Lithuania is one of the Baltic countries. It borders Poland, Russia, Belarus, and Latvia. It is a member of The European Union and NATO.
Lithuania is home to about 3 million people. In 2019 its GDP was US$54.22 billion. Its economy is growing, but how about ecommerce? Is it popular among Lithuanians? We will cover this topic below.
Ecommerce in Lithuania overview
Lithuania ecommerce is forecasted to reach US$818m in 2020. In five years, it may hit US$1,090m thanks to an annual growth rate at the level of 5.9%. There are 1.90 m users of Lithuanian ecommerce, which means that user penetration amounts 48.9%, and in five years, it is projected to reach 54.7%.
The largest sector is in Lithuanian ecommerce is Toys, Hobby & DIY, and it accounts for 43% of the revenue. Then comes Electronics & Media with 27% and Fashion with 12%. Behind the podium are Furniture & Appliances with 11% and Food & Personal Care with 7% of ecommerce revenue.
The most popular ecommerce sites among Lithuanian are pigu.lt – Lithuanian marketplace. The second place belongs to senukai.lt also a marketplace. Then comes topocentras.lt, store with electronical appliances. All of the top stores are base on Lithuanian domains.
Lithuanian consumers’ behavior
Lithuanians have different preferences depending on income or age group. Therefore, the market is experiencing high fragmentation. Wealthier customers often choose the brand as the main determinant of purchases, while prices are a determinant of quality for Lithuanians. Importantly, for these consumers, products from abroad are also synonymous with high quality. The Lithuanian economy is growing all the time, which builds consumer confidence. More and more customers pay attention to service and loyalty programs.
When it comes to cross-border shopping, the leader here is Russia. The purchase value from this country is US$7.16 billion. The second place belongs to Germany – US$3.56 billion. Then comes Poland with a little lower score – US$3.09 billion. Then comes Latvia with US$2.31 billion and the Netherlands with US$1.64 billion.
Payments in Lithuania
Lithuanians believe in technology. That is why mobile payments cover over half of the transactions. The second favorite is paying by credit cards – 37% of transactions are finalized this way. The third-place belongs to e-wallets – 10% of payments are cover by them. Prepaid cards and bank transfers have a marginal share.
Pearl Services or Perlo Paslaugos is a company that operates terminals in Lithuania. It offers bank transfers, cash deposits, and withdrawals. Since 2011, it offers its services not only in Lithuania but also in other countries of the European Union.
Another player in Lithuania’s payment market is PayPost, which allows customers to send cash without having a bank account. Money can be withdrawn at the post office or at a PayPost outlet. There is also the possibility of a transfer to the account.
Lithuanian Social media
There is an increasing trend in social media users – comparing 2019 and 2020, there is a 5.8% increase in this field. But there are fewer people online – a 1.4% decline in numbers of Internet users.
Over 80% of Lithuanians had Internet access. 97% of users use social media via mobile.
The largest advertisement reach has Facebook – you can get to 1.6 million users via ads on this platform. The second place in this ranking belongs to Instagram – it has ads reach at the level of 620 thousand users.
What is also quite important 70% of traffic is generated via Android devices and about 20% from Apple iOS.
Logistics in Lithuania
Lithuania has a well-developed network of highways and railroads. An important road is the north-south highway. This country is key in rail transport thanks to the railway line connecting Scandinavia with Central Europe. There is also Saulė (Sun Train), which connects Europe and China – thanks to this line, the cargo route takes only ten days. Lithuania also plays a crucial role in the European Union’s Trans-European Transport Networks project – the Baltica Railway. It aims to connect Finland and the Baltic countries. This will strengthen the link between Northern and Central Europe. The end of this investment is scheduled for 2030.
Despite the fact that Lithuania is not a large country, the road network is very developed – 21,000 km. Thanks to this, this country is considered to be one of the best-connected in this part of the world.
What is also worth mentioning – the northern-most ice-free port in the Baltic Sea at Klaipėda. It is able to handle up to 40 million tons each year. This port works all year round and has enormous storage facilities. That is why many companies use its service.
To sum up
Lithuania is still a growing ecommerce market. Thus, there is a lot of place for new retailers. If you are aiming into this country to expand your business, feel free to do it. We have hope that thanks to our article you have gathered some useful information.