COVID-19 impact on e-commerce in Denmark
This benchmark analysis shows how Danish e-commerce is affected by COVID-19
About the data:
The data behind the following charts originate from +40 Danish e-commerce companies. The data are normalized, meaning that all of the companies hold the same weight. The charts show index numbers and thus the development in percentage for a range of metrics compared to the same day last year (2019). The data has been corrected for weekdays, meaning that data from a Monday is compared to data from a Monday. The charts are updated on a daily basis.
Press conferences with the Danish Prime Minister have been highlighted on the charts to stress the direct effect on Danish e-commerce.
- The first press conference in Denmark took place on Wednesday, March 11. The Prime Minister declared a national lockdown starting from Monday in the following week.
- The second press conference took place on Friday, March 13. Here, the Prime Minister announced that the Danish borders would close.
- The third press conference took place on Monday, March 23. The Prime Minister announced that it was now illegal to gather more than 10 people and that the lockdown would be extended for another two weeks, ending on April 13.
- The fourth press conference took place on Monday, March 30. The Prime Minister announced that if the positive curve were to continue during easter, the government would start a slow reopening of the country.
- The fifth press conference took place on Monday, April 6th. Here, the Prime Minister introduced the plan for a cautious reopening of Denmark after Easter.
- The sixth press conference took place on Monday, May 11th where the Prime Minister gave shopping malls permission to reopen.
If we look at the period from February 1st 2020 to the day before the Prime Minister’s first press conference (March 11), the number of visits to Danish webshops were stable and above last year, with an average year-over-year increase of 16% throughout the period. At the beginning of 2020, Danish e-commerce experienced substantial organic growth, but after the Prime Minister’s first press conference, the number of visits experienced explosive growth and is now about 65% above last year.
The consumer’s journey from consideration to purchase has been significantly shorter since the first press conference. This conclusion can be drawn by looking at the conversion rate. The conversion rate is an expression of the share of visitors making a purchase when visiting a webshop.
If we look at the period from February 1, 2020, to March 10, 2020, we find that the number of orders placed at Danish e-commerce companies is generally significantly higher compared to last year (Average 19%).
After the first press conference, a combination of more visitors and an increased willingness to make a purchase among consumers made the number of online orders more than double compared to the same period last year.
Cost per Click
Many of the physical stores have lost their customer base and turnover, but when we are talking online webshops, it is quite the opposite. Danes are now more likely to shop online and it resulted in a 10% increase in cost per click prices after the first press conference, where the country went into lockdown. E-commerce companies are willing to pay a higher price per click than before, because of the higher conversion rate and visits.
However, we have noted that the overall trend is towards lower cost per click, which could mean that the competition is lower and more ecommerce companies are reducing their advertising spend.
The chart shows the development of stock since January 15, 2020 (Index 100). In general, Danish webshops are still above index 90 compared to January. However, not surprisingly, the high number of orders made in the weeks after March 11 has made its mark on the number of in-stock products at Danish webshops. The effects of the global pandemic can result in a logistics chain under pressure. Especially with a lot of products coming from Asia. The chart is updated on a daily basis.
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