Market Size of Finland E-commerce Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 7.40 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Finland E-commerce Market Analysis
The Finland e-commerce market is expected to register a CAGR of 7.4% during the period 2022-2027. The Finland e-commerce market is primarily driven by the increasing internet penetration, advanced infrastructure, and an increased number of online shoppers in the country.
- Finland has high internet penetration, with 97% of the population accessing the internet. Finland has also developed a robust e-commerce service provider ecosystem, and e-commerce is widespread and growing, driven mainly by the greater variety of goods. Moreover, lower prices are offered when compared to traditional brick-and-mortar retailers.
- Digital marketing in Finland has increased in the past few years. More service providers in the region, including traditional marketing companies, such as Suomen Digimarkkinointi and Avidly, have risen to help companies provide their services. Facebook and Google have already established strong positions in Finland, accounting for approximately half of digital marketing in Finland. E-commerce market players are opting for digital marketing to boost their regional presence.
- Moreover, most Finnish customers use online banking as their preferred payment method. Still, the region has been witnessing growth in mobile commerce over the past few years, which is further expected to boost the development of the market. Furthermore, rising household income and increasing employment further paved the way for e-commerce in the region.
- According to new European rules, consumers have a product guarantee of up to 2 years. When the product breaks, retailers cannot ask for a usage fee. But longer guarantee periods in Finland can cause problems for online merchants. The European Union (EU) rules are supposed to harmonize e-commerce and consumer guarantees across Europe. But because of differentiating guarantee periods in Finland, the rules can potentially harm retailers.
- During the COVID-19 pandemic, the most evident change has been the growth of online shopping compared to the pre-pandemic years. More people were going online, not just those shopping online making more purchases, but more and more customer sentiment towards shopping online. However, the infrastructure of grocery delivery struggled, as merchants were not fully prepared, even with click-and-collect.
