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

The Portugal E-commerce market is expected to grow at a CAGR of above 5.2% during the forecast period, 2022-2027. The European E-commerce market has been expanding rapidly in recent years, providing exciting potential for online retailers in various industries. The Portuguese B2C eCommerce market has gradually risen in recent years, with an estimated value of USD 3.740 billion in 2020. With a 30 percent gain in 2020, the Portuguese eCommerce market contributed to the global growth rate of 29 percent. In the first six months of 2020, eCommerce enjoyed unprecedented growth, with significant international and domestic digital shopping increases.

Key Highlights

• The business-to-consumer e-commerce maThe business-to-consumer e-commerce market in Portugal has been gradually developing and is predicted to do so until 2023. The market is dominated by younger generations, with fashion and technology as significant market sectors. Online payments are dominated by cards and open invoicing via Multibanco. As a result, international merchants who accept card payments using Multibanco as an additional option can reach the great majority of Portuguese internet shoppers.
• Furthermore, E-commerce is also being promoted by the government and the national e-commerce organization ACEPI to people and domestic businesses. The government supports the Digital Trade Programme, which encourages online commerce, and the ACEPI provides tools for small and medium enterprises to construct e-commerce websites.
• In addition, in recent years, consumers, merchants, and governments in Europe have been more concerned about sustainability, and internet retail has come under more scrutiny. Concerns about the environmental consequences of cross-border purchases have grown, as have supply chain issues regarding human rights, labor conditions, and raw material collecting.
• The COVID-19-driven surge in online sales has significantly increased the European eCommerce market's revenue and user base. As more customers transition from brick-and-mortar stores to online stores, Europe's eCommerce income is expected to establish a new high. According to Finaria, the European eCommerce market is predicted to generate $465 billion in revenue this year, up 30% before the epidemic.

Key Market TrendsAdoption and Utilization of Technology is Expected to Drive the Market Growth

• E-commerce growth in Europe as a whole continues to be high. Mobile commerce is the primary growth driver, outpacing the whole e-commerce market by a wide margin. When it comes to online transactions, cards are still the most popular way of payment in the majority of markets.
• Given the strong brand recognition of significant card payment companies like Visa and Mastercard and advancements in online anti-fraud technology like 3D Secure, it is projected that cards will continue to play an essential role in the payments landscape in the foreseeable future. Consumers will virtually always have at least one card in their wallet; thus, merchants can profit from streamlining their card payment processes.
• Consumers' anxieties about giving card details directly to retailers have been alleviated by digital wallets, which have become a popular payment option for e-commerce transactions. Advanced e-commerce economies have quickly adopted digital wallets.
• Another primary subject is the significance of mastering smartphone-based payment methods. Paying via a mobile device has grown normal throughout European markets as time spent on smartphones increases and app-based payment systems rapidly proliferate. This is especially true in regions where mobile devices have become the primary means of accessing the internet.

Competitive Landscape

Competition in Portugal's e-commerce market is high due to the presence of many market players. Further, the number of local and global brands in the e-commerce market has increased competition. Apart from Amazon, eBay, etc., some retail brands, like Worten, already enjoy a considerable presence in physical retail and are gearing up in the e-commerce market, further intensifying the overall rivalry between players. Some of the key players in the Portugal e-commerce market are Amazon, eBay, and Apple.

• IIn 2021, Zalando made more progress toward its goal of establishing a sustainable fashion platform that benefits both people and the environment. Zalando has teamed up with the brand, logistics, and packaging partners to set science-based targets covering 51% of supplier-related emissions.
• November 2020 - Apple has introduced an industry-leading new developer program to help small companies and independent developers accelerate innovation and move their businesses forward with the next generation of revolutionary apps on the App Store. The new App Store, Small Business Program, will help the vast majority of developers that offer digital goods and services on the store by lowering commissions on paid apps and in-app purchases.

Additional Benefits:

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

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