Greece E-commerce Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Key Highlights

• In recent years, Greece's electronic commerce (e-commerce) has grown significantly, particularly during the current COVID-19 crisis, when the Greek government has made significant strides to modernize the country digitally. The Ministry of Digital Governance has modified its digital strategy, known as the "Digital Transformation Bible," first introduced in the pre-Covid era and is now planned to be developed between 2020 and 2025.
• Implementing the unified government e-cloud platform is prioritized, assisting the marketplace's digital transformation. A One-Stop-Shop platform was built in 2019 to dramatically reduce the time to start a business. The Hellenic Development Bank has developed two funding initiatives to help SMEs with their digital development: "Business Innovation Greece" and "4th Industrial Revolution."
• Greece's e-commerce sales have been steadily increasing and are expected to reach $539 million by 2020. Greece's e-commerce is lagging behind other EU member states despite this increase. Apart from the prolonged economic crisis, the key reason is that Greece has not reaped the benefits of ICT adoption and scores below the EU average on several of the European Digital Agenda's ICT indicators.
• The COVID-19 crisis measures, according to the latest data supplied by the Greek Electronic Commerce Association (GR.EC.A), significantly enhanced the rising trend in online sales. Consumer expenditure grew 107 percent faster in May 2020 than in 2019. According to a Nielsen study, 22% of Greek shoppers made their first online supermarket purchase during the pandemic quarantine. Only 4% of shoppers would switch stores before COVID, but that number has risen to 26%. This trend is bolstered by investments announced by several significant firms interested in developing their online marketplaces.

Key Market Trends

Significant Growth in E-Commerce is Expected Due to the Outbreak of COVID-19

• In Greece, only 4% of shoppers would switch stores before covid, but that number has risen to 26%. This trend is bolstered by investments announced by several significant firms interested in developing their online marketplaces. According to a recent study by the Hellenic Federation of Enterprises (SEV) Digital Transformation Observatory, a company with an online presence can generate up to 20% more sales than one without.
• According to the Hellenic Statistical Authority's (ELSTAT) 2020 annual ICT report, e-commerce still has room to develop because only 47% of the population shops online. Fashion (31%), electronics & media (25%), food & personal care (19%), toys, hobby & DIY (16%), and toys, hobby & DIY (16%) account for the majority of eCommerce income in Greece.
• The economic crisis still influences greek consumers' shopping patterns and trends. Compared to the European average, Greek customers research more than they buy online. The Greek consumer's mindset has shifted due to the COVID issue. More than 60% prefer online shopping to in-store buying, and 49% say they will continue shopping online even after the COVID situation stabilizes.
• After searching online through search engines and price comparison services, Greek online buyers make more than 65 percent of their total physical purchases. This supports firms' significant investments in digital marketing to draw customers to their physical locations.

Growth of B2C segment

• Business-to-consumer (B2C) e-commerce in 2020 noted a 77% growth rate, making it the first in Europe. Domestic sources are preferred since 93.1 percent of internet shoppers use Greek e-shops, a 7.4% increase from 2019. Only one in ten consumers buy directly by clicking an ad, and 57% of consumers mentioned that they would be reluctant to purchase from a website that is not offered in their language., as reported by ITA, US.
• The price is the first reason consumers choose where and what to purchase. Twenty-five percent of consumers mentioned that they do not buy across borders since shipping costs increase the final price of the item and 24% mentioned that they are concerned about fees required for customs clearance. Sellers who say shipping and customs costs when calculating the final price are more likely to attract online buyers, especially if they have new products not provided in the domestic market.
• Top online shopping categories in 2020 were: clothing (including sports clothing), computers, tablets, mobile phones or their accessories (printers, cables, cases, headphones, etc.), computer software, or other devices, including their upgrades.

Competitive Landscape

• Many competitors are present in the Greece e-commerce business, leading to high competition. In the e-commerce business, many local and worldwide firms have expanded, resulting in fierce competition. Aside from eBay and others, certain retail companies, such as ACS, already have a robust physical presence and are preparing to enter the e-commerce industry, strengthening the overall competition. eBay, Geniki Taxydromiki, and ELTA are some of the essential participants in the Greece e-commerce business. E-shops with the higher sales in Greece include Kotsovolos, Zara, e-shop, plaisio, and e-Jumbo, with toys-shops being a fast-growing new entry and the Public mainly focusing on books but also building on creating a Greek marketplace for electronics and appliances.
• Dec 2021: Skroutz is an e-commerce platform in Greece where small businesses can list their wares. Skroutz is used by the majority of consumers for market research, product identification, and pricing comparison. Skroutz's turnover climbed by 95.42 percent in 2020.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support