New Survey: 7 Out of 10 Swedish E-Retailers Expect Growth in 2025 Despite Challenges

Swedish e-retailers see good growth opportunities in 2025. 7 out of 10 believe that their turnover will increase. This is shown by a new survey of Swedish e-commerce companies, conducted by Kantar on behalf of DHL. Even more, 8 out of 10, see potential to grow in new markets outside Sweden. The main obstacles to international expansion are logistical challenges and complex export regulations outside the EU.

Despite continued low purchasing power among consumers and stiff competition from foreign low-price players, many e-retailers express confidence in the future. The study, which was conducted in September and October 2024, is based on interviews with 189 small and medium-sized Swedish e-commerce companies and highlights both growth potential and obstacles.

“Surveys on the development of e-commerce are usually based on consumers. For the first time, we have instead asked questions to the e-retailers. The result is a positive surprise that could mark a turning point for e-commerce businesses. Many have had a tough time in recent years,” says Johan Widman, Director E-commerce at DHL Freight Sweden.

E-retailers see great potential for expansion abroad, especially those who are already established in several markets. At the same time, almost half highlight logistics as the biggest obstacle, where factors such as high freight costs and complex regulations outside the EU pose challenges.

Shortcomings in their own marketing are another obstacle, according to the e-retailers.

“Today, you must localise both your webshop and marketing to succeed internationally. The rapid development in, for example, AI and purchases via social media can mean that many e-retailers find it difficult to keep up,” says Niklas Stenman, Head of E-commerce Development at DHL Freight Sweden, who nevertheless sees good opportunities for international expansion for Swedish e-retailers:

“E-commerce has matured, and cross-border trade is growing. Swedish e-retailers generally have a range of high quality that is appreciated internationally. In addition, we are very far ahead in digitalisation.”

Key findings from the survey:

• Faith in the future: 7 out of 10 e-retailers expect increased turnover in 2025, with newer companies and those with a broader international presence being most positive. The main reasons for e-retailers' optimism are that they expect increased demand, better economy and growing purchasing power among customers.
• Expansion: 8 out of 10 e-retailers see potential to grow in international markets, with the greatest opportunities in the Nordic region. Half of the companies think that the conditions for exports are good. The companies that already export to many countries think so to the greatest extent.
• Logistics challenges: Logistics and shipping are the biggest obstacles to international expansion. Complicated laws and regulations make it difficult for exports outside the EU.
• Competitive advantages: EU membership, the weak Swedish krona and Sweden's good reputation are seen as important advantages in exports.
• Marketing and technology development: Many e-retailers are asking for improved marketing and developed technical platforms to succeed in the international competition.

The survey is presented in the report "E-handelskollen":

The report also includes insights from industry experts on how e-retailers can expand their business. Among other things:

• Localise: Successful e-retailers are skilled at adapting their online shops to the markets they want to enter. Understanding local language, imagery, digital channels, payment methods, and delivery expectations is crucial.
• Transparent and flexible logistics: Logistics tailored to the customer's needs is the key to success. Full traceability for both retailer and customer is essential.
• Showroom: A physical store opens a new sales channel. In a showroom, e-retailers can showcase and sell their products outside the digital world.

Link to report E-handelskollen: www.e-handelskollen.com