Improving customer experience in Finnish ecommerce – Competing against Temu and Shein

The retail industry in Finland faces a major challenge: as more sales flow through digital channels, also an increasing share of revenue is flowing out of the country, primarily to Chinese ecommerce giants Temu and Shein. To strengthen the Finnish ecommerce market, businesses must rethink their strategies and prioritize superior customer experience over price competition.

The challenge of ethical ecommerce in Finland

While fair competition is the foundation of a market economy, Temu and Shein operate under different rules compared to Finnish ecommerce businesses. Their low-cost products, minimal consumer protections, and significant environmental impact pose a challenge to ethical ecommerce in Finland. For example, Shein's carbon emissions doubled in 2023, reaching approximately 16.7 million tons of CO2e — comparable to the average annual carbon footprint of over two million Finns.

Legislative actions in Finland and the EU can support local businesses, but true transformation must come from within the industry. Finnish ecommerce companies need to position themselves as better alternatives to Temu and Shein and other major polluters — despite significantly higher pricing. They need to focus on values that resonate with consumers: ethical production, environmental sustainability, and superior customer experience.

Leveraging customer experience to strengthen the Finnish ecommerce market

Competing directly with the billion-euro marketing budgets of Temu and Shein is unrealistic. However, Finnish online retailers have other strengths: a commitment to providing exceptional customer service and smooth return policies, something that Temu and Shein largely fail to deliver.

Finnish ecommerce businesses need a shift in attitude: they must focus on providing customers with unmatched service experiences that make consumers forget about the cheap prices and low-quality products of Chinese retailers. Improving customer experience in Finnish ecommerce requires deep customer understanding and smart use of technologies – A holistic approach that extends beyond AI-driven personalization to every stage of the customer journey, from website usability to smooth deliveries and high-quality customer service. A critical moment occurs after the purchase, when the customer either returns or chooses a competitor. Fast and reliable delivery, a clear and hassle-free returns process, and proactive customer communication are the keys to building loyalty.

Key areas for improvement include:

Seamless website usability: Ensuring a smooth and intuitive online shopping experience.
Fast and reliable delivery: Meeting customer expectations for speed and transparency.
Hassle-free returns: Simplifying the process to encourage trust and repeat purchases.
Personalized customer experience and service: Using AI and customer data to enhance interactions while maintaining a human touch.

By excelling in these areas of personalized service, reliability, and responsibility, Finnish ecommerce businesses can stand out from international competitors and foster long-term customer loyalty. The key to success lies in understanding what truly drives customer satisfaction and loyalty.

The future of ethical and sustainable ecommerce in Finland

The Finnish ecommerce market has a unique opportunity to differentiate itself through ethical and sustainable business practices. Consumers are becoming increasingly aware of the environmental and ethical implications of their purchases, creating a demand for more responsible shopping alternatives. By combining technological innovation with a deep understanding of customer needs, Finnish ecommerce businesses can redefine industry standards.

Ready to embrace this challenge? Contact us and let's discuss how you can reach the next level in customer experience!

See how we’ve already leveled up the customer experience with some of our pioneering ecommerce customers like Reima, Posti Box and Verkkokauppa.com.

And hey, the Vincit Elevate 2025 event is happening on May 21st, focusing on customer experience and featuring high-profile speakers from Finland and beyond. Registration opens soon, so stay tuned!

This article was originally published in Finnish in Kauppalehti.