North Macedonia’s E-commerce Boom: 32% Growth in Cross-Border Shopping

On the other hand, Macedonians abroad made online transactions of 4,926.6 million denars or 80.1 million euros, representing a 32% growth compared to last year.

Number of Completed Online Transactions

The total value was achieved with 6.1 million online transactions made, which is 18.3% more compared to last year. The number of e-transactions made to Macedonian e-merchants amounts to 3,652.3 thousand and is 8.3% higher compared to the same period last year. The largest growth in the number of e-transactions made, 37%, was recorded from domestic payment cardholders to foreign e-merchants.

“The value of total completed online transactions in the first quarter shows a growth of 25.4%, while growth to domestic e-merchants is 21.7%, and growth with domestic cards to foreign e-merchants amounts to 32%. If we take into account that these are the first data that also include transactions to Temu, we can conclude that the growth to domestic e-merchants, both with domestic and foreign cards, is at a solid level. Regarding the number of transactions, expectedly, the growth to domestic e-merchants is significantly smaller than to foreign ones, amounting to 7% (domestic) versus 37% (to abroad). Considering that this reflects the role of Temu where more but smaller transactions are made, the average transaction value to foreign merchants decreased from 34 to 33 euros. Temu, which currently offers only card payment, influences consumer education to pay with cards, which is important for increasing digital skills and digital payment skills. The preference for cash payment still dominates the Macedonian market, and there is a need to accelerate the transition to cashless payments, which can also influence the reduction of the gray economy, which is a significant challenge for e-commerce and the entire economy. Meanwhile, the European Commission is conducting numerous discussions regarding Temu’s impact, the millions of small packages arriving and their impact on the environment, sustainability, and the overall economy,” says Nina Angelovska, PhD.

Source: Image credit to Nina Angelovska (therecursive.com)

Average Transaction Value

The analysis of average online transaction values in the first quarter of 2025 shows different movements by categories, which can be understood in the context of the already noted growth in total value and number of transactions. For transactions from domestic cards to domestic e-merchants, the average value increased from 32 to 36 euros, or 12.4%.

This trend is consistent with the increased transaction value (+20.2%) and relatively small growth in the number of transactions (+7%), indicating that Macedonian consumers are spending more per transaction at domestic stores, likely due to increased offerings, trust, and habits.

For foreign cards to domestic e-merchants, the average value increased from 37 to 41 euros (+10.3%), which is again consistent with the growth in both transaction value and number of transactions. Contrary to this, for transactions from domestic cards to foreign e-merchants, the average value shows a decrease from 34 to 33 euros (-3.7%), although the total value increased by 32% and the number of transactions by as much as 37%.

This decline in average value per transaction is explained by the massive growth in lower-value purchases, mainly driven by Temu, which offers low prices and free delivery. This leads to an increased number of smaller transactions, reducing the average value, although overall activity has drastically increased. Overall, the average value of online transactions increased from 33 to 35 euros (+6.1%).

Recurring Online Transactions

According to the harmonisation of reports in payment statistics data with the Law on Payment Services and Payment Systems, recurring online transactions are also reported, which may relate to bill payments or subscriptions for various services. They most commonly relate to subscriptions (for example, Netflix, Spotify, Microsoft, Apple, ChatGPT, etc.), utilities (electricity, internet, phone), memberships (fitness, professional associations), and automatic service and licence renewals.

In the first quarter of 2025, growth in recurring transactions is observed, with transactions from domestic cards to domestic e-merchants showing 29% growth in value and 18% growth in the number of online transactions, while on the other hand, transactions from domestic cards to foreign e-merchants show 29% growth by value but also a significant jump of 43% by number of transactions.

An increasing number of Macedonians are using subscription services, such as digital content (streaming platforms, software), as well as utility subscriptions, and are opting for automatic payment with payment cards instead of traditional payments.

Newly Opened E-stores

During the first quarter of 2025, 65 newly opened online sales points were registered, which represents a significant indicator of increased supply and business interest in entering the e-space. This trend points to growing awareness among merchants of the need for internet market presence, as well as favourable conditions for online sales development.

North Macedonia’s e-commerce hit €213 million in Q1 2025, with cross-border shopping up 32%. Platforms like Temu are changing how people shop – more transactions but smaller amounts per purchase. Local stores still dominate with €133 million, but foreign interest is growing faster at 40% annually. The real shift is happening with payments: more people are using cards instead of cash, and 65 new online stores opened in just three months.