Estonia’s e-commerce sector posts record turnover
Over the last decades, Estonia has quietly built one of Europe's most vibrant digital economies — with record numbers of unicorns and recent DeepTech boom.
But there's more to it, with E-commerce taking a prominent role. As reported by ERR, Estonia's e-commerce sector continues to thrive, with revenue growing by 18% year-on-year to reach €5.4 billion in 2024, accounting for 25% of the country's total trade turnover.
This is another marker of the country's impressive digital leap: the global average for e-commerce as a percentage of total retail was around 22% in 2024, though this varies significantly by region.
According to Tõnu Väät, head of the Estonian E-Commerce Association, the sector consistently grows by 10-20% annually and is projected to represent 40-50% of total trade within the next decade. The Estonian E-Commerce Association monitors these trends in collaboration with major delivery companies, the Ministry of Economic Affairs and Communications, and the Bank of Estonia.
Why are Estonians so fond of shopping online? Convenience and infrastructure, paired with digital literacy.
Rising volumes
In 2024, Estonians ordered 17 million parcels to parcel machines, a 14% increase from the previous year. This represents approximately 1.4 million parcels monthly, with a total value of €430 million. Courier deliveries account for an additional 15-18% of total volume (and robots deliver in Estonia too!).
The Estonian e-commerce landscape currently features over 8,000 online stores serving a highly connected population, with 98 percent of Estonians aged 16-74 using the internet and more than 90% having made online purchases.
Recent statistics show that 72% of parcels ordered by Estonian residents come from domestic sources, while 28% are cross-border shipments. Of these international orders, 80 percent originate from Asia, typically with an average value below €30.
The most popular items purchased online include travel and accommodation services, concert and theatre tickets, and clothing and sports equipment.
To serve the growing demand, Estonia boasts approximately 1,000 parcel machines across the country, with the market led by Omniva holding a 45%, followed by Smartpost (27%) and DPD (26%).
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