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Fears for Swedish jobs and entrepreneurship as foreign e-commerce strengthens its grip

The Swedish Trade Federation Svensk Handel's E-commerce Indicator for October shows that e-commerce turnover in Sweden amounted to SEK 11.4 billion, an increase of 5 percent compared to the same month last year.

Photo: Dreamstime.

Although the average purchase price per e-commerce consumer, just over SEK 1,900, is unchanged from last year, the proportion of consumers who shop online has risen from 67 to 71 percent – which is driving growth.

'E-commerce in Sweden continues to grow, but competition is intensifying, especially from international low-price players such as Temu and Shein. Swedish companies must meet this challenge through innovation and sustainable solutions to win and retain consumer trust,' says Per Ljungberg, Head of Innovation at the Svensk Handel.

Foreign players increase sharply - 600,000 traded on Temu and Shein
A significant part of the increase in e-commerce can be linked to foreign low-price players. In October, almost 600,000 Swedish consumers shopped from one of the Chinese platforms Temu and Shein. In all months of 2024, more people have shopped online from foreign companies than in the previous year. In total, the share of e-commerce consumption that goes to foreign companies has risen from 8 percent last year to 12 percent this year. At the same time, turnover from foreign players has increased by about 60 percent.

'To create a fair and sustainable market, we must ensure that platform companies operate under the same rules and supervision as Swedish players. The Swedish Trade Federation is pushing for EU regulations to ensure fair conditions of competition, which is absolutely crucial for Swedish trade,' says Ljungberg.

A tough challenge and a great opportunity
Sweden has a strong tradition as an export nation, and many Swedish e-commerce companies are already enjoying great success internationally. But the challenges at home are clear. High costs and unequal conditions in competition with foreign players hamper growth opportunities.

'Swedish companies have a unique opportunity to strengthen their position globally, but this requires continued investment in innovation, improved conditions for entrepreneurship and world-class customer experiences. This is how we will achieve a leading position in the transition to an even more sustainable trade,' concludes Ljungberg.

More information:
Svensk Handel
www.svenskhandel.se

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