This week, global e-commerce research continues with the Greek market. Although the country experienced a crisis recently, the online retail sector is still in growth. We’ll find out how. Before diving into the e-commerce Greece research, let’s go over the basics of the Greek economy.
Greek economy and demographics
- Population: 10.5Mn
- Urban population: 79%
- GDP ranking(nominal): 52th
- GDP/capita: $20,571
- Dominated by the service sector
- Economic growth is driven by tourism and merchant shipping
E-commerce market in Greece
73% of the Greek population use the internet, while a relatively low proportion of the population, 54% use social media platforms. Nearly all of the social media users have Facebook accounts, meaning, it has a 5.5Mn advertising audience.
15% of the Greek shoppers say that they only do cross-border shopping, a number high above the European average.
According to the Ecommerce Foundation report on Europe, the Greek e-commerce market is growing steadily. At the end of 2019, the total revenue from e-commerce sales is expected to hit $4Bn. E-commerce spending per shopper is €1818.
Advantages of the local market
In spite of the recent crisis, the online retail market continues its growth. The crisis naturally led to a decrease in the purchasing power of Greek citizens, and the bad experience increased their price sensitivity. For consumers, price sensitivity is the major factor for online purchases, with a 75% ratio. Online stores have better offers than offline retailers.
85% of internet users claim shopping regularly from online stores. In 2016, this number was 65%, meaning, the future is promising.
Helpful facts to improve your business
As we mentioned above, one of the major impacts of the recent crisis is a decrease in the purchasing power of Greek people. Even if it impairs general consumer spending, it has a positive effect on the online retail market. People want to catch the best prices, and online-shopping ease this process. Therefore, direct product price comparison is the second major reason for online shopping, with a 52% ratio.
41% of the consumers state that finding new offers in online stores is much easier than in offline stores, and that’s the third reason why they shop online.
54% of the online payments are done by cash on delivery, a much higher number than the global average. Because it’s a common preference, it’s important to provide cash on delivery option to the Greek consumers.
Final Thoughts on Greek E-commerce Market
Even though the Greek economy suffered from a recent crisis, its online retail industry grows at a good rate. Traditional retailers should consider investing in online retailing. What you need to remember about the e-commerce Greece research is:
- Greek consumers are price-sensitive
- Going for the cheapest positioning can boost sales
- Promotions/discounts attract Greek consumers, therefore, the frequency of offers could be increased
- Facebook has the largest advertising audience