Insights into the growth of Latvian eCommerce with payment methods, target audiences, marketing, social media, economy and logistics all profiled
Digital User Insights
There are currently 890,000 eCommerce usersin Latvia, with an additional 40,000 users expected to be shopping online by 2022. Four years from now, these 930,000 eCommerce users will spend an average of 794.65 USD online.
Dividing internet usageinto age groups gives a better picture of the Latvian eCommerce market – 96% of 16-24 year olds, 95% of 25-34 year-olds and 83% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing an 79% and 69% daily penetration rate, respectively.
Total Latvian eCommerce revenue across all product categories is 315 million USD, and is expected to grow to 440 million USD by 2021. Electronics & Media is currently the leading product category in Latvia, accounting for 109.1 million USD market share, followed by Fashion, which generates 88 million USD in sales.
By 2022, Electronics & Media will still be the most purchased online category, with an estimated value of 154.9 million USD, and second favorite, Fashion will have an expected worth of 118.5 million USD.
In 2016, Latvia was ranked 43rd in the World Bank Logistics ranking.
Preferred Online Payments
43% of Latvian shoppers like to pay with credit card when shopping online.
Where does Latvia buy from?
Russia supplies Latvia with 4.84 billion USD in imports – ranging from cars to petroleum. Latvia’s other key import partners are Lithuania ($2.47 billion), Germany ($1.85 billion), Poland ($1.37 billion) and Estonia ($1.21 billion).
Internet and Device Usage
Internet penetration in Latvia is currently 71.1%, and should reach 73.1% by 2022. Smartphone penetration is substantially less (49.1%), but is projected to grow to 56.2% in the next four years.
92% of online shoppers in Latvia buy via desktop, a stark contrast to the amount of smartphone (2%) and tablet (2%) shoppers.
In 2018, 24.73 million USD of Latvia’s digital ad spendis projected to bespent on internet advertising.
1.6 million people in Latvia are active social network users, thanks to Facebook, Twitter, Pinterest and YouTube, which are the leading social networks.
For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets.