Ecommerce in Denmark was a record-setting 100 billion kroner, or 13.44 billion euros, in 2015, representing 10% of the country’s retail market. But when it comes to cross-border trade the flow of goods has been mostly inbound as high costs are preventing Danish merchants from having more success in overseas markets.
In the second quarter, Danish ecommerce sales increased 16.5% over the previous year, and continued double-digit growth is expected, according to a report from a national trade group.
“The extent of the total cross-border trade on the net shows that Danish stores are in fierce international competition,” said Henrik Hyltoft, director of the trade group Danish Occupation. “Unfortunately, the analysis also shows that the cross-border traffic is virtually one way. The high level of costs makes Danish shopping much less attractive to foreign consumers than the other way around, since the foreign shopping lures (Danish consumers) with items for lower sales tax or no tax.”
In 2015, Danish consumers purchased 24 billion kroner, or 3.44 billion euros, in foreign goods online, according to Danish Occupation; figures weren’t available for cross-border sales by Danish merchants.
The one-way flow of goods is hitting Danish businesses hard, Hyltoft said. “This means that a series of future service jobs will leave Denmark,” he said.
As is the case around the globe, omnichannel is a growing trend in Denmark.
“The growth of ecommerce in Denmark highlights the need for companies that meet consumers’ demands, whether it’s in the web shop or in the physical store,” he said. “What’s new is that at many places sales channels are coming together. For many Danes, it actually doesn’t matter whether it’s in a physical store or online, they buy the product.”