Ecommerce sales are expected to rise by 12.9 per cent to €2.2 billion in the Republic this year, according to a new report.
This marks a more than doubling of revenues since 2010 when ecommerce sales totalled €1.05 billion, according to IBISWorld.
The research company forecasts that over the five years through 2024, revenue will grow at a compound annual growth rate of 11.2 per cent to €3.8 billion.
“Growth in the mobile market and product differentiation are expected to support growth over much of the period. The increasing adoption of online shopping into consumers’ habits will further aid the industry,” the report authors said.
“As payment methods become more convenient and secure, and ecommerce retailers invest in infrastructure to make their websites more appealing and user-friendly, industry revenue is forecast to rise in turn,” they added.
Clothing and footwear is the largest product segment in the industry, and is expected to account for approximately 39 per cent of industry revenue this year. Consumer electronics comes next, accounting for about 33 per cent of market share.
Amazon is the only player in the industry with a share of more than 5 per cent with IBISWorld estimating it has about 5.6 per cent of the local market. The second largest operator in the industry is eBay, with a market share of 3.6 per cent.
A survey conducted by PayPal last year showed Irish consumers are more likely to opt for international online stores than local ones. It found that Irish people are the biggest international online shoppers in the world with 84 per cent buying from overseas sites.