Norway is one of the Scandinavian countries. Its GDP in 2019 was US$403.34 billion. It borders Finland, Russia, and Sweden. It also has a sea border with Denmark. Norway is known throughout the world for its coasts – fjords.
In the case of the economy, Norway is doing quite well, but what about ecommerce? Does Norwegian like do shopping online? Do they prefer to pay by cards or digital wallets? We will cover in this article these and many more aspects. Let’s begin with the ecommerce overview of the Norse market.
Norwegian commerce overview
Norwegian ecommerce revenue is projected to reach US$6,416m by the end of 2020. There are over 4.4 million users, which means that user penetration will hit 81.3% in 2020 and is expected to reach 86.2% in five years.
The most significant segment is Fashion – it covers 29% of revenue. The second place belongs to Electronics & Media with 24%, and then comes Toys, Hobby & DIY segment with 20%. The last two are Food & Personal Care with 15% and Furniture & Appliances – 12% of ecomemrce revenue.
The most popular stores are all based at .no domain. Number one is Komplett – Norwegian ecommerce, which offers electronic appliances. The second place belongs to Elkjop, also an electronic provider. The podium is closed by Zalando, a global ecommerce provider.
Consumer behavior in Norway
Norway is a consumer country. It is famous for its passion for new technologies (ranking above is proof of it). Expensive products that are worth their money are appreciated more than the cheaper ones. A large proportion of Norwegian consumers do research online before making purchases. Unfortunately, Norway’s prices are perceived as relatively high, which prompts more and more cross-border purchases, mainly in Sweden. The average amount spent online is 220 euros. Norwegians are rather loyal to domestic brands, although this dependence does not translate into e-commerce.
For Norwegians, it is essential to take care of the environment. This is especially noticeable after the higher consumption of fruit or vegetables and lower of meat and fish. The purchase of organic food is also an increasingly popular purchasing decision.
Where do Norwegians buy from? The most popular is Sweden – the value of purchases hit US$11 billion. The second places belong to Germany – a little lower score of US$10.9 billion. Then comes China with US$8.23 billion and the last two – the UK with US$ 8.56 billion and Denmark with US$5.53 billion.
Payment methods in Norway
Norway is the biggest fan of debit cards – there are almost three cards per person (2.92). Together with Iceland, they excel in card use. More than half of the commerce payments are made this way. The use of cards, which is so large, also supports the increasing use of digital wallets. It is the second favorite payment method among Norwegians, covers over 17% of ecommerce payments. The Vipps is a Norwegian application for mobile payments, also providing B2B payments. It is a very often chosen way of transactions. Transfers are also growing at a relatively fast pace – it is assumed that in 2021 the growth rate will reach 30%. The national instant payment system Straksbetalinger is also well- known. It has been operating since 2012.
Based on data from the JP Morgan Report, the online fraud ratio is relatively high. This is about 4%, which is twice the European average. Norway is trying to solve this problem – Strong Customer Authentication and the digital identity system are solutions that have been introduced to this country.
Social media in Norway
Almost 100% of Norwegians have internet access. There are 6.04 million mobiles with an internet connection. What is crucial information – 98% of social media users use mobiles.
You can reach almost 4 million (3.40 million) Facebook users via ads on this platform, from which 97% scroll it on mobile. Via Instagram, you can get 2.30 million users. The lowest power has Twitter – 832 thousand.
However, what could be important for new retailers on this market, web traffic generated via Android devices is decreasing. On the other hand, web traffic from Apple devices is growing.
The logistics market in Norway is continuously developing. There is an increasing possibility of renting, which goes hand in hand with the growing popularity of e-commerce. Increasing supply means increasing demand. Below you can find a list of the most important areas for logistics.
When it comes to delivery providers, the most popular is DHL. It covers 8% of shipments. Then comes UPS with 6% of it. The third-place belongs to DPD – 4%.
To wrap up
Norway is a place where ecommerce is still growing. This market has the potential, and you can enter it with a feeling of confidence. Thanks to our article, we hope you have gained some valuable insight into Norse consumers’ behavior, their payment preferences, and social media.