eCommerce market in Iceland

Iceland is the 71st largest market for eCommerce with a predicted revenue of US$891.8 million by 2024, placing it ahead of Ghana. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 3.1%, resulting in a projected market volume of US$1,005.9 million by 2028. With an expected increase of 3.9% in 2024, the Icelandic eCommerce market contributed to the worldwide growth rate of 10.1% in 2024. Like in Iceland, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the Icelandic eCommerce market. Hobby & Leisure is the largest market and accounts for 24.6% of the Icelandic eCommerce revenue. It is followed by Electronics with 21.4%, Fashion with 18.5%, Furniture & Homeware with 11.5%, Care Products with 9.1%, DIY with 9.0%, and Grocery with the remaining 5.9%.

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 Icelandic retail market, the online share is 17.5% and will increase by an average of 6.4% to 22.4% by 2028.

The biggest player in the Icelandic eCommerce market is elko.is. The store had a revenue of US$29.9 million in 2023. Store rankings include every store that generates revenue in Iceland. 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 Iceland was considered.

Although WooCommerce holds a commanding lead with 32.5% of online stores using the shop software solution, the Icelandic eCommerce market in 2023 remains vibrant and competitive. This is due to the presence of several other shop software solutions, including Shopify, Magento, nopCommerce, and Drupal Commerce, which collectively hold a significant share of the market.