The Czech Republic is fastest-growing ecommerce market in Europe
Most growth of a European country’s ecommerce market can be expected in the Czech Republic, where it’s predicted the online retail industry will grow 16 percent between now and 2021. That’s more than in other European markets.
Ecommerce in Europe is still growing strong, although it’s developing less hard in more mature markets, such as the United Kingdom, France and Germany. But research from J.P. Morgan shows that in 10 countries across Europe double-digit growth is expected between now and 2021. The Czech Republic is expected to grow 16 percent, while Italy (14 percent) and Spain (13.5) are other fast-growing ecommerce markets.
Compound annual growth rate of ecommerce in Europe
|Country||Ecommerce market size||Ecommerce CAGR (2017-2021)|
|The Netherlands||€22.5 billion||11%|
|Czech Republic||€4.4 billion||16%|
Mcommerce main driver of ecommerce growth
According to J.P. Morgan, it’s mobile commerce that is the main driver of growth in Europe. In the United Kingdom and the Czech Republic for example, mobile devices are currently the most preferred device for shopping online. And in Ireland, Norway and Sweden the smartphone as shopping device is also very popular among consumers.
|Country||Total ecommerce as a percentage completed on a mobile device|
Cards still most used payment method in Europe
The research shows that cards are still the most used payment method in Europe (in 11 out of 18 countries cards were the number one payment method), but other methods such as digital wallets are growing fast. Card payments are especially popular in Denmark (accounting for 63.4 percent of ecommerce payments), Ireland (60 percent) and the United Kingdom (53 percent).
In countries such as Finland, Switzerland and the Netherlands bank transfers are a very popular payment method. Open invoicing, where consumers pay once the goods have been received, and direct debit payments account for 40 percent of online sales. And in Italy, almost a third of online purchases are done using digital wallets.
Czech consumers like to pay with cash
Although the Czech Republic shows the highest predicted compound annual growth rate, this Eastern Europe may get some problems with modernizing its payments landscape. Because currently, cash usage is very popular among Czech consumers. Settling payment on delivery with cash is even the most popular payment method in the Czech Republic, accounting for 45 percent of transactions.