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2019 Ecommerce Report: Sweden 2019

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Page 2: Sw e d e n · Sw e d e n i s d o i ng g r e a t i n e c o m m e r c e i nd i c e s L o g i s t i c s P e r f o r m an c e I n d e x The LPI overall score reflects perceptions of a

Thank you forreading this reportThank you for downloading this report. We hope it will help you take the nextstep in selling online in Sweden. The Ecommerce Foundation is an independent organization, initiated byworldwide national ecommerce associations as well as online and omnichannelselling companies from industries such as retail, travel & finance. Our missionis to foster global digital trade as peace is the natural effect of trade. Byfacilitating digital commerce we hope to make the world a slightly better place. If you like our reports, please visit our report page onwww.EcommerceWiki.org. On this page, you will find a large collection ofEcommerce Country Reports for free.

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Valued Report Partners

SAP Customer Experience is a businessunit of SAP, providing omnichannelcustomer engagement and commercesolutions that allow organizations to buildup a contextual understanding of theircustomers in real-time, deliver a moreimpactful, relevant customer experienceand sell more goods, services and digitalcontent across every touch point, channeland device. Through its state-of-the-artcustomer data management, contextdriven marketing tools and unifiedcommerce processes, SAP CustomerExperience has helped some of the world’sleading organizations to attract, retain andgrow a profitable customer base.

We are Osudio. An award-winning digitalagency. We are part of the SQLI group andone of Europe's largest and mostexperienced e-business specialists. Having worked in e-business since the 90'swe understand what works, what doesn'tand what drives growth. Many of ournational and international clients aremarket leaders. Our goal is to help themevolve their business model so they canexcel in every market or channel.

Asendia is one of the world’s top threeinternational mail, shipping anddistribution organisations, delivering yourpackages, parcels and documents to morethan 200 destinations across the globe. We combine the experience and expertiseof our founding companies, La Poste andSwiss Post. As a joint venture, we bringtogether a wealth of international and localexpertise and connections. Today weemploy over 1,500 people in fifteen countryoffices in Europe, Asia and the USA - aglobal network blended with a localpresence. 

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Valued Report Partners

Ecommerce Foundation is an independentorganisation, initiated by nationalecommerce associations worldwide andomnichannel-online companies from theretail, travel, and finance industries.

Our mission is to facilitate ecommercethrough the development of practicalknowledge, market insights, and services.

Trustly is a Swedish FinTech company thatmakes online banking payments fast,simple and secure. By signing oneagreement with Trustly, e-commercebrands can accept payments from andissue refunds to consumers in 29 Europeancountries, in all local currencies. Today Trustly offers the market’s best bankcoverage, linking together 3,300+ banks,and processes roughly 7 million paymentsper month. Trustly is a licensed PaymentInstitution under the supervision of theSwedish Financial Supervisory Authority.

Manhattan Associates is a technologyleader in supply chain and omni-channelcommerce. We unite information acrossthe enterprise, converging front-end saleswith back-end supply chain execution. Oursoftware, platform technology andunmatched experience help drive both top-line growth and bottom-line profitability forour customers. Manhattan Associates designs, builds anddelivers leading edge cloud and on-premisesolutions so that across the store, throughyour network or from your fulfilmentcentre, you are ready to reap the rewardsof the omni-channel marketplace. 

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#1 SWEDEN OVERVIEW

#2 INFRASTRUCTURE & LOGISTICS

#3  ECOMMERCE LANDSCAPE

#4  EXPERT OPINIONS AND ADVICE

#5  ABOUT THE REPORT

Tableof Contents

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AREA: 450.295 km2CAPITAL: StockholmCURRENCY: Krone (SEK)

SWEDENOVERVIEW            

#1

Government:Constitutional Monarchy

Internet users (2018):94%Main device used for Internet:Desktop, 52%URL country code:.se

Official languages:Swedish

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Most of the population is  between 25-54

Population & Internet PenetrationTotal population (in millions) &Share of the population using the Internet, 2015-2019 (f)

94%

Age StructureShare of population in select  age ranges, 2018

93%

97%

95%

92%

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GDP expected to increase in 2019Gross domestic product (EUR)GDP, GDP per Capita & GDP Growth Rate, 2015-2019 (f) 

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Infrastructure& Logistics

#2

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Sweden ranks 1st in the Internet InclusivityIndex

Internet Inclusivity Index

The Index outlines the current state of Internet inclusion across

86 countries, and aims to help policymakers and influencers gain

a clearer understanding of the factors that contribute to wide

and sustainable inclusion.

Availability This category examines the qualityand breadth of availableinfrastructure required for accessand levels of Internet usage.

Affordability This category examines the cost ofaccess relative to income and thelevel of competition in the Internetmarketplace.

Relevance This category examines the cost of

access relative to income and the

level of competition in the Internet

marketplace.

Readiness This category examines the capacity

to access the Internet, including

skills, cultural acceptance,  and 

supporting policy.#1

Internet Inclusivity Rank

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Sweden is doing great in ecommerce indices

Logistics Performance Index

The LPI overall score reflects perceptionsof a country's logistics based on, amongother  things, efficiency of customsclearance process, quality of trade- andease of logistics services.

Ease of doing Business Index

A high ease of doing business rankingmeans the regulatory environment ismore favorable for the starting andoperation of a local firm. The rankings aredetermined by sorting the aggregatedistance to frontier scores on 10 equaltopics.

2Logistical

PerformanceIndex

E-Government Development Index

The UN’s E-Government Index provides acomparative assessment of the e-government development of UN MemberStates. Important factors contributing to ahigh level of e-government developmentare concurrent past and presentinvestments in telecommunication,human capital and provision of onlineservices.

12Ease of doing

Business Index

5E-Governement

DevelopmentIndex

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EcommerceLandscape

#3

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B2C ecommerce turnover is expected  toreach almost 17 billion euros in 2019

The share of the total GDP made up by

B2C ecommerce sales continues to increase

every year.  

B2C Ecommerce TurnoverB2C ecommerce sales (billions of Euros) & growth rate, 2015-2019 (f)

+11.98%

+7.41%

-0.59%+12.80%

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Over 84% of the online population isforecasted to shop online in 2019E-Shopper PenetrationShare of the online  population having shopped online, 2015-2019 (f)

2015: €1,784

E-Shopper SpendingAnnual amount spent per e-shopper (Euros), 2015-2019 (f)

2017: €1,917

2016: €1,872

2018: €1,917

2019 (f): €2,124

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YouTube is the most active social mediaplatformSocial media:Most active social media platforms, 2018

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Clothing and footwear is the mostpurchased category in SwedenConsumer opinion:Most purchased product categories online in Sweden, 2018

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70% of 35-44 year old women orderedclothes/sporting goods on the internet in 2018Consumer interview:Share of individuals who have bought or ordered clothes or sport goods on the internet in Sweden in 2018, by age group and gender

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B2C ecommerce sales growth is variable inSweden over timeB2C ecommerce sales growth in SwedenSales growth by branch, 2016-2018

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Pickup location is the most preferreddelivery methodDelivery methodPreferences when ordering online,Sweden, 2018

Consumer opinion:Why do you shop online?, 2017

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Good, clear product descriptions isfundamental for Swedish consumersConsumer opinion: 

Most important webshop features when placing an online order in Sweden in 2018

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Clothing and footwear is the most cross-border purchased category

28%

Cross-border Online ShoppingTop countries by share of purchases originating from Sweden, 2018

26%23%

14%

Cross-border Online ShoppingMost popular product categories purchased in foreign online shops bySwedish consumers, Q1 2019

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Forecast of the payment methods from 2017to 2023 (f)Payment methodsPayment methods forecast, 2017-2023 (f)

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55% of 35-44 year old men orderedhousehold goods on the internet in 2018Consumer interview: Share of individuals who have bought or ordered household goods on the internet in Sweden in 2018, by age group and gender

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Apotea.se dominates the Swedishecommerce marketLeading Online RetailersTop 10 online retailers in Sweden, 2018

#1

#2

#3

#5

#4

#7

#8

#10

#9

#6

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Expert Opinions& Advice

#4

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Camilla Lindgren Nordics Marketing Director

SAP  Customer Experience

Camilla Lindgren has solid experiencewithin the software and IT industry andis very passionate by the digitalopportunities. She is now heading up the SAP CustomerExperience marketing strategy in theNordics. In this position she isresponsible for positioning the SAP CXsolution portfolio, establish SAP CX asthe market leading solution, develop anddrive the Nordic Marketing demandgeneration strategy.

I N T E R V I E W Q: Looking back at the GDPR implementationfrom 2018, how do you feel this has impactedthe European (and wider) ecommerceindustry? A: When I look back at the months just beforethe GDPR implementation, then the first thingthat comes to mind is how many companieswere attending our GDPR readiness events andhow much content was written about that topic.I felt this was a turning point for brands to reallystart thinking about the customer experience,and for customers to be even more aware aboutthe value of their personal data. I’m happy aboutthe fact that, now, brands are putting a lot ofthought into shaping meaningful experiencesfor their customers, finding smart ways to treatcustomer data and giving them something inreturn, at every step of the buying journey.

Q: The debate still rages regarding privacy andour online shopping experiences.Personalisation is core to many ecommercestrategies. Do you think these two sides cancoincide? A: Absolutely. Many consumers expect apersonalised customer experience and are awarethat, in return, they will be sharing some dataabout themselves. Technology is also developingreally quickly, so even with minimal data it’salready possible to deliver a personalizedexperience by instantly responding to customers’signals. In the end, I believe it’s about making clearwhat it is that customers get in return. And it’sabout asking for it at the right time. For example,when visiting a web shop, most people are notwilling to leave their mobile phone number. But atthe point of ordering a product, they might feelmore confident to do so, as it may help with thedelivery. It’s not even a question if privacy andpersonalisation can exist together, they are fullyconnected.

“...[find] smart ways to treatcustomer data and givingthem something in return.”

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Camilla Lindgren Nordics Marketing Director

SAP  Customer Experience

Camilla Lindgren has solid experiencewithin the software and IT industry andis very passionate by the digitalopportunities. She is now heading up the SAP CustomerExperience marketing strategy in theNordics. In this position she isresponsible for positioning the SAP CXsolution portfolio, establish SAP CX asthe market leading solution, develop anddrive the Nordic Marketing demandgeneration strategy.

I N T E R V I E W Q: Where do you see voice search in thecustomer journey in the upcoming year? A: Let’s state some simple facts: voice shoppingis expected to increase twenty-fold by 2022, so itis already gaining a preponderant place in thecustomer journey. Connected to this, mobilecommerce is expected to take nearly half of allecommerce sales over the next two years or so. Those are clear signals for ecommerceretailers and brands to put the customer at thecenter of their strategies, by instantly deliveringthe answers that consumers are looking for anytime they wish to have an interaction with them,no matter the device, channel or type of search.The ability to deliver solutions when consumersask for them will be key to build long-term,trusted relationships.

Q: What topic or area of ecommerce haspiqued your interest this year, and why? A: Well, besides all the great technology, ethicalcommerce is a thing now for more and moreconsumers. Think about very detailed productinformation, but also packaging, shippingdistances and if a brand is socially responsible.Consumers want to feel good about the productsthey buy and I’m confident that ethical commercewill be a huge focus in the upcoming years. In theend, it is all about building a trusted relationshipbetween brands and consumers.

“...mobile commerce isexpected to take nearly half ofall ecommerce sales over thenext two years or so.”

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Luke Flomo is Head of eCommerce atTrustly and is a payments expert,bringing a wealth of knowledge with his13 years of experience in the industry. He has worked for the likes ofBarclaycard, WorldPay and, morerecently, Klarna, where he headed up theSales and Partner channel.

I N T E R V I E W Q: In the recent years, have you noticed achange in consumer behaviour whenreaching the final stage of purchase? A:  Over the past years, consumer expectationshave drastically increased and speed hasbecome a hygiene factor. We expect to be ableto watch or listen to whatever we wish at thetouch of a button and we expect to be able toorder food from an app and have it arrived atour door within minutes. The same expectationsspill over to e-commerce, where we expect to beable to buy items online with just a few clicksand sometimes even one. Increasingly, whenconvenient shopper experiences are notavailable, we will abandon our carts in favor of asite that makes checkout and paymentunobtrusive.

On top of this, we expect a personalizedexperience, whether that means Spotifysuggesting songs we might like, Uber Eatsremembering our last order, or our favoriteshopping site offering localized paymentmethods.

Luke FlomoHead of ecommerce, Trustly

Q: As a foreign retailer, what should be a “musthave” payment method to not miss a purchaseat the last stage? A: Often, foreign retailers assume that offeringpayment by credit card is sufficient, but with therise of alternative payment methods, shoppersexpect to be able to pay in whatever way theyprefer, whether it be by invoice, e-wallet or directlyfrom their online bank. Which payment alternatives they want often variesacross markets and industries; in Finland, forexample, roughly 40% of shoppers prefer to paydirectly from their online bank, while in the US,most shoppers prefer to pay by card.Understanding these localized preferences is keyto optimizing your checkout and reducing cartabandonment.

“Understanding theselocalized preferences is key tooptimizing your checkout (...)”

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Luke Flomo is Head of eCommerce atTrustly and is a payments expert,bringing a wealth of knowledge with his13 years of experience in the industry. He has worked for the likes ofBarclaycard, WorldPay and, morerecently, Klarna, where he headed up theSales and Partner channel.

I N T E R V I E W A:  Ultimately, offering choice is king. Accordingto a study conducted by PYMNTS.com, the bestperforming online retailers have more paymentmethods in their checkouts: While the weakestperforming retailers in the study offered anaverage of 1.4 payment methods in theircheckouts, the best performing retailerssupported an average of 8.2 payment methods.As you might expect, the retailers that offermore payment choice can cater to the widestaudience.

Q: The 18-29 demographic is the largestonline shopping group in Sweden. How doyou think they’ve shaped the evolvingpayment landscape?? A: The 18- to 29-year-old demographic is madeof up millenials and Gen Z’ers. Unlikegenerations before them, they’ve grown up asdigital natives, and barely remember a timewhen the smartphone wasn’t glued to theirhand. They are accustomed to using theirsmartphone for everything, from playing games

Luke FlomoHead of ecommerce, Trustly

and reading the news to keeping in touch with oldfriends and making new ones. As such, they haveadopted payment options that are optimized formobile as well, such as e-wallets and onlinebanking payments. So while credit cards havetraditionally dominated among older generations,the younger ones are trading them in for moreconvenient options that put them in better controlof their finances.  The next generation of payment methods willcontinue to push the boundaries and becomemore secure and frictionless. Naturally, they willentice the next generation of consumers, who arebecoming increasingly conscious of their time andpersonal security.

“The 18- to 29-year-old (...)have grown up as digitalnatives, and barely remember atime when the smartphonewasn't glued to their hand.”

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About theReport

#5

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About the authors

Sara Lone Research Coordinator

Sara holds a Master in PublicPolicy from the Universityof California in the United States.  Sara oversees theEcommerce Foundation ResearchTeam in its creation of country reports,custom research, contentand webinars.Additionally, Sara presents on researcharound the world and advisesstakeholders in furthering ecommerceglobally.

Ludovica QuaglieriJunior Research Analyst

Ludovica is pursuing a Master inEnvironmental Economics atWageningen University and Research,The Netherlands. At Ecommerce Foundation, she is partof the Research Team collecting dataand supporting the creation ofreports. She is interested insustainability and data analysis.

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Sources used in the report

The report could only be realized by consulting a great number ofvaluable sources. These were available in various countries andregions in Europe and around the globe. The wide variety ofsources include public domain publications, blogs, websites,industry and financial specialist publications, regional and localnews, annual reports, and press releases. Sometimes the information sources are contradictory andsometimes different figures and data were given by varying sourceswithin the same country, for example due to different definitions.In our reports we have mentioned the different sources, definitionsand outcomes of such reports, studies and interpretations. The report is based on information that we consider reliable, butwe cannot vouch for it being completely accurate or complete, norshould it be relied upon as such. Opinions expressed are ourcurrent opinions as of the date of this report.

OUR SOURCES

Worldometers

Eurostat

Quandl

Svensk Digital Handel

Statcounter

Trading economics

Statista: Most PurchasedProducts

Statista: Growth byBranch

United Nations

Statista: Nordics PDF

Statista: Ordering Online

Statista: Ecommerce

Worldbank

Statista: HouseholdsProducts by AgeGroup&Gender

Statista: Clothes&Sport Goodby Age Group&Gender

Statista: Cross-borderTop 5

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More about the reports and where tofind them

The National Ecommerce Reports are published byEcommerce Foundation.They provide overviews of the mature and emerging marketsin the field of ecommerce. In total, Ecommerce Foundation publishes multiple countryreports and three overview reports per year, covering themost important ecommerce markets worldwide. To have a tailor-made ecommerce report made,

completely based on your wishes and requirements, pleasecontact us via [email protected]. The full reports can be online purchased via:http://www.ecommercefoundation.org/reports.

OVERVIEW REPORTS 2019

Your feedback is very much appreciated. If you would like tohelp us make the 2019 reports even better, please take our3-minute survey.Also, consider becoming a member of EcommerceFoundation for even more services and opportunities to sellbetter globally.

2019 COUNTRY REPORTSNetherlandsBelgiumGermanyFranceUKSpainItalySwitzerlandSwedenDenmarkPolandRussiaBrazilUSAChinaAustraliaIndia

European Report Global ReportLatin America Report

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Address, Disclaimer & Copyright 

Ecommerce Foundation Entrada 100(2nd floor – Wing 3)1114 AA Amsterdam-DuivendrechtThe Netherlands

ADDRESS:

DisclaimerThe National Ecommerce Reports are publications by EcommerceFoundation, which also owns the copyright for these reports. Althoughthe utmost care has been taken in the construction of these reports,there is always the possibility that some information is inaccurate.No liability is accepted by Ecommerce Foundation for direct or indirectdamage arising pursuant to the use of the report.

Copyright ©It is not allowed to use information published in this report without theEcommerce Operation’s prior consent. Any violation in this regard will becharged a legal fine of € 25,000 (twenty-five thousand euros), as well as afurther penalty of € 2,500 (two thousand, five hundred euros) for everyday that this non-compliance continues. However, it is allowed to usesmall parts of the information published in our reports provided thatproper sourcing is used (e.g. “source: www.EcommerceFoundation.org)

CONTACT:[email protected]

WEBSITE:www.ecommercefoundation.org

FOLLOW US:@EcomFound

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