Market Trends of Iceland E-commerce Industry
This section covers the major market trends shaping the Iceland E-commerce Market according to our research experts:
Growing Number of E-shoppers is Expected to Boost the E-commerce Market
- The number of online or e-shoppers is rapidly increasing in the region owing to the intense internet penetration and high rate of urbanization. Furthermore, after the pandemic, consumer preference shift from offline shopping to online shopping boosts the number of e-shoppers in the region.
- As per data reported by EUROSTAT, the percentage of internet users that bought goods or services online was 76% in 2018; this percentage grew to 83% owing to the increased online shopping during the COVID-19 pandemic. Furthermore, the rate of online shoppers increased by 2% in 2021.
- Moreover, with high mobile and internet penetration in the region, digital wallets are gaining traction as one of the most popular online payment methods for online shopping in Iceland, especially since Icelanders are keen to do their banking and buy from their smartphones. The ease of convenience provided by this method is also attracting online shopping in the region.
- Furthermore, as per STATCOUNTER, 75% population in Iceland uses Facebook as a social media platform. Many players in the region are extensively doing digital advertising on these social media platforms to gain new consumers for online shopping. This is further expected to drive the e-commerce market in the region.
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The Fashion and Apparel Segment Accounted for the Largest Market Share
- One of the crucial trends in the fashion segment is the direct integration of shopping functionality into the content display on social media, enabling high-speed, inspiring, and selling customer conversion (e.g., Instagram Checkout). The audience is increasingly shifting from desktop to mobile, and improving the mobile browsing and checkout experience is crucial.
- Clothing, sports goods, and footwear online sales in the region generate a significant amount of share for the e-commerce market in the region. Further supported by mobile commerce, which makes up a significant proportion of Iceland's e-commerce market and is expected to surpass desktop usage in coming years. E-commerce merchants in the region are offering mobile optimization and a great mobile buying experience for online purchasing in the region.
- Furthermore, the household expenditure on clothing is continuously increasing in the region due to the increasing demand for fashion sector products, including clothing and apparel. For instance, as reported by Statistics Iceland, the annual household consumption expenditure on clothing in Iceland dramatically increased from 31,245 ISK million in 2015 to 42,268 ISK million in 2020.
- All of the aforementioned factors are expected to boost the E-commerce market in the region over the forecast period.
