Describes what a company needs to know to take advantage of e-commerce in the local market and covers prominent B2B websites.
B2B ecommerce is growing in Iceland as companies are increasingly offering their services online. The high-tech and IT industries are flourishing in Iceland. Two of the largest companies in Iceland that provide IT solutions and services for businesses are Advania and Nyherji.
Digital marketing is widely used in Iceland. Many smaller companies only advertise on social media, mostly Facebook, and many use social media influencers to market their products. Larger and more established companies use digital marketing in combination with conventional marketing.
Legal & Regulatory
Iceland follows European e-commerce regulations.
Icelanders have very high internet usage, and in the past couple of years, online shopping has increased significantly, both from abroad and locally. The largest challenges for international online retailers doing business in Iceland are high shipping costs, VAT added to all imported goods (24 percent for most products), and handling fees imposed by the local postal service.
Foreign ecommerce platforms are popular in Iceland, namely AliExpress, which offers low-cost Chinese-made products. Icelanders are also increasingly purchasing goods from American and European retailers, mostly clothing, baby and children’s products, as well as equipment and larger items like bicycles and bicycle product.