It was with great excitement that I got the long-awaited email from PostNord yesterday titled “Nu släpper vi E-barometers årsrapport för 2023!” Oh all the insights that lied in front of me. Time for the reading glasses to come on! 🤓
First of all, it’s quite a long read, 67 pages, to be specific, and all in Swedish. However, as your loyal servant and to get off on the right foot with this new website–I’ve taken it upon myself to summarise and translate it. It’s hard work; some might say work more suited for an AI, but then again, some human errors typically make for a more interesting read. 😄
Now, don’t get me wrong, if you are serious about understanding everything that happened last year in the e-com world of Sweden, you should definitely go read the whole thing. In fact, I’ll link it here for you: https://www.postnord.se/foretag/foretagslosningar/e-handel/e-barometern
BUT! If you (like me) are sometimes pressed for time, I present you with the summary below.
Where do we start? Well E-barometern is always a treasure trove of information, this time is no different. It highlights the challenges and headwinds faced by e-commerce during 2023 and showcasing the myriad opportunities that emerge from these challenges. Looking back it’s clear that the industry has struggled, maybe more than some let on. Quite a few media outlets have reported on the e-commerce bankruptcies in Sweden that have gone through the roof.
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First, let’s address the slight elephant in the room – a 2 percent decrease in e-commerce growth. Some might see this as a cause for long-term concern, most of us see it as a direct result of the outbreak of war in Europe, inflation and post-Covid hangover. You can also, like I do, view it as a perfect opportunity for innovation and reassessment. In times like these, we can truly demonstrate our adaptability and creativity. And honestly, who doesn’t love a good comeback story? Both merchants and suppliers can (and should) use this economic downturn as an opportunity to reassess, pivot and find the next step of their journey. Easier said then done, trust me I know. But, necessary.
I think of Footway for instance, that recently came out of chapter 11 and into normal trading. Could this be the big comeback story of 2024? As a customer and supplier of e-com services to Footway I certainly root for them! 🙌
The digital transformation across various sectors has been nothing short of inspiring. From pharmacies to the beauty industry, we’ve witnessed an explosion of creativity and digital adaptability. Innovators have continued to innovate. Others have more or less been forced to adapt. Inflation, rising interest rates, and economic slowdown have all played their parts to push the laggards forward. It has really forced everyone to do better in my opinion.
In general that should be good long-term, especially for the consumer. The fact that this economy has forced Swedish e-retailers to become even more innovative and customer-centric. It has also corrected some bad behaviours, such as stricter returns policies and higher thresholds or free shipping.
What else? Well the pharmacy and beauty sectors have shown impressive growth, shining as examples of success. Oh and let’s not forget the growing trend of second-hand online trading, which shows that reuse and sustainability have earned a prominent place in consumers’ hearts. Again also positive for the consumer as they get more alternatives, but of course also the environment. 🌳
My view on the future of e-commerce is not just positive; it’s radiant. We are facing an era where flexibility, innovation, and putting the customer at the center are not just strategic assets but necessities. Yes, we’ve encountered challenges, but these trials make us stronger and more prepared for the future.
Tougher though for the DIY industry. 🔨Construction in general has been hit hard and the e-commerce space for DIY shrank with 19% last year. As explained in the report, in the short-term it’s just about weathering the storm. Hopefully 2024 starts off better and we can put the worst behind us, very much dictated by potential rate cuts and ultimately the inflation.
-6 billion SEK
turnover in the DIY e-commerce sector in Sweden, 2023 compared to 2023
That’s as much as I’ll put in here. I recommend you read the report, hopefully this summary was inspiring enough to get you started ☕️
So, to all my colleagues, competitors, and e-commerce enthusiasts, thanks for 2023 and let’s hope 2024 will be kinder to all of us. A market rebound certainly creates a world of opportunities, ready to be explored and conquered. And when we encounter obstacles along the way, remember that these challenges give us the chance to truly shine and show what we’re made of. The future of e-commerce is of course bright, and I’m convinced that together, we will shape it into something extraordinary. Let’s take this as an opportunity to navigate current challenges and build a stronger, more resilient, and innovative e-commerce world.
Forward, to success (and lower interest rates)! 🙏
