eCommerce market in Portugal

Portugal is the 43rd largest market for eCommerce with a predicted revenue of US$6,426.5 million by 2024, placing it ahead of Romania. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 8.6%, resulting in a projected market volume of US$8,949.2 million by 2028. With an expected increase of 11.4% in 2024, the Portuguese eCommerce market contributed to the worldwide growth rate of 10.1% in 2024. Like in Portugal, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the Portuguese eCommerce market. Hobby & Leisure is the largest market and accounts for 24.0% of the Portuguese eCommerce revenue. It is followed by Electronics with 22.2%, Fashion with 19.0%, Furniture & Homeware with 11.5%, Care Products with 8.9%, DIY with 8.6%, and Grocery with the remaining 5.8%.

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 Portuguese retail market, the online share is 8.7% and will increase by an average of 8.6% to 12.1% by 2028.

The biggest player in the Portuguese eCommerce market is shein.com. The store had a revenue of US$356.5 million in 2023. Store rankings include every store that generates revenue in Portugal. 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 Portugal was considered.

The Portuguese eCommerce market in 2023 in terms of offered payment methods is fragmented and highly competitive with VISA (Cards) covering the largest share with 85.9% of all online stores checked. Other offered payment methods in the Portuguese eCommerce market in 2023 are Mastercard (Cards) with 84.0%, PayPal (E-wallets) with 84.0%, and Bank transfer/cash in advance (Bank transfer) with 54.5%. With 53.2% Multibanco (E-wallets) still has a considerable market share amongst the offered payment methods compared to VISA (Cards).

Despite CTT Correios de Portugal's dominant position with 44.6% of online stores opting for its services, the Portuguese eCommerce market in 2023 remains diverse and competitive. Several other shipping service providers, including DPD, DHL, UPS (United Parcel Service), and GLS, hold smaller but significant shares, contributing to a dynamic and fragmented market.

In the Portuguese 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 PrestaShop, Magento, and Salesforce Commerce Cloud, have been able to secure a market share exceeding 10.2%, suggesting a diversified market with numerous players holding smaller stakes.