2020 Q2: A 75 % increase in Finnish e-commerce in April and June: Growth measured in billions is coming

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2020 Q2: A 75 % increase in Finnish e-commerce in April and June: Growth measured in billions is coming

The number of orders in online stores increased record-breakingly rapidly in April and June of 2020, informs the latest e-commerce index. The index, provided by Vilkas Group, is the most accurate available insight into Finnish ecommerce, and it is based on real sales events of over 2000 webshops.

“An enormous number of new customers found online stores due to Covid-19. The digital future is, indeed, here and its economic significance is great. The number is greater in orders than in euros, but an increase of 25 % in euros in April and June means that e-commerce is going to increase by a billion euros even without another wave of corona”, observes Vilkas Group’s CEO Markku Korkiakoski.

Aki Kangasharju, the CEO of ETLA Economic Research, thinks that the growth story of ecommerce this spring is very understandable.
“Corona brought a noticeable number of new customers to online stores. At first, these customers bought goods with smaller amounts and then, the average sum of purchases has started to grow and at the same time, many of these newcomers have stayed as recurring customers in online stores”, Kangasharju explains.
Kangasharju estimates that e-commerce has found a new level. The likely new, second wave of corona would add to e-commerce, but not in a similar, enormous way as the pandemic did during this spring.

E-commerce has found a new level

“When the second wave most likely hits, it will be more like putting out forest fires than a total lockdown. The increasing e-commerce trend continues, but the leap will not be as enormous.”

Cost-effectiveness may bring on exploding growth

“Cost-effectiveness enables a change in the structure of retail trade that will be an even greater shift to online stores than what has happened due to the pandemic”, Kangasharju envisions.
“The current percentual growth of e-commerce is great. In the big picture of retail trade, it is still small, but there is great potential for growth. When online stores are able to demonstrate that lower costs mean lower prices, the growth will be immense”, Kangasharju predicts based on the price-consciousness of customers.

Amazon is coming, what will Finland do? The media is also in danger

Markku Korkiakoski, the CEO of Vilkas, adds the potential arrival of Amazon, the global e-commerce giant, into the e-commerce equation. Amazon could potentially reach Finland during the coming autumn, according to Korkiakoski. 
“If we, both the retail trade and the state, do not prepare ourselves for the arrival of Amazon with determined measures, things could end badly. Amazon’s cost-effective, oiled machinery is huge, but the profits go to the pocket of the world’s richest man, Jeff Benzos, and Finland will be left with the scraps. If the Finnish marketing budget, which is insufficient to begin with, begins to sink into Amazon, the Finnish quality media will suffer in addition to the Finnish trade business and production.”

Korkiakoski is happy that the Pelastetaan kauppa campaign (Let’s save the trade) literally saved hundreds of Finnish businesses with webshops. However, a lot remains to be done. 
”There is a danger that the laudable work of hundreds of these new merchants will have been partly futile. Finnish consumers have to find the products as well, which entails massive investments into marketing. Without strong marketing, it is very difficult to compete against Amazon. Here we need new kinds of thinking and work without prejudice across society”, Korkiakoski confirms.


Additional infromation:
Aki Kangasharju, CEO, ETLA, 050 5838 5732, aki.kangasharju@etla.fi
Markku Korkiakoski, CEO, Vilkas Group Oy, 0400 434 244, markku.korkiakoski@vilkas.fi

Report archive

Vilkas' e-commerce index

Vilkas' e-commerce index

Vilkas Group's e-commerce index is calculated 4 times a year. Our index is based on the amount of orders, the total sales in euros and the average order value.

Average order value

The average order value in euros. Other currencies have been converted into euros.

Order index

The order index shows how the amount of orders in the shops have evolved since 2006.

Sales index

The sales index shows how much the sales value (in euros) has increased in the shops since 2006. Other currencies have been converted into euros.

The shop product categories

Vilkas Group's e-commerce platform is an industry-independent platform used by 1700 companies in different sizes. The webshops that our e-commerce index is based on come from a wide range of industries and companies of all sizes. About 10% are B2B webshops and the rest, around 90% are B2C webshops.

What is Vilkas' e-commerce index?

Vilkas Group publishes their e-commerce index quarterly, which gives a good picture of the e-commerce development in the Nordics. The data behind the e-commerce index is collected from Vilkas Group's customers' web shops since the beginning of 2006. Our e-commerce index also gives an idea of the online shopping behavior based on hundreds of thousands of end-customers' transactions each quarter.

Why e-commerce index?

Our e-commerce index is based on actual statistics from our webshops and gives a good picture of the development. Vilkas Group's most important goal is to help our e-retailers succeed and what is then a better guide line for all of us than our e-commerce index. By looking at Vilkas' e-commerce index you could also get an idea of the e-commerce business development as a whole in the Nordics.

Vilkas' e-commerce index scope and objectives

Our e-commerce index measures the success and activity of the webshops. Our index is based on actual numbers from Vilkas Group's customer base. It also gives a picture of the end customer's online behavior, based on actual numbers. We will continue to develop our index in order to provide e-retailers with a meaningful picture of e-commerce development also in the future.

How we calculate our e-commerce index

Vilkas' e-commerce index = [(0,8*Sales index) + (1,2*Order index) + (Average order value index)] / 3

The things concerned by Vilkas' e-commerce index are the change in sales (in euro), the change in the amount of orders and the average order value. For security reasons we don't collect data from individual shops for our index.

For more information about our e-commerce index, please contact us!

The material about Vilkas' e-commerce index shown on this page can be freely used as long as Vilkas Group's name is always mentioned as a source.

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