E-commerce in Denmark

E-commerce

Internet access

Internet penetration is exceptionally high in Denmark. Out of the 5.7 million population, an estimated 97% are internet users. Overall, Denmark is considered to be one of the most developed countries in the world, with a GDP per capita of US$ 60,114 in 2017 and a high quality of life. The country has a quality, modern and effective telecommunications network. In 2017, Denmark was crowned as the “most digital country” in the EU according to the Digital Economy and Society Index, a survey by the European Commission.

E-commerce market

In 2017, total online sales are estimated to have reached US$ 19.2 billion, a growth of almost 15% compared to the previous year (US$ 16.7 billion). Moreover, total e-commerce revenue was USD 4.96 billion, a figure that is expected to grow to US$ 7.01 billion by 2021. In the Global Retail e-commerce index compiled by AT Kearney, Denmark was considered the 13th most attractive online market in the world. In this index, Denmark had the best score for consumer behaviour, but was one of the smallest in terms of market size. Moreover, Denmark ranked 11th place of the 2016 World Bank Logistics Index, based on customs efficiency, quality of trade, transport infrastructure and logistics services. The most visited online stores in Denmark are Amazon (generalist), Saxo (books), Zalando (clothing), eBay (generalist), Cdon (generalist), Coop (garden, appliances, food), Bilka (generalist), El Giganten (multimedia and appliances). Amazon is a key player in Europe and Denmark is no exception to this. Danish people also use second-hand buying and selling websites. The most popular ones are LetGo and DBA. Fashion is the most popular product category in e-commerce, and in 2017 it accounted for US$ 1.57 billion, followed by electronics & media, which generated US$ 1.34 billion in sales. Danes have a general high level of income, which gives them a strong purchasing power in other markets. Therefore, cross-border e-commerce is rather popular among Danish e-shoppers, with products coming mainly from Great Britain, Germany, China, the USA and Sweden. In 2017, 32% of online shoppers purchased items from abroad. In contrast, Danish e-commerce tends to be a bit expensive for foreign customers.

Social media

Social media are well developed in Denmark. Indeed, the Danish population seems to have always been open to new technologies. As a matter of fact, when Facebook was launched, Denmark had one of the highest numbers of subscribers in the world. As of January 2018, Facebook was the most popular social media platform in the country, with 3.7 million users. Youtube is also very popular, and is used by 75% of all internet users. Other popular social media platforms in the country are Instagram (1.4 million users), Snapchat (1.15 million users), Twitter (800 thousand users) and WhatsApp (half a million users). In general, younger Danes tend to be more active and present on social media platforms than older generations. Nevertheless, Facebook has a wide age distribution, with many elderly users. On the other hand, Instagram and Snapchat are particularly popular among the population under 30. As of August 2018, the most popular social media platforms in the country by market share were Facebook (73.88%), Pinterest (9.59%), Twitter (6.22%), YouTube (3.42%), Instagram (2.95%) and Tumblr (1.56%).