This week, the Italian e-commerce market will be the focus of our attention. Before moving on to some useful insights about the local market, let’s go through a general overview of the Italian economy.
A few facts about the Italian economy and demographics
- Population: 60Mn people
- Median age: 45.5
- Urban population: 71%
- 8th country in GDP ranking
- GDP/capita: $34,784
- Manufacture of high-quality consumer goods by SMEs drive the economy
- A two-sided economy: Industrialized & more developed North / Agricultural & less developed South
The e-commerce market in Italy
Italian people have one of the highest internet penetration rates in the world. Nearly 55Mn (92% of the population) use the internet.
While on the other hand, the e-commerce penetration rate remains at 65%(39.5Mn), meaning, there is a lot of room for growth.
The e-commerce revenue forecast for 2019 is $15.8Bn, and it is expected to grow to 23.5 billion U.S. dollars in 2023. One of the main drivers of this growth is the increase in the consumption of consumer electronics products.
35Mn people actively use social media platforms, compared to a 24Mn past year. Facebook has an advertising audience of 31Mn, and Instagram follows with 19Mn.
Trends in the local market
40% of all e-commerce revenue comes from purchases via smartphones. Similarly, 41% of internet users use mobile banking.
Local credit card company CartaSi has a 40% market share and 7Mn users. Not surprisingly, American giants MasterCard and VISA are used very frequently. Another payment method, E-wallets constitute 31% of the aggregate e-commerce payments.
Here is Italy’s e-commerce calendar.
Advantages of the Italian e-commerce market
The market enjoys a 10% growth annually, and today, only 10% of the Italian companies sell online.
23% of all advertising audience composed of every social platform is between the ages of 25-34. Since many businesses target this age group, advertising on social media is very effective.
Must-knows for online retailers
Delivery services are problematic in the local market, especially in terms of speed. Fast delivery service would be a unique advantage for an e-commerce business.
Italians tend to add products in their charts and leave without purchasing. As a retailer, you should come up with ways to finalize these potential sales. For example, you can offer small personalized discounts for indecisive shoppers. Or, you can provide an option to make wishlists because on average, they revisit a website 5 times before making a purchasing decision.
What to take
The local market is only beginning to expand, and you can have a big slice of the pie as long as you take actions on what we’ve learned:
- Smartphones account for 40% of the purchases, and online retailers must develop user-friendly mobile platforms
- Advertising on Facebook and Instagram is very effective since their advertising audience is mostly 25-34 years old.
- Fast delivery can be a significant advantage.
- Italians revisit websites 5 times on average before making a purchase decision, therefore, you might consider offering promotional incentives to finalize the sale.