E-commerce is growing modestly in 2023 – biggest growth is in pharmacy and cosmetics

Posti has published its fall 2023 E-Commerce Index, which aims to share information about e-commerce development in Finland. The E-Commerce Index is based on Posti’s e-commerce deliveries to consumers and continuous measuring in the consumer field.

“2023 has been a year of moderation in e-commerce: the economic uncertainty is impacting Finns’ purchase behavior. In this post-pandemic time, many have also chosen to spend their money on services they missed. Still, it’s good to keep an eye on the horizon: we know that in the long term, growth will continue,” says Posti Vice President Kaj Kulp.

Pharmacy and cosmetics boast the best performance, recommerce is increasing in popularity

Out of the different product categories, pharmacy and cosmetics have experienced the most growth. Their demand has increased by 2.3 per cent from January to September.

Demand has decreased especially for home items, like furniture and electronics. This decline is explained in addition to economic uncertainty by the fact that demand grew during the pandemic, and many made their purchases then.

The popularity of secondhand items is also growing online. More than one in three Finns make peer-to-peer e-commerce purchases several times a year, according to Posti’s Sustainable Business Survey 2023. In Finland’s biggest marketplace Tori, the number of listings grew in August by 14 per cent compared to the previous year.

Online shopping picks up speed toward the peak season

E-commerce players are now getting ready for the end-of-the-year peak season, where demand typically increases.

“The peak season is a moment of truth for many online stores, as growing volumes require the ability to scale up. In previous years, parcel volumes have increased by approximately 35 per cent in November and December when compared to the average from the rest of the year. Here at Posti, we are once again supporting online stores through the peak season and helping ensure that promises to customers are delivered. Last year, our sending customers were especially happy with our delivery speed and ability to react,” Kaj Kulp shares.

Source: Posti