Ecommerce in Iceland: everything you need to start selling

Opening an online store in Iceland is simpler than most people think and more complicated than the people selling you the platform will say. You need four things to start: products with photos and copy, a payment provider, a way to ship, and terms. Everything else can wait.

Payment providers

There are a handful of realistic options in Iceland and they cost roughly the same. The difference is in how long setup takes, what the support is like, and which payment methods come with it.

Our advice: apply early. Approval at the payment providers often takes longer than building the store itself, and that is where plenty of people get stuck.

Shipping

This is the most underrated part of Icelandic ecommerce. Customers often pick a parcel locker or a Dropp box over home delivery, because it means they do not have to be home.

• Offer at least two options, ideally three.
• Show the shipping cost early, not at the last step. A hidden shipping cost is the single most common reason people give up.
• Free shipping above a set amount raises your average basket measurably.
• Outside the capital area needs its own attention. If shipping to the countryside costs several times more, say so up front.

The products themselves

Start small. Twenty products with good photos and real copy will sell more than two hundred products with the supplier's images and a one line description.

• Photos: same background, same lighting, same size. Mismatched photos look like a hobby.
• Copy: write what the product solves, not just what it is. Use the words people search for.
• Prices including VAT, always visible.
• Stock levels that are correct. Selling something you do not have is the most expensive mistake in ecommerce.

The law, briefly

You need terms, a privacy policy and information about the right to return. A consumer generally has fourteen days to return an online purchase and you have to tell them about it before the sale is confirmed. The seller's registration number and address should be visible. None of this is complicated, but it has to be in place from day one.

What it actually costs

• Build: 350,000 to 900,000 kr for a solid store with Icelandic payment providers.
• Payment commission: 1.5 to 3 percent of every sale.
• Hosting and maintenance: 10,000 to 40,000 kr a month.
• Photos and copy: either your own time or 89,000 kr and up if someone else does it.
• Marketing: assume you will need it. An online store nobody knows about sells nothing.

The first ninety days

Month one: get the payment provider approved, load twenty products and open. Month two: watch where people drop out and fix it. Month three: add products that resemble the ones that sell, and start collecting reviews.

Frequently asked questions