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E-commerce in Italy in 2019: news and growth prospects
That Italian e-commerce is one of the most ambitious markets on a global scale is no secret, but a well-known fact for quite some time now. While in Western countries it is a sector that has already developed at full speed, in the Beautiful Country there are still obstacles and difficulties to overcome.
PERSPECTIVES OF E-COMMERCE IN ITALY
These factors offer all interested parties the opportunity to take advantage of Italian e-commerce with a single intention: to earn, grow, and develop. The value of total sales from e-commerce, in fact, grows year after year in an almost relentless manner, ensuring all e-commerce operators exceptionally high profits. The e-commerce sector in Italy, in short, is by no means saturated. Just consider any e-commerce company operating in Italy that generates between 100 thousand and 12 million euros annually, all online, selling its products not only in Italy but even worldwide. Whether they like it or not, e-commerce opens numerous doors and different possibilities for Italian producers. The years 2017 and 2018 were very important for the growth of e-commerce in Italy. In terms of conversion rates, statistics, and more, it is undeniable that these were the years that contributed to the growth of e-commerce in Italy. A growth that, however, has not yet fully stabilized, as shown by the data and highlighted in the Casaleggio report regarding the prospects of e-commerce in Italy in 2019 (and in the following years). The report can be read at the link https://www.casaleggio.it/focus/rapporto-e-commerce-in-italia-2019/. To all this, it is added that even today, Made in Italy remains a quite powerful brand. The trend for Italian products has not disappeared at all, and our products are in demand all over the world. The only downside is that Italian entrepreneurs still tend to view the world through the lens of the past. According to the same Casaleggio report, in fact, Italian producers struggle to accept a dynamic and rapidly expanding reality like that of e-commerce. Even today, it seems something abstract, too futuristic, and not pragmatic enough. Yet, what is offered by the e-commerce sector is nothing more than a fantastic opportunity to earn by giving an extra boost to one’s business. If e-commerce is so well exploited abroad that it leads American or British companies to extraordinary annual revenues, why should it fail in Italy, especially considering that online sales in the Bel Paese are increasing more and more?
Only in the USA has the number and value of online sales already far surpassed the number of offline sales: this is a trend that can be observed on a global scale. Something inevitable that will also touch Italy: it is just a matter of time.
ITALIAN STATISTICS REGARDING E-COMMERCE
Few people know it, but the purchase of Italian products is increasing worldwide. 65% of this is due to exports, particularly in Italian fashion items. This sector, which has been underestimated in the past, now represents an important stronghold in the industry, offering numerous earning opportunities for all interested parties. The stock values related to Italian companies are rising as businesses commit to quality e-commerce. The beauty sector is certainly one that requires significant attention, aiming to develop its e-commerce in a way that is appropriate for the times. However, there are also many Italian brands—and even entire sectors—that do not believe in the potential of e-commerce at all. This undoubtedly creates a brake on the entire system, which thus tries to achieve the same goals that have already been reached in other industrialized Western countries for several years. Despite this, online shopping in sectors such as cosmetics is still growing (it increased by 25% in the two-year period of 2018-19). The number of Italian e-commerce users amounts to 4.7 million, and by 2020 this number will rise to 17.2%. Moreover, in Italy, online purchases are quite balanced between the two genders. Men account for 50.5% of online purchases; women account for 49.5% (considering that two years ago, women made more than 65% of online purchases). A total of 323 million euros was spent online in 2018, and this figure is expected to rise in 2019. In the furniture sector alone, sales reached 900 million euros (estimates reported in the Casaleggio report released by the Netcomm+Politecnico duo). Additionally, there are significant positive data from a sector that has always been very important in Italy, such as tourism. Even today, Italy is the most searched country on the web. Many people want to spend their holidays in the Beautiful Country. Yet, it is still only the fifth most sought-after destination after the most desired countries: France, the USA, Spain, and China. The total amount of tourism in Italy is 55.2 billion euros; one-fifth of this comes from the digital realm. Finally, we cannot forget everything related to catering and food and wine, a sector with high potential that still represents the tail end in the digital space. The market itself is worth 812 million euros but can further increase thanks to innovative food delivery services.
FORECASTS FOR 2019
The general trend is towards a constant increase in the influence of e-commerce in people's lives, and Italy is no exception. According to the Casaleggio report on the e-commerce sector for 2019, it is reasonable to expect at least a 15% increase in this sector.
Moreover, this is a figure that could further increase thanks to services such as geoblocking, dynamic pricing, the harmonization of VAT, as well as new promotions and offers from low-cost airlines. Dynamic pricing and the growing interest of Italians in the e-commerce sector could provide an additional boost to the entire industry. In fact, an increase in purchases by some individuals could positively reflect on the entire online sales sector, as the more people buy, the more they get accustomed to what is now a highly developed sector destined to grow further. Furthermore, not only is an increase in interest in online purchases expected, but also a rise in conversion rates, to the extent that in some cases the increase in such rates could exceed 25% of the total. Nevertheless, to achieve good profits from e-commerce, it will still be necessary to operate according to precise marketing rules to ensure constant and balanced growth. This means that those interested in leveraging all the potential of e-commerce must pay close attention to factors such as the website, its appeal, and the user experience, which still represents one of the key factors for consistently selling more. Web marketing, in fact, does not exist at all if one does not first think about managing the marketing side of their e-shop. In reality, this is a fairly common practice not only for e-commerce but also for physical stores. How can one expect to profit from the sales of their products if they do not take care of the promotional side?
To increase the conversion rates of your store and fully leverage the potential of e-commerce, it is advisable to collaborate with industry professionals: those who are capable of managing e-commerce marketing in all its aspects.
In some cases, the increases in conversion rates and other factors related to online sales will be smaller, while in others they will be larger. However, more or less, there will still be improvement, and it is worth taking advantage of it. Due to the difficulties faced by Italian businesses in the sector, even in 2019 there will still be many e-commerce sites in crisis due to a lack of a clear identity, due to wrong values or flawed strategies. As already mentioned, the e-commerce sector in Italy still has room for improvement. Attention should not be paid solely to price, as marketing is not just about price. In this regard, Italy is still lagging behind.
Increase in businesses?
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Finally, one cannot forget everything related to the number of businesses operating in the Italian territory in the e-commerce sector. These are indeed increasing because more and more entrepreneurs are looking to take advantage of all the potential offered by the web. Nowadays, there are approximately 19,026 businesses operating in Italy, and an increase in this number (approximately +11%) is expected. By the beginning of 2020, there could be more than 20,000 businesses operating in the web marketing sector in the Beautiful Country. The market, therefore, is destined to become saturated over the years, which is why if one is interested in fully exploiting all the potential of the sector, they need to hurry. In a few years, in fact, the e-commerce market in Italy could already be saturated, and the opportunities to earn would decrease due to competition.
Author: Stefania Tamberlani
CHIEF EXECUTIVE OFFICER
Stefania Tamberlani, the commercial, organizational, and administrative hub of Arte e Informatica, handles relationships with clients and suppliers. She has extensive knowledge in configuring and managing Joomla and PrestaShop platforms, from setting up payment methods to couriers, as well as managing the catalog and orders.