Decline in Swedish e-commerce in 2022

By Direct Link - The Swedish e-commerce market decreased by 7 percent year-on-year in 2022, according to  PostNord´s annual E-barometer report. The total turnover for e-commerce in 2022 was SEK 136 billion, with two product categories – pharmacy products and fashion& footwear reporting positive growth.  

The near future is difficult to predict. It will be significantly affected by macroeconomic factors,  which of course, include such as international conflicts, inflation, and cost of living. 

The 2022 E-barometer presents three scenarios for how the state of the economy might affect e-commerce in the short and long term. 

The three possible scenarios are: 

• The wind is turning quite fast – e-commerce will slowly increase this year after a  gloomy 2022 

• Break year 2023 – growth will be at a standstill this year but will pick up speed again in 2024 

• A deeper slowdown – there will be continued high inflation, high-interest rates and high energy prices, and recovery only in a few years. 

The report has also identified some clear trends regarding the behavior of Swedish e-commerce consumers. The first is that social e-commerce is growing strongly. To browse and shop directly is becoming increasingly common. To understand the potential size of social e-commerce one can look at the e-commerce market in the United States, which often influences the Swedish market. In the US, social commerce makes up four percent of all e-commerce sales. And, as the buying channels the consumer prefers to use change,  opportunities are naturally created for new players to step in. 

Another one is that it´s increasingly apparent that influencer marketing is becoming increasingly critical for building a brand. At the same time, a discussion is emerging about how profitable this strategy is, and that it can be challenging to measure the actual outcome.  From the Swedish e-tailer´s perspective, the principal value of collaborating with influencers is that it strengthens the brand. Thirty-seven percent of the surveyed e-commerce companies agree on that. 

*The E-barometer is published quarterly, including a full-year report, based on five consumer surveys and one survey with e-retailers.