How To Crack The Irish E-Commerce Market - Discover new markets - Asendia Insights
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Discover new markets How To Crack The Irish E-Commerce Market IN PARTNERSHIP WITH
How To Crack The Irish Irish market size
E-Commerce Market The Irish online market occupies a
substantial proportion of the population
– there are more than 4.6 million people
living in the country and 80+% use the
The Irish e-commerce market holds a great deal internet. Around 1.9 million of those who
use the internet in Ireland shop online
of appeal for retailers from overseas keen to find so there is significant potential for a
new, digital-savvy customers with a thirst for online substantial audience for any business
looking for new customers. The value of
purchasing. Steady annual revenue growth and a purchases is sizeable too, with the average
willingness to purchase across categories such as annual spend for online shoppers coming in
at around spend €3,143. In 2018, revenue
fashion, electronics and furniture and appliances in the Irish e-commerce market amounts
to €3140 million and forecasts indicate
gives the Irish e-commerce market a vibrancy and that this will grow by around 8.9% per
potential that ensures it holds its value among the year. So, while Ireland is a smaller market
than China, the US, Japan or the UK, it is
digital markets of the world. one that continues to grow and to thrive.
Cracking the Irish e-commerce market takes a
combination of knowledge and preparation, from
understanding where Irish consumers buy from, to
tailoring your website to make e-commerce success
a more likely outcome. In this whitepaper we will
be examining the key characteristics of the Irish
e-commerce market, as well as how to achieve
commercial success in it.
« ...revenue in the Irish e-commerce market
amounts to €3140 million and forecasts indicate
that this will grow by around 8.9% per year. »
Irish retail trends
The digital economy in Ireland currently • Omni-channel retailing – consumers
makes up around 6% of the country’s are increasingly using more than
GDP and all the indications are that this one channel to make purchases
figure is going to increase. Currently, and looking for a 24/7 shopping
it is fashion that dominates the Irish experience across multiple channels.
e-commerce market with more purchases
in this category than any other. Toys, • Automation – both online and off,
hobby and DIY also make up a substantial automation has many benefits in Image: 1000 Words / Shutterstock.com
proportion of consumer purchasing retail, including easier payments
choices, as well as electronics, personal and increased convenience.
care products and furniture and appliances.
• Building consumer trust – business
strategies now need to embrace the
Irish retail &
E-commerce is one of the biggest trends
in Irish retail – a Virgin Media Digital requirement to build confidence and
trust in the brand, including providing
shopping forecasts
insights report recently established that
Irish consumers are intending to double clarity on brand values and issues
the amount that they spend online over the such as diversity and sustainability. Given the trends, both established and of the big crossovers between retail
next five years. By 2020, Irish consumers incoming, there could be significant change and digital in the near future, the need
will be spending €14.1 billion shopping According to Deloitte, technology is also
going to play a big role in shaping retail in the Irish e-commerce market in the near for online stores to be able to deliver
online. According to Retail Ireland there are future that presents significant opportunities information and expertise as efficiently
also a number of other key retail trends that markets. Agile business structures and more
effective transaction and fulfillment are for overseas retailers. Some of the key as an in-store encounter could do.
are likely to shape the future of retail in the forecasts for this part of the world include:
near future, both online and off, including: going to be huge trends in retail, according • Security will remain a key concern.
to the professional services firm. Artificial • Mobile will continue to grow as a Consumers are increasingly concerned
Intelligence will also provide new ways for shopping channel. In fact, according to about their security when shopping
businesses to interact with consumers, PWC’s Irish Total Retail survey report, online so, for those keen to crack
to build better relationships and provide 30% of consumers expect to be mainly the Irish market, highly secure
enhanced customer service. We could also shopping via their phones in the future. online platforms will be essential.
see a lot more voice user interfaces that
make the experience of shopping via digital • Consumers will still look for great
technology feel more natural and engaging. service. A lesson that digital retailers
can learn now is that online consumers
still value great customer service – for
example, 81% said that sales assistants
with deep product knowledge were
important. This is forecast to be one
Irish consumers & overseas Tips for e-commerce
shopping destinations success in Ireland
Currently, around €4.5 billion of consumer • USA – American brands are also The website itself
spending in Ireland goes to e-commerce incredibly popular with Irish consumers. Your website is your shop front and will • Is designed to give consumers what
companies overseas. Only 41% of the According to PWC, for example, 71% of have a big impact on whether you are able they want. For example, consumers are
purchases being made by Irish consumers Irish respondents to its Irish Total Retail to attract customers, from the SEO that you more likely to look for product information
online are from Irish websites so there is survey shop at Amazon. Ireland and use for the purpose of generating search on mobile devices than they are on PCs,
a significant desire to buy from outside the USA also have a historic trading results, to the structure of the site itself. Irish with 31% of mobile internet use being to
of the country’s borders. Whether that’s relationship which has facilitated consumers also have some fairly specific research products and services, versus
as a result of a lack of choice, of seeking e-commerce purchasing – the US is requirements so it’s important to ensure 28% of weekly internet use on PCs. So,
better quality products or looking to larger Ireland’s largest export partner and that your website does the following: you not only need to accommodate
markets is uncertain but it’s clear that Irish second-largest import partner. those mobile browsers but also ensure
consumers are very open to buying from • Provides plenty of information. 82%
• China – price remains a major influence that your mobile website experience is
brands located outside of Ireland. The UK, of frequent Irish online shoppers use
in Irish consumer purchasing trends, designed to deliver the information those
USA and China are three of the most popular the Internet to research goods and
which is one of the reasons why Irish consumers desire.
shopping destinations for Irish consumers: services before buying. If your web shop
consumers are increasingly looking is not easily navigable, and does not • Ensures a quick and easy check out.
• UK – the UK is the top shopping to China as an e-commerce shopping give sufficient information about your The more obstacles that are in the path
destinations for Irish consumers with destination. Recent research from PayPal products, delivery options and returns of a consumer trying to check out, the
83% of Irish consumers buying online found that more than a quarter of Irish policies, would-be customers will go more likely you are to see an abandoned
from UK retailers. The breadth of product online shoppers had made a purchase elsewhere. cart. So, make sure that you’re clearly
choice is one of the main reasons that on a Chinese website in the past 12 explaining the shipping costs and
Irish consumers opt for the UK, as well months. The same research found that • Is mobile friendly. The number or mobile that you have the least steps possible
as the good value offered by British three quarters of those consumers shop internet users in Ireland is exploding. In between choosing and paying.
brands and the relatively low shipping online to find better priced goods. 2017, nearly 3.5 million people (76% of the
costs. Currently, Irish consumers are Irish population) were expected to access • Is credible and up to date. As already
getting exceptionally good value given the internet via mobile devices. That’s up mentioned, Irish consumers place a lot of
the drop in the value of the pound since from 2.9 million in 2014 and is forecast to reliance today on the trust that they have
the Brexit vote. However, uncertainty hit 3.9 million in 2021. If consumers are in brands. If your website is glitchy, out of
over Brexit also means that the future shopping via devices but your website date or broken in places then this won’t
e-commerce relationship between doesn’t accommodate this then you could do you any favours when it comes to
the two countries could be uncertain. be losing potential customers. achieving success in this market.
British goods may increase in price
and could cost more to ship, as well as
attracting customs duties in future.
Marketplaces Marketing Delivery Returns rates &
The use of marketplaces can be a great There are many marketing opportunities Free delivery continues to be a major consumer expectations
way to broaden the reach of your brand for retailers within the Irish e-commerce incentive for Irish consumers and 80% of Returns can be a crippling cost for any
in the Irish e-commerce market, as Irish market but some challenges exist too. For online shoppers say that they would be e-commerce business if not properly
consumers are keen on shopping there. For example, ad blocking software is widely more inclined to buy more frequently if considered. The Irish market is part of the
example, Amazon is one of the top 10 most used in Ireland and just 9% of online sales in free shipping was an option. In fact, cost relatively returns-happy Northern Europe
visited websites in Ireland. EBay ranks in the Ireland in 2016 came from shoppers clicking is a major factor in the purchase decision block which tends to be more likely to expect
top 20 most visited sites and global retail on online ads. In fact, there is an increasing making process for Irish consumers so if returns to be hassle free and simple because
marketplace Aliexpress.com in the top 40. As trend away from unsubtle advertising and this is a market that you’re looking to crack they are more likely to return a purchase. A
long as you have the right logistics options around a quarter of European shoppers then cost effective logistics will have a big Littlewoods Ireland report also uncovered
in place to cope with marketplace orders say they prefer not to be targeted via their part to play in how successful you are. Of some interesting statistics about the way that
they can be a great tool for cracking the Irish phones when it comes to advertising. Plus, course, cost is not the only consideration Irish consumers view returns and when they
e-commerce market. with the GDPR about to impact on how when it comes to the part that delivery has are most likely to make returns. For example,
brands can reach out to consumers who may to play in supporting positive consumer the average return rate for a site that offers
not have fully consented to being contacted, buying choices. Most consumers now expect free returns is 31-33% but if the customer
Payment options digital marketing methods could present to be offered a wide range of shipping has to pay the returns postage themselves
some problems for cracking the Irish market. choices when buying from an online brand, this drops to 21-24%. Some categories of
If you’re looking to crack the Irish However, there are alternatives. including low cost and premium services that products also have much higher returns than
e-commerce market then it is also crucial ship within a specific timeframe. Reliability others – for example, clothing return rates
to ensure that you have the right payment A direct mail campaign is one very of delivery is also another factor that can can be as high as 70% whereas electronics
options to accommodate your potential credible alternative. Studies have shown influence how appealing a brand may be. are rarely returned.
customers. Payment preferences vary across that between 80% and 93% of European
Europe and are not always predictable - for recipients regularly keep business mail An Post is the national postal and parcel Today, whether they are paying for the return
example, the majority of German consumers such as catalogues and brochures because carrier in Ireland and is part of a well or not, customers expect a returns process to
prefer to pay on receipt of an invoice once they intend to make a purchase later. Direct established shipping infrastructure in have a number of key features including:
goods have been delivered. In Ireland, Visa is mail campaigns – if correctly structured – Ireland that makes it simple for overseas
king and 65% of online payments are made may also avoid being caught by the new businesses to ship into the country. It’s • Simple paperwork and logistics
using this method. PayPal is the payment data protection regulations on consent viewed as extremely reliable and efficient • Trackable from start to finish
method of choice for 20% of consumers. So, in the GDPR. So, there are some distinct – for example, in the five week lead-up to
if your business is restricted to PayPal-only advantages to using a direct mail solution, Christmas 2017 An Post delivered 1.74 million • Cross-border returns
payment options you could be missing out both in terms of compliance with regulations parcels and achieved a next day delivery rate • Fast returns and efficient
on a large proportion of Irish consumers who and also when it comes to making a greater over 90%. refund processes
would otherwise buy from your brand. impact on potential customers. • Easy packaging (for example, a returns
label in the shipping packaging)Customs/Duties and info A success story: Amazon and the
The EU to Ireland. As Ireland is part of
Irish e-commerce market
the EU, for retailers in other EU countries, Amazon has a fairly tight grip on many
customs clearance is fairly simple. There overseas markets. In fact, it is one of the
is no duty to pay and no official customs most successful cross-border retailers out
clearance is required unless you’re shipping there. It’s also a prime example of the way
items that might qualify as prohibited that an overseas brand has made a big
or restricted, such as medicines or food impact on the local Irish e-commerce market,
products, including milk and bread. so much so that more than two thirds of How can Asendia & An Post’s
Irish consumers who took part in a PWC
The rest of the world to Ireland. Outside survey have purchased from it. Amazon’s Premium Partnership help you?
of the EU the process is slightly more success is attributable to a number of factors
involved with imports into the country that provide a blueprint for others looking
requiring a customs declaration using the to crack the Irish online market, including Asendia has partnered with An Post - • Budget options – cost
Irish Revenue’s Automated Entry Processing choice, price and an innovative range of the national postal and parcel operator effective postal delivery to give
(AEP) system. There may also be a number delivery options. in Ireland - to provide businesses customers plenty of choice
of charges to pay - Customs Duty, Value- looking to crack the Irish e-commerce
Added Tax (VAT) and Excise Duty – and the market with reliable logistics that • Logistics and warehousing – a one stop
delivery cannot be released to the consumer cater to the specific Irish consumer shop solution for e-commerce businesses
until these have been settled. There are appetite for digital purchasing. looking for comprehensive support
thresholds that apply to these charges -
goods delivered by post under the value Our services are designed to help you build • Returns – international returns
of €22 won’t incur VAT, for example. And trust with Irish consumers by providing a that are carefully managed
when it comes to customs, goods won’t range of delivery options, including cost
incur such a charge if the value is under effective shipping, as well as features such as
€150. Required paperwork could include an tracking and reliable returns. If you’re looking
invoice, certificate of origin for the item(s) and to break into this lucrative market then you’ll
an import licence. find support from Asendia and An Post with:
• Tracking – full transparency on Want to find out more
deliveries, from order to receipt
about how to crack the irish
• Premium options – for those e-commerce market? Get in
customers looking for an upgrade
in service: evening and Saturday
touch with Asendia today.
delivery, and PUDO locations
www.asendia.co.uk
Telephone: 0330 123 9910Contact us
Asendia UK
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The Heathrow Estate
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Middlesex
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United Kingdom
0330 123 9910
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