For Dutch online sellers, what are the hidden gems in the European e-commerce market? Which “non-usual suspects” offer cross-border sellers many opportunities, are growing fast and are increasingly opening up to international sellers? These are the interesting countries for Dutch online sellers to focus on and see if they fit into their internationalization strategy. Based on Internet density, e-commerce turnover and population numbers, 6 countries stand out where there will be major growth in the coming years.
Italy, Denmark, Norway, Poland, the Czech Republic and Sweden. These markets meet a number of characteristics that demonstrate strong e-commerce market development. They are countries where consumers already store a lot online, yet they present several challenges. The countries were selected based on research conducted by Shopping Tomorrow Cross Border E-commerce and Salesupply. As a basis, they looked at the countries in Europe where the most growth can be expected in the coming years based on current, Internet penetration, percentage of people shopping online, Population, percentage relative and absolute growth of all European countries and These challenges are mainly in localization, sales, marketing and logistics, which are all essential aspects for a successful rollout to a new market. What the biggest challenges are and what the best possible solutions for them are is hard to say, but it is clear that every Cross-Border entrepreneur needs a tailor-made solution!
Big e-commerce market on the rise: Italy
With some support from the government and sellers from abroad, Italy could develop into one of Europe’s largest e-commerce markets in the near future. The rapid digitalization of the country that is currently taking place contributes a lot to this. In addition, Italian consumers are increasingly behaving as cross-border consumers. The increase in popularity of online marketplaces as well as, of course, the large fashion market appeal to the buying behavior of young Italian consumers in particular, who try to live very much in the now.
The often more affluent older Italians are also a large market in their own right. However, it is still difficult to reach them for e-commerce sales, which in many cases is due to a lack of trust in carriers providing delivery. There are developments in delivery options, for example the emergence of pickup points, but often this is still in its infancy. The biggest challenge in the Italian market, for both Italian and foreign sellers, lies in fast delivery to the less accessible southern part of the country. Logistically, it is up to the Cross-Border seller to determine how to deliver as competitively as possible. This can be done with a local or international warehouse. Consider this carefully and see which local last-mile carrier is a good fit.
To outline the opportunities and challenges a bit more generally, we looked at the previously mentioned four key aspects in Cross-Border e-commerce: localization, sales, marketing and fulfillment.
Localization and sales
Localization is one of the keys to Cross-Border success. To start selling in a new market, consumers must be convinced to prefer a foreign webshop over a domestic one. Consumers around the world prefer to store and communicate in their own language and with tools that are familiar to them. Therefore, make sure you have a fully localized product offering on your shop, equipped with locally commonly used payment methods (e.g. Vipps in Norway and Swish in Sweden), local delivery options (e.g. parcel-locker delivery in Denmark), local return options and the option to contact the consumer in their language (especially essential in the Czech Republic, Poland and Italy). In addition, it is wise to consider the popular sales channels by country. For example, for Poland and Italy, it is good to know that they are very oriented toward buying on online marketplaces. Get well versed in the preferences by country!
Marketing
For Italian consumers the first impression is extremely important, Norwegian consumers are very brand and product loyal and for Swedish consumers sustainability is very important. These are (product) aspects that can be used to ensure that a consumer stays on your shop, gets convinced to make a purchase and possibly come back to make a purchase at a later stage. Online marketing is growing tremendously in each of these countries. Especially for the younger generations, social media is the main channel for advertising. In Sweden and Norway, influencers are becoming increasingly important. Because social media users are increasingly aware of this, for these countries a well thought-out influencer strategy is a good way to build your brand. Despite social media’s dominance, traditional media should not yet be erased. For example, in Norway, newspapers are still common places to advertise and in Italy there is still a huge reach for advertising through television. So look carefully at the fertile places to advertise by country.
Fulfillment
Generally speaking, it can be said that consumers in non-usual suspect countries choose fast delivery. Perhaps more importantly, delivery should preferably be free. Returns are also an important part of a successful logistics rollout. Like delivery, returning purchased products is preferably free, and it is desirable to offer a local return address. As mentioned, especially in Italy, trust in logistics service providers is still low. Each country brings its preferences for the location of delivery and the service involved.
Conclusion
The six non-usual suspect countries, Denmark, Italy, Norway, Poland, Czech Republic and Sweden, are interesting markets for Dutch online sellers with cross-border ambitions. They are markets that are maturing rapidly or are currently experiencing tremendous growth. This offers cross-border sellers many opportunities, but also some challenges. A good strategy in terms of localization, marketing and logistics is the key to success.
However, there is no blueprint for a cross-border rollout to any of the countries. Every entrepreneur is unique and has different challenges. One market may be a better fit than another. It remains important to look at your own situation; what does the competition do in a cross-border destination? How are things logistically arranged there? What kind of marketing strategy will you adopt? With that in mind, as a cross-border seller, you can make an analysis of the market that offers the most potential for you.
