Domestic e-commerce grew faster than the whole retail sector at the beginning of the year – Online retailers’ expectations of growth have reached record levels

According to the recent Verkkokauppapulssi* survey by Digital Commerce Finland, the Federation of Finnish Special Commodity Trade ETU and the Finnish Commerce Federation, e-commerce in Finland had a strong start to the year. Meanwhile, according to Statistics Finland, sales in the retail sector as a whole increased by 3.8 per cent.

”The growth of the purchasing power of Finns is starting to show in both the retail sector as a whole and online shopping,” says Jaana Kurjenoja, Chief Economist of the Finnish Commerce Federation.

Online retailers have high expectations of growth for domestic sales. In the latest Verkkokauppapulssi survey  conducted in April–May, as many as 45 per cent of online retailers believe that domestic sales will grow by more than 10 per cent in the next 12 months. In February, 36 per cent of online retailers expected similar growth.

Expectations of growth for sales abroad have also strengthened compared to the beginning of the year, but they are not yet at the same level as at the beginning of last year. The expectations for cross-border online sales were at their highest in August last year, when customs policy was already expected to have calmed down and interest rates were falling.

”Many online retailers see opportunities for growth in the foreign market, but ongoing geopolitical uncertainty is slowing down expectations,” says Mirva Sandström, Director at Digital Commerce Finland.

Online retailers continue to consider weak consumer confidence and purchasing power in Finland as the biggest obstacles to the growth of online sales. More and more online retailers also believe that logistics that have become more expensive and the price of delivery fees charged from domestic online stores are weakening the opportunities for growth. Insufficient marketing resources and a lack of marketing expertise are slowing down growth in sales, especially in smaller online stores.

”Online retailers are now investing in social media marketing and the development of search engine and artificial intelligence optimisation to accelerate growth,” says Jenni Homer, Managing Director of the Federation of Finnish Special Commodity Trade.

*Verkkokauppapulssi is a company survey that is carried out quarterly. It monitors the development and prospects of online stores operating in Finland. The online stores that complete the survey get access to a report that contains the results of the survey and other information related to the sector.

The survey typically receives responses from approximately 100–200 companies. Jaana Kurjenoja, Chief Economist of the Finnish Commerce Federation, is responsible for analysing the results of the company survey and producing the content of the e-commerce report.

For further information, please contact:

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

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

Jenni Homer, Managing Director, Federation of Finnish Special Commodity Trade (ETU)
Tel. +358 (0)40 900 6389, jenni.homer(at)etu.fi