Webshop and eCommerce stores have been booming worldwide in 2020, and especially in Denmark. Many factors have been at play to drive this digital growth. However, the most prominent might be the restrictions and lockdowns initiated to prevent the spread of COVID-19. Restriction included social distancing and the lock-down of various businesses.
Any business that could not operate remotely or adapt to become digital suffered great losses. In Denmark, the digital infrastructure was already in place, allowing many businesses to take their operations fully digital.
If you are considering opening a webshop in Denmark, or maybe you already have an eCommerce website, the following numbers will interest you.
Overview of eCommerce Denmark
Denmark is located in the North of Europe and is a Scandinavian country and a member of the European Union since 1973. Yet, Denmark has opted out of the European Economic and Monetary Union, therefore they still operate in their own currency, the Danish krone (DKK). Denmark also has one of the highest standards of living and a strong purchasing power:
- Population: 5.83 million (2020)
- Percentage of internet users: 98%
- Annual online sales: €21.45 billion (2020)
- GDP per Capita: €52,416 (2020)
- Danes both have the resources, access, and purchasing power, making it one of the most fertile countries to set-up your digital platform.
Webshop Denmark – Performance
Denmark is a relatively small country, with a population of just under 6 million people. Up to 98% of them are internet users or have internet access. Almost 90% of them have smartphones and the number is increasing annually. Here you have a country with the majority population connected online via smartphones, in fact, studies have shown that Denmark has the highest smartphone penetration rate worldwide.
But – so what if there are so many smartphone users in Denmark? what does that have to do with webshops and eCommerce websites?
Well, statistics show that in 2019, more than 80% of all internet users in Denmark, have tried online shopping. With an average annual spending of €3500 per shopper online. Exactly, Danes shop online and they most likely do so from their smartphones.
Online Payment methods in Denmark
Payment gateways, merchants, and payment solutions are one of the most important elements of any webshop, eCommerce website, without it, payments cannot be processed. The most popular payment method in Denmark by far is the Dankort. Dankort is the national debit card in Denmark, and also functions as a credit card internationally.
In 2019, up to 63% of all online card payments made from Denmark were paid for using Dankort. Other cards such as Visa, Mastercard or Eurocard, and Maestro are also used, here’s a list of all payment card percentages from 2019 in Denmark:
- Dankort 63%
- Visa 15%
- Mastercard 12.5%
- Maestro 8%
- Visa Electron 0.6%
Besides credit and debit cards, Danes also use mobile transfer for direct payments, both in stores and online. MobilePay is the most popular mobile payment method created by Danske Bank back in 2013.
Webshop and eCommerce Market size
Webshop and eCommerce market size is estimated to reach more than 21 billion euros by the end of 2020 – an increase from 19.5 billion euros in 2019. Below you can see a break down of the product categories by size:
- Games and Toys
- Tours and Experiences
However, there is also an increase in groceries and household items in 2020. Due to the many changes that occurred in early 2020, mostly due to COVID-19, many people opted for ordering groceries, household items, and food online.
Now is the time to digitalize and to provide online solutions, the market is fertile and ready. Setting up an online shop, webshop, or eCommerce site has never been easier, but also much more competitive. It’s one thing to create an awesome brand and service, but it’s a whole other game to increase sales through awareness, engagement, and traffic.
At Miklagard, we have been setting up eCommerce websites, and webshops of all sizes, and for different branches, and have gained a real insight into what works, and what doesn’t. If you are considering setting up a shop, or just want to know more, feel free to reach out to us for an informal talk over a good cup of coffee.