SEB: Estonian online shops are more popular than ever among consumers, but the field is dominated by foreign web sites

According to SEB, Estonian e-commerce continues to grow and compared to 2017 the volume of online purchases made with bank cards has increased by more than 50 per cent. Part of this growth has reached Estonian online sellers, whose market share has increased to 11 per cent.

While the number of card transactions via online shopping channels has increased over the last three years, the average transaction amount has decreased: in 2017, the average amount of a card transaction was close to EUR 40, but by 2019, it had fallen to EUR 33.

‘E-commerce statistics show that people have started to buy more online, which means that e-commerce has become more of a part of our daily lives, while, on average, purchases are made in smaller amounts.

It also appears that Estonians are proficient users of payment instruments: bank links, credit and debit cards, SEB's own unique virtual card, and PayPal are all equally popular. Each customer has found the payment instrument that suits them best,’ commented Ainar Leppänen, Member of the Management Board of SEB, when discussing developments in e-commerce in recent years.
Large international platforms (Alibaba, Aliexpress, and Amazon) are still the most popular online shopping channels among residents of Estonia. Slightly more than 40% of the buyers, however, use the services of local online shops.

‘We can say for certain that e-commerce is rapidly growing and increasingly winning the hearts of Estonian buyers. We are particularly pleased about Estonian merchants, whose market share of online shopping has increased from 6% in 2017 to 11% by the end of 2019. This has undoubtedly been supported by the recent launch of new convenience services that are usually paid for exclusively via online purchases. The fastest growth has taken place in ridesharing and food courier services, and we are also seeing a clear increase in the numbers of online purchases provided by shopping centres that offer home delivery,’ added Ainar Leppänen.

SEB's online shopping analysis is based on a customer survey conducted by the bank on e-commerce, and an analysis of e-commerce card transactions during the period 2017–2019.

SEB and the Estonian E-commerce Association are holding an e-commerce conference on 12 March 2020. E-commerce is a rapidly developing field; one that crosses borders, absorbs innovation by requiring new investments, and has an eye towards the future.

More information:

Evelin Allas
Communications Manager
Marketing and Communications Division
SEB Pank

Phone: +372-665-5649
Mobile: +371-511-1718
Address: Tornimäe 2, 15010 Tallinn
E-mail: evelin.allas@seb.ee