By: Taru M.
15 Nov, 2021
In 2018, Sweden’s online store development market continued to grow. This growth is due to the rapid increase in mobile usage and a strengthening economy. Services for eCommerce development
Online shop development in Sweden industry is expected to grow by 3% over 2017. A larger share of eCommerce purchases is being made online via mobile devices, and this trend is expected to continue in 2018.
1. Enlightening Consumer Behavior
2. E-Commerce stores in Sweden
a) Health & Beauty:
d) Online Toy shop:
e) Handcrafted goods:
f) Online shop development trends in Sweden
In 2018, online shop development in Sweden generated approximately 7.9 billion SEK. The predicted size of the market in 2022 is 10.3 billion SEK.
E-commerce in Sweden is growing steadily and is expected to continue to grow rapidly in 2022. According to a 2012 study by the Swedish E-commerce Federation, e-commerce development companies in Sweden grew by 43% in 2010 and are expected to have grown by 18.4% in 2011. Sales via eCommerce stores are expected to increase by 28.1% per year from 2018 to 2022.
The online shop development market in Sweden is booming. Meanwhile, eCommerce web developers in Sweden are predicted to generate 14.2 billion SEK in gross merchandise value (GMV), which would represent a 31% increase over last year. This growth will primarily be attributed to growing online sales and an increase in Swedish consumers buying online.
In 2017, U.S. consumers made 28.7% of their purchases online, and by 2022, it is projected that this number will reach 35.5%, with online purchases accounting for 45.9% of total retail sales in the U.S. For the first time in history, online purchases are projected to exceed in-store purchases by 2022.
In Sweden, 1 in 4 consumers have purchased online during the past year, and 1 in 3 have bought products online in the past three months. This compares to 1 in 5 consumers in the U.S. and 1 in 4 consumers in several other developed countries.
This year, e-commerce in Sweden is expected to reach 7.7 billion SEK, representing a 35% increase over last year and 49% more than in 2016. Meanwhile, e-retailers
When it comes to online purchasing, Swedes are very keen on getting the best deal. They also like to read reviews, which influences their purchasing decisions.
Younger people in Sweden are more likely than their older counterparts to use price comparison sites. They are used by 44 per cent of 18 to 34-year-olds, 38 per cent of 35 to 44-year-olds, and 30 per cent of 45 to 54-year-olds.
However, the number of online purchases is increasing among the older age groups, meaning that e-commerce consumption is becoming more popular among Swedes.
Swedes are also increasingly likely to make purchases from foreign websites. In 2016, 28% of Swedes made an online purchase from a foreign website, up from 23% in 2015.
The country’s biggest retailer, Ikea, is leading the way, with 65 per cent of Swedes buying its products online.
Health & Beauty: Health and beauty are among the fastest-growing online sectors, so it is not surprising that there is a market in Sweden for eCommerce stores selling health and beauty products. The Swedish beauty market is currently dominated by “lifestyle” brands aimed at a younger and wealthier audience. These brands include L’Oreal, Kiehl’s, and Clarins.
Fashion: Where does an eCommerce store go to satisfy different demands? Some online stores have a much more focused product selection. Zappos.com, for example, sells only shoes and clothing. The online shop development of these fashion stores helps the consumer to serve in the modern era.
Baking: Bakery products are needed in our daily lives. The taste of freshly baked bread, rolls, cakes, cookies is something you can not resist. Mainly if your breakfast includes cheese or butter products, according to the market report for the bakery and cereals market in Sweden, steady economic growth will sustain growth in Sweden’s bakery and cereals market during 2015-2020.
Online Toy shop: People prefer to buy unique and diversified things for their children, and eCommerce is winning at this point. Jollyroom has been a leader in this industry segment and has shown a significant rise in the last ten years, which shows how exploding the eCommerce industry is in Sweden.
Handcrafted goods: The scope of handcrafted goods eCommerce stores in Sweden is limited by the number of online shops that demand shoppers to have a closer look at the products they sell. People are fond of something aesthetic, especially when it is handcrafted with love, and therefore it is a growing industry segment.
E-commerce in Sweden is relatively young, but the market is large and growing. Currently, there are 6.3 million online shoppers in the country. That number is expected to grow by 900,000 within four years, reaching 7.2 million online shoppers in 2021.
An increasing number of Swedes are buying online each year. In 2015, 52 per cent of Swedes shopped online; by 2017, the figure had risen to 57 per cent.
Swedes are also making purchases on their mobile devices more often. In 2015, 30 per cent of Swedes bought something online from a mobile device; by 2017, that number had grown to 39 per cent.
Online shoppers spend about 10% more on purchases at online stores than in-store purchases. The average online shopper spends the U.S. $1,179 annually, while the average in-store shopper spends the U.S. $1,026.
In addition, approximately 45 per cent of online shoppers use mobile devices to shop online. This figure is expected to rise to around 60% by 2022.
In terms of mobile commerce, forty per cent of online shoppers use tablets, twenty per cent use smartphones, and twenty per cent use other mobile devices.
The eCommerce website development industry in Sweden has been steadily growing since 2011, when the tax treatment of online purchases was changed to allow VAT to be deducted at the time of sale. This change took place after Sweden’s e-commerce market had stagnated.
This policy change was the main reason behind the growth in the market. Since then, the number of online shoppers has steadily increased, reaching 6.3 million in 2014. The Swedish market now accounts for 7% of total retail sales in Sweden.
Sweden is famous for its Ikea furniture, and Swedes like shopping at online eCommerce shops as much as any other nation. But this year’s Ecommercemonitor report shows that Sweden has overtaken Belgium and the Netherlands to become one of the three largest online retail markets in Europe.
Ecommerce accounted for 6.3 per cent of all retail sales in Sweden in 2015. That’s up from 5.2 per cent in 2013 and 4.3 per cent in 2012.
The Swedish eCommerce market is dominated by Amazon, with 75% of the market. NetOnNet is the most significant player in Sweden, followed by FOKO.se and avanza.se.
Amazon has been present in Sweden since 2006 when it entered the Swedish market through Amazon.se. However, in 2009, Amazon launched Amazon.co.uk, which in 2014 had 12% of U.K. online shoppers.
The average online shopper spends 1,560 Swedish kronor (US$193) per year. Most buyers in Sweden are very concerned about privacy. 65% of shoppers say that data security is important to them, and 58% say that they are worried about the cookies they store.
In 2020, the top 50 Swedish eCommerce websites generated revenue of 1.4 billion Swedish kronor (the U.S. $208.6 million). Mobile apps developed 2.2 billion Swedish kronor (the U.S. $290 million) of this total.
With the growing demand for online shop development in Sweden, companies in Sweden are now willing to invest in creating eCommerce websites.
In Sweden, Electronics & Media is the largest segment in eCommerce, with 24% of the revenue. This is followed by fashion with 29%, toys, hobbies & DIY, 19%, furniture & appliances, 15%, and food & personal care with the remaining 12%.
The Swedish eCommerce market has experienced strong development over the last couple of years. In 2017, the eCommerce market for Sweden was valued at $5.84 billion. The eCommerce revenue for Sweden is expected to grow at a CAGR of 20.4% during the period 2017-2022. In addition, the market in 2017 was dominated by several international players. In the eCommerce market, PayPal and Klarna dominate in Sweden.
Sweden has one of the most advanced eCommerce markets in the world and one of the largest in Europe. The country has a robust eCommerce infrastructure, a thriving online consumer sector, and good transport connections to the rest of Europe.
Sweden has one of the highest levels of online retailing in Europe, with 83% of online consumers having purchased goods or services online in the last three years.
Sweden has one of the highest penetration rates in the world for mobile internet retailing, at 93%.
In addition, Sweden has one of the most advanced e-commerce ecosystems in the world, with several cross-border players and content providers. Notable examples include the H & M Group, IKEA Group, and Spotify.
Sweden has been one of the pioneers of cross-border commerce in Europe and today has a mature ecosystem of cross-border e-commerce players and content providers such as Amazon, eBay, Google, Alibaba, eBay, Etsy, Rakuten, and Zalora.
The Swedish eCommerce market or online shop development has developed organically and is an industry in its own right, with a number of players operating across numerous platforms. Despite its digital maturity, eCommerce is still a relatively small part of overall retail in Sweden, accounting for just 5% of retail sales in 2014.
With such rising demand, eCommerce website development companies are closely following suit, and we can see a significant increase in their incorporation. Because either way, businesses tend to hire eCommerce website development services to help them meet the competition.
With the development of online stores in Sweden, customers’ needs and demands are also rapidly increasing. This clearly illustrates the diversion that has been happening in Sweden.
Also, Sweden holds the highest number of active users on social media, which in turn contributes towards online shopping. Therefore, the market is mature in Sweden and, therefore, people prefer convenience over choices, and Sweden is clearly winning it.
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