Countries Overview

European Ecommerce Overview: Ireland

Ireland is an island nation. It is surrounded to the north and west by the Atlantic Ocean, while to the east and south-east, it is separated from Great Britain by the Irish Sea. Its area is 84 421 km² and is inhabited by nearly 5 million people.

Ireland has a highly developed knowledge economy focused on high-tech, life sciences, financial services, etc. You’ll learn a few things about Irish e-commerce in this article. But, first, let’s take a look at what we know about it. 

Ecommerce overview in Ireland

Even though online shopping was always going to grow over time, the pandemic accelerated that growth faster than anyone could have anticipated.

Revenue in the Irish ecommerce market is forecasted to reach US$4,496m by the end of this year. The annual growth rate is at the level of 6.94%, and thanks to this, in four years, the market volume is projected to reach US$5,881m. This year user penetration may reach 70.7%, and by the end of 2025, it is forecasted to amount to 77.5%. As a result, the average revenue per user (ARPU) is expected to hit US$1,276.34.

According to official data from the World Bank, GDP in Ireland was worth 425.89 billion US dollars in 2020. The GDP value of Ireland represents 0.38 percent of the world economy. The Gross Domestic Product (GDP) in Ireland expanded 6.30 percent in the second quarter of 2021 over the previous quarter.


Irish Stock Exchange Overall Index increased 987 points or 13.38% since the beginning of 2021, according to trading on a contract for difference (CFD) that tracks this benchmark index from Ireland.


When it comes to the most significant segments in Irish ecommerce, the top products and categories include flights, hotels, clothing & footwear, car insurance, and cinema tickets.


What are Irish favorite ecommerce sites? The first place took Amazon – it’s an e-commerce platform B2C and runs the world’s largest online store. Next is Netflix, a platform offering access to movies and series via streaming media. Then comes – Allied Irish Banks, and – online newspaper. Finally, takes fifth place. It’s an international social network specializing in professional and business contacts.


Consumer behavior in Ireland

In Ireland, 68% of consumers shop online more than they did before the pandemic started. The ability of a company to resolve issues is essential to 93% of respondents. Eighty-eight percent of consumers are more concerned with their own wellbeing. Additionally, the ability of shops to keep customers safe tops all other expectations.

Customers in Ireland are increasingly demanding frictionless digital experiences. Still, the elements of customer service they value most, such as the ability to resolve issues quickly, have remained more critical since the arrival of the global COVID-19 pandemic. What’s more, businesses with well-established and user-friendly digital channels had a clear advantage – 99% of consumers in Ireland said an excellent website was essential.

Ireland payment preferences

Ireland’s most popular online payment methods include credit/debit cards (Skrill), Paypal, and direct debit (37%). Customers should have the choice of the payment method that suits their needs. As you know, not supporting standard payment methods in a given market will immediately exclude a certain proportion of that market.

E-wallet is also becoming more and more serious competition to traditional cards(24%). The cash on delivery option is becoming less and less attractive. From 2023 we will see a slow decline for cards, and direct debits have decreased since this year. On the other hand, e-wallet is strengthening its position.


Social media  in Ireland

What’s interesting, there were 4.51 million internet users in Ireland in January 2021. Between 2020 and 2021, the number of internet users in Ireland increased by +5.7%, or 242 thousand. As a result, Ireland’s Internet penetration stood at 91.0% in January 2021.

In January 2021, Ireland had 3.79 million social media users. The number of social media users in this country was equivalent to 76.4% of the total population in January 2021. Also, the number of social media users in Ireland increased. Between 2020 and 2021, it got +3.1% which is 110 thousand.

The most popular social media services in Ireland are Facebook, Messenger,  LinkedIn, and Instagram.

In October 2021, there were 3 623 100 Facebook users in Ireland, 72.9% of its total population. Most of the users were women (54.1%). People aged 25 to 34 were the largest user group (880 400). However, when it comes to people aged 35 to 44, women outnumber men by 84 000.


In October 2021, Messenger had 2.543.700 users in Ireland, accounting for 51.2% of its entire population. More than half of them were women – 55.1%. People aged 35 to 44 made up the largest group of users (626,000).


The total number of LinkedIn users in Ireland was 2 445 000 in October 2021, which accounted for 49.2% of the entire population. The largest user group comprised of people between 25 and 34 (1 400 000).


Instagram is the fourth most popular social media service. In October 2021, there were 2 163 700 Instagram users in Ireland or 43.5% of its population. The majority of users were women – 57.4%. Most users (630 000) were between the ages of 25 and 34. In the 35 to 44 age group, women outnumber men by 109 300.


Shipping in Ireland

Ireland has a highly developed ecommerce industry, and to compete effectively, companies must offer cost-effective and timely local shipping options. 

DPD is the most frequently offered delivery service provider among online stores in this country. 30% of stores who indicated which service they use to transport their goods cited DPD. In addition, An Post and DHL are among the top three shipping companies offered by online retailers in Ireland, with rates of 30% and 13%, respectively.


To sum up

Ireland has the potential to overtake other countries and become a more significant gamer in the global e-commerce market. As a result of insights from this article, you will have a better understanding of this market, including its consumers, payment preferences, shipping, and social media.