Ireland E-commerce Market Size

Ireland E-commerce Market Analysis

The Ireland e-commerce market is expected to register a CAGR of 8.2% from 2022 to 2027. The primary factor driving the growth of the e-commerce market in the region are strong household internet access, high cross-border spending, and rising smartphone usage, among others.

• The key factors influencing the growth of e-commerce in Ireland include the ease, convenience, and security of the payment methods and online retailers investing in making their websites more appealing and user-friendly. The significant growth of alternate payment methods is also boosting the growth of the e-commerce market in the region. Bank transfers and digital wallets are Irish customers' two most used payment methods for online sales. Moreover, increasing smartphone penetration and the arrival of advanced digital wallet solution is further expected to grow the e-commerce market in the region.
• Furthermore, as per Central Statistics Office, Ireland, the proportion of retail sales generated online for All Retail Businesses was 6.5% in December 2021 and 6.0% in November 2021, compared to 5.8% in December 2020. Moreover, in December 2019, the proportion of retail sales transacted online for All Retail Businesses was 4.1%. The share of online generated sales continued to grow at 3.2% in January 2020, 3.5% in February 2020, and 4.5% in March 2020. the share of online sales in November 2020 was 12.4%, 11.0% in January 2021, and 11.8% in February 2021.
• Furthermore, the region's e-commerce market continues to expand faster, with mobile internet retailing becoming especially significant. Retailers in the region are launching dedicated mobile apps while store-based retailers rapidly utilize multi-channel options. Click and collect services have become more widely available, allowing retailers to maximize retail potential without incurring delivery fees. In contrast, the consumer can easily access purchases without planning for deliveries.
• Any security doubt or risk in the minds of consumers while shopping online can negatively affect consumers and their motives to purchase products or services online. Their main concern is the stealing of their credit card information. This factor can negatively impact the e-commerce market in the region.
• The COVID-19 outbreak has rapidly forced numerous entities (public, business, and private) to become predominantly oriented to e-commerce during the pandemic. Moreover, the pandemic accelerated the move to digital for Irish consumers. The pandemic has increased the scope of e-commerce and the range of services in Ireland despite the deteriorating economic and social situation.