Sweden’s stable economy and high purchasing power make it one of the best places to do business. Swedish reviews show that the country’s citizens are highly proficient in English and patronize foreign brands, even in China. This means coming into the Swedish market as a foreigner is potentially rewarding.
Statistics have also shown that shopping online in Sweden has increased because of people’s tech-savvy nature. Therefore, there is no reluctance to purchase goods and services online. Even with this, breaking into a new market can be challenging. There are tons of rules and regulations that shouldn’t be ignored. Thus, if you plan to expand your online business to include Sweden, here are some tips to brighten your chances of success.
Taxes are involved
You must be aware of the compulsory taxes if you want to expand your online shop to Sweden. The country is under the EU’s VAT tax laws. Sweden decreed a VAT rate of 25% recently. Therefore, you have to know these tax rules so you won’t go against them.
Also, registering a company in Sweden is important. This should be done within two weeks of your first transaction in the country. You are expected to contact the Swedish tax authority for proper tax registration.
Know what commodity is in high demand in Sweden
Swedes spend heavily on beauty, skincare, electronics, furniture, and more. If your business includes any of these commodities, you will expect to make huge sales, if not, you will know your expectations. Knowing what commodities the Swedes often buy online will help you understand if your products fit the market.
Incorporate popular Sweden payment methods
Popular online payment methods in Sweden include Qliro, Trustly, and Klarna. Incorporating these payment methods into your business will lure and encourage more Swedes to patronize you easily. This will go a long way in attracting more customers because a payment method one favors will make transactions easier.
Be conversant with Swedish privacy laws
The General Data Privacy Regulation (GDPR) is the governing body that regulates data protection in the EU. The Swedish Authority for Privacy Protection is tasked with enforcing the ideals of the GDPR in Sweden.
Therefore, you must be conversant with the privacy laws governing data processing and collection from users, clients, employees, etc. If you infringe on the rules, the Swedish Authority for Privacy Protection may come calling.
Incorporate competitive pricing
Make valuable research to understand how pricing works in Sweden, especially for online brands. This will prevent you from charging too high for products they can get elsewhere for considerably cheaper prices. If your prices are competitive with other stores selling similar goods in the country, it won’t matter whether you are new; people will gradually patronize your brand.
Conclusion
Expanding your online business to include Sweden has so much potential for success, given the country’s advantages and market possibilities. Therefore, armed with the knowledge above, including privacy regulation, taxing, and local payment methods, breaking into the Swedish online market space will be an achievable dream.
