Is eCommerce Losing Its Sparkle In Denmark?

The Danish market underwent major growth in eCommerce sales last year, but new results indicate its star may not shine as brightly as once thought.

EMarketer revealed a new report by the Foreningen for Dansk Internethandel (FDIH) that studies the eCommerce space in Demark. Results suggest eCommerce sales have dropped since last year, and that frequent shoppers aren’t shopping online as often. Despite the decrease in the average number of sales, little has changed in terms of consumer shopping habits online.

A Drastic Drop

According to the report, the proportion of online shoppers buying five or more products or services online in Q1 2013 has decreased. This figure is about 50 percent less than the results of 2012.

FDIH also revealed that less Danish consumers are using their mobile device to make purchases in Q1 2013. In the beginning half of 2012, 16 percent of consumers said they made a purchase online using their mobile device. The numbers slipped to just 13 percent by the same period in 2013.

Online Shopping Habits

Consumer shopping habits in Denmark are convoluted and require a deeper analysis. At the surface, it seems little has changed since the Q1 2012 results. The most avid shoppers remain in the 18-to-64 age group. These consumers claimed they are still purchasing products, services, music, movies and subscriptions online one-to-four times each month.

If FDIH is reporting that consumer habits are unchanged, then what caused the sudden drop in sales?

Danish consumers are indeed still shopping online. However, they are accumulating newer habits that are more complicated that could be the reason for the drop in eCommerce.

FDIH revealed that 40 percent of Danish shoppers will frequently research product information on the Internet to help them make a decision. Those consumers will then make a trip to the physical store and buy the item instead of purchasing it online.

Additionally, one-in-five consumers admitted they do this “very often.” Online shoppers in Demark will go to a store despite being well versed with the Internet.

Further Implications

Before racing to conclusions, note that the recent fall in various online shopping figures do not suggest an overall decline in eCommerce sales. The results are straightforward, and only imply that shoppers are making fewer purchases.

Some shoppers are spending more per transaction, and eMarketer highlights that new Danish consumers are adding to the ranks every week. Despite the abrupt halt in sales growth, the total value of online purchases is still continuing to increase in Denmark.

To read the full report at eMarketer click here.