Irish online retail sales grew by 159% in 2020, according to new figures from digital agency Wolfgang Digital, up from average annual growth of 32% between 2017 and 2019.
Wolfgang said the trend was revealed after analysis of over €0.5 billion of online spend, an estimated 7% of the total Irish e-commerce market size.
Today’s data also revealed that 67% of Irish online retailers are now in the “one million plus club” – merchants that turned over €1 or more in online revenue.
This figure is up from 41% in 2019, Wolfgang Digital said.
Its research showed that the largest 15% of retailers in the market claimed an enormous 84% of total consumer spend. Meanwhile, the smallest 35% businesses battled it out over a meagre 1% of the e-commerce market.
The report also reveals that Amazon appears to have cut its advertising spend in Ireland by approximately 50% post-Brexit.
Wolfgang Digital said this presents a window of opportunity for Irish e-commerce retailers of all sizes to win new customers while Amazon develops its first fulfilment centre in Ireland.
Alan Coleman, CEO and founder of Wolfgang Digital, said that Irish businesses have seen a spectacular return on investment in e-commerce in 2020.
“While Brexit has undoubtedly posed a massive challenge to smaller retailers, Amazon’s move to temporarily halve its ad spend in Ireland is a massive opportunity for those businesses that can react quickly,” Mr Coleman added.