e-Commerce Market Analytics

The eCommerce market in Iceland

Iceland is the 95th largest market for eCommerce with a revenue of US$303.3 million in 2021, placing it ahead of Bosnia and Herzegovina and behind Cameroon.

With an increase of 16%, the Icelandic eCommerce market contributed to the worldwide growth rate of 15% in 2021. Just like in Iceland, global eCommerce sales are expected to increase over the next years. As new markets are emerging, global growth will continue over the next years. This development will be propelled by East and Southeast Asia with their growing middle class and their lagging offline infrastructure.

With a yearly growth rate of 6% between 2021 and 2025, Iceland is expected to grow at about the same rate as the global average (6%).

The eCommerce market in Iceland

Top online stores

The biggest player in the Icelandic eCommerce market is elko.is. The store had a revenue of US$44 million in 2021. elko.is is followed by ikea.is and heimkaup.is as the second- and third largest stores with US$22 million and US$10 million, respectively. Altogether, the top three stores account for 25% of online revenue in Iceland.

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.

One of the fastest-growing stores in the Icelandic market is bestseller.is. The store achieved online net sales of about US$1.7 million in 2021. Its revenue growth amounted to 156% in the previous year.

Growth champions:
Editorial tips:

Top online eCommerce stores in Iceland by eCommerce net sales 2021 in million US$

# Store
1. elko.is
US$29.6m
2. ikea.is
US$26.8m
3. heimkaup.is
US$10.4m
4. asos.com
US$9.4m
5. rumfatalagerinn.is
US$8.9m

The eCommerce market in Iceland

Market size and growth rate

Revenue in 2021
US$806.0m
REVENUE
CAGR 2021-2025
13.1%
CAGR
Digital Market Outlook by Statista

The Digital Market Outlook presents up-to-date figures on markets of the digital economy. The comparable key figures are based on extensive analyses of relevant indicators from the areas of society, economy, and technology.

Visit Statista.com

The eCommerce market in Iceland is expected to increase over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate for the next four years (CAGR 21-25) will be 6%. Compared to the year-over-year growth of 16% between 2020 and 2021, this decrease in yearly growth suggests a moderately flooded market. However, an indicator of growth potential is the online penetration of 57% in Iceland; in other words, 57% of the Icelandic population have bought at least one product online in 2021.

Five categories are considered by ecommerceDB. Fashion is the largest segment in Iceland and accounts for 27% of the eCommerce revenue in Iceland. It is followed by Electronics & Media with 23%, Furniture & Appliances with 18%, Toys, Hobby & DIY with 16%, and Food & Personal Care with the remaining 15%.