There are many beneficial reasons why e-commerce companies might want to do business in European countries. These include lucrative target markets, languages, and the economic strength of certain locations. Out of many European countries, Spain has been recognized as a marketplace on the rise, especially when it comes to businesses dealing in e-commerce.
SPANISH INTERNET USERS
Let’s take a look at some of the facts that make conducting e-commerce in Spain a great move for some online businesses. To start with, an impressive 8 percent of all internet users are Spanish speakers. This is a massive portion of total users, meaning the market potential here is huge.
An average figure of 513 euros per person is spent online annually within Spain. This figure is a promising one for e-commerce businesses. It is clear that Spanish shoppers are using online services to purchase items, and with a population of over 40 million, this figure really is no joke.
Spain has an annual online shopping day known as Cyber Monday. An event like this gives businesses the opportunity to put on major sale events and really start to enter the competitive marketplace. It may also serve as a great stepping stone for newcomers to make a name for themselves.
Research has shown that the leading online retail categories within Spain are clothing and footwear, which are closely followed by food and drink. Statistics like these are highly valuable for businesses looking to target Spanish markets.
THE LANGUAGE ADVANTAGE
When it comes to the internet, Spanish is the third most spoken language, placing after English and Mandarin. This is a massive advantage for online businesses, as search engine optimization can be tailored to a Spanish-speaking audience.
Studies have concluded that a massive 9 out of 10 Spaniards start to feel embarrassed when communicating in the English language. Therefore, it would be highly advantageous to get to know the language, or to employ experienced translators to enable your business to meet these linguistic needs.
Additionally, 414 million people worldwide speak Spanish. Developing a firm grip of this language when it comes to your business could open up many doors.
RESEARCH PAINTS A CLEAR PICTURE TO DEVELOP STRATEGIES
Current research gives e-commerce companies the upper hand when it comes to expanding their business into Spanish markets. Using these data to your advantage can help your business confidently appeal to target customers.
For example, the typical online shopper is between 25-49 years old and they mostly live in urban areas and work full-time. Statistics like these can give you insight in terms of the best times of day to send promotional emails or run social media campaigns. The typical online shopper is also university educated and comes from a middle-to-high social class.
Research has also shown that many online purchases involving Spanish shoppers fail to be completed because the shopper experiences a lack of trust toward a business. This is rooted in no free-shipping options, excessively high prices, no trust in returns, and discomfort in sharing personal details. Businesses can work around these issues by localizing content, and forming close and personal relationships with customers. It is very important to also make sure your customer service is dialled-in to make shoppers feel completely at ease during and after making a purchase.
It’s clear that Spanish online shoppers value transparency and security. Businesses can use this fact to attract customers. By offering secure payments, easy access to customer services, and in-depth details about products, you can help build trust among prospective shoppers.
THE MOST POPULAR E-COMMERCE CATEGORIES
Spanish online shoppers are similar to those in other European countries when it comes to shopping preferences. Common items of purchase include clothes and footwear, home electronics, and books. In 2015 alone, 30 percent of all retail sales within the country were made online. Clearly, there is some huge potential for e-commerce businesses looking to make a move to Spanish markets. 51 percent of footwear sales were made online in 2015. And a massive 54 percent of electronic sales were also made online. When it comes to fashion, 63 percent of sales were done online. Finally, 63 percent of travel sales were completed over the internet.
LESS COMPETITIVE BUSINESS
Companies have reported another reason as to why e-commerce businesses may want to expand to this area of Europe. Spain has a less competitive market than other European destinations, such as Germany and France. This means it may be easier to begin and develop operations in this part of the world before it too becomes highly saturated.
The Spanish online market is still a young one, but one with a lot of promise for those wanting to get their foot in the door.