By: Taru M.
15 Nov, 2021
E-Commerce website has become part of our day-to-day life…we order everything from food, garments, and groceries, to home instruments and on-demand amusement
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 of Services for eCommerce website design.
Ecommerce website development in the 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 likely to continue in 2018.
1. Enlightening Consumer Behavior for eCommerce sites
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 websites in Sweden are growing steadily and are expected to continue to overgrow 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 website 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 from e-commerce websites.
In 2017, U.S. consumers made 28.7% of their purchases online, and by 2022, it 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 might 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.
Most probably, e-commerce websites in Sweden this year will reach 7.7 billion SEK, representing a 35% increase over last year and 49% more than in 2016.
Firstly, When it comes to online purchasing, Swedes are very keen on getting the best deal.
Secondly, 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. 44 % of 18 to 34-year-olds, 38 % of 35 to 44-year-olds, and 30% of 45 to 54-year-olds use it.
However, the number of online purchases increases among the older age groups, meaning that e-commerce sites 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 from e-commerce websites.
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 websites selling health and beauty products.
The Swedish beauty market dominates “lifestyle” brands aimed at a younger and wealthier audience. These brands include L’Oreal, Kiehl’s, and Clarins.
Fashion: Where does an eCommerce website 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: 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 websites are 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 website industry is in Sweden.
Handcrafted goods: The scope of handcrafted goods eCommercewebsites in Sweden bounds to the number of online shops that demand shoppers to have a closer look at the products they sell.
People there are very fond of aesthetics, especially if it is a handicraft item made with love, and that is why 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 might increase 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 from e-commerce websites; by 2017, the figure had risen to 57 per cent.
The Swedish eCommerce market has experienced strong development over the last couple of years. In 2017, the eCommerce market for Sweden had valued at $5.84 billion.
MOBILE SHOPPING on E-commerce websites :
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. In addition, approximately 45 per cent of online shoppers use mobile devices to shop online from e-commerce sites.
This figure might 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.
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.
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.
The average online shopper spends 1,560 Swedish kronor (US$193) per year.
Most buyers in Sweden are very concerned about privacy. According to 65% of shoppers, data security is essential, and 58% of the cookies they store.
Ecommerce websites 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 eCommerce website development industry in Sweden has been steadily growing since 2011. When tax treatment for online purchases changes, VAT to deduct 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, online shoppers have 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.
AMAZON IN E-COMMERCE:
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 Swedish eCommerce market dominates Amazon, with 75% of it. NetOnNet is the most significant player in Sweden, followed by FOKO.se and avanza.se.
Segments Of Shopping Section Of E-Commerce Websites In Sweden:
In Sweden, Electronics & Media is the largest segment in eCommerce websites, with 24% of the revenue. It follows fashion with 29%, toys, hobbies & DIY, 19%, furniture & appliances, 15%, and food & personal care with the remaining 12%.
Sweden has one of the most advanced eCommerce websites in the world and one of the largest in Europe.
The country has a robust eCommerce website 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 have 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 e-commerce website 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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