Ireland, e-commerce and logistics
Ireland is a global tech hub, and the nation's e-commerce sales continue to boom.
Here's everything you need to know about e-trade and shipping to Ireland.
Why Ireland?
With a population of just over 4.5 million and the fourth-highest GDP per capita in the EU, Ireland is a market with vast similarities to the UK.
Not just in terms of language spoken but also the way business is done and the expectations that customers have of the brands that they buy from.
Ireland, particularly Dublin has been home to the regional headquarters to some of the biggest tech giants in Europe, including Google, Facebook, Airbnb, eBay, and LinkedIn.
The sale of goods and services between the UK and Ireland is now worth around €1bn and the online market is taking an increasingly sizeable chunk. Internet penetration is also good, and the use of mobile devices now outstrips desktops when it comes to buying online. According to the World Bank, 77% of the population has internet access, and growing.1
- 84%
- Internet penetration
- 71%
- % of e-shoppers
- 7%
- Turnover growth 7
[Stats taken from: https://ecommerce-europe.eu/?s=ireland]
The e-commerce landscape
E-commerce activity has experienced significant growth in Ireland over recent years, with online spend estimated to have grown by 30-40%. Strong household internet access (94%) and smartphone usage (90%) are driving Irish online retailing activity.2
Around 84% of Irish online consumers are estimated to have shopped internationally, nearly twice the average rate across Europe. According to JP Morgan, nearly half of all e-commerce purchases in Ireland were made via smartphone, for an estimated total of EUR4.1 billion in 2020. From 2014 to the present, the percent of Irish businesses with a mobile-optimised website has surged from 27% to 76% today. Irish merchants are accelerating the shift to mobile commerce, as they invest more in these resources.3
Travel, hotel accommodation, event ticketing and apparel continue to be the primary goods and services bought online, however, the recent years have seen significant shifts in consumer online activity for Irish food retailers and vendors of electronic goods and services.
Opportunities
According to EuroMonitor International, e-commerce activity in Ireland continues to expand rapidly with mobile internet retailing becoming especially significant. Retailers are launching functional mobile apps while store-based retailers are increasingly utilising multi-channel options. Click-&-collect services have become more widely available, allowing retailers to maximise retail potential without incurring delivery fees, while the consumer has almost immediate access to purchases without having to plan for deliveries.
The Irish government is currently supporting SMEs in their efforts to develop online sales portals through a package of support measures. Leading U.S. digital and fintech innovators including AWS, Google, MasterCard, Meta, Square, and Stripe are also supporting Irish SMEs with their evolution to online retailing.
Predicted e-commerce growth Ireland
Irish e-commerce market
CAGR 8.20%
Source: https://www.mordorintelligence.com/industry-reports/ireland-ecommerce-market
Logistics
Ireland is a member of the EU, so goods arriving at the country from the UK will be subject to the same customs rules and requirements as any other EU member state. This means customs documentation needs to be completed and import VAT and import duty will be charged in Ireland - rather than the UK - and paid by the receiver of the parcel.
Senders must complete a commercial invoice detailing the contents of the package, describing its items and including their commodity code - which can be found online. Businesses will also need to register for an EORI number to ship to EU countries.
You can familiarise yourself with the weights and prices of sending a package to Ireland using our helpful shipping rates chart .
Keep in mind:
As of July 1, 2021, changes were introduced to the way that VAT is charged on online sales, whether consumers buy from traders within or outside the European Union. Prior to these changes, goods imported into the European Union valued at less than 22 euro by non-EU companies were exempt from VAT. This exemption has now been lifted so that VAT is charged on all goods entering the European Union - just like for goods sold by EU business.
What our experts say:
“For businesses keen to expand e-commerce reach, there is no need to go too far afield. There is an exciting and growing e-commerce market much closer to home in Ireland.”
Ben Bagnulo, CEO, SAMOS.
If you would like to know more about e-trading and shipping to Ireland, get in touch today