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E-commerce Businesses Losing Customers – But Gaining Elsewhere

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The VAT effect is kicking in.

According to the latest E-barometer from Postnord for April, a shift in Swedish e-commerce habits is emerging: the proportion of consumers shopping online is decreasing, but those who do are shopping for higher amounts. At the same time, pharmacy goods take over first place as the most purchased category.

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In April, 75.1 percent of Swedes shopped online, a decrease compared to March and the corresponding month last year. This figure is in line with Swedish Trade’s E-commerce Indicator published yesterday, which measured the proportion of e-commerce consumers at 73 percent during the same month.

Despite the decline in the proportion of people shopping online, the average purchase amount is increasing. According to Postnord, the average purchase in domestic online stores was SEK 2,257 per person in April, an increase from both the previous month and last year. Both Postnord and Swedish Trade thus indicate that consumers are consolidating their purchases and prioritizing larger purchases in a continued uncertain economic situation.

Pharmacy and Grocery Advance

When it comes to product categories, pharmacy goods regain first place, surpassing clothing and shoes. Beauty and health remain in third place. At the same time, groceries climb to fourth place, surpassing both consumer electronics and books and media, which is partly explained by the reduced VAT on food.

When it comes to second-hand goods, 20.8 percent of consumers shopped second-hand online during April. This is a decrease year-on-year but an increase from March, and the development is particularly driven by the 65–79 age group. Postnord has also measured the interest in allowing AI agents to make purchases in the future, with 10 percent stating they are open to the possibility.

Foreign Competition

For foreign online stores, the average purchase amount was SEK 1,545 in April according to E-barometern. This is slightly higher than in April last year, but a decrease compared to March. Foreign e-commerce was also in focus in yesterday's report from Swedish Trade, which revealed that total consumption from abroad is estimated at SEK 5 billion so far this year.

Per Ljungberg, Innovation Manager at Swedish Trade, expressed in yesterday's report that the industry anticipates tailwinds in several sub-sectors, but also commented on the growing share of purchases from foreign actors:

E-commerce from abroad is not inherently bad, quite the contrary. Competition is something that makes Swedish e-commerce companies even sharper. But we continue to see how too much of the consumption takes place on platforms like Temu and Shein. In addition to the fact that such consumption can be directly harmful to you as a consumer, it also entails significant economic losses for our domestic companies.

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Editorial Staff
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