The world of e-commerce is highly competitive. Take Sweden, for example, which had 7 million online shoppers in 2023, remarkable considering its 10.6 million population.
As we approach the holiday peak season, retailers must navigate an increasingly competitive landscape while catering to the changing preferences of their customers. To do so, we’ll explore the key trends shaping the shopping experience in Northern Europe and provide actionable insights to help you stand out from the crowd.
The stabilisation of shopping behaviour
One of the most significant shifts we've observed this year is the stabilisation of shopping behaviour across Northern Europe. After years of growth in online shopping, we're entering a new phase where consumer habits are beginning to settle.
From a near 10% increase between 2021 and 2023, online shopping in the Netherlands has started to plateau at 50%:
Source: Smart Shopper Research. Google, Cint (2023 & 2024) / Savanta (2022) / Zweipunkt (2021) / Kantar (2020 & 2019), Online survey, Country: NL. Nationally representative online population 18+Y.O who conducted purchases in the past 3 months for Consumer Electronics/Home & Garden/Fashion/Toys/Jewellery and in the past 1 month for Food & Groceries/Beauty.
Base: All product buyers of CE, Home, Fashion, Food, Beauty, Toys, Jewellery.
Another interesting shift to note, is that both offline and online, data shows consumers are experiencing less pain points over the past five years:
Source: Smart Shopper Research. Google, Cint (2023 & 2024) / Savanta (2022) / Zweipunkt (2021) / Kantar (2020 & 2019), Online survey, Country: SE, NL. Nationally representative online population 18+Y.O who conducted purchases in the past 3 months for Consumer Electronics/Home & Garden/Fashion/Toys/Jewellery and in the past 1 month for Food & Groceries/Beauty.
Base: Online and offline product buyers of CE, Home, Fashion, Food, Beauty, Toys, Jewellery.
This is due to the fact that although retailers are successfully addressing common frustrations, the baseline of consumer expectations continues to rise. Consumers now expect more, making differentiation increasingly difficult.
Action point: To stay ahead of the curve, retailers must continually assess and improve their customer experience, anticipating and exceeding expectations at every touchpoint. This requires a deep understanding of consumer needs, preferences, and behaviours, and a willingness to adapt and innovate in response to changing demands.
For example, fixing common pain points like not being able to checkout as a guest, will put retailers ahead of the curve.
The rise of brand loyalty and the challenge of attracting new customers
In the Netherlands and Sweden, we've also seen a notable decrease in the number of consumers buying from new retailers or brands over the past two years.
In Sweden the percentage of respondents to our Smart Shopper survey who bought from a new retailer dropped from 34% in 2022 to 24% in 2024. This data suggests that shoppers are increasingly sticking with the brands and retailers they already know and trust, making it more challenging for retailers to attract new customers.
Source: Smart Shopper Research. Google, Cint (2024) / Savanta (2022), Online survey, Country: SE, NL. Nationally representative online population 18+Y.O who conducted purchases in the past 3 months for Consumer Electronics/Home & Garden/Fashion/Toys/Jewellery and in the past 1 month for Food & Groceries/Beauty.
Base: All product buyers of CE, Home, Fashion, Food, Beauty, Toys, Jewellery.
Action point: To overcome this hurdle, retailers must find ways to capture the attention of potential customers and differentiate themselves from the competition.
This could involve leveraging new technologies, like AI, to help you build customer confidence in your brand by providing them with category knowledge, relevant information, and fostering a relationship with your brand.
The power of visual search within the shopping experience
Among the emerging technologies consumers are beginning to use, visual search stands out as a powerful tool for enhancing product discovery and inspiration.
In Belgium 40% of survey respondents have used new technologies to find inspiration for their purchases:
Source: Smart Shopper Research. Google, Cint (2024), Online survey, Country: BE, NO, DK, FI, NL, SE. Nationally representative online population 18+Y.O who conducted purchases in the past 3 months for Consumer Electronics/Home & Garden/Fashion/Toys/Jewellery and in the past 1 month for Food & Groceries/Beauty.
Base: All product buyers of CE, Home, Fashion, Food, Beauty, Toys, Jewellery.
One such new technology is visual search that allows customers to instantly find products they desire. By uploading a picture of an item they like, shoppers can quickly and easily find similar products online. This technology is not only transforming the online shopping experience but also bridging the gap between the physical and digital worlds.
This single tool is so popular we can see 14% of surveyed people using it in Belgium, 13% in Norway and Denmark, 11% in Finland and the Netherlands, and 10% in Sweden.
Action point: As visual search continues to gain popularity, retailers must optimise their online presence to capitalise on this trend. This involves ensuring that product images are high-quality, accurately tagged, and easily discoverable through visual search engines like Google Lens.
The finer details: Give customers what they want
Now that we've piqued the consumer's interest, it's time to give them what they really need — details.
And here's where it gets really interesting: our data reveals a significant opportunity to differentiate your brand online, something that is more challenging in offline retail spaces.
Take the Netherlands, for example — our research shows that while price is important, it's not the whole story. Customers are checking details like product availability, product comparisons, helpful reviews, and flexible purchase options. This is where your brand can shine online:
Source: Smart Shopper Research. Google, Cint (2024), Online survey, Country: NL. Nationally representative online population 18+Y.O who conducted purchases in the past 3 months for Consumer Electronics/Home & Garden/Fashion/Toys/Jewellery and in the past 1 month for Food & Groceries/Beauty.
Base: All product buyers of CE, Home, Fashion, Food, Beauty, Toys, Jewellery.
Think about the last time you shopped online. We're all looking for the best deal, the most convenient options, and the reassurance that we're making the right choice.
Action point: Focus on:
- Product availability: Clearly communicate stock levels whether the stock is online or offline.
- Product comparisons on your website: Enable easy side-by-side comparison of similar products, highlighting key features and prices.
- Customer reviews and recommendations: Highlight testimonials and ratings.
- Purchase options: Offer flexibility with payment methods or different delivery options.
By excelling in these areas, you'll not only differentiate your brand online but also drive more sales and cultivate loyal customers.
