Online store expansion to Switzerland
Watches, chocolate and huge purchasing power
Switzerland is a founding member of the European Free Trade Association but is neither a member of the European Union nor the European Economic Area. The country is economically strong. In terms of GDP, it is the ninth richest country in the world. A specific feature of Switzerland is the country´s division into cantons and not only one, but several official languages ‑ German, French and Italian.
WHY EXPAND INTO SWITZERLAND?
The purchasing power of the Swiss is very high, with almost 90% of the population shopping online in online shops. The average Swiss customer spends about EUR 900 (approximately CZK 23,000) a year in online stores. The most frequently purchased products include electronics, clothing, and food.
E‑commerce is well developed in Switzerland, with many third‑party services available through online shops. The high number of Internet users among the Swiss population provides a good space for online shop marketing.
The advantage of expanding into Switzerland is its geographical location in the middle of Europe. You can utilize many companies that regularly drive to Switzerland (UPS, DHL, TNT Express, DPD, etc.). Easy and fast delivery of consignments is also possible thanks to the high quality of Swiss infrastructure.
As in the case of Germany, more and more people in Switzerland are choosing to shop with foreign online stores. The main reasons are the lower prices, greater choice and growing availability and reliability of foreign online retailers.
Instead of being afraid of language fragmentation, use it to your advantage. Use the translation of your online store into German to also expand into Germany and Austria. Likewise, your French and Italian texts to potentially expand your online shop into France and Italy, too.
WHAT SHOULD YOU TAKE INTO CONSIDERATION WHEN EXPANDING INTO SWITZERLAND?
The high purchasing power of the population also carries certain risks. The costs associated with the operation of an online store will be relatively high due to the local price level. It is also necessary to take into account the high level of competition, which will affect the costs associated with online shop marketing. In addition to Google Ads and PPC ads, it is advisable to think about the use of popular product comparators in Switzerland ‑ the most famous is probably Toppreise.ch.
Besides selling through your own online store, you can also sell through some of the online marketplaces that operate in Switzerland. These include the Digitec.ch, Amazon.de, Nespresso.com or Brack.ch platforms. When selling through your own online shop, a Swiss domain is essential, as is perfect optimization for mobile devices (most Swiss own and actively use a smartphone) and effective product pricing due to the purchasing power of the population and the willingness to pay higher prices.
Should you require more in‑depth information on what to look out for when expanding your online store into Switzerland, we can conduct foreign market research as part of our service.
SERVICES FOR YOUR EXPANSION TO SWITZERLAND
Expanding your online store into Switzerland is an attractive opportunity due to the high purchasing power, the chance to realize higher margins and the potential for further growth in the future. The Swiss online market is well developed and finding suitable suppliers of accompanying services is easy. If you have excellent customer service, positive references, and can process and deliver orders quickly, you have a great chance of succeeding in Switzerland.
When expanding your online shop into Switzerland, you can rely on our specialists, professional services and many years of experience. At NK Expand, we can help you with everything you need for your expansion into Switzerland. For example, we recently helped the software companies TrustSoft and Lukapo to successfully expand into the Swiss market. Contact us and let our specialists help you expand your online shop into Switzerland too.