Iceland may appear to be a small country with its population not more than a third of a million. However, the country has embraced the latest advancements in technology. Internet penetration, for example, is close to 100%. This has paved the way for Ecommerce in Iceland in a big way. There are several underlying reasons for the rapid growth of Ecommerce in Iceland, apart from the superior availability of the internet. The country has an impressive smartphone population too, with close to 90% of the mobile phone owners using smartphones.
Reasons for Ecommerce Growth in Iceland
One of the major reasons for Icelanders taking to ordering stuff online is that many products may not be easily available locally because of the small size of the market. Even if things are available, they may cost a lot more than the prices at which they can be sourced online. The nation’s government chipped in with a reduction in the rates of taxes on imported goods. The country has adopted the regulations that the EU nations have in place for Ecommerce in Europe. Iceland is not an official member of the EU.
The operators of Ecommerce in Iceland have played their part by improving the mechanisms for faster delivery of products ordered on their platforms. Obviously, those having better delivery arrangements are preferred by the Icelanders. Studies reveal Ali Express, the Ecommerce arm of the Chinese giant Alibaba is the most popular. Others like Amazon from the US and some European Ecommerce sites are also accessed and orders placed online. As mentioned, if the delivery of an item is faster and the charges for delivery reasonable, it will go down well with the average online buyer in Iceland. Some of the Ecommerce firms eyeing more business from Iceland take note of this and make adjustments for better delivery accordingly.
What Products Are Purchased More Frequently?
Icelanders appear to be more interested in products for their children and newborn babies. There are also orders being placed for clothing or what the trade calls fashion. The women may be ordering more clothes than the men as you would expect. Other products frequently sourced online by buyers from Iceland include DIY products and home utensils. Surprisingly, there is no mention of electronics on this list. Electronics, particularly mobile phones dominate the sales by most Ecommerce platforms around the world. The issue could be the establishment of effective after-sales support locally. On a small base that the country offers it may not be viable for many brands to create the infrastructure. The brands may have tied up with mobile service providers.
What About Local Ecommerce Players?
Many homegrown businesses in Iceland have seen online business as a golden opportunity to expand their operations. AskjaBotique,Lín Design,iglo+indi, and Epalare some of the brands to have taken their offerings to the virtual platforms. Any discussion on Ecommerce in Iceland must include a website that carries classified ads for products and services that the local Icelanders consume. It provides the right forum for small businesses and even individuals to promote their products and services. Local companies can make use of regular social media platforms like Facebook and Instagram also to reach their prospective customers.
Payment Channels Have Also Evolved
An important component in the Ecommerce business is to have a reliable payment gateway so that the customers feel confident while using the site. The site must provide full security and ensure the transactions are smooth when they checkout. The growth of Ecommerce in Iceland has been facilitated by the acceptance of digital payments such as credit and debit cards and online bank transfers.
If you have plans of setting up a business in Iceland and offer your products online, you can contact Swapp Agency for all the support your need. They can be your local Iceland partner as they have experience in the area.