General Overview
Estonia’s strong digital infrastructure and tech-savvy population have contributed significantly to the growth of e-commerce. The country’s well-established digital identity system and e-residency program make it easy for both residents and international entrepreneurs to engage in online business activities. E-commerce in Estonia has experienced steady growth, with an increasing number of consumers turning to online shopping for convenience and variety. This growth has been particularly pronounced in the wake of the COVID-19 pandemic, as more people have adopted online shopping habits.
Estonian e-commerce companies have been quick to adopt advanced technology and automation to enhance customer experiences and streamline operations. Artificial intelligence, machine learning, and big data analytics are increasingly used for personalization and data-driven decision-making. In 2024, Estonian e-commerce saw fairly strong growth. Revenue rose by about 18 percent year over year, reaching €5.2-€5.4 billion. E-commerce made up roughly a quarter of the whole retail/trade turnover in Estonia. E-commerce already accounts for at least 20 percent of the total volume of retail trade. More information is available from the Estonian Ecommerce Association.
Legal & Regulatory
eCommerce is regulated by the Consumer Protection and Technical Regulatory Authority in accordance with EU e-commerce regulations.
Consumer Behavior
Estonians believe in the parcel machine - 80 percent of purchases are ordered to the automated pick-up lockers, which are widely distributed around the country.
Recent statistics show that 72 percent of parcels ordered by Estonian residents come from domestic sources, while 28 percent are cross-border shipments. Of these international orders, 80 percent originate from Asia, typically with an average value below €30.
The most popular items purchased online include travel and accommodation services, concert and theatre tickets, and clothing and sports equipment.
Visa and Mastercard were the most preferred e-commerce payment methods in Estonia.