The Nordics region, known for its technological advancements and fast-growing ecommerce sector, is poised to achieve a market value of €41.8 billion by 2023’s end. The ecommerce adoption in the five Nordic countries—Denmark, Finland, Iceland, Norway, and Sweden—is almost 80%, on average, making the region a promising market. In light of this, we bring you insights into the market and buying behaviors of Nordic shoppers, based on the Nordics ecommerce region report 2023.
The Nordic region is a haven for fashion enthusiasts, with the levels of online fashion shopping comparable to other major markets like Spain and Germany. Approximately 64% of Nordic shoppers purchase apparel, footwear, and accessories online at least monthly. In 2022 alone, the region witnessed a total fashion expenditure of €10 billion.
Contrary to other European regions, millennials, not Gen Z, are the predominant demographic indulging in online fashion shopping in the Nordics, possibly due to the high cost of living and prices in the region. The mobile-first approach is paramount for businesses aiming to establish a presence in the Nordics, as 40% of fashion ecommerce in Denmark, Norway, and Sweden comes from mobile devices, reaching nearly 50% in Iceland in 2022.
With some of the world’s strictest environmental laws, the Nordic countries universally value well-being, healthy work/life balance, and nature conservation, influencing fashion consumption in the area. Nordic consumers prefer sustainable businesses conscious of reducing their carbon footprint. Brands like H&M and Nudie Jeans have set benchmarks in sustainability, emphasizing long life, repair, and resale as part of their value proposition.
For fashion brands aspiring to penetrate the Nordic market, incorporating repair or recycling initiatives is crucial.
Swedish Ecommerce Market
Sweden, being the largest ecommerce market in the region, has around 8 million out of its 10.4 million population shopping online routinely. Sweden’s online fashion shopping percentage stood at 68% in 2022, the highest in the region, with consumers spending approximately €3.5 billion on fashion that year.
The Nordics region holds vast potential for ecommerce ventures. Staxxer is here to facilitate your entry into this lucrative market by offering total VAT automation throughout Europe, streamlining the view and submission of European VAT returns and directly notifying you of the submission status. Linked with platforms like Amazon, Bol.com, and Shopify, Staxxer’s goal is to comprehensively meet and alleviate your VAT needs as an online seller.
Understanding and managing VAT has never been more critical, given the new One Stop Shop (OSS) regulations. Staxxer simplifies your VAT concerns, allowing online sellers to focus on internationalization without the hassles related to foreign sales VAT declarations.
Tailoring to the Nordics
Businesses can significantly benefit by being sustainable, mobile-first, and adopting advanced solutions to simplify VAT calculations, ensuring transparency and reducing unexpected costs at checkout. Embracing e-invoicing solutions aids compliance with e-invoicing mandates and reporting requirements, enabling a smooth start without the burden of adapting to regional norms. Switching to digital invoices and minimizing manual tasks enhance your environmental friendliness, aligning well with the values of the Nordics.
To learn more about how Staxxer can simplify your entry into the Nordics ecommerce market, contact Staxxer today. You can directly schedule a meeting below with one of our VAT experts.