While Cypriots are at the bottom of the list when it comes to online shopping, local buyers are however ordering more goods from web-based platforms.
A Eurostat survey to coincide with Cyber Monday, revealed that Cyprus is third from the bottom for online shopping.
But other data shows an ever-growing trend in the arrival of parcels from abroad indicating that Cypriots are actually ordering more online than in previous years.
According to the Eurostat survey, only 39% of Cypriots said they had bought at least one item online over the past year, while only Romania (23%) and Bulgaria (27%) have a lower percentage.
Cyprus online shoppers figures are relatively small as Eurostat indicates that 68% of EU citizens had used the internet to purchase at least one item in 2017 compared with 50% in 2007.
However, Cypriots seem to be doing more business online.
According to data released by the Office of Electronic Communications & Postal Regulations (OCECPR), incoming parcels have reached their highest number since data started being collected in 2005.
Parcels arriving through the post from abroad during 2017 reached 1.4 million, up 27% from the 1.1 million in the previous year.
The number of incoming packages amounts to 1.6 items per inhabitant, as opposed to 1.34 items in 2016, according to the OCECPR.
Commissioner of Electronic Communications & Postal Regulations, George Michaelides said the rise in the number of incoming parcels is attributable to the increase in orders being placed by Cypriots with online retail firms such as Amazon, eBay and China-based Alibaba.
In terms of market share in the international courier services, DHL has the largest market share on items arriving and leaving the island at 39.8%, followed by UPS with a 17.4% share. The market share for the Cypriot post office is 11.8%.
The trend of Cypriots towards online shopping is recorded by data regarding banking transactions as verified by an alternative banking institution, itself a product of peoples turning to digital payments and purchases.
Such an alternative banking institution is Revolut, which is gaining ground in Cyprus banking based on fintech technologies as Cypriots turn towards online transactions.
Launching its activities just this summer, Revolut has managed to increase its number of clients to 20,000.
Revolut is a digital banking alternative that includes a prepaid debit card (MasterCard or VISA) which aims to pick up an even bigger market share on the island.
“We are witnessing an ever-increasing trend of Cypriots towards online shopping as shoppers are able to find items online at a lower price than they would in an offline store,” said Dimitris Litsikakis, Revolut Country Manager for Cyprus, Greece and Malta.
He said that they have recorded a growing trend among their Cypriot users who use their Revolut accounts for purchases from online shopping platforms such as eBay and Alibaba.
Revolut’s Manager said that alternative banking methods not only facilitate online purchases with the creation of digital accounts for clients but also make online shopping more attractive as they offer safer, faster and in some cases cheaper transactions.
“We know that customers are attracted by our security features. For example, Revolut users can issue disposable virtual cards for their transactions and have them cancelled once used.”
“Revolut clients also have the opportunity to freeze their virtual or plastic card issued in their name any time they want through the Revolut application which all users have installed on their phones,” said Litsikakis.
Meanwhile, authorities are alarmed over a potential threat to local traders from virtual stores and have started looking into ways of encouraging local businesses to make use of possibilities presented by online trade.
Michaelides said that there is a small but steady increase over the past few years of parcels being exported.
The number of outgoing items rose to 583,900 in 2017 from 549,300 in 2016.
Michaelides suggested that Cypriot businesses should also aim at local consumers by setting up online shops.
According to Eurostat, Cypriot online shoppers use the internet the most to shop for clothes and sporting goods, as 54% of the participants said that they shopped at least one such item online in the previous year.
The least popular products are food and groceries with 7%, as there appears not to be a culture nor the infrastructure for such purchases.
Cyprus was bottom of the EU list when it came to shopping online for household goods (14%) and tickets for events (12%) and it was only pipped by Bulgaria (8%) for books and magazines with 11%.
The highest proportion of internet users who shopped online during the previous year were in the United Kingdom (86%), Sweden (84%), Denmark, Germany, Luxembourg and the Netherlands (all 82%).
