Amazon & Nordic Countries eCommerce Trend
The Swedish version of Amazon is the very first time Amazon has opened in a Nordic region, providing vendors with a chance to provide Nordics customers accustomed to shopping via Amazon Netherlands or Amazon Germany with a localized shopping ride. Foreign firms competing in different global markets should now be able to attract more consumers in Nordics, while Nordics companies are seeking a brand-new consumer marketplace that has actually opened to them. The local marketers in the region can leverage ERP with Amazon to boost their sales and consumer base.
We should presume that the Swedish e-commerce marketplace will be affected, with strong signs that Amazon is going to join Sweden. In the Nordic countries, the e-commerce market in 2018 was worth 230,2 billion Swedish kronor, or 21,87 billion euros. Sweden, which still has the largest percentage of people shopping online, accounts for the greatest share of this online turnover. If you are among those business owners trying to make your way up in the Amazon marketplace, then you must integrate Amazon with your ERP system.
Here are a few eCommerce trends in Nordic with some statistics that you must know about
In the Nordics, clothes & accessories (36 percent), consumer electronics (25 percent), media (25 percent), and cosmetics & wellness are the most common product categories to purchase online (22 percent).
Higher Online Sales
The PostNord report shows so for the first six months of 2019, an average of 62 percent of Nordic citizens shopped online at least once per month. This is 2% more than in the prior year.
In Sweden, Norway, and Finland, this rise was also apparent, but not in Denmark.
The Danish online market share has remained constant. Denmark’s plateau may be attributed to the high density of the population of the country (compared to other Nordic countries) and the proximity of its citizens to physical retail outlets. The businesses that seemed to have constant growth have API integration apps for their ERP system to streamline the infrastructure.
The e-commerce figures represent the three leading types of goods bought online in the Nordic region:
- Footwear & Clothing (37%)
- Beauty & Wellness (24%)
- Electronics for home (22%)
Online shopping for beauty and wellness items in Sweden, for instance, was much higher than the regional average. In specific, online prescription retailing has risen sharply in recent years. In contrast, physically healthy Norwegians find it more convenient to buy online sporting goods. With this increment in the user’s interaction sales, the business needs to have an ERP and accounting system for efficient working.
Online Grocery Shopping
Nordic shoppers tend to make sustainability-conscious purchasing decisions regarding shopping online for food. A study commissioned by PostNord indicates that three out of four online buyers take into account how and under what circumstances the goods they wish to buy are processed and transported. According to this report, Danes, immediately accompanied by Swedes, are by far the most sustainability-conscious customers and are extremely interested in making responsible decisions while shopping online.
Though some analysts previously assumed that Nordic shoppers were not prepared to buy food online in a major way, there appears to be latent market demand. As long as the goods and services are enticing enough, many shoppers are willing to commit to online shopping.
A survey conducted by Ken Research shows that back in 2018, sales within the food & grocery market crossed the US $477 million, and within the same research, it is projected to rise to US $742 million by 2022. In the same year, consumer penetration throughout the grocery retail market was 13.3 percent and is expected to reach 15.6 percent by 2022, suggesting that e-groceries will be the key engine of potential strong potential for Danish grocery retailers. Besides, these retailers have started including Amazon Integration into their business strategy for instant growth.
If you sell large quantities of products in bulk to Amazon, investing in an Amazon EDI system will save a lot of time and money. You can set up Amazon EDI to integrate with Amazon Vendor Central and your own inventory management system.
Automating purchase orders, Amazon invoice upload, stock availability, and more are all possible through the Amazon EDI system. You should learn more about EDI as you consider an integration strategy will provide your business with the tools it needs to get up and running as quickly as possible.
There has been a larger and wider spread of cross-border internet trading, resulting in both exports and imports to the Nordic markets. In 2019, one out of four British shoppers bought products from Nordic online retailers online. Swedes, Danes, Norwegians, and Finns have also used web-shops abroad. Danish shoppers bought mostly from the United Kingdom during the first half of 2019, from garments to fitness and skincare treatments.
When asking why they were shopping online, Nordic residents found out the most popular explanation for making it convenient and saving time. This was found important in 2019 by around one out of three Swedes. However, since the coronavirus (COVID-19) epidemic, online retailers have already faced some problems in early 2020, much as other firms. A drop in consumers, which was also noticed in Denmark throughout the second half of March of that year, was among the findings.
Mobile-Oriented Online Shopping
Nordic online shopping appears to be primarily focused on cell phones, with about 50 percent of users shopping online using their mobile devices. Mobile technologies and dedicated retail applications are evolving at a fast pace, ranging from classic classics such as Amazon and eBay to more recent consumer innovations such as Instagram Checkout, Klarna Checkout, and Google Shopping. Social networking and ever more advanced algorithms developed to make the process from browsing to ordering as fast and convenient as possible increasingly support the mobile shopping ecosystem.
If you are starting a new business in Nordic or planning to compete within the eCommerce industry, then you must consider these trends as well as cloud-based accounting systems for higher productivity and efficiency.
When you integrate the Amazon EDI system, you need to ensure that your inventory management platform will work seamlessly with it. The automation that comes from EDI will save time and money and make your inventory management more effective.
HubBroker is the leading provider of API integration solutions, which makes it possible to share information between the Amazon marketplace and the ERP or accounting system. In almost all possible formats and from all existing platforms, HubBroker can collect and distribute information, so you can easily adapt to the functionality of your ERP and accounting system.
This means specifically that all orders which consumers place at the Amazon Marketplace can be directly imported into the ERP system for further processing and invoices can be sent to Amazon automated and digitally.