in 2021, now third in 2022. Both Verkkokauppa and Gigantti have surpassed the global powerhouse, Amazon as the two most popular online marketplaces in Finland. This just goes to show how consumers are now considering other viable options when shopping online over the usual conglomerates.
Consumer preferences differ from country to country, depending on the services that are being offered. Payment methods and delivery options are amongst the most important deciding factors that can affect the purchase decision. Making sure that you understand what your consumers want and where is important. Debit and Credit card were the most popular payment method amongst 30% of respondents with direct payment through the consumers’ bank at 21% in preferred payment methods. Not far behind at 20% popularity PayPal and similar purchase methods are showing to be an equally preferred payment method, which is not surprising considering Finland’s majority younger online shopping audience.
New and improving delivery methods are key in Finland. Finnish company, Wolt, is expanding its fleet, in a time where other companies are reducing coverage. Wolt is now active in 25 countries, offering delivery options for both retailers and restaurants, with a large focus on improving sustainability within its fleet. Pick-Up Drop-Off (PUDO) delivery options are also the most popular in Finland with 35% of online shoppers wishing to collect their parcels themselves from parcel lockers, and 33% from a distribution point. The convenience of PUDO is why it is becoming increasingly popular, and it is beneficial for the environment as only one bulk delivery is needed from drivers rather than individual deliveries. Daytime at home delivery is surprisingly low in popularity at just 7% reinforcing the expansion of the PUDO market and why more and more retailers are including PUDO options as part of their service offering.
In other news
This week Deliver Europe took place in Amsterdam across 7th & 8th June, for its 8th year. The event “brings together the commerce and supply chain ecosystem to make deals, share insights, network, and connect leading vendors with retailers and brands looking for new solutions and technologies to shape the future of our industry.” Pro Carrier attended DELIVER where our team of experts met with a variety of retailers. We will be following up with the team in the coming weeks to explore the opportunities and success that this experience has brought.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
eCommerce in Finland
Most Common Purchase Categories by Revenue (billion USD)
- Electronics – 2.29
- Fashion – 2.07
- Toys, Hobby & DIY – 1.62
Device Usage Split
- Mobile – 36.2%
- Desktop - 63.8%
- 14% of online shoppers are aged 18-24
- 23.3% of online shoppers are aged 25-34
- 22.6% of online shoppers are aged 35-44
- 40.1% of online shoppers are aged 45+
Consumer preferences in Finland
Users’ selection criteria for e-commerce platforms
- Suitability to your needs – 42.6%
- Easy management – 33.7%
- Functionality of the platform – 26.8%
Important factors for online shopping (Share of Respondents)
- Total price is clearly printed, including shipping and other fees – 77%
- There are good, clear details about and photos of the product – 72%
- Delivery price – 54%
*All statistics sourced from Statista - eCommerce in Finland ecommerceDB country report
That’s all for this week…
If you would like to read more industry related news and insights, check out our articles below, or get in touch to discuss our services!