The Finnish e-commerce industry has been a topic of discussion recently, with some reports suggesting a decline in domestic online shopping. However, the reality is far from bleak. While there has been a slight slowdown in growth compared to previous years, there is no sign of a collapse in the Finnish e-commerce sector.
Pekka Juntunen, the Chief Operating Officer of Pulse247 Oy, reassures that despite the subdued growth in online retail due to the release of pent-up demand in the travel sector, there is no evidence of a significant downturn. Contrary to sensationalized reports of a 40% collapse in domestic e-commerce, data from over 2,000 online stores using the MyCashflow platform show no signs of a crash. In fact, orders and sales volume for the third quarter of the year are significantly higher than the previous year.
As we approach the busiest sales days of the year for online retailers, many are gearing up for increased consumer spending. Domestic e-commerce businesses are in a strong position as consumers continue to shift towards online shopping, a trend that began during the pandemic and shows no signs of slowing down. In the current global economic climate, competition for consumer spending is intensifying, making it crucial for businesses not to skimp on marketing efforts.
Posti, the logistics partner of MyCashflow, predicts a doubling of parcel volumes in Finland by 2030 due to the growth of e-commerce. Overall, the future of online retail in Finland looks promising.
The shift towards online shopping is particularly pronounced among younger generations. According to Klarna’s international Shopping Pulse consumer survey, Generation Z (18-26 years old) and Millennials (27-42 years old) prefer online shopping over brick-and-mortar stores. This trend is driven by the convenience, wider product selection, better product information, more payment options, and easier price comparison offered by online retailers.
Elisa Christersson, the Country Manager of Klarna Finland, highlights that the younger generation’s preference for online shopping is rooted in time-saving benefits and a more seamless shopping experience. In contrast, older age groups still show a preference for physical stores.
The Shopping Pulse survey, conducted in 18 countries with over 19,000 respondents, underscores the growing importance of online retail in shaping consumer behavior. With the rise of a generation accustomed to online shopping, the long-term growth prospects for e-commerce in Finland remain strong.
In conclusion, despite some challenges and shifts in consumer behavior, the Finnish e-commerce industry is resilient and poised for continued growth. Businesses that adapt to changing trends and invest in their online presence are likely to thrive in the evolving retail landscape.