Survey: Many domestic online stores are expecting international growth – competence and lack of funding are slowing them down

The Verkkokauppapulssi survey was carried out at the end of February. The survey mapped the volume and development prospects of Finnish online retailers’ online sales. 180 companies operating in Finland and selling online completed the survey.

The online retailers expect growth for this year. 47 per cent of online stores that are internationalising or already exporting expect their foreign turnover to increase this year, and less than one per cent expect it to decrease.

According to the survey, as many as 73 per cent of online stores expect growth in the Finnish market this year, and 37 per cent even expect considerable growth, i.e., more than 10 per cent. Only six per cent estimate that sales in Finland will decline. Growth is expected to accelerate especially during the spring.

Investments in e-commerce as well as high-quality and sustainable products are the drivers of success

Of the specialty goods trade sectors, the domestic furniture trade market shrunk by -6.6 per cent in 2024. Although the past few years have been challenging for the domestic interior decoration industry, the sales of digital channels grew by 4 per cent.

One example of positive growth is the furniture store Veke, which has increased its turnover.

”Despite the challenging market situation in the furniture industry, we achieved a turnover growth of more than 30 per cent and a significant performance improvement last year. This year has started according to plan. We invest heavily in e-commerce, the selection and active, helpful customer service in all channels. Our goal is to improve the customer experience and conversion,” says Markus Ranua, Managing Director of Veke.

Despite the challenges of the operating environment, online retailers firmly believe in their own products. Domestic products are seen as being high-quality and sustainable, and they are also expected to be successful internationally.

The Finnish footwear brand VIBAe, on the other hand, has quickly gained international recognition and a wide customer base in more than 150 countries. 2024 was a significant year of growth for VIBAe, with their turnover increasing from EUR five million to EUR eight million. 90 per cent of sales came from online, and 96 per cent of all sales came from abroad. The company was also recognized as the Internationalizer of the Year 2024 at the eCom Summit & Awards gala organised by Digital Commerce Finland last year.

”Without the top product, we would not have reached our current position internationally. We believe that we make the most comfortable footwear in the world, and we aim to grow and become a brand like Birkenstock. Many of our customers return to buy several pairs after the first purchase and are happy to recommend the VIBAe shoes to others. The best thing I’ve heard is that the people who wear VIBAe shoes greet others who are wearing VIBAe shoes,” says Kalle Gummerus, founder and CEO of VIBAe.

A lack of competence and resources is slowing down the growth of domestic online stores

The challenges to the growth of online stores often include insufficient competence and lack of funding, which makes it difficult to make investments that are essential for the future. For example, outdated and technically rigid back-end systems slow down development work and weaken competitiveness.

Marketing is seen as a key factor for growth and internationalisation, but there are often shortcomings in competence and development. However, successful marketing offers online stores an effective way to increase recognition, strengthen the brand and differentiate from competitors in international competition.

Online retailers are expected to have competence in search engine optimisation, marketing automation and tailored campaigns, but companies’ resources are not always sufficient for everything.

The challenge for small online stores is to find suitable service providers and IT partners that are involved in the development of digital commerce and support business development and internationalisation.

”High logistics costs also slow down international sales, and the high price of delivery costs is also a source of concern in Finland. The competitive position between Chinese low-price commerce and domestic e-commerce is perceived as being unfair,” says Jaana Kurjenoja, Chief Economist of the Finnish Commerce Federation.

”Domestic online stores should boldly seek growth in the international market. We have good products and are known for our reliability. Now we need the courage to try out new technical solutions and operating models that interest customers,” says Ulla Pöllänen, Managing Director of the Federation of Finnish Special Commodity Trade.

Digital Commerce Finland’s peer community helps online retailers with their challenges

”Succeeding in international competition requires an understanding of the daily challenges faced by online retailers and actively seeking solutions. Digital Commerce Finland supports online retailers by offering free training and club activities based on peer sparring throughout Finland,” says Mirva Sandström from Digital Commerce Finland.

”The community of Digital Commerce Finland includes a number of internationally successful Finnish online stores that may be unfamiliar to many people. DCF’s strengths include communality and open peer sparring, where online stores share useful practical tips with each other. This openness and cooperative spirit is something exceptional in Finnish business culture. It’s hard to find a similar community where everyone is genuinely willing to support each other elsewhere,” continues Kalle Gummerus from VIBAe.

The Verkkokauppapulssi survey conducted by Digital Commerce Finland, the Federation of Finnish Special Commodity Trade ETU and the Finnish Commerce Federation was carried out at the end of February 2025. In the future, the survey will be carried out quarterly.

In a press release published on 18 March, the Finnish Commerce Federation estimated that the domestic e-commerce of goods grew by approximately 4 per cent last year after two weaker years. The size of Finnish e-commerce was estimated to have been approximately EUR 5.4 billion last year.

For further information, please contact:

Mirva Sandström, Digital Commerce Director, Digital Commerce Finland
Tel. +358 (0)400 984 141, mirva.sandstrom(at)digitalcommerce.fi

Jaana Kurjenoja, Chief Economist, Finnish Commerce Federation
Tel. +358 (0)40 820 5378, jaana.kurjenoja(at)kauppa.fi

Ulla Pöllänen, Managing Director, Federation of Finnish Special Commodity Trade (ETU)
Tel. +358 (0)50 300 1660, ulla.pollanen(at)etu.fi

Kalle Gummerus, CEO, VIBAe
Tel. +358 (0)50 545 5481, kalle(at)vibae.com

Markus Ranua, Managing Director, Veken Kaluste
Tel. +358 (0)45 6313 045, markus.ranua(at)vekenkaluste.fi