Describes how widely e-Commerce is used, the primary sectors that sell through e-commerce, and how much product/service in each sector is sold through e-commerce versus brick-and-mortar retail. Includes what a company needs to know to take advantage of e-commerce in the local market and , reputable, prominent B2B websites.
Last Published: 8/15/2017

Overview
In Estonia there are around 4,000 e-stores offering books, publications, tools, household goods, software and hardware, flowers and multimedia products.  It is possible also to book and buy air and ferry tickets on-line or purchase tickets to various entertainment events. 

Estonia ranks 9th in the EU's Digital Economy and Society Index (DESI) 2017 based on European Commission data. Estonia topped the rankings in online public services and scored above the EU average in digital skills of the population and Internet usage. Estonia ranked 17th in the EU for connectivity. The European Commission observed that 4G is widely available in Estonia and the take-up of mobile broadband is very high. Basic fixed broadband coverage has increased but remains well below the EU average. With 91 percent of households having fixed broadband last year, Estonia placed 25th among EU countries. The availability of next generation access is slightly above the average and fast broadband take-up is growing.

Current Market Trends
In 2015, post and online retail grew by 39% compared to the previous year (retail overall grew 6%). Sales of goods by post and online amounted to 129.7 million euros (retail overall amounted to 5.19 billion euros).

Domestic eCommerce (B2C)
85% of people using e-commerce bought their goods from Estonian sellers, 44% from other sellers in the EU and 35% from countries outside the EU. Estonians engage in online activities more than the average EU citizen and the country placed 6th in terms of internet use. The take-up of e-banking is one of the highest in the EU, as is consumption of news via internet.

The average e-store sells goods to the value of 48 667 euros per year (2015).
More than 59% of people aged 16-74 have used e-commerce. Postal or online retail comprises 2.5% of total retail (2015).
The most popular types of goods and services purchased online are:

  • travel and accommodation services (60%);

  • concert, cinema and theatre tickets (57%);

  • clothing and sports equipment (52%).

More info: Estonian E-Commerce Association

Cross-Border eCommerce
The most popular foreign e-commecre platforms are AliExpress (49% of buyers using international websites), eBay (48%) and SportsDirect (43%).

B2B eCommerce
In 2016, 12 percent of enterprises based in Estonia made B2B and B2G e-commerce sales through a website. According to the EU's Digital Economy and Society Index (DESI), the uptake of digital technologies and practices by businesses has been slow, and Estonia's businesses are only starting to exploit the possibilities offered by online commerce.

eCommerce Services
Estonia has a extensive newtwork of smart lockers. 86% of online buyers are using smart lockers for delivery. 46% of online shoppers get their purchases delivered by courier services.

eCommerce Intellectual Property Rights
Estonia maintains a robust IPR regime. The quality of IP protection in legal structures is strong, enforcement is good and infringements and theft are uncommon. Estonia is not listed in USTR’s Special 301 report or in the Notorious Market report.

Popular eCommerce Sites
The most frequented local B2B online shops in 2016 were Kaup24, On24, Hansapost, 1a and Shoppa. The main B2G website is Eesti.

Online Payment
There are three methods mostly used for paying for internet purchases: internet bank payments through a bank link service (56%), card payments (13%) and e-wallet solutions like PayPal (9%).

Mobile eCommerce
Currently about 72% of Internet users in Estonia use a smart phone and 13% of e-commerce has been done using a mobile phone and 9% using a tablet.

Digital Marketing
Estonian companies offer a full range of services when it comes to strategic and tactical marketing communications, market research, advertising, POS materials, event marketing, PR, cost-effective advertising development and management services for AdWords campaigns, and other online marketing campaigns.

Major Buying Holidays
There are no major buying holidays but online shopping sees record sales before the Christmas holidays.

Social Media
About 57% of the Estonian population uses social media. The leading social network is Facebook. Russian-speakers favour Russian social media, especially Odnoklassniki and VKontakte.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



Estonia eCommerce Industry Trade Development and Promotion eCommerce