Selling Online to the Netherlands: How to Enter a Large European Market

A market that appreciates innovation and has high purchasing power: these are some of the reasons to sell online to the Netherlands.

Whether you are internationalizing your business through e-commerce or strengthening your presence in this sector, selling online to the Netherlands can be an opportunity not to be overlooked.

Commercial relations between Portugal and the Netherlands are intensifying, and in 2022, the value of exports to this market exceeded pre-pandemic levels. In this context, e-commerce emerges as another opportunity for national companies. Learn about the characteristics of this market and the Dutch digital consumer.

NETHERLANDS: AN ECONOMY OPEN TO THE OUTSIDE WORLD

The location of the Netherlands alone is a factor that enhances openness to the outside world and international trade, something that has been a constant throughout the history of this country.

With a strong economy – it is the sixth-largest in the European Union and has a GDP per capita of $57,860 – and 17.5 million inhabitants, it also benefits from good infrastructure and services that facilitate the online shopping experience.

It is also a country well-positioned in competitiveness, transparency, and ease of doing business rankings.

DIGITAL ENVIRONMENT: REASONS TO SELL ONLINE TO THE NETHERLANDS

The Netherlands has excellent conditions for the development of digital businesses. According to the Digitalization Index, knowledge (94/100) and logistical infrastructure (92/100) are two of the strengths of this market.

Other appealing figures for companies looking to sell online to the Netherlands are the internet penetration rate (88.2%, 21.1% above the world average) and smartphone penetration (88.1%, which surpasses the world average by 22.3%). In 2027, these values are expected to be even more significant: 88.4% and 88.3%, respectively.

The country has more than 15 million internet users, ranking 3rd in the Digital Economy and Society Index 2022 and 4th in the global Network Readiness Index (in digital preparedness). It ranks 5th among countries with the highest innovation rate, according to the Global Innovation Index 2022.

In addition to the digital skills of the population, there is a great interest in e-commerce: in 2021, the country had more than 80,000 online stores.

The technological development of the Netherlands, a regulatory context favorable to entrepreneurship, and market competitiveness and variety are also appealing factors for this activity.

For Portuguese companies that are still in the early stages of their internationalization process through e-commerce, the Netherlands can be a test market. Given the size and ease of movement in Dutch territory, it is a good starting point to initiate this type of export.

THE E-COMMERCE MARKET IN THE NETHERLANDS

The e-commerce market in the Netherlands is expanding. It is expected that, in 2027, Dutch e-commerce purchases will reach $52.99 billion, representing an average annual growth of 10% since 2023.

In 2022, this value was $28.78 billion, ranking the country 16th in terms of e-commerce.

It is estimated that 78.4% of the Dutch population – equivalent to 13.5 million consumers – shops online. In Portugal, this indicator is at 58.2%, and both the Central and Western Europe average (77.6%) and the world average (66.2%) fall short of what is observed in the Netherlands.

Despite the growth of the B2B segment, B2C is clearly more expressive. In the analysis of the Dutch e-commerce market, the importance of cross-border e-commerce is also highlighted, representing 10% of the total in 2021.

Forecasts for e-commerce in the country indicate that food will be the sector with the most pronounced growth (21.1%); media and electronics are expected to show the slowest growth.

The Logistics Factor

In addition to the digital literacy of the population, the importance that e-commerce has gained in the Netherlands is also due to the efficiency of the country’s logistics structures, which are among the best in the world.

The existence of delivery machines that operate continuously and one of the largest Pick-Up Point networks in Europe, combined with a modern and efficient postal service, allows for deliveries in 2 or 3 business days.

The geographical location – close to France and the United Kingdom – and the fact that it hosts Europe’s main port in Rotterdam also contribute to high logistical performance (6th place out of 160 countries).

DIGITAL CONSUMER PROFILE

The mobile phone and laptop are the most used devices by Dutch digital consumers, who prefer reliable websites (even if product prices are higher) with a personalized focus.

Women make more online purchases than men. Over 70% of purchases are made by people in middle and high-income brackets. Most buyers are between 25 and 54 years old.

To sell online to the Netherlands, it is important to know the preferences of these consumers and, if necessary, adapt your online store or sales strategy to meet the expectations of this audience.

In addition to the speed of delivery – which should not exceed 6 days and be made at the workplace or home – the Dutch digital consumer values the buying experience and special offers. As they like to gather information about products before making a purchase decision, it is important for the seller to provide good descriptions, photos, videos, and reviews from other consumers.

Another factor to consider for companies wishing to please consumers in the Netherlands is customer support, which should be active 24/7 using chatbots. Since the percentage of returns is significant, it is advisable for your online store to have a clear and simplified return policy and, preferably, without charges for the consumer.

Dutch consumers are generally receptive to new devices, platforms, and payment methods but prefer not to pay at the time of purchase.

OPPORTUNITIES TO SELL ONLINE TO THE NETHERLANDS

Food products, wines, clothing, and footwear are sectors with potential for the e-commerce market in the Netherlands.

Dutch people have an appetite for online shopping, but for your company to assert itself in a competitive market and build customer loyalty, it is necessary to take into account some particularities.

Investing in a local domain (.nl) and a website/platform in the country’s language is important to achieve better search results and make the shopping experience more personal.

Creating personalized campaigns based on search and usage data, promoting omnichannel, Click & Collect, and O2O strategies, and using social networks are opportunities to stand out from the competition and achieve more success.

Source: https://www.portugalexporta.pt/

  • 2023-11-13
  • News;

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