eCommerce market in Finland

Finland is the 42nd largest market for eCommerce with a predicted revenue of US$6,565.7 million by 2024, placing it ahead of Portugal. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 4.4%, resulting in a projected market volume of US$7,791.1 million by 2028. With an expected increase of 5.6% in 2024, the Finnish eCommerce market contributed to the worldwide growth rate of 10.1% in 2024. Like in Finland, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the Finnish eCommerce market. Hobby & Leisure is the largest market and accounts for 26.1% of the Finnish eCommerce revenue. It is followed by Electronics with 20.5%, Fashion with 17.1%, Furniture & Homeware with 11.7%, Care Products with 9.4%, DIY with 9.1%, and Grocery with the remaining 6.1%.

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the Finnish retail market, the online share is 16.3% and will increase by an average of 6.8% to 21.2% by 2028.

The biggest player in the Finnish eCommerce market is verkkokauppa.com. The store had a revenue of US$243.0 million in 2023. Store rankings include every store that generates revenue in Finland. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in Finland was considered.

With 95.6% VISA the most commonly offered payment method of all online stores in the Finnish eCommerce market in 2023. Like VISA Mastercard with a share of 95.6% and American Express with a share of 44.2% the payment type Cards is the most common used by online retailers in in the Finnish eCommerce market in 2023. Other commonly used payment methods in that market are Bank transfer/cash in advance (Bank transfer) with 56.8% and PayPal (E-wallets) with 37.4% of stores offering that payment method to the clients.

Despite Posti's dominant position with 66.2% of online stores opting for its services, the Finnish eCommerce market in 2023 remains diverse and competitive. Several other shipping service providers, including Matkahuolto, PostNord, Budbee Home Delivery, and DHL, hold smaller but significant shares, contributing to a dynamic and fragmented market.

In the Finnish eCommerce market, there is intense competition among various shop software solutions, leading to a highly fragmented landscape in 2023. None of the major shop software solution, including Magento, Shopify, and WooCommerce, have been able to secure a market share exceeding 10.0%, suggesting a diversified market with numerous players holding smaller stakes.