E-commerce Trends in Iceland

Iceland may be a small country with a population of no more than a third of a million. Nevertheless, the country has embraced the latest technological developments. Internet penetration, for example, is almost 100%. This has paved the way for e-commerce in Iceland in a big way. There are several reasons for the rapid growth of e-commerce in Iceland, apart from the excellent availability of the internet. The country also has an impressive smartphone population, with almost 90% of mobile phone owners using a smartphone.

Reasons for Ecommerce Growth in Iceland

One of the main reasons why Icelanders like to order online is that many products are not readily available locally due to the small size of the market. And even when they are available, they can cost much more than the prices at which they are available online. The country’s government has helped by lowering tax rates on imported goods. The country has adopted the rules that EU countries have introduced for e-commerce in Europe. Iceland is not an official member of the EU.

E-commerce operators in Iceland have done their part by improving the mechanisms for faster delivery of products ordered through their platforms. It is obvious that Icelanders favour those with better delivery conditions. Studies show that Ali Express, the e-commerce arm of Chinese giant Alibaba, is the most popular. Others such as Amazon from the US and some European e-commerce sites are also accessed and orders placed online. As mentioned earlier, the average online shopper in Iceland likes it when the delivery of an item is faster and the charges for delivery are reasonable. Some of the e-commerce companies seeking more business from Iceland are taking note of this and making adjustments for better delivery.

What Products Are Purchased More Frequently?

Icelanders seem to be more interested in products for their children and newborns. Orders are also placed for clothing or what the trade calls fashion. As you would expect, women order more clothing than men. Other products that are frequently ordered online by shoppers from Iceland are home improvement products and household appliances. Surprisingly, electronics are not mentioned in this list. Electronics, especially mobile phones, dominate sales on most e-commerce platforms worldwide. The problem could be establishing effective local customer service. On the small base that the country offers, it may not be viable for many brands to set up a corresponding infrastructure. Brands may have partnered 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 business. AskjaBotique, Lín Design, iglo+indi and Epalare are some of the brands that have taken their offerings to the virtual platforms. Any discussion about e-commerce in Iceland must include a website that contains classified adverts for products and services that Icelanders consume locally. It provides the right forum for small businesses and even individuals to advertise their products and services. Local businesses can also utilise the regular social media platforms such as Facebook and Instagram to reach out to their potential customers.

Payment Channels Have Also Evolved

An important part of the e-commerce business is a reliable payment gateway so that customers feel secure when using the website. The website must offer full security and ensure that transactions run smoothly at checkout. The growth of e-commerce in Iceland has been favoured 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.