The best online businesses in Sweden are:
- Local lead generation
- Proofreading services
- Dropshipping
- Online video editing
- Affiliate marketing
- SEO agency
- Podcast
- Online newspaper
- Music streaming app
- Online personal trainer
Sweden has a supportive business environment and a growing e-commerce market. The World Bank ranks Sweden 10th out of 190 jurisdictions for ease of doing business. Entrepreneurs have access to efficient regulations and systems of Sweden. The Swedish Trade Federation reports that 85% of Swedes made at least one online purchase last year. The popularity of online shopping in Sweden creates a large customer base.. Online business owners in Sweden earn an average income of 44,801 SEK per month, as per Glassdoor. These factors make Sweden an attractive place to start an online business.
Swedish e-commerce companies face intense global competition from international giants and global players. Finding and keeping new customers while building loyalty is another major challenge. Also, high taxation and wage costs in Sweden increase operational expenses. This eats your profit.
A Reddit user shared their experience after closing a baby clothes webshop in Sweden. The user emphasized the need for market research to find products people truly need or want. Reddit post also warned not to expect instant sales after listing products. They pointed out issues like:
I’ve traveled to over 25 countries while running an online business and earning passive income. With over 10 years of experience, I know this is possible in Sweden too. In this article, I’ll share the best online businesses you can start in Sweden. I’ll also introduce you to the business model that earns me over $52K per month.
1. Local Lead Generation Business
Local lead generation helps Swedish small businesses attract local customers through targeted marketing. It works by creating small websites for specific services like plumbing or roofing. These websites attract local customers searching online. The site collects customer information like names and phone numbers. You sell this information to local businesses. Then, businesses pay because leads bring them more customers. You earn money every month to provide these leads to them.
Small and medium-sized enterprises (SMEs) grow without advanced marketing skills. Small businesses often lack in-house expertise in online marketing. Sweden has more than 1.2 SMEs. Many of which need effective marketing to compete in local markets. Also, Statistics Sweden says that over 95% of Sweden’s population uses the internet. This high connectivity ensures a steady stream of potential leads for local businesses.
However, the country's high tax rates and complex labor laws are challenging. Sweden has one of the highest personal income tax rates in the world. The Swedish Tax Agency says that Sweden has a top marginal rate of 57.2% as of 2024. Additionally, the Swedish market is relatively small compared to other European countries. It only has a population of just over 10 million. This may constrain growth opportunities for a local lead generation business.
2. Proofreading Services
Proofreading services in Sweden review and correct documents to make them error-free and polished. These services improve grammar, spelling, punctuation, and formatting. Businesses and academic institutions need these for their documents in Swedish and English. Sweden’s high literacy rate and focus on communication. Statistics Sweden say that international students in Swedish universities has been growing. Sweden has over 37,000 enrolled in 2023. These students need help with academic papers and theses.
Additionally, Sweden's export-oriented economy means many businesses need proofreading for their international communications. In 2023, Sweden published over 1,700 new non-fiction books and 3,680 new fiction books, according to Statista. For income, Glassdoor reveals that proofreaders earn an average of 486,236.20 SEK per year.
However, many skilled professionals and agencies already operating. Also, high taxes and living costs reduce profit margins for solo entrepreneurs. Compliance with GDPR also adds complexity to managing client data.
3. Dropshipping Business
Dropshipping business in Sweden is a good idea because of the country's strong e-commerce market. Swedes are tech-savvy and shop online frequently. According to Ecommerce Europe, about 70% of Swedes shop online regularly, creating a large customer base. Popular products for dropshipping include electronics, fashion, and home goods. Entrepreneurs source these products globally and sell them directly to Swedish customers. They earn profits from price differences.
Dropshipping in Sweden is competitive, with many businesses targeting the same market. Shipping times are often an issue, especially when using overseas suppliers. Swedish consumers expect quick and reliable delivery, and delays can hurt customer satisfaction. Returns are also a challenge, as about 20% of online purchases in Sweden are returned, according to PostNord.
4. Online Video Editing Business
Online video editing improves raw video footage for businesses, influencers, and creators. In Sweden, this business model meets a growing demand for high-quality videos used in:
Statista reports that 79% of Swedish internet users watched online videos regularly in 2023. Businesses invest heavily in video ads and social media content. Video editors earn 400 to 1,000 SEK per hour. Sweden’s e-commerce sectors also do product demos, explainer videos, and promotional content.
Take note, competition is strong. Also, high living costs and Sweden’s 25% VAT impact profit margins. While fast and reliable internet supports video editing, it adds to operational expenses. You also need to meet client expectations and deliver quality work.
5. Affiliate Marketing Business
Affiliate marketing in Sweden connects businesses with consumers through online promotions. Affiliates earn commissions by promoting products and driving sales to a business. Sweden’s strong e-commerce market creates many opportunities for affiliate marketers. Statista says that 98% of the population having internet access. Swedes are active online shoppers and trust online recommendations. Also, around 70% of Swedes shop online regularly, according to Ecommerce Europe. Affiliate programs in Sweden provide commission rates ranging from 5% to 50%. Popular niches in Sweden include:
Challenges exist in navigating Sweden’s strict advertising regulations. The Swedish Consumer Agency requires clear disclosure of affiliate relationships. Certain marketing strategies limit you. Also, content written in Swedish often performs better. It's challenging for those who only produce English content.
6. SEO Agency
SEO agency improves Swedes businesses' search engine rankings to increase online visibility. Sweden has over 1.2 million SMEs, many of which rely on professional SEO strategies to appear in search results. Sweden has high internet usage. So, businesses work to improve their online presence to reach more customers. Statistics Sweden reports that 88% of Swedes use the internet daily. According to ZipRecruiter, SEO specialists in Sweden earn between 30,000 and 50,000 SEK per month. SEO agency services include:
However, search engine algorithms change frequently. It requires ongoing learning and adaptability. Swedish businesses often expect quick results, increasing pressure to deliver measurable outcomes. Following strict data privacy laws like GDPR is important when managing client data. Also, Swedish content usually ranks better in local search results than English content.
7. Podcast
A podcast business creates and distributes audio content to engage listeners and generate revenue. Podcasters record episodes on various topics:
Podcasters publish episodes on popular platforms like Spotify, Apple Podcasts, and Google Podcasts. They earn money through sponsorships, ads, and premium content. Sponsors pay to feature their products or services in episodes. Also, ads bring income based on the number of listeners. Some podcasters also charge for exclusive episodes or ad-free content through subscriptions.
Podcasting in Sweden benefits from a tech-savvy audience. According to Spotify's 2022 report, 54% of Swedes aged 18-79 listen to podcasts. However, to attract and keep listeners, you must:
8. Online Newspaper
An online newspaper business in Sweden produces and publishes news articles digitally. Sweden’s high literacy rate and interest in journalism create a strong market. With widespread internet access, Swedes frequently read online news. Online newspapers in Sweden have significant opportunities. Statista reports that 81% of male internet users in Sweden read news online. The shift from print to digital has created space for you to target specific audiences. Revenue streams include subscriptions, advertisements, and sponsored content. Popular topics include:
However, Dagens Nyheter and Svenska Dagbladet dominate the market, making competition fierce. According to Svenskarna och Internet, readers expect free access to quality news. Paid subscriptions are harder to sell. Also, following Sweden’s Press Subsidy Act and GDPR regulations adds operational complexity.
9. Music Streaming App
A music streaming app delivers digital for Swedes that values both technology and music. Sweden has a rich musical culture and history of successful tech and music companies. With high interest in streaming services, the demand for such apps continues to grow. Statista reports that 60% of Swedes stream music daily. As the birthplace of Spotify, Sweden has a global reputation for music innovation.
Launching a music streaming app in Sweden has challenges:
10. Online Personal Trainer
Becoming an online personal trainer in Sweden works well because Swedes are health-conscious. Statista reports that 52% of Swedes exercise regularly. Online personal coach charge 300 to 1,000 SEK per session, as noted by ZipRecruiter. Run sessions and track progress with platforms like:
However, building a client base requires strong marketing and a reliable online presence. Swedish clients expect professional-quality services. You need to invest in high-grade videos, fitness apps, and secure payment systems.
4 Scary Challenges Running Online Business in Sweden
1. Global Giants Entering the Swedish E-commerce Market
Global companies in Sweden’s e-commerce market make it tough for new businesses to grow. These companies already have strong brands, advanced logistics, and large marketing budgets. Their presence raises customer expectations for low prices, fast delivery, and excellent service. Competing with these giants requires significant resources. British retailer AO plans to expand into Sweden, targeting the domestic appliance market. German fashion brand Outfittery is also growing its reach in Sweden. Dutch online store Fonq.nl plans to open in the Swedish market as well.
Other well known global competitors in Sweden are:
2. Fierce Local Competition Among Swedish Online Retailers
Strong local competition in Sweden’s e-commerce market creates barriers for new businesses. . Local companies have competitive pricing, extensive product ranges, and efficient logistics. Startups struggle to match the marketing budgets and brand recognition. It's hard to gain visibility and market share. Additionally, leading retailers produce fast delivery and high-quality service that meet consumer expectations. New businesses, often with limited resources, find it challenging to meet these expectations.
According to Statista, leading local competitors in Sweden include:
3. Struggle to Attract and Keep Loyal Swedish Customers
Online business struggles to attract and keep customers because Swedish consumers are selective.
4. Sweden's High Tax Rates for Online Businesses
Sweden's High VAT rates directly increase the cost of goods and services. Businesses struggle to stay competitive because of the increased prices. It's harder to attract customers. Foreign sellers face more administrative costs to follow Sweden's VAT laws. This system discourage small or new online businesses from entering the Swedish market. The standard Sweden's VAT rate is 25%. The 25% VAT also reduces profit margins of businesses offering low-cost digital products:
Conclusion: Why Local Lead Generation Is the Best Online Business in Sweden?
Local lead generation is the best online business in Sweden because it offers high profits with minimal upfront costs. Building a lead generation site costs only a few hundred SEK. Brick-and-mortar businesses or real estate require large investments. For example, a single-family property may need a down payment of 500,000 SEK or more. However, a lead generation site generates the same or higher profits with no big expense.
Local lead generation has extremely high profit margins—up to 95%. This is because it relies on free traffic, and there are no physical products to manage. Businesses buy leads directly, which makes this a low-maintenance, high-reward business.
One example is a tree service lead generation site that has been earning 22,000 SEK per month since 2015. The site required only 15 hours of my work to build and rank. Over seven years, it earned me over 1.8 million SEK. Its 1,232,000 SEK per hour. In Sweden, businesses constantly need new leads. So, local lead generation is really the best online business to start.
