DIBS E-CommErCE SurvEy 2011 - IBIZ-Center...from all regions fuel the migration towards online shopping. Powerful drivers for continued growth European e-consumers shop online primarily

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DIBS E-CommErCE SurvEy 2011

A ComprEhEnSIvE StuDy of EuropEAn E-CommErCE

A growth opportunIty for mErChAntS

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DIBS Payment Services, the largest provider of Internet payment solutions in Northern Europe, has completed a comprehensive survey of e-commerce in selected major European countries.

The DIBS E-Commerce Survey 2011 gives an overview of e-commerce in Sweden, Denmark, Norway, Finland, UK, Germany, France, Poland and Spain, including commerce based on: • �Online�retailers�who�ship�physical�goods�to�their�customers�

(e.g. books, clothes and electronics) • �Online�sales�of�non-physical�products�such�as�experiences�

and services (e.g. hotel booking and theatre tickets). • �Digital�sales,�distribution�and�consumption�(e.g.�online�

software or music).

Launched in 2007, the DIBS E-Commerce Survey is a well established tool for analysts and companies who already have, or are about to launch, an e-commerce platform. Special attention is given to m-commerce, which is a growing segment of�e-commerce.�This�year’s�version�is�also�expanded�to�include�Poland.

For the purpose of this report, e-commerce is primarily seen as an opportunity for merchants. By knowing the customers and their online buying behavior, e-merchants can tap into a significant market.

The survey was conducted in the third quarter of 2011 by research agency YouGov, and includes interviews with over 9,000 Internet users and 333 online retailers. The online retailers are customers of DIBS or its partner PrestaShop.

Copyright DIBS 2011. Reproduction of parts of this report is allowed with proper acknowledgement of the source – “DIBS�E-Commerce�Survey�2011”.�Commercial�exploitation� is not allowed.

Preface

About DIBS DIBS Payment Services is Northern Europe’s leading supplier of functional, secure and innovative payment services for commerce via Internet. DIBS manages transactions for more than�15�000�customers.�DIBS�has�offices�in�Stockholm,�Gothenburg,�Oslo�and�Copenhagen�and is traded on the First North marketplace with Erik Penser Bankaktiebolag as Certified Advisor. Please, visit www.dibs.se.

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1. A massive commercial opportunity 6

2. Drivers and optimism for growth 10

3. Commerce is going mobile 14

3.1 M-commerce in Sweden 18

3.2 M-commerce in Denmark 19

3.3 M-commerce in Norway 20

3.4 M-commerce in Finland 21

3.5 M-commerce in UK 22

3.6 M-commerce in Germany 23

3.7 M-commerce in France 24

3.8 M-commerce in Poland 25

3.9 M-commerce in Spain 26

4. Finding the right payment methods across Europe 27

4.1 To pay or not to pay – huge differences between countries 29

4.2 Payments in Sweden 29

4.3 Payments in Denmark 30

4.4 Payments in Norway 31

4.5 Payments in Finland 32

4.6 Payments in UK 33

4.7 Payments in Germany 34

4.8 Payments in France 35

4.9 Payments in Poland 36

4.10 Payments in Spain 37

Content5. E-commerce per country 38

5.1 E-commerce in Sweden 38

5.2 E-commerce in Denmark 39

5.3 E-commerce in Norway 39

5.4 E-commerce in Finland 40

5.5 E-commerce in UK 40

5.6 E-commerce in Germany 41

5.7 E-commerce in France 41

5.8 E-commerce in Poland 42

5.9 E-commerce in Spain 42

5.10� Opportunities�across�borders� 43

Definitions 44

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DIBS E-Commerce Survey 2011 reconfirms that e-commerce is a major transformative force across Europe and a driver of change in the commercial landscape. For years, e-commerce has been providing options for consumers, driving growth for merchants, and affected business in profound ways. This year’s study indicates that mobile commerce is reaching its tipping point.

E-commerce is a huge market opportunity The total e-commerce market grew with 14% last year and is estimated to amount to 213 billion euros in the nine countries for 2011.

Per capita consumption in Northern Europe and UK is higher than in continental Europe. The interval stretches from 293 euros per capita in Poland to 952 euro per capita in Norway for�the�last�six�months.

The change in buying pattern is well established across all consumer segments in all markets. Consumers of all ages and from all regions fuel the migration towards online shopping.

Powerful drivers for continued growth European e-consumers shop online primarily to increase convenience in everyday life.

E-commerce is still in its infancy and both e-consumers and online�retailers�have�high�expectations�for�the�future.�As�many�as�74%�of�the�consumers�expect�to�maintain�or�increase�their�online�spending�over�the�next�12�months.

The potential for further growth across Europe is large, both in terms of volume and number of e-commerce transactions. The average consumer completes only slightly more than one online purchase per month. Furthermore, e-commerce is still just a fraction of total household consumption.

Going mobileM-commerce is a growing segment of e-commerce. Young people everywhere are going mobile. Total transaction levels are still modest, but an impressive 17% of the people aged 15–34 are using m-commerce in the nine countries. As the early�adopters�are�starting�the�trend,�the�volumes�will�expand�when wider demographic groups pick up the new buying pattern.

As both a reaction and a future growth driver, 21% of the stores are planning to “soon” launch m-commerce initiatives. It will multiply the amount of goods and service offered via mobiles.

Poland, Sweden and Denmark are leading the way and the best sellers on the mobile include media, services, travel and electronics.

In�the�coming�years,�consumers�expect�to�change�the�way�they use their mobile phones. The triggers for m-commerce are safe payment solutions and new mobile shops.

Finding the right payment methods The survey concludes that, although e-commerce is international in scope, there are major differences between the countries, especially with regard to payment methods. Consumers opt for the perceived safest and easiest method and payment habits vary greatly between regions. E-merchants should take national differences into account and turn them into advantages when pursuing or launching a Pan-European e-commerce strategy.

Executive summary

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While a lot of consumers prefer to pay with cards, other payment options such as online bank transfers, invoices and micropayment services are also popular. Payment infrastructure is important, as consumers tend to abandon an online purchase if the stores lack their preferred payment method. A successful e-merchant should respond to this by offering relevant payment methods to its target groups.

To avoid losing sales opportunities it is critical for merchants to cater to very different payment preferences across Europe.

The British, Spanish and French consumers have a strong preference for using cards, but nowhere is card as popular as in Denmark. The Germans prefer invoice and the Poles and the Finns prefer transfer via Internet bank. The Swedes’ preferences are balanced between cards, invoices and transfers via Internet banks.

European consumers plan, book and pay their travelling online. Travel is the largest e-market in all countries, and it constitutes a third of the Nordic market. A sector that has grown considerably since last year’s version of DIBS E-Commerce Survey, is household consumables. The category is now the second largest in all countries but Germany. Household consumables constitute 17% of the UK market and 10% to 14% of other markets. Electronics is the third largest category in�all�countries�except�Germany�where�it�took�the�second�place. The market for electronics stands at about 10% to 13%, so it is trailing very close behind the market for household consumables.

158 million e-consumers in 9 countries

Total e-market estimated to be 213 billion euros in 2011

74% of consumers plan to maintain or increase their e-commerce

17% of consumers aged 15–34 have used mobiles to buy products and services

21% of the e-stores plan to “soon” launch m-commerce

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Throughout all nine countries, e-commerce is established as a convenient way of shopping. People of all ages and incomes are very accustomed to e-commerce, and the number of e-consumers is consistently very high. A total of 158 million consumers (15–74 years old) were active e-shoppers in these countries�during�the�last�six�months.�This�is�90%�of�all�Internet�users.

In countries with high Internet penetration such as the Nordic countries, UK and Germany, up to 95% of people with access to�Internet�have�engaged�in�e-shopping�during�the�last�six�months. Spain has lower Internet penetration and only 79% of the Spanish online consumers made purchases on the Internet last�six�months.�This�indicates�that�e-commerce�is�both�a�very�widespread phenomenon and that it grows with Internet maturity. As more people gain access to Internet an even larger share tend to use it for online shopping.

Men and women are more or less equally likely to engage in e-commerce in all countries. The share of female Internet users who have made online purchases (89%) is nearly at the same level as male Internet users (91%).

The 158 million active e-shoppers made on average 7.4 purchases�within�the�last�six�months.�Last�year�it�was�6.6�purchases for the same period. This is a great growth in one year, and reflects changing online habits.

People bring their offline shopping behavior to an online environment, which basically means more frequent purchases. However, this is still just above one purchase per month.

The most frequent shopping behavior is seen in the UK with eleven�purchases�within�the�last�six�months,�that�is�nearly�two�per month.

Spanish and Finnish consumers made between four and five purchases,�last�six�months.

In most countries the 25– 44 year-olds show the most frequent pattern. In Spain even younger people (15–24 years old) are the most frequent e-shoppers.

Based on consumers’ own estimate of their consumption last six�months,�the�estimated�average�spending�per�capita�varies�greatly across the region. A typical Norwegian e-shopper spends more than three times as much on e-commerce than a Polish�e-shopper�(952�euros�compared�to�293�euros�per�six-month period). Following Norway, UK had the second highest consumption�of�813�euros�per�e-consumer�during�the�last�six�months. Finnish consumers have outgrown the Danish and consume for 752 euros. Danish consumers average 717 euros and Swedish 693 euros for the same period.

Estimated e-commerce per person increased in Sweden, Finland, UK, Germany and France. Consumers in Denmark, Norway and Spain reported somewhat lower average consumption. Norway remains by far the most active market, and Denmark is also one of the most advanced markets in the study. At the time of the survey, the summer of 2011, the newspapers reported heavily on the economic crisis, which might have impacted consumers’ estimate of their own past consumption.

1. A massive commercial opportunity

0 20 40 60 80 100

E-shoppers

%

Female Male

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

94%92%

95%94%

92%85%

89%90%

94%95%

94%96%

87%84%

86%

82%77%

90%

0 2 4 6 8 10 12

Average number of purchases

Female Male

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

6,96,3

7,56,1

7,66,4

6,15,6

11,710,5

7,77,6

6,0

5,0

5,6

4,84,3

5,9

British consumers are frequent e-shoppers

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Norwegian and Danish consumers reported lower online consumption of electronics and travel services. In Denmark, electronics decreased from 16% to 10% and travel from 43% to 36% of total e-commerce compared to last year. Corresponding numbers for Norway was 18% to 12% for electronics and 47% to 29% for travel. Household consumables, home non-consumables and media have increased their share of total market in both countries.

Based�on�Internet�users’�online�purchases�of�the�past�six�months, the annual e-commerce in the selected countries is estimated to be around 213 billion euros. That is an annual growth rate of 14%, adjusted for Poland that was only added to the survey this year. The German market is the largest, followed by the UK and thereafter France. The Nordic market is estimated to total around 25 billion euros, up 9% since last year.

The UK market is growing rapidly as British consumers quickly expand�the�number�of�purchases�and�average�consumption�per person.

Compared to last year, UK, Finland and Sweden grew 20% or more. France and Germany grew more than 10%. Denmark, Norway�and�Spain�experienced�modest�declines�in�total�estimated market.

0 200 400 600 800 1000

Average consumption

Euro

2010 2011

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

693600

717763

952987

752594

813618

618554

569487

429443

293

Norwegians are the top online consumers

0 10 20 30 40 50 60 70

Total market per country

Billon euro

2010 2011

Sweden 8,47,0

5,35,5

6,16,2

5,14,1

61,147,6

61,655,7

36,631,8

18,519,7

10,2

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

Hefty growth in the largest markets

� Sweden

� Denmark

� Norway

� Finland

� UK

� Germany

� France

� Poland

� Spain

Total market per country

29%

17%

5%

9%

29%

4% 2%3%

2%

The Nordic region is 12%

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The largest product category in the region is travel. The sector generates about 25% of the e-commerce in the major European markets and up to 36% in Denmark. This corresponds to a massive 54 billion euros in 2011.

The second largest category is household consumables. In several countries, the share of electronics of total e-commerce has shrunk, but it is still a sizable market with 26 billion euros in estimated sales for 2011.

Over�two�thirds�of�the�consumers�have�made�online�purchases of media. Nearly as many purchased clothes, shoes and accessories and over 54 % purchased electronics online last�six�months.

0 10 20 30 40 50 60

Total market per industry

26

28

24

54

13

17

12

21

18Billon euro

Electronics

Household consumables

Home non consumables

Media

Travel

Clothes

Personal care

Services

Other

0 10 20 30 40 50 60 70 80

Percentage of active consumer per industry

54%

34%

45%

44%

71%

63%

44%

39%

42%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

� Electronics

� Household consumables

� Home non consumables

� Travel

� Media

� Clothes

� Personal care

� Services

� Other

Total market per industry

6%

6%

10%

9%

25%

12%

13%

11%8% 80 85 90 95 100

E-commerce is a safe place to sell

93%

92%

98%

89%

%

Sweden

Denmark

Norway

Europe*

E-stores see e-commerce as a safe channel compared to traditional stores

About two thirds of the consumers have bought media and fashion online

The online travel market is a massive 54 billion euros

Travel is by far the largest market

A safe way to reach a huge market opportunity

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It is possible to divide the e-stores in different categories: stores that have most of its sales online, stores that have much of its sales in both channels and stores that have e-commerce as a complement to traditional channels. Just over a quarter of the e-stores have 75% or more of its sales online. Approximately�35%�of�e-stores�report�that�e-commerce�represents less than 10% of their total turnover.

E-commerce is not only for pure e-retailers, but it is a natural complement to traditional retailers to reach new customers and purchasing habits.

E-commerce is well integrated with other channels to reach customers.�Only�26%�of�the�merchants�rely�purely�on�Internet�sales. Most e-stores also have traditional stores (28%), dealers (26%), mail orders (25%), trade shows (24%), call centers (14%) or its own sales force (8%).

Many companies operate offline and online sales at the same time,�and�are�experimenting�with�new�ways�to�combine�these�two channels.

Establishments that offer traditional commerce already possess a structure for procurement, logistics, returned goods and so on. For such a company it is easy to start offer goods via the Internet. Technology platforms have become available at low costs, and there is great potential to increase sales over the Internet.

E-stores in the nine countries address a market estimated at 213 billion. 61% of the stores have fewer than two employees, 29% have 3–10 employees and 7% have 11–50 employees dedicated to e-commerce. It is possible to drive e-business with few employees and limited resources as it is possible to take advantage of different platforms, such as simple low-cost e-commerce platforms from technology companies, sourcing through distributors, payment infrastructure such as DIBS with more, search engine marketing, etc. Small e-retailers have vitality in niches between large companies and with specialized offerings. This is in line with Chris Anderson’s Long Tail concept.

0 5 10 15 20 25 30

E-commerce integrated with other channels

28%

26%

25%

14%

8%

24%

26%

20%%

Traditional retail

Dealers

Call centre

Mail order

Own sales force

Fairs and events

Only online

Other

A quarter of the e-stores are pure Internet

0 10 20 30 40 50 60 70

No of employees per e-store

61%

29%

7%

2%

0%

%

0-2

3-10

11-50

51-150

Over 150

A 213 billion euro market approached by many very small companies

0 5 10 15 20 25 30 35

E-commerce as part of total sales

35%

20%

13%

6%

26%

%

0-9%

10-24%

25-49%

50-74%

75-100%

For most e-stores, Internet is a complement in the channel mix

61% of the e-stores have two or fewer employees

35% of the stores get less than 10% of revenues from e-commerce

26% of the stores rely purely on internet

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Following a long period of growth, consumers continue to�expect�to�buy�more�online�in�the�next�twelve�months.�Across�the�region,�74%�expect�to�maintain�or�increase�their�online�consumption.�Only�13%�of�consumers�expect�to decrease their online consumption. Last year it was 78% versus 10%, meaning that the consumers on average are slightly less optimistic about future consumption growth this year,�than�they�were�last�year. This�might�be�a�response�to�the unfavorable macro environment during the period of the questionnaire.

The Swedish and Polish consumers are most optimistic about their�own�consumption�next�year.�

In�Sweden�38%�of�the�consumers�expect�to�increase�their�spending, compared to Denmark 29%, Norway 27%, Finland 32%, UK 20%, Germany 16%, France 14%, Poland 36% and Spain�28%.�Only�7%�of�the�Nordic�consumers�expect�to�decrease e-commerce, whereas 16% of Spanish and 14% of French�and�British�consumers�expect�to�buy�less�online�in�the�next�twelve�months.�

Increasing portions of the consumers in Finland, UK, Germany, France and Spain believe their e-commerce will remain stable or�increase�next�year.�In�Sweden,�Denmark�and�Norway,�the�optimism for the future remains high, but slightly lower than last year.

Fashion is a market in fast growth and with good prospects for the future. 16% of all consumers say that this is the sector where their online purchases will grow the most. The travel sector is also heading for growth, as 14% of the consumers expect�that�to�be�the�fastest�growing�category�in�their�own�consumption.�Others�sectors�with�good�prospects�include�electronics (12%) and media (10%).

The merchants share the optimism of the consumers. About 71%�of�the�online�merchants�expect�increased�sales�in�the�coming twelve months.

2. Drivers and optimism for growth

0 10 20 30 40 50 60 70 80

Optimism for further growth, consumers

%

Less Same More

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

The Swedes and the Poles are on a roll

0 20 40 60 80 100

Optimism for further growth, consumers

%

Same or more 2010 Same or more 2011

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

86%

82%

79%

89%

79%

79%

63%

72%

65%

Growing optimism in the largest markets

0 5 10 15 20

Consumers expectations for further growth across Europe

12%

5%

5%

14%

10%

16%

4%

3%

5%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

Fashion online appears to have great potential

11

The underlying drivers of e-commerce have remained relatively unchanged over time. European e-consumers shop online because it is easy and it saves time (69%). This is the main motivation in all nine countries. Less important, but still a major influence, is the possibility to find lower prices (61%). The third most frequently quoted reason for online shopping is that it can be carried out regardless of opening hours. The fourth most quoted reason combines simplicity with cost saving; that it is easy to compare products and prices. Considering all of these factors, e-commerce has established itself primarily as a tool for increased convenience in everyday life.

Young people are especially motivated by lower prices and wider product range. To save time is basically equally appreciated by all age groups. Consumers from the large markets in Germany, UK and France appreciate the convenience of e-commerce more than the other. Polish e-commerce is to a larger degree motivated by the search for lower prices.

0 10 20 30 40 50 60 70 80

Drivers of e-commerce, consumers

69%

61%

60%

59%

44%

4%%

Saves time/it's easy

Lower prices

To compare products and prices

Always open

Larger product range

Other reason

0 5 10 15 20

Fastest growth areas according to Swedish consumers, next 12 months

16%

2%

4%

18%

8%

17%

3%

3%

6%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 10 20 30 40 50 60 70 80

Optimism for further growth, e-stores

%

Less Same More

Sweden

Denmark

Norway

Europe*

15%

9%

72%

7%

23%

63%

4%

9%

80%

9%

16%

67%

Norwegian stores are optimistic

40

50

60

70

80

To �nd lower prices as a driver for e-commerce

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

67% 66%

62%

59%

54%

50%

Young people are looking for bargains

20

30

40

50

60To �nd larger product range as a driver for e-commerce

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

52%

48%

45%44%

37%

31%

Young people use Internet to personalize their consumption

European e-consumers shop online because it is easy and saves time Swedes expect to travel more!

12 13

0 5 10 15 20 25

Fastest growth areas according to Norwegian consumers, next 12 months

11%

1%

4%

23%

11%

13%

5%

3%

4%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 5 10 15 20

Fastest growth areas according to Finnish consumers, next 12 months

13%

1%

5%

20%

10%

13%

4%

6%

5%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 3 6 9 12 15

Fastest growth areas according to British consumers, next 12 months

8%

9%

4%

15%

10%

10%

2%

2%

5%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 5 10 15 20 25

Fastest growth areas according to Danish consumers, next 12 months

13%

4%

3%

23%

9%

15%

4%

3%

7%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

Danish travel sector is large, with continued potential!

Norwegians expect to buy more travel services online British consumers expect to buy more travel services online, but not to the same extent as the Nordic consumers

Like its Nordic neighbors, Finns look forward to more traveling

Following a long period of growth, consumers expect to buy more online next 12 months

13

0 5 10 15 20

Fastest growth areas according to German consumers, next 12 months

17%

3%

5%

10%

12%

20%

3%

2%

5%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 5 10 15 20

Fastest growth areas according to French consumers, next 12 months

8%

4%

6%

12%

10%

17%

7%

2%

6%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 5 10 15 20

Fastest growth areas according to Polish consumers, next 12 months

16%

9%

13%

8%

7%

19%

5%

3%

7%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 5 10 15 20 25

Fastest growth areas according to Spanish consumers, next 12 months

13%

4%

5%

25%

8%

13%

5%

4%

3%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

Germans expect to shop fashion and electronics online

French go fashion!

The Poles expect to buy more fashion and electronics online

The Spanish travel market has potential!

Fashion and travel industry seem to have good prospects for growth

14 15

After years of hype, e-commerce via the mobile, so called m-commerce, is reaching a phase of major consumer adaptation. Total transaction volumes are still modest, but already today, 17% of the consumers aged 15–34 have used their mobile phones to buy products or services. Young people lead the way and other demographic groups will join as the new�buying�pattern�matures�and�volumes�expand.�Out�of�all consumers, 11% have used their mobile phones to find, shop and pay for products and services, ranging from 6% in Germany to a massive 24% in Poland.

The industry has for some time claimed that m-commerce is the�next�big�thing.�The�DIBS�E-Commerce�Survey�2011�offers�some illuminating and promising observations, that indicate that m-commerce has now reached its tipping point. These include:• �Major�adaptation�by�young�people�everywhere�(17%�of�

people aged 15–34)• �27%�of�the�merchants�expect�their�m-business�to�expand�in�the�next�twelve�months

• �21%�of�the�stores�are�planning�to�“soon”�launch�m-commerce initiatives

• �Poland,�Sweden�and�Denmark�are�leading�the�way• �Media,�services,�travel�and�electronics�are�the�best�sellers�on�

the go

Many�forces�fuel�the�growth�of�m-commerce.�E-stores�expand�their m-commerce offerings, payment providers launch new payments�solutions,�mobile�operators�aspire�to�extend�the�use of mobiles and consumers are increasingly equipped with smart phones. As several new initiatives are about to be�launched,�consumers�will�soon�be�heavily�exposed�to�marketing and incentivized with offers of new m-services.

As of today, 10% of the stores sell their products and services via mobile phones. But here comes the good news; it is about to triple.

21% of the stores say that they soon will launch m-shops. It will multiply the amount of goods and service offered via mobiles.

The triggers for m-commerce are safe payment solutions and new mobile shops. 20% of the consumers say that they would increase m-commerce if new payment solutions were made available and 11% believe that new e-shops would attract them to m-commerce. Especially, young people say that new payment solutions, new m-shops, and personalized offers could attract them into m-commerce. Much fewer believe that location based offers could do the job.

Only�3%�of�the�stores�say�that�they�lack�trust�in�the�payment�process for m-commerce. At the same time, 20% of the consumers say that the creation of new payment methods would encourage them to become m-consumers. The gap is interesting. Presumably the shops have evaluated payment processes and gained trust, whereas consumers are guided by habits. Technology as well as the communication of technology plays a vital role in developing the m-market.

In section 4, 1% stated that they prefer to pay for e-commerce with their phone. This refers to consumers who prefer to pay via their phone for products and services he or she found on the web, via a PC or laptop. In this section, m-commerce refers to occasions when the consumers find, buy and pay the product via their mobile phone.

3. Commerce is going mobile

27% of the merchants expect mobile commerce to expand next twelve months

Poland, Sweden and Denmark in pole position

15

� No

� No, but we will soon

� Yes, via own mobile site

� Yes, via apps

� Yes, through other solutions

E-stores offering mobile commerce

21%

4%4%

70%

2%

0

5

10

15

20M-consumers

Years old15-24 25-34 35-44 45-54 55-64 65-74

%18%

16%

11%

7%

5%

3%

21% of the stores are about to launch m-commerceM-commerce is reaching out to younger crowds

0 5 10 15 20 25

M-consumers

%

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

21%

16%

11%

13%

9%

6%

10%

12%

24%

100

How m-consumers paid for the service or product

%

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

By SMS By mobile bill By card By invoice

0 5 10 15 20 25

What they bought with their phones

16%

9%

14%

16%

25%

10%

6%

17%

18%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 5 10 15 20 25 30 35

M-consumers

%

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

23%19%

18%14%

15%7%

14%11%

11%7%

7%4%

12%8%

12%12%

32%16%

Female Male

There is a lot of mobile action in Sweden and Poland

The early adopters of m-commerce are often men

SMS is so far the most used form of payment

M-commerce is especially successful for services to be consumed ”on the go”

16 17

0 10 20 30 40 50 60

Why they have not tried m-commerce

59%

30%

14%

9%

5%

14%

15%

%

Cannot see the need

Don´t feel safe

Too complicated

Not receive product

Want to see product

Need help

Other

0

5

10

15

20

25

New m-shops as a driver for m-commerce

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

19%

14%

10%

8%

6% 6%

0 5 10 15 20

What would it take to become an m-consumer

20%

11%

10%

5%

19%

%

The creation of safe payment

Mobile shops speci�cally for m-commerce

Personalised offers based on

where I am

Personalised discounts

Other

0

5

10

15

20Personalized discounts as a driver for m-commerce

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

16%

12%

11%

9%

6% 6%

10

15

20

25

30New payment methods as a driver for m-commerce

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

27%

24%

21%

18%

13% 13%

0

2

4

6

8

10Location-based offers as a driver for m-commerce

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

8%

5% 5%

4%

3% 3%

Perceived need is the key

Young people want new m-shops

Consumers hold back as they hesitate on payment methods

Young people are no strangers for a good deal

Payment methods are important for all ages Few consumers desire location-based offers

17

0 10 20 30 40 50 60 70 80

Expectations for mobile purchases

%

Less Same More

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

0 5 10 15 20 25 30 35

Expectations for m-commerce, stores

%

Less Same More

Sweden

Denmark

Norway

Europe*

1%

26%

31%

2%

26%

27%

1%

28%

23%

0%

29%

29%

0 5 10 15 20 25 30 35

Perceived obstacles for m-commerce, stores

31%

26%

12%

9%

3%

10%

16%%

No customers demand yet

Products not suitable

Lack of knowledge

Lack of �nancial resources

No trust in payment

Lack of ef�cient platform

Other

None

15%

The heavy users in Sweden and Poland are optimistic

E-stores in all countries are overwhelmingly optimistic about growth in m-commerce

Two thirds of the stores do not say that there is no customer demand

18 19

0

10

20

30

40M-consumers per age group in Sweden

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

35%

30%

25%

16%

9%

6%

0 5 10 15 20 25 30 35 40

What Swedish consumers buy with their phones

6%

2%

3%

38%

20%

2%

1%

28%

18%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 10 20 30 40 50 60

Expectations for mobile purchases – users and non users in Sweden

%

Less Same More

Users

Non Users

14%

50%

27%

2%

59%

12%

Young Swedes are early adopters

Travel and media are doing good on the phone

Users are optimistic!

3.1 M-commerce in Sweden

� SMS

� Mobile phone bill

� Card

� Invoice

Mobile payment methods consumers used in Sweden

35%

15%

8%

42%

Major involvement by mobile operators

19

� SMS


� Card

� Invoice

Mobile payment methods consumers used in Denmark

25%

25%

5%

45%

In Denmark, 45% of m-consumers have paid via SMS

3.2 M-commerce in Denmark

0

5

10

15

20

25

30M-consumers per age group in Denmark

Years old15-24 25-34 35-44 45-54 55-64 65-74

%27%

26%

19%

11%

4%

7%

Over a quarter of Danes below the age of 34 are m-shopping

0 5 10 15 20 25 30 35

What Danish mobile consumers buy with their phones

7%

1%

3%

34%

18%

3%

0%

28%

20%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 10 20 30 40 50

Expectations for mobile purchases – users and non users in Denmark

%

Less Same More

Users

Non Users

13%

43%

30%

8%

34%

8%

Travel is a large part of the m-commerce market


20 21

� SMS


� Card

� Invoice

Mobile payment methods consumers used in Norway

23%

31%

8%

38%

3.3 M-commerce in Norway

0

5

10

15

20M-consumers per age group in Norway

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

17%

13%

15%

9%

7%

1%

0 5 10 15 20 25 30 35

What Norwegian mobile consumers buy with their phones

8%

4%

5%

19%

33%

4%

4%

25%

25%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 10 20 30 40 50 60 70 80

Expectations for mobile purchases – users and non users in Norway

%

Less Same More

Users

Non Users

16%

51%

22%

1%

66%

8%

Norwegian early adopters are 15–44 years old

Using the card more than in other Nordic countriesNorwegians are m-spending on media


21

0 5 10 15 20 25 30 35

What Finnish mobile consumers buy with their phones

31%

29%

16%

9%

3%

2%

2%

2%

20%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 10 20 30 40 50 60

Expectations for mobile purchases – users and non users in Finland

%

Less Same More

Users

Non Users

13%

60%

16%

5%

58%

7%

The Finnish m-market is different; it is dominated by electronics and household consumables

3.4 M-commerce in Finland

0

5

10

15

20

25

M-consumers per age group in Finland

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

18%19%

15%

12%

6%7%

� SMS


� Card

� Invoice

Mobile payment methods consumers used in Finland

50%

7%

7%

36%

More than others, the Finns pay for m-commerce via their mobile phone bill

22 23

� SMS


� Card

� Invoice

Mobile payment methods consumers used in UK

56%

11% 22%

11%

In the UK, cards dominate the m-commerce payments

0

4

8

12

16

20M-consumers per age group in UK

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

13%

20%

7%

6%

3%

1%

Half the penetration compared to Sweden and PolandUsers are optimistic!

0 5 10 15 20 25 30

What British mobile consumers buy with their phones

17%

8%

10%

20%

28%

15%

6%

14%

22%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

Media has the largest m-market share

0 10 20 30 40 50

Expectations for mobile purchases – users and non users in UK

%

Less Same More

Users

Non Users

18%

39%

39%

5%

48%

7%

3.5 M-commerce in UK

23

� SMS


� Card

� Invoice

Mobile payment methods consumers used in Germany

16%

16% 33%

33%

0

3

6

9

12

15

M-consumers per age group in Germany

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

13%

7%8%

1% 1% 1%

Nearly no m-commerce for people older than 45 years

Germans are buying media in the phone

Compared to non-users, users are both more optimistic and pessimistic. The m-shopping experience seems to get mixed reviews.

0 5 10 15 20 25 30

What German mobile consumers buy with their phones

16%

16%

18%

19%

28%

12%

4%

14%

7%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 10 20 30 40 50 60

Expectations for mobile purchases – users and non users in Germany

%

Less Same More

Users

Non Users

33%

35%

30%

6%

55%

14%

3.6 M-commerce in Germany

24 25

0

5

10

15

20M-consumers per age group in France

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

17%

15%

7% 7% 7%

1%

Most m-consumers are young Compared to non-users, users are both more optimistic and pessimistic. The m-shopping experience seems to get mixed reviews.

French m-commerce is a lot about media

0 5 10 15 20 25

What French mobile consumers buy with their phones

12%

12%

14%

7%

25%

7%

7%

16%

25%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

0 10 20 30 40 50

Expectations for mobile purchases – users and non users in France

%

Less Same More

Users

Non Users

31%

29%

21%

7%

46%

10%

3.7 M-commerce in France

� SMS


� Card

� Invoice

Mobile payment methods consumers used in France

27%

10% 36%

27%

25

� SMS


� Card

� Invoice

Mobile payment methods consumers used in Poland

12%

19%

54%

15%

Polish m-commerce is dominated by SMS

3.8 M-commerce in Poland

15

18

21

24

27

30M-consumers per age group in Poland

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

28%

23%

28%

19%

22%

19%

Whoops, m-commerce is adopted by all ages in Poland!

0 5 10 15 20 25

What Polish mobile consumers buy with their phones

17%

8%

14%

6%

24%

8%

7%

19%

18%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

Media is big

0 5 10 15 20 25 30 35

Expectations for mobile purchases – users and non users in Poland

%

Less Same More

Users

Non Users

21%

33%

27%

7%

14%

8%

26 27

� SMS


� Card

� Invoice

Mobile payment methods consumers used in Spain

28%

16%

28%

28%

3.9 M-commerce in Spain

0

5

10

15

20

25

M-consumers per age group in Spain

Years old15-24 25-34 35-44 45-54 55-64 65-74

%

21%

18%

13%

5%4%

2%

0 5 10 15 20 25 30

What Spanish mobile consumers buy with their phones

26%

8%

23%

18%

23%

16%

9%

7%

12%%

Electronics



Media

Travel

Clothes

Personal care

Services

Other

The early adopters are 15–44 years old

Big on electronics, home non-consumables and media

Compared to non-users, users are both more optimistic and pessimistic. The m-shopping experience seems to get mixed reviews.

0 10 20 30 40 50 60 70 80

Expectations for mobile purchases – users and non users in Spain

%

Less Same More

Users

Non Users

32%

45%

21%

5%

68%

9%

27

4. Finding the right payment methods across EuropeThe European markets share several traits across borders. Consumers’ drivers, behavior and preferences are to a large degree similar across Europe. However, there are a few�notable�exceptions,�and�that�includes�how�consumers�pay for the goods and services. Depending on national payment infrastructure, national laws, competitive landscape, consumption pattern, historic facts etcetera, consumers‘ preferences for payments are very different in different countries.

Europeans’ way of paying online differs substantially across borders. A successful e-merchant should respond by offering relevant payment methods to its target groups.

Card is preferred by the largest group of consumers (42%), but other payment options such as micropayment services (18%), invoices (17%) and Internet bank transfers (9%) are also fairly popular overall, and in some countries dominant methods.

Consumers opt for what they believe is the safest (53%) and easiest (52%) method and the preferred payment method is closely related to e-consumer perceptions of security and�convenience.�Opportunity�to�be�billed�later�(12%)�and�perceived cost also weighs in (11%).

About one quarter of the consumers have chosen to abandon an online purchase after having placed goods in an electronic shopping cart. The second most common reason to cancel an ongoing purchase is that the consumer could not pay with his or hers preferred method. This clearly shows the importance of�offering�the�right�payment�method�in�order�to�maximize�conversion rates.

The most frequent reason for abandoning the checkout window is uncertainty regarding terms and conditions of the purchase (32%).

This is followed by lack of the consumers’ preferred payment method (30%).

0 10 20 30 40 50 60

How to choose payment method

53%

52%

11%

7%

3%

6%

3%%

Safest

Billed later

Easiest

Cheapest

Possibility to �nance

Only method available

I get bonus points

Other

12%

0 5 10 15 20 25 30 35

Reason for abandoning a purchase

32%

30%

20%

19%

17%

4%

15%%

Uncertain conditions

Lack of con�dence

Not preferred payment

Technical problems

Registration process

Insuf�cient information

Payment process

No in-store delivery

Other

22%

25%

0 20 40 60 80 100

Methods e-stores prefer consumer use

83%

23%

4%

4%

10%

2%

2%%

Card

Invoice

Direct via Internet bank

Cash on delivery

Micropayment services

Mobile telephone

Instalment/�nancing

Other method

10%

0 10 20 30 40 50

Preferred payment method

42%

9%

7%

1%

18%

1%

3%%

Card

Invoice


Cash on delivery


Mobile telephone


Other method

17%

Card is the most popular method, but not in every country

Safe and easy are triggers

30% of the consumers have abandoned a purchase due to lack of payment alternatives

Stores prefer cards

28 29

0 20 40 60 80 100

Methods e-stores offer

91%

38%

20%

2%

16%

7%

7%%

Card

Invoice


Cash on delivery


Mobile telephone


Other method

42%

0 10 20 30 40 50 60

Why e-stores decide what payment method to offer

29%

40%

29%

34%

56%

5%

7%

%

Cost effective

Demanded by customers

Integrated by tech partner

It is the easiest

It is the safest

Bank recommended it

Other

0 10 20 30 40 50 60

Plans for new payment methods

58%

8%

6%

2%

13%

11%

2%%

No

Yes, via Internet bank

Yes, cards

Yes, invoice

Yes, mobile phone

Yes, cash on delivery

Yes, micro-payment

Yes, instalments

11%

Safe, easy and popular are triggers

42% plan to offer new payment methods

29

4.1 To pay or not to pay – huge differences between countries

On�an�accumulated�level,�cards�are�Europe’s�preferred�payment method (42%), but if we dig deeper into the data, a very disperse pattern emerge. The countries vary greatly with regards to consumers’ preferred payment methods. There is no other factor in the study with such a wide discrepancy between the countries.

4.2 Payments in Sweden

In Sweden, cards are growing in popularity. Last year 33% of the consumers preferred to pay by card, but this year the number has grown to 42%. Cards are especially popular among men and in Stockholm. Internet bank transfer (24%) and invoicing (24%) are also popular, but they have lost some of their appeal since last year. The popularity of invoice seems to grow with age, as it is most popular for the 65–74 year-olds.�Of�the�consumers�that�have�cancelled�an�ongoing�purchase, 31% abandoned the checkout window because the e-merchant lacked their preferred method of payment.

� Card

� Direct via Internet bank

� Invoice

� Cash on delivery

� Mobile telephone

� Micropayment services

� Instalment/�nancing

� Other method

Preferred payment methods in Sweden

24%

24%

2%

4%

42%

0%1%

1%

Three main alternative methods

0 10 20 30 40 50


%

Card

Via Internet bank

Invoice

38%

46%

27%

21%

28%

20%

Female Male

Young, urban men prefer cards

0 10 20 30 40 50 60


%

City > 1 million

City < 1 million

Countryside

51%

21%

21%

42%

25%

22%

33%

24%

32%

Card Internet Bank Invoice

0

10

20

30

40

50Preferred payment methods in Sweden

%Card Via Internet bank Invoice

15-24 25-34 35-44 45-54 55-64 65-74

Older people like invoices

30 31

� Card


� Invoice





� Other method

Preferred payment methods in Danmark

4%3%

2%3%

87%

0% 0% 0%

Cards dominate the market

Transfer via Internet bank is relatively popular for people aged 65–74

0 20 40 60 80 100

Preferred payment methods in Denmark

%

Card

Via Internet bank

Invoice

87%

88%

5%

2%

3%

2%

Female Male

0 20 40 60 80 100


%

City > 1 million

City < 1 million

Countryside

92%

3%

0%

87%

4%

3%

81%

6%

6%


0

20

40

60

80

100



15-24 25-34 35-44 45-54 55-64 65-74

4.3 Payments in Denmark

Denmark is without doubt the country in which card payments are most common, with 87% preferring to use this method, up from 80% last year. This is due to the dominant position�of�the�Dankort.�Only�4%�of�Danish�e-consumers�prefer�Internet�bank�transfer�payments�and�3%�invoices.�Of�the consumers that have cancelled an ongoing purchase, 18% abandoned the checkout window because the e-merchant lacked their preferred method of payment.

31

� Card


� Invoice





� Other method

Payment methods preferred in Norway

9%

10%

10%

3%

65%

0%

1% 0%

Card has the strongest appeal

Micropayments are used by young Norwegians

4.4 Payments in Norway

Two thirds of the Norwegian consumers prefer to pay with credit card (65%). 10% prefer invoices, 10% prefer micropayments and 9% prefer to pay via Internet bank transfers. Compared to its Nordic neighbors, micropayments are�very�popular.�Of�the�consumers�that�have�cancelled�an�ongoing purchase, 24% abandoned the checkout window because the e-merchant lacked their preferred method of payment.

0 10 20 30 40 50 60 70 80

Preferred payment methods in Norway

%

Card

Invoice

Via Internet bank

Micropayment

61%

68%

7%

10%

10%

9%

10%

11%

Female Male

0 10 20 30 40 50 60 70 80


%

City

Countryside

65%

8%

9%

12%

65%

12%

10%

7%

Card Internet Bank Invoice Micropayment

0

10

20

30

40

50

60

70

80


%Card Via Internet bank Invoice Micropayment

15-24 25-34 35-44 45-54 55-64 65-74

32 33

0 10 20 30 40 50

Preferred payment methods in Finland

%

Card

Via Internet bank

Invoice

20%

35%

45%

37%

24%

10%

Female Male

0

10

20

30

40

50Preferred payment methods in Finland


15-24 25-34 35-44 45-54 55-64 65-74

4.5 Payments in Finland

The situation is markedly different in Finland, where only 28% prefer cards. Here 41% prefer invoices and 17% prefer Internet�bank�transfers.�Of�the�consumers�that�have�cancelled�an ongoing purchase, 37% abandoned the checkout window because the e-merchant lacked their preferred method of payment.

� Card


� Invoice





� Other method


41%

17%

6%

3%

28%

0%3% 0%

Internet transfer is big

Invoice and internet bank are more appealing to women

0 10 20 30 40 50


%

City

Countryside

31%

41%

15%

19%

40%

24%


Invoice is more popular in rural areas

33

0 10 20 30 40 50 60 70 80

Preferred payment methods in UK

%

Card

Via Internet bank

Micropayment

69%

74%

5%

3%

21%

17%

Female Male

4.6 Payments in UK

UK consumers have a strong preference for using cards (71%). The UK also stands out since as many as 19% of the consumers prefer micropayment services such as PayPal. Women and people 45–64 years old especially favor them. Only�4%�prefer�to�pay�via�Internet�bank�transfer.

� Card


� Invoice





� Other method


4%

1%

19%

1%

71%0%

1% 1%

Cards are more popular in largest cities

People pay with the plastics

0 10 20 30 40 50 60 70 80


%

City > 1 million

City < 1 million

Countryside

78%

2%

13%

69%

4%

22%

72%

6%

17%

Card Internet Bank Micropayment

0

20

40

60

80

100


%Card Via Internet bank Micropayment

15-24 25-34 35-44 45-54 55-64 65-74

34 35

0 10 20 30 40 50 60

Preferred payment methods in Germany

%

Card

Invoice

Micropayment

6%

12%

58%

42%

19%

28%

Female Male

� Card


� Invoice





� Other method


4%1%

1%

24%

50%

6% 9%

5%

Invoice dominates, with micropayments being very popular

Women prefer invoice

4.7 Payments in Germany

More than the others, German consumers prefer invoice payments (50%). Invoice has also grown in popularity during the last year. Micropayments are also very popular (24%), whereas cards are preferred by only 9% (on par with Poland). Last�year�20%�of�the�consumers�preferred�cards.�Of�the�consumers that have cancelled an ongoing purchase, 46% abandoned the checkout window because the e-merchant lacked their preferred method of payment.

0

10

20

30

40

50

60

70

80


%Card Invoice Micropayments

15-24 25-34 35-44 45-54 55-64 65-74

0 10 20 30 40 50 60


%

City > 1 million

City < 1 million

Countryside

11%

43%

16%

9%

49%

26%

7%

54%

24%

Card Invoice Micropayment

Micropayments and invoices are more popular outside the major metropolitan areas

35

0 10 20 30 40 50 60 70 80

Preferred payment methods in France

%

City > 1 million

City < 1 million

Countryside

67%

15%

64%

18%

66%

17%

Card Micropayment

0 10 20 30 40 50 60 70 80


%

Card

Micropayment

66%

65%

17%

18%

Female Male

0

10

20

30

40

50

60

70

80


%Card Micropayment

15-24 25-34 35-44 45-54 55-64 65-74

4.8 Payments in France

In France, cards have a dominant position, preferred by 65%. Micropayments are also popular (17%). There are no substantial differences between men and women, different age�groups�or�different�regions�of�France.�Of�the�consumers�that have cancelled an ongoing purchase, 24% abandoned the checkout window because the e-merchant lacked their preferred method of payment.

� Card


� Invoice





� Other method


4%

3%

1%2%

65%

17%

3%3%

Cards and micropayments

Preferences not determined by region

Preferences not determined by sex

Preferences not determined by age

36 37

0 10 20 30 40 50

Preferred payment methods in Poland

%

Card

Via Internet bank

Cash on delivery

7%

11%

41%

44%

38%

28%

Female Male

� Card


� Invoice





� Other method


42%

3%

3%

33%

9%4%2%

2%

Cash on delivery is more popular than elsewhere

Cash on delivery is more popular among women

4.9 Payments in Poland

A third of the consumers in Poland prefer to pay cash on delivery. Poland really stands out, since cash on delivery is not preferred by more than 4% in any other country. 42% prefer to transfer the money via Internet bank. 9% prefer to pay with�cards,�which�is�the�same�percentage�as�in�Germany.�Of�the consumers that have cancelled an ongoing purchase, 16% abandoned the checkout window because the e-merchant lacked their preferred method of payment.

0

10

20

30

40

50Preferred payment methods in Poland

%Card Via Internet bank Cash on delivery

15-24 25-34 35-44 45-54 55-64 65-74

0 10 20 30 40 50


%

City > 1 million

City < 1 million

Countryside

11%

39%

31%

9%

44%

33%

7%

39%

36%

Card Internet Bank Cash on delivery

Cash on delivery is more popular in rural areas

37

4.10 Payments in Spain

Most Spanish consumers prefer to pay by card (43%). As in Poland, cash on delivery is fairly popular (16%), but far from the Polish�level.�27%�of�the�consumers�prefer�micropayment.�Of�the consumers that have cancelled an ongoing purchase, 27% abandoned the checkout window because the e-merchant lacked their preferred method of payment.

� Card


� Invoice





� Other method

Preferred payment methods in Spain

43%

4%16%

2%

27%

1%

0%

3%

Micropayments and cash on delivery are popular

0 10 20 30 40 50


%

Card

Cash on delivery

Micropayment

46%

40%

17%

15%

21%

33%

Female Male

0

10

20

30

40

50

60Preferred payment methods in Spain

%Card Cash on delivery Micropayment

15-24 25-34 35-44 45-54 55-64 65-74

Young people like micropayment

0 10 20 30 40 50


%

City > 1 million

City < 1 million

Countryside

40%

11%

28%

45%

18%

26%

34%

19%

32%

Card Cash on delivery Micropayment

Cash on delivery is larger outside the cities

38 39

The European consumers plan, book and pay their travelling online. Travel is the largest e-market in all countries, and in the Nordic region, a full third of the market is travel. Travel constitutes 36% of the Danish e-commerce market. Sweden is not far away and 31% of the Swedish e-commerce market is travel related.

A sector that has grown considerably since last year’s version of DIBS E-Commerce Survey is household consumables.

The category is now the second largest market in all countries but Germany. In the UK, the household consumables category constitutes 17% of the market and for the other countries it is between 10% and 14%.

Electronics�is�the�third�largest�category�in�all�countries�except�Germany where it took the second place. The market for electronics stands at about 10% to 13%, so it is trailing very close behind the market for household consumables.

People from major cities shop online more often and spend more money, than people who live in smaller cities or on the countryside. Urban people have access to more traditional stores, but still use e-commerce far more than people on the countryside.

The graph of average consumption per age group has the pattern of a sad smile. Although young people have frequent purchasing behavior, their total spending power is limited. Average e-commerce increases with age up until a certain level and then it decreases again and the 65–74 year-olds spend less online. Most countries fit into this picture, but in Norway the 65–74 year-olds are on a shopping spree. In Poland young people are the biggest spenders.

5.1 E-commerce in Sweden

5. E-commerce per country

� Electronics



� Travel

� Media

� Clothes

� Personal care

� Services

� Other

Swedish e-market

13%

10%

5%

13%

9%

6%

6%

31%

6%

Travel is big in all Nordic countries

0

200

400

600

800

1000E-consumption in Sweden

499

717

873

660

745

598

Years old15-24 25-34 35-44 45-54 55-64 65-74

Euros

400

600

800

1000

4

6

8

10City vs countryside in Sweden

City >1 million City <1 million Countryside

euros

916

654

6,2

7,2

6,6

608

Ave consumption

No of purchases

More activity in Stockholm

39

� Electronics



� Travel

� Media

� Clothes

� Personal care

� Services

� Other

Danish market per industry %

10%

10%

7%

10%

6%

7%

6%

36%

8%

� Electronics



� Travel

� Media

� Clothes

� Personal care

� Services

� Other

Norwegian market per industry %

12%

10%

10%

12%

5%

7%

6%

29%

8%

Travel is big in all Nordic countries Travel is big in all Nordic countries

5.2 E-commerce in Denmark 5.3 E-commerce in Norway

400

600

800

1000

1200

4

6

8

10

12City vs countryside in Denmark


euros

958

661

5,9

8,1

6,7

645

Ave consumption

No of purchases

400

600

800

1000

1200

4

6

8

10

12City vs countryside in Norway

City Countryside

euros

1008

6,1

7,3

801

Ave consumption

No of purchases

More activity in Copenhagen More activity in the cities

The Norwegians have the highest online consumption

0

200

400

600

800

1000E-consumption per age group in Denmark

507

640

838

905

758

493

Years old15-24 25-34 35-44 45-54 55-64 65-74

Euros

0

200

400

600

800

1000

1200

1400E-consumption per age group in Norway

595

837

1082

1197

931

1015

Years old15-24 25-34 35-44 45-54 55-64 65-74

Euros

40 41

� Electronics



� Travel

� Media

� Clothes

� Personal care

� Services

� Other

Finnish market per industry %

14%

8%

9%

11%

4%

9%

6%

30%

8%

� Electronics



� Travel

� Media

� Clothes

� Personal care

� Services

� Other

UK market per industry %

17%

10%

10%

11%

4%

7%

6%

27%

8%

Travel is big in all Nordic countries Household consumables are popular online

5.4 E-commerce in Finland 5.5 E-commerce in UK

640

675

710

745

780

0

2

4

6

8City vs countryside in Finland

City Countryside

euros773

5,4

6,0

685

Ave consumption

No of purchases

600

800

1000

1200

1400

6

8

10

12

14City vs countryside in UK


euros

1045

720

11,211,1 11,0

851

Ave consumption

No of purchases

More activity in the citiesEqually frequent shopping in cities and outside

Low online consumption for the youngest

0

200

400

600

800

1000E-consumption per age group in Finland

458

804

945

743790

745

Years old15-24 25-34 35-44 45-54 55-64 65-74

Euros

0

200

400

600

800

1000

1200E-consumption per age group in UK

385

871

1002

766812

770

Years old15-24 25-34 35-44 45-54 55-64 65-74

Euros

41

5.6 E-commerce in Germany 5.7 E-commerce in France

� Electronics



� Travel

� Media

� Clothes

� Personal care

� Services

� Other

German market per industry %

10%

13%

8%

13%

6%

9%

8%

26%

8%

500

600

700

800

4

6

8

10City vs countryside in Germany

euros

732

7,9

7,5

602

Ave consumption

No of purchases

7,5

589


Higher average consumption in the largest cities

0

100

200

300

400

500

600

700

800E-consumption per age group in Germany

374

689728

642 646

488

Years old15-24 25-34 35-44 45-54 55-64 65-74

Euros

� Electronics



� Travel

� Media

� Clothes

� Personal care

� Services

� Other

French market per industry %

13%

12%

10%

13%

6%

8%

6%23%

9%

0

200

400

600

800

1000

0

2

4

6

8

10City vs countryside in France

euros

781

5,8

6,7 587

Ave consumption

No of purchases

5,5

467


More activity in the cities

0

200

400

600

800

1000E-consumption per age group in France

433

538 537

776

625

499

Years old15-24 25-34 35-44 45-54 55-64 65-74

Euros

42 43

5.8 E-commerce in Poland 5.9 E-commerce in Spain

� Electronics



� Travel

� Media

� Clothes

� Personal care

� Services

� Other

Polish market per industry %

13%

11%

11%

13%

8%

8%

7% 17%

11%

� Electronics



� Travel

� Media

� Clothes

� Personal care

� Services

� Other

Spanish market per industry %

14%

11%

12%

13%

8%

8%

7% 18%

10%

0

100

200

300

400

500

2

4

5

6

7

8City vs countryside in Poland

euros

427

5,4

6,7

292

Ave consumption

No of purchases

5,1

219

City >1 million City <1 million Countryside0

100

200

300

400

500

600

700

0

1

2

3

4

5

6

7City vs country in Spain

euros

602

4,3

5,5

358

Ave consumption

No of purchases

3,9

472


More activity in the cities More activity in the cities

The youngest consumers are on a shopping spree

0

100

200

300

400E-consumption per age group in Poland

356

281300

245

273 274

Years old15-24 25-34 35-44 45-54 55-64 65-74

Euros

0

100

200

300

400

500

600E-consumption per age group in Spain

372 374

454487

513

343

Years old15-24 25-34 35-44 45-54 55-64 65-74

Euros

43

5.10 Opportunities across borders

E-commerce is international in its character and many consumers take advantage of opportunities outside their home market. To that end, e-commerce is a change agent pushing for the integration of the European single market. Cross-border commerce is an important opportunity for merchants, with great potential as Internet maturity increases.

Across Europe, a fifth of the consumers have completed purchases on websites from outside their own country.

The most internationally minded consumers have their domicile in the Nordic countries, with high Internet maturity and relatively smaller home markets. In the UK and Germany fewer people shop abroad, probably due to the large domestic supply and competition. The Spaniards also shop across borders.

Compared to last year, slightly fewer consumers shop from foreign websites. Maybe that is because many stores have expanded�into�new�countries�and�launched�websites�with�local payments, in local language and etcetera. Thereby their products have been made available locally. Another factor is the unfavorable economic climate that could have impacted international shopping behavior.

The most important reason to shop abroad is to find products that are not available in the home country (42%), and the second most important driver is to find lower prices (39%). Interlinked to that are possibilities related to differences in�taxes.�

Both merchants and consumers contribute to the trend. E-merchants are getting more international in their outlook, and build brands that reach outside their home market.

At the same time consumer confidence is on the rise for international consumer protection, delivery and payment methods.

0 10 20 30 40 50 60

E-consumers who shopped abroad

%

2010 2011

Sweden

Denmark

Norway

Finland

UK

Germany

France

Spain

Poland

31%

47%

49%

42%

16%

14%

20%

32%

12%

0 10 20 30 40 50

Why shop abroad

42%

39%

11%

8%

5%

%

Product not found at home

Lower price than at home

Lower tax/VAT

Product to be used there

Other

Nordic consumers take advantage of foreign opportunities

44 44

For the purpose of this survey, the following definitions have been used:

Europe* includes Finland, UK, Spain, France, Gemany and Poland

Electronics refers to computers, hardware, radio, TV and electronics

Household consumables refers to food, beverages, household products, alcohol and flowers

Home non-consumables refers to furniture, garden tools, DIY, domestic appliances and other products for the home

Travel related services refers to hotels, travel agents, tour operators, transport, such as air flights

Media/entertainment refers to books, music & films, software programs, toys, PC and DVD games, adult entertainment, events, tickets, clubs, associations and media

Clothes refers to clothes, shoes, jewellery, clocks and watches and sports equipment

Personal care refers to pharmacy products, medicine, treatments, health and beauty products

Services refers to public sector, finance, insurance, charities, business services, telecom and telephony

Mobile commerce refers to situations when consumers find, buy and pay for products and services via their mobile phones

Definitions

3

1

DIBS Payment Services AB Kungsbroplan 2 Box 165, 101 23 Stockholm Sweden Telephone +46 (0)8 527 525 00www.dibs.se

DIBS AS Hovfaret 4A 0218 Oslo Norway Telephone +47 21 55 44 00www.dibs.no

DIBS A/S Edvard Thomsens Vej 10, 6. sal 2300 København S Denmark Telephone +45 7020 3077www.dibs.dk

E-commerce is a huge market opportunity for merchants

Consumers shop online to increase convenience in everyday life

Payment preferences vary greatly between markets

Young people have taken the lead into mobile commerce

Documents

DIBS E-CommErCE SurvEy 2011 - IBIZ-Center...from all regions fuel the migration towards online shopping. Powerful drivers for continued growth European e-consumers shop online primarily