Our study of e-commerce markets around the globe continues with Switzerland’s e-commerce market. Considering the market’s potential, the insights we’ll be sharing in this post is highly beneficial for you.
To begin with, we’ll check out the general characteristics of Switzerland’s economy.
Switzerland’s economy (in a few points)
- 8.4 Mn population
- $79,348 GDP/capita and is expected to hit $84,035 by 2021
- #1 country in the percentage of GDP spent on innovation
- A highly developed service sector especially in financial services
- High-tech and knowledge-based industrial sector
What makes the Swiss economy so attractive to investors
Switzerland’s political and economic stability combined with a transparent legal system prevents uncertainty. The developed financial sector and low tax rates provide significant advantages to business owners. On top of that, consumer spending rises continuously.
Now that we know the basics let’s move on to the details of online shopping in Switzerland.
Switzerland’s E-Commerce Industry
Switzerland’s population has an incredible rate of internet penetration: 95% (which equals to 8.1 million people). 90% of internet users shopped at least once from an online shop. On average, Swiss shoppers spend €2,149 online.
In Europe, they hold the 2nd place after the UK.
More importantly, the market grows steadily with a 9% rate, enhancing the opportunities for new market entrants.
Advantages of Swiss E-Commerce Market
Swiss consumers have high purchasing power, and they have the know-how when it comes to technology. Unlike many other developing countries, they are prone to shop online. 72% of the population stated that they make online purchases.
Moreover, the central location of Switzerland, its advanced logistics network, and its developed infrastructure contribute to the country’s growth in the e-commerce industry.
Facts that will help you have a good start or a better positioning in the market
First, to avoid legal interruptions that might slow you down, you might want to acquire expert knowledge on the complex customs clearance system of Switzerland. The country’s standards of approval are slightly different from commonly used international standards.
Second, logistics networks are functional, but also a bit expensive. You should try to avoid the shipping costs of any additional returns. The best way to accomplish it is the following: Use detailed pictures of your product on your website, and try using accurate descriptions.
Trends in online retail
Swiss consumers purchase $6.667 Bn worth travel service, expected to grow 11% annually, according to data from Digital 2019 report by Statista. Fashion and beauty, electronics and physical media, food and personal care are other categories that also have large shares of the market.
The most popular payment method is Invoice with a proportion of 44%, and it is followed by credit cards and PayPal.
72% of the consumers point out the importance of transparency in regards to data capture from consumers. Cybersecurity and transparency are the main concerns of Swiss consumers.
In this blog post, we looked at the growth potential of Switzerland’s e-commerce market, checked out the unique advantages and insights that will help you have better positioning, and mentioned the current trends that shape it.
Important points to take include:
- Swiss online shoppers are the second-highest spenders in Europe
- They are tech-savvy, prone to shop online
- More than half of the online purchases are cross-border
- The biggest concern of Swiss consumers is transparency of data capture.
Online shoppers in Switzerland value company transparency and cybersecurity more than anything. If you wish to create a positive brand image, you should prioritize your customers’ security concerns.