Portugal, e-commerce and logistics

The e-commerce landscape

The e-commerce market in Portugal has expanded rapidly in recent years, providing exciting potential for online retailers in various industries. According to the Europe e-commerce report, over 60% of people ordered products online during 2021. According to JP Morgan the amount was even higher for young people at 70%. Interestingly, the Europe e-commerce report also highlighted that nearly 90% of Portuguese people buy from national sellers, while 46% order across borders. The majority, nearly 40%, shop online from other EU-countries.²

Opportunities

In recent years, the Portuguese have become more concerned with the impact of consumerism on the environment. Sustainable development and the origin of the product have become one of the most predominant factors of product selection. Portuguese people want to take care of their health and wellbeing, so they often choose natural products and organic food. A large proportion of the population is willing to pay more for natural products.

That said, years of economic recession has meant that Portuguese consumers are not buying impulsively. They are loyal to brands in general, but the situation is different for food brands, where price is a deciding factor. The Portuguese tend to shop domestically for food products; however they are open to purchasing many other goods from outside of the country.

Bear in mind, prices and promotions are huge purchasing drivers in Portugal. Despite the relatively high development of e-commerce, shopping in brick-and-mortar stores still has its fans, especially among the older generation. The typical Portuguese consumer appreciates seller expertise, which influences on brand attachments. The under 30's are the biggest e-commerce audience for international sellers.⁵