Over the last couple of years, there has been a rise in the number of Nordic citizens taking to online shopping. For example in 2018, 61% of Nordic citizens shopped online. What’s more, Sweden had the highest earnings in the Nordic countries with nearly 93 billion Swedish kronor from online sales. So why can we see this rise in e-commerce sales?
Well, the core reasons for electronic shopping differ among the countries. This is mostly due to the following reasons:
- The first reason is that Nordic cities are sparsely populated so accessing certain products becomes difficult. Before the e-commerce solutions, people would have to travel far distances to get certain items. Now, customers can access all kinds of products from the comfort of their homes.
- The second reason for the rise in e-commerce is new technologies influence and also the fastest internet speed which allows people in remote areas to make quick transactions online whenever they want.
- Another reason, local shoppers appreciate a broad offering of online products and the ability to check relevant prices.
While e-commerce in Nordic countries is still not as high as in the USA or China, consistent growth is promising for retailers. However, Nordic companies need to speed up.
What Does Growth in the Nordic Retail Industry Mean for Retailers?
Well, it means that shoppers are expecting more from retailers. For customers, online shopping isn’t only about you delivering products. It is all about the experience — they expect shopping to be more flexible, meaning increased convenience.
Also, with the increasing number of mobile devices on the market, customers want to be able to use these devices to simplify shopping. That means you have to keep updated with greater innovations. What’s more:
- Payment methods — another area where customers expect changes is how they can make payments. It is important for clients to pay using methods that are both safe and not complex.
- Delivery is another equally important area for retailers to consider. Customers want to have the option to choose how and when goods get delivered.
At the end of the day, while there is growth in e-commerce, it is up to retailers to understand and meet the changing demands of customers. Hence, merchants should invest in digital technologies which will not only enhance the customer experience but also lead to increased sales.
Challenges E-commerce Businesses Face
With the boom in e-commerce, it is only natural for business owners to try to transition. However, this is no easy task. Even with rapid growth, many businesses fail to take off in the first year. What then are the challenges that retailers are likely to encounter?
Before you decide to venture into e-commerce, you want to consider the size of your inventory. Consider:
- The number of goods you have
- Where goods are located
- How long it would take to deliver products
Another important factor is how often you update your website. Many businesses find it difficult to frequently update their websites according to the products that are available. The last thing you want if to have to tell clients that what they ordered is not available.
You should also consider what goods customers are likely to buy online. For example, people in Sweden and Norway are most likely to purchase books or magazines while those in Finland and Denmark prefer clothing items.
Another challenge that merchants may encounter is how to provide customers with a smooth journey from making orders to payments. Customers want things done in an easy and fast manner. Anything that makes the process of buying products difficult or complicated impedes them from proceeding.
When it comes to customer journey the method of payment is quite crucial. More than 30% of clients are likely to abandon purchases once they don’t find a convenient payment method. According to Statista, the majority of Nordic citizens prefer making online purchases via debit or credit card. The right payment method should be easy to use and cost-effective for a retailer.
It is no surprise that transforming into an e-commerce business comes with a lot of security risks. One of the biggest challenges is how to protect your customers from fraud and data breach. Customers want to go on an online site that offers maximum security. Most retailers are caught in between trying to give the best experience and providing security. Any fraud can have a negative impact on the image of a brand.
So retailers need to use the new technologies that offer security for customers, especially when making payments. Digital technology can enhance customer experience while also enforcing security and reducing the number of fraudulent activities.
Nordic citizens want to be in control when shopping online. Clients want to have various options when it comes to how products will be delivered. When you are transitioning to e-commerce, this is one thing you should always consider. Options for where to deliver goods include:
- Special collection point
- Local distributor
- Unmanned lockers
- Customers doorstep
The majority of customers in Denmark prefer home deliveries while those in Norway, Sweden, and Finland prefer picking items from a local outlet.
Customers also want to select the time of delivery. While the time expected for goods to be delivered varies between Nordic countries, the average is 3-5 days.
The rapid and consistent growth of e-commerce in the Nordic countries is promising. Growth is mostly attributed to the changing demands of customers. For merchants to make the most of this, they have to tackle various problems. The main challenges that need solutions such as inventory management and security should be addressed.
Merchants should also provide customers with convenient payment methods and give them options for delivering products. Putting customers at the center of transition makes it easier for merchants to make decisions that will promote business growth. What is important here — retail businesses should invest in software that will help them overcome these challenges.
You can use bvblogic services to enhance the experience of your customers. Our company is experienced in providing digital technologies that will promote business growth. We can create software with safe and convenient payment methods for your customers. As well, our solutions ensure simple, fast, and secure methods for online payments. We also offer new technologies that can allow effective inventory management and regular website updates.