The lingering effects of the COVID-19 pandemic and inflation challenges in Europe had a massive effect on customer behaviour in 2022. That is old news by now.
What reveals over time is what grew, what shifted, what declined, and why.
Convenience, as it turns out, is the key to shopping online across various countries. What is equally important is that our online shopping is also influenced by a wider selection and lower prices.
When it comes to spending across different areas, differences can be observed among markets. Spending varies based on various macroeconomic factors, but what is evident is that physical goods are essential in all countries, except for Norway, where spending on travel is greater. It appears that travel is becoming an essential need!
Consumer spending on travel grew 52% in 2022, according to the research. The European survey of over 10,000 consumers also revealed that over two-thirds of consumers prefer to buy from local shops online, rather than shopping with foreign marketplaces.
The latest e-commerce report reveals a total indicative travel spend of over €175 billion in 2022, including €52 billion on hotels, almost €45 billion on flights and over €33 billion on charter and package trips.
The travel sector accounted for 32% of overall e-commerce spending among the countries surveyed (Austria, Denmark, Finland, Germany, Italy, Norway, Sweden, Switzerland), with travellers in Italy and Germany accounting for 70% of the total spend.
However, it was Austria and Finland that saw the largest year-on-year increases, with consumers indicating spending levels over 110% higher than the previous year.
“It’s no surprise that after years of disruption and cancelled trips, consumer spending on flights, hotels and holidays showed the strongest resurgence last year,” says Omar Haque, Head of Group eCom at Nexi Group.
“Since the global pandemic, online consumer spending on physical goods has had a sharp decline, but buying services and travel online is increasingly popular, supported by a wider choice of payment options and greater personalisation.”
“Yet, while consumers have an appetite for global travel, what’s remarkable is the overwhelming preference to buy locally and use local payment methods,” continued Haque.
“There are several reasons for this, primarily customer familiarity and convenience. Merchants that understand the unique dynamics of each country, while keeping their eye on the bigger picture across Europe, will stand to benefit the most from the seismic shifts taking place.”
Research revealed that 68% of people surveyed had bought online from a local shop in the previous month.
Consumers indicated they do so primarily (47%) because it feels good to support small / local businesses, while 29% indicated it is because it feels more personal or familiar.
One in five (19%) signalled that they shop local because they do not support big global marketplaces.
This data was reported in the report, which reported that overall e-commerce spending grew by 11% in 2022, with physical goods having the highest share of spending (49%).
This was followed by travel (32%) and then services (19%).
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