In the digital era, the way we shop has seen a significant shift, with e-commerce taking center stage in consumer and business transactions. Finland, known for its tech-savvy population and innovative business environment, has fully embraced this digital revolution, making strides in the world of online shopping and transactions.
A recent study by Posti, Finland’s leading postal and logistics service, delves into the intricacies of online shopping behaviors, preferences, and anticipations among Finnish consumers and businesses. This article aims to analyze these findings, providing insight into Finland’s e-commerce landscape from both B2C and B2B perspectives.
The upward trajectory of Finland’s B2C e-commerce
The Finnish consumer’s shift towards online shopping is not just a trend but a lifestyle change that has been steadily growing over the years. According to Posti’s latest research, containing the views of more than 2,000 consumers and 450 business decision-makers, a substantial portion of the Finnish population engages in e-commerce.
- Shopping frequency: Findings reveal that 84% of Finns shop online at least occasionally, highlighting the widespread adoption of e-commerce among various demographics. 33% of the participants in Posti’s study stated that they make several online purchases each year, while up to 15% say they buy online a few times a month. In addition, Finnish consumers estimate that in the next few years, their online shopping will increase compared to buying from physical stores, demonstrating the integral role of digital platforms in everyday shopping routines. E-commerce retailers anticipate an increase in the proportion of online sales compared to their total revenue as well. Similar forecasts can be read from Statista’s forecasts, which predict that the number of e-commerce users in Finland will grow from the current 3.13 million to even 4 million by 2029.
- Popular categories: If you’re considering expanding your business into the Finnish market, you’re probably wondering what Finnish consumers purchase online. Fashion, footwear, and accessories emerge as the top categories, followed closely by consumer electronics. Food, beauty, and health products, as well as books and magazines, are in the top five categories, followed by hobby supplies, household appliances, furniture, daily consumer goods, and pet products. These findings might uncover new opportunities for businesses in these sectors to tap into an ever-growing Finnish online market.
- Top online stores: According to Statista, in 2022, Verkkokauppa.com was the top e-commerce site in Finland, with net sales of US$272 million. The Finnish company sells a wide range of products, including information technology, consumer electronics, household appliances, and items related to home, yard, and leisure time. Following closely was Gigantti.fi, a Norwegian-owned home electronics chain operating in Finland, with US$239 million in net sales. In third place was K-Ruoka.fi, a Finnish online store focusing on food and groceries, with US$191 million in net sales. Zalando.fi, a German company specializing in online sales of shoes, clothes, and other fashion and lifestyle products, took the fourth spot with US$159 million in net sales.
- The omnichannel experience: Interestingly, a significant majority of B2C sellers in Finland operate both online shops and physical stores, underscoring the importance of an omnichannel strategy in today’s retail environment. Blending the digital and physical shopping experiences is key to meeting Finnish customers’ evolving expectations.
The evolution of Finland’s B2B e-commerce
The landscape of B2B e-commerce in Finland is equally dynamic, with digital platforms becoming increasingly pivotal in the procurement processes of businesses. Posti’s research delineates a clear trajectory toward the growth of online B2B marketplaces and digital procurement channels. Although personal selling is still the most popular sales/purchase channel in the B2B setting, digital channels have become the second most popular after physical stores, with up to 65% of buyers making purchases digitally.
- Digital adoption amongst businesses: Posti’s study revealed an expected increase in B2B online transactions, with up to one-fifth of B2B sellers who currently do not have an online store plan to set one up in the coming months or years. This shift is indicative of the growing confidence in digital platforms for business procurement needs and the advantages they offer in terms of convenience, efficiency, and broader market access.
- Future outlook: When looking ahead, it’s evident that Finnish businesses are not only embracing digital channels out of necessity but see them as strategic assets for growth. According to Posti, even half of purchasers anticipate increasing their procurement from B2B online retailers and digital platforms in the next 5 years. This digital pivot underscores the evolving business landscape in Finland, where digital integration becomes imperative for competitive advantage.
A digital marketplace at the fore
As we delve into the nuances of e-commerce in Finland, it becomes apparent that the country is at the cusp of a digital shopping era, marked by the fusion of traditional and online platforms. Both consumers and businesses are navigating this digital marketplace with enthusiasm and anticipation, propelled by the convenience, variety, and accessibility that online shopping affords.
It is crucial for brands and retailers to understand these trends in order to craft strategies that resonate with the Finnish market. As Finland continues to make its mark in the e-commerce domain, the opportunities for growth, innovation, and connection in the digital space are limitless.
In a world where digital has become the new normal, Finland’s e-commerce journey provides a glimpse into the future of shopping—a future that is already unfolding.
Sources:
Posti. 2023. Verkkokauppatutkimus 2023. Available in Finnish at: https://www.posti.fi/fi/yrityksille/vinkit-ja-caset/verkkokauppa/lataa-verkkokauppatutkimus-2023
Statista. 2024. Number of users of e-commerce in Finland from 2019 to 2029. Available at: https://www.statista.com/forecasts/1261468/users-e-commerce-finland
Statista. 2024. Top online stores in Finland in 2022, by e-commerce net sales. Available at: https://www.statista.com/forecasts/871150/finland-top-online-stores-finland-ecommercedb
