The strict COVID-19 lockdown measures taken by the Greek government in 2021, the rapid increase in the number of cases, which reached an unprecedented number at the end of the year, as well as the global energy crisis and related supply chain issues, make 2021 one of the most challenging years for all those involved in e-commerce.

In this article, we will try to outline the challenges faced by e-commerce professionals in Greece during the past year and also examine how the e-commerce landscape is evolving this year.

1. Online VS Offline Markets  

E-commerce professionals may have benefited from Greeks making purchases online during the first year of the pandemic, but the gradual lifting of restrictive measures has introduced an unexpected new level of uncertainty.  

Would a return to normalcy drive consumers back to physical stores, or would they continue to prefer shopping online?

According to a survey by Paypal, 4 in 10 Greeks planned to return to physical stores for gift shopping over the Christmas period, while a global survey by Capgemini Research Institute predicts that 38% of e-shoppers worldwide will continue to shop online after the pandemic.

But what did consumers actually choose?

- For online consumers, online purchases account for an average of 10% of their total purchases (E-Business Research Center of the Athens University of Economics and Business in collaboration with the Association of Business and Retail Sales of Greece)

- 1 in 5 Greek companies make more than 1% of their sales online, which is above the European average (source: sepe.gr)

- 95% of the population in Greece has made at least one online purchase in the last 12 months (source: Greek eCommerce Association-GRECA)

- 7 in 10 internet users over 55 in Greece have made at least one online purchase within the first six months of 2021 (source: Focus Bari)


2. Delivery of products

One of the biggest challenges for e-commerce professionals has been the delivery time of products. The increase in online orders resulted in the inability of courier services to deliver on time, and e-store customers had to wait as long as a month to receive their orders. Such uncertainty over delivery times has led consumers to return to physical stores and professionals to look for more efficient ways to meet customer needs.   

A survey conducted by the Greek E-Commerce Association shows that when shopping online, the lowest price is not the most important criterion for everyone. 31% of consumers rank the correct handling of the entire process as the most important factor for shopping online, proving that consumers are interested in the customer experience up to the time of product delivery.

In this context, e-commerce professionals, unable to guarantee on-time deliveries, have invested in high-quality custom packaging that enhances the positive customer experience and compensates for any inconveniency caused by delivery delays.

3. Energy Crisis & Increased Shipping Costs  

The global energy crisis has affected entire production plants, especially in China, which is currently experiencing one of the most serious crises in its history. On the one hand, the restrictions on electricity supply have led to a drastic drop in production, while on the other, the increase in the price of raw materials and the cost of shipping goods by sea have led to an increase in the price of imported products.

The packaging industry was not left unaffected, as the cost of materials used in paper production increased by 30% compared to the previous year (source: Packaging Europe).

4. Scams – Spam & Phishing

According to the Outseer Fraud and Payments Report Q4 2021, Greece is ranked 5th among countries worldwide with the most phishing attacks. At the same time, the highest data breach costs in the last 17 years were recorded in 2021 (IBM Cost of a Data Breach Report 2021), with the most common security breach being the credential theft. In addition, experts predict that concerted cyber fraud attempts will increase significantly in 2022.

So it becomes clear that e-commerce professionals should look for security mechanisms to protect both businesses and sensitive personal information of customers.

Not only challenges, but also opportunities for e-commerce

While the challenges are a headache for online stores, there are, of course, opportunities that professionals can take advantage of to help grow their businesses.

On the one hand, consumers will turn to domestic online stores to avoid high shipping costs or long delays; on the other hand, a new audience seems to be entering the Greek market. These are the digital nomads who choose Greece to combine work and «vacation».

The number of arrivals of digital nomads in Athens has increased by 198% in five years, and Athens is the third fastest growing destination for digital nomads in the world (source: sepe.gr).  The long stay of digital nomads in our country means that purchasing needs are met through the Greek market.

The e-commerce landscape is constantly changing, and businesses need to be flexible to successfully meet new demands. With the ongoing military conflict in Ukraine, 2022 is sure to be a year of significant, if not radical, change.