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Italy's E-commerce Market is expected to grow at a CAGR of 17.50 % from 2022 to 2027. Furthermore, technological advances have made business communication faster, easier, less expensive, and more efficient. It has enabled the company to move from the domestic to the global market. Furthermore, the growing popularity of cybercafés has played an essential role in attracting internet users to e-commerce.
- International B2C retailing platforms heavily influence the Italian e-commerce market. Subito, Aliexpress, Zalando, Autoscout24, Groupon, Yoox, and Pixmania are some of the most popular e-commerce websites in Italy. ePrice and Saldiprivati are owned by Banzai Srl, Italy's largest e-commerce company.
- E-business is the most common model in e-commerce, which entails digitalizing corporate processes in collaboration with clients and suppliers. Furthermore, in recent years, web portals for B2B e-commerce (similar to e-commerce B2C models) and B2B marketplaces have grown in popularity. Automotive, pharmaceutical, consumer goods, and electronics are the most active sectors implementing B2-B solutions.
- The COVID-19 pandemic has forced many small businesses to rethink their decades-old business models or face permanent closure. New and existing technologies are being pushed to the forefront of every business toolkit. Forward-thinking companies are addressing talent issues arising from these new digital business skillsets.
- The COVID-19 pandemic is undergoing rapid digital transformation, and many Italian companies prioritize digitalization. Furthermore, the requirement for private and state-owned businesses to submit electronic invoices to the Italian Public Administration (PA) has pushed for digitalization.
Scope of the Report
E-commerce is the purchasing and selling of products and services over the Internet. It is conducted over computers, mobiles, tablets, and other smart devices. There are primarily two types of e-commerce, including Business-to-Consumer (B2C) and Business-to-Business (B2B).
The Italy E-commerce Market is segmented into B2C E-Commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-Commerce.
|By B2C E-commerce|
|Market size (GMV) for the period of 2017-2027|
|By B2B E-commerce|
|Market size for the period of 2017-2027|
Key Market Trends
- The number of Italian online shoppers is growing by 2020; online sales in Italy account for 8% of total retail sales. As Internet access infrastructure improves and broadband connection availability expands, mobile devices are increasingly used for sales, accounting for roughly 40% of all digital sales. Furthermore, the country has 61 million people, with 19 million shopping online.
- Italy's economy is prosperous, with one of the world's largest GDPs. Italy's government revenues increased to 64.87 billion EUR in September 2021, up from 46.50 billion EUR in August 2021. Luxury goods sales are also significant in this country, as Armani, Gucci, and Prada are all located there. Previously, the fashion industry dominated the country. However, Electronics & Media is now the largest segment in the Italian e-market, accounting for 29 % of e-commerce revenue in Italy.
- At the beginning of 2021, mobile phones were almost as popular as laptops or desktop computers for accessing the internet, while tablets accounted for only 2% of total web traffic. Making video calls and using services like Facetime to stay in touch with friends and loved ones appeared to be the most popular activity among Italian smartphone internet users. Chat and messenger apps were among the country's most popular types of apps, with a 94.4 % reach as of the third quarter of 2020.
- Every day, 2 million new users on average sign up for social media, which impacts e-commerce because consumers are now more likely to purchase through social media. In particular, many brands and marketplaces have integrated their e-commerce platforms with social media so customers can easily connect to their online stores. Roughly 41 million people use social media in Italy, accounting for 68 %.
- COVID-19 outbreaks around the world drove consumers to unprecedented levels of online activity. By May 2020, e-Commerce transactions had reached $82.5 billion, a 77 % increase from the previous year. Using traditional year-over-year increases would have taken four to six years to get that figure. Consumers have moved online to make purchases they would typically make in stores, such as food and household items, clothing, and entertainment. Many customers say they will continue to shop online until a COVID-19 vaccine becomes available.
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- Amazon is the dominant player in the Italian E-commerce market. In 2021, the store's revenue was $5.3 billion. It is followed by shein.com, which has a revenue of US$1.1 billion, and Esselunga, which has a revenue of US$846 million. The top three stores account for 30% of online payments in Italy; it is one of the fastest-growing stores in the Italian market. In 2021, the store made approximately US$1.6 million in sales. Its revenue growth amounted to 595 % in the previous year.
- May 2022 - Alibaba, the Chinese E-commerce giant, is expanding its Lazada marketplace to Europe. Lazada will concentrate on local merchants rather than cross-border sales like AliExpress. Cainiao, Alibaba's logistics company, has only recently arrived in Belgium. Alibaba is currently present in the European market through its marketplace AliExpress. However, AliExpress's leading source of revenue is cross-border sales from China. Instead, Lazada concentrates on local European sellers.
- May 2022- Olsam, a British E-commerce aggregator, acquired MarketFleet, a competitor in the United States. It is the company's second acquisition of an aggregator, following the purchase of Flywheel Commerce in November of last year. With this move, the company hopes to consolidate the market. Furthermore, Olsam acquires Amazon sellers and leverages its own platform's data, technology, and operational expertise to drive revenue and profit growth. It received another aggregator, Flywheel Commerce, with the capital raised last year. According to the company, it is now present in 15 countries across three continents.
- March 2022- Amazon announced the creation of over 4,500 permanent jobs in Italy by 2021. Amazon has over 14,000 permanent employees in Italy, exceeding the 50% target announced in June. Since the end of 2019, when it had 6,900 employees in Italy, the company has more than doubled its workforce. It has become a significant job creator in Italy, providing stable and well-paid opportunities throughout the country, and contributing to the Italian economy's recovery and digitization.
- March 2022- The Italian Parliament approved the National Recovery and Resilience Plan (PNRR) last April as part of the Next Generation EU (NGEU), which promotes the country's digital transformation and continues to support innovation of the national economic system. To that end, it provides incentives for the private sector to adopt innovative technologies and digital capabilities: this will help ensure that technological innovation and Industry 4.0 play a growing role in Italian companies' short-term plans.
- December 2021- Payment via the internet PayPal is well-known throughout Europe, but its use in online stores varies by country. 93% of online stores in Italy accept PayPal as a payment method.
- September 2021- Helbiz Inc., a global leader in micro-mobility and the first company in its industry to be publicly traded on Nasdaq, announced an agreement between Helbiz Media, the company's media arm and the exclusive distributor of Serie B media rights worldwide, and Amazon Italy to broadcast Helbiz Live contents and the entire Italian Serie B Championship on all devices and TVs equipped with Amazon Prime Video Channels throughout Italy.
Table of Contents
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Key market trends and share of E-commerce of total Retail sector
4.4 Impact of COVID-19 on the E-commerce sales
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growth of the market during the COVID-19 Pandemic
5.1.2 Penetration of Internet and Smartphone Usage
5.2 Market Challenges
5.2.1 The Heightened Demand for Data Security
5.2.2 Low Internet Penetration
5.3 Analysis of key demographic trends and patterns related to E-commerce industry in Italy (Coverage to include Population, Internet Penetration, E-commerce Penetration, Age & Income etc.)
5.4 Analysis of the key modes of transaction in the E-commerce industry in Italy (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)
5.5 Analysis of cross-border E-commerce industry in Italy (Current market value of cross-border & key trends)
5.6 Current positioning of country Italy in the E-commerce industry in Europe
6. Market Segmentation
6.1 By B2C E-commerce
6.1.1 Market size (GMV) for the period of 2017-2027
6.1.2 Market Segmentation - by Application
22.214.171.124 Beauty & Personal Care
126.96.36.199 Consumer Electronics
188.8.131.52 Fashion & Apparel
184.108.40.206 Food & Beverage
220.127.116.11 Furniture & Home
18.104.22.168 Others (Toys, DIY, Media, etc.)
6.2 By B2B E-commerce
6.2.1 Market size for the period of 2017-2027
7. Competitive Landscape
*List Not Exhaustive
7.1 Company Profiles
8. Investment Analysis
9. Future Outlook of the Market
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Frequently Asked Questions
What is the study period of this market?
The Italy E-commerce Market market is studied from 2020 - 2027.
What is the growth rate of Italy E-commerce Market ?
The Italy E-commerce Market is growing at a CAGR of 17.5% over the next 5 years.
Who are the key players in Italy E-commerce Market ?
Amazon, Shein, Esselungaa, Apple, Zalando are the major companies operating in Italy E-commerce Market .