Thr eCommerce Poland 2013 Report presents current market trends and provides an economic and statistical portrait of online shops in Poland. The report illuminates market factors important to foreign investors and e-retailers who plan to take advantage of the evolving and maturing eCommerce landscape in Poland.
You can download the report from editor's website: http://dotcomriver.com/report-ecommerce-poland.html
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eCommerce Poland 2013 Report - Facts and Figures for Investors
1. Research and Publication
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eCOMMERCE
POLAND 2013
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Executive Summary Report
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3. eCOMMERCE
POLAND 2013
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Introduction
Poland is one of the fastest growing
eCommerce markets in Europe, quoting approximately 25% growth yearon-year. The estimated eCommerce
B2C value of goods trade, not including
services, in 2013 was more than 6 bn
euro. If the current growth rate maintains, the figure is predicted to rise in
two years to nearly 11 bn euro.
According to the Eurostat reports, the
eCommerce share in the entire Polish
consumer trade is about 4%. Although
it is less than in some other European
countries, the observed market and
economic trends are comparable to
mature markets, such as British or German. At the same time, over 30% of the
38 million population of Poland declare
to shop online. This rate is higher than
for Spain or Italy.
Thanks to growing access to broadband Internet, the total number of
e-consumers increases every year. According to the study of the Concise
Statistical Yearbook of Poland in 2013,
70% of Polish households had Internet access. The number of credit card
holders also increases and online payments successfully ousted the cash-ondelivery methods. Meanwhile, there is a
gap in the Polish market to be fulfilled
by the courier companies, for which the
coming years are also predicted to generate double-figure increases.
At present, there are over 12 thousand
online shops in Poland. The market
continuously matures, as evidenced by
the decreasing growth rate of e-shops.
However, within many industries, we
cannot conclude that the market is saturated. This fact is clearly visible in the
food sector, which in recent years has
been developing most rapidly. Since
2007, the number of online stores in this
sector has been growing by approximately 35% each year. It is estimated
that in two years, the e-FMCG will reach
the value of more than 107 mln euro.
This represents twice the level of current figures. These trends seem to have
caught the attention of western giants,
such as Tesco, Auchan or Leclerc, which
have already enabled Poles to buy their
products online.
The potential of the Polish market has
also been recognized by the popular
shops of other sectors, such as West
Wing or Conrad as well as leaders of
the clothing industry - Otto or Zalando. Another example of the successful
business expansion to the Polish eCommerce market are companies providing
services for online shops, such as Trusted Shops or Sofort Banking. Recently,
Amazon, the biggest online shop in the
world, has decided to build its logistic
centres in Poland.
Apart from the huge potential gains
emerging from the growing popularity
of online shopping in Poland, there are
many other important factors influencing overseas investors. They point to
good office and communication infrastructure as well as to visible potential
of the labor market and access to multilingual specialists. Despite the global
crisis, the economic situation in Poland
has been assessed as stable, while localization of the country opens the way
for further expansion to the Eastern European markets and Russia.
will shed light on lucrative business opportunities and help you to asses your
organizations potential for entering
this market.
Piotr Jarosz, CEO of Dotcom River
Executive Editor
of the eCommerce Poland 2013 Report
I am convinced that all of the above
mentioned factors create an ideal space
for investment activities and encourage forward thinking companies to
enter into the game right now because
the biggest and brightest opportunities for prosperity in the Polish eCommerce market are just ahead of us. This
report is an executive summary of our
multi-year study and presents the key
aspects of Polish eCommerce. I hope it
Partners
3.
4. eCOMMERCE
POLAND 2013
Key Data at a Glance
8%
8%
8%
SWEDEN
9,1%
9,1%
European customers
shopping online
NORWEY
> 50%
30 - 50%
13,2%
13,2%
13,2%
UK
< 30%
10%
%
3,8%
3,8%
3,8%
POLAND
GERMANY
Online share
of total retail trade
8,7%
8,7%
8,7%
FRANCE
6,2%
4,1%
ITALY
SPAIN
Online shops
Total e-retail
value 6 bn
12 000 +
Population
100
100
38,5 mln
100%
Internet users
68%
26,2 mln
48%
80
80
60
60
40
40
25%
20
20
Online shoppers
12,6 mln
and analysis
Research
54%
0
0
social media smartphone
users
users
See full report on:
Sources:
Eurostat, European Commission, http://epp.eurostat.ec.europa.eu;
PMR Research, http://research-pmr.com;
Centre of Retail Research, http://retailresearch.org;
Polish Ministry of Treasury, http://msp.gov.pl
5. eCOMMERCE
POLAND 2013
internet software house
Contents
Introduction......................................................................................................................................3
Contents.............................................................................................................................................5
1. Polish eCustomer......................................................................................................................6
Investor’s voice - Trusted Shops.................................................................................................9
2. Market size and structure.................................................................................................... 11
3. Online shops marketing and advertising...................................................................... 16
4. Transactions and payments................................................................................................ 22
Investor’s voice - SOFORT AG................................................................................................... 26
5. Inventory management and logistics............................................................................. 28
6. Shopping cart software....................................................................................................... 29
About the Editor........................................................................................................................... 32
Sources............................................................................................................................................. 32
Partners
5.
6. eCOMMERCE
POLAND 2013
internet software house
1. Polish eCustomer
There are 38,5 mln people in Poland.
In terms of population it places the
country on the 6th position within the
European Union. Among individuals
ranging from 16-74 years old, as many
as 62% are Internet users and nearly
half of them (48%) surf the web in order to find information about products
and services, while 21% shop online.
According to the data published by the
Concise Statistical Yearbook of Poland
in 2013, about 70% of Polish households are equipped with computers
and Internet access.
year. Less than 4% of eConsumers did
not buy anything via Internet in 2010.
About 9% of Internet users buy very
rarely - once a year.
Salaries of Polish internet users directly
correlate with the respective frequency
of online shopping. More than 38% of
Internet shoppers, earning over EUR
1,185 (PLN 5,000 ) buy online at least
a few times per month. Meanwhile,
among those who earn less than EUR
474 (PLN 2,000), one in every 4 shoppers keep pace at the same frequency.
Experience in online
shopping
Frequency of online
shopping
Figure 1.1.
Figure 1.2.
1.1. eCustomers experience
3,9%
15,6%
8,7%
18,6%
Online shopping in Poland is very common. Less than 16% of Internet users we surveyed declared not having
bought on the web at all.
30,0%
27,6%
38,2%
57,4%
Most Polish eConsumers
have more than 3 years of
shopping experience.
Online consumers with the most extensive shopping experience belong to the
highest populated age group of 31-50
years old. Older Internet users, who are
over 65, represent the smallest group of
online consumers, where 41% of them
still have not purchased anything from
the web. These encouraging statistics
show that one in every 5 users over the
age of 65 made an online purchase at
least once during the last year.
1.2. Online shopping frequency
less than 1 year
1 - 3 years
more than 3 years
never
Figure 1.3.
one time during the last year
have not done shopping online this year yet
Experience in online shopping in different age groups
[%] 0
less than 18 yrs
20
40
17,9
31-50 yrs
17,7
17,6
15,4
28,0
51-65 yrs
60
25,1
29,6
18-30 yrs
27,3
more than 65 yrs
Almost every third Pole buys on the
Internet several times a month, and
more than half of them - a few times a
on average, at least a few times per month
in total, a few times during the year
20,2
30,0
11,8
80
100
29,9
37,8
14,2
42,8
11,5
39,5
27,2
15,6
40,8
less than 1 year
1 - 3 years
more than 3 years
never
Partners
6.
7. eCOMMERCE
POLAND 2013
internet software house
Figure 1.4.
Frequency of online shopping with respect to the respondents monthly income
[%] 0
less than 2.000 PLN (475 EUR)
2.000-5.000 PLN (475 - 1187 EUR)
more than 5.000 PLN (1187 EUR)
20
40
60
25,2
80
100
59,9
31,7
9,9 5,0
58,8
38,2
7,1
45,2
10,7 5,8
on average, at least a few times per month
in total, a few times during the year
one time during the last year
have not done shopping online this year yet
Figure 1.5.
Motivations for buying online with regard to the gender of respondents
[%] 0
10
20
30
40
it’s convenient and saves time
44,7
I tend to buy impulsively, if there is something I like
8,9
60
50,3
11,7
32,9
35,5
I like to compare many products before I make a purchase
18,3
17,0
it’s the only way to access products that I need
45,3
43,7
prices are more attractive than in traditional stores
other reasons
50
2,9
3,1
woman
man
Partners
7.
8. eCOMMERCE
POLAND 2013
internet software house
Figure 1.6.
Arguments that could persuade Polish e-consumers of different age groups to buy online more often
[%] 0
10
20
30
40
50
60
50,9
lower prices
44,7
31,8
22,1
14,8
18,2
quicker delivery time
10,6
18,4
57,9
30,7
33,1
22,4
money-back guarantee provided by a trusted institution
51,2
70
25,2
32,9
36,8
wider selections available through online shops
26,5
14,1
16,9
16,1
18,2
18,2
simplified procedures of online shopping
14,4
15,5
12,7
10,0
greater certainty about the security of my personal data
*other
less than 18
21,1
13,4
11,8
11,2
12,7
15,3
gaining a greater understanding of the online experience and process
more frequent/ better Internet access
42,3
38,4
35,1
12,3
10,2
7,8
8,2
9,4
4,0
3,8
3,5
4,0
6,5
18-30
31-50
51-65
more than 65
[yrs old]
*The most prevalent concerns voiced by respondents were: lower delivery costs or a lack of delivery fee, wider product range,
a need for more specific information about products and an easier way of finding a desired product.
Partners
8.
9. Investor’s voice
Trusted Shops about the Polish branch
eCOMMERCE
POLAND 2013
TRUSTED SHOPS IN POLAND - ENTERED
THE MARKET AT THE RIGHT TIME
We talked with Anna Rak, the Country Manager of Trusted Shops
in Poland, about the entry of the German established company
into the Polish market in 2010.
Why did Trusted Shops decide to enter the Polish eCommerce market?
market?
With a population of over 38 mln and
as many as 18 mln internet users, Poland is an attractive market with huge
potential still to be unlocked. In fact,
in recent years Poland has had one of
the highest growth rates in the eCommerce sector among all EU countries.
At the same time Poles demonstrate
a very low level of trust, which makes
them reluctant to do online shopping.
We identified this challenge and have
decided to address it by equipping
shop owners with solutions that help
to build consumer trust.
What struck us most when we launched
in Poland was finding out how low the
level of trust was. While signing contracts with us, Polish online retailers
would engage their lawyers and carefully analyse every single page looking
for fine print. This accurately illustrates
the typical attitude towards people or
business partners that Poles cooperate with for the first time. However, it’s
interesting to work with people who
combine passion and diligence at the
same time. Likewise, the eCommerce
sector in Poland is still young and dynamic and it keeps surprising us even
today.
What were the main obstacles you
had to face while entering the Polish
market and how long did the preparation take?
What, in your opinion, is the key to
success on the Polish market?
At the initial stage, the biggest hurdle
was to compile a knowledge base that
would enable us to specify Polish criteria for the audit – our core product. The
Trusted Shops quality criteria are based
on national and European laws that are
important for making purchases on the
Internet. Our experts had to make sure
they comply with Polish regulations.
It took us almost one year to establish
our operations in Poland, as we wanted
to ensure the highest quality of service.
We also prepared the ground for cooperation with organisations and associations in the Polish eCommerce sector.
What was the biggest surprise after
launching your services in Poland,
comparing to the native German
Our experience shows that an in-depth
understanding of the Polish market is
essential for foreign companies that
plan to extend their operations to Poland. As a new player on the market
you need to identify your target customers and challenges they face. This
requires communication since it’s important for both parties to speak the
same language. Establishing a good
rapport with customers is key to providing excellent service and helps turn
them into brand evangelists. We should
not underestimate the word-of-mouth,
especially in some industries.
With hindsight, was it a good decision to enter the Polish market and
was the decision made at the right
time?
Founded in 1999, the Cologne based
company is Europe’s market leader for
the accreditation of online shops.
Since the company was founded, over
17 000 retailers have been accredited.
At present, Trusted Shops has operated,
inter alia, in Germany, Austria, Switzerland, France, Belgium, Spain, Italy, Great
Britain and in Poland since 2010.
We believe that we launched our services in Poland just in time to gain
momentum before the eCommerce
boom started. We have been growing
together with the online market. As
the Polish eCommerce sector has yet
to become fully mature, we observe a
great demand for our comprehensive
services that help retailers thrive in this
favourable climate. One of our challenges now is to catch up with this dynamic growth.
Many investors, who enter the Polish
market, indicate the strategic location of Poland in Europe as one of the
main reasons behind their decision.
Was the Trusted Shops’ investment
into the Polish branch also a case of
taking the first step towards the further expansion into the Eastern European markets?
We are continuing expansion into Europe so that more retailers and customers can enjoy the benefits of safe
and secure online shopping. This summer we launched Trusted Shops trustmark in the Netherlands, Belgium and
Italy. Poland will serve as a hub when
we further expand in the Eastern European region but more details will be
announced at a later time.
Partners
9.
10. Boost your
online sales
in Poland and the EU with the
Trusted Shops buyer protection!
Our independent money-back guarantee helps:
buy
ü convince customers to storehighly-priced products online
instead of treating the
as a mere catalogue
size by encouraging
ü increase basketinstead of playing safecustomers orders
to spend more
with small
ü prevent shopping-cart abandonment
Find out more at
www.trustedshops.com
11. eCOMMERCE
POLAND 2013
internet software house
2. Market size and structure
2013 was a period of continuation in
dynamic growth for Polish eCommerce
turnover. Its value is estimated to be
about EUR 6,2 bn, which is 21% more
than in the previous year (EUR 5,1 bn).
In 2012, the growth rate was also double-digits and was up 23% year after
year. The scale of growth is made readily evident by referencing the value of
Polish eCommerce just 10 years ago,
when it amounted to EUR 78,6 mln, i. e.
only 1,3% of the current value.
The fast pace of growth in the Polish
online market is consistent with global
trends within this sector. According to
estimates of eMarketer, B2C Internet
sales increased by 21,1% in 2012, exceeding the value of USD 1 trillion for
the first time in history. Meanwhile, the
growth potential of the Asian-Pacific
region is projected to propel it into becoming the world’s leading B2C online
sales market, surpassing even North
America.
Figure 2.1.
[quantity] 0
2006
2007
2008
2009
2010
2011
2012
2.1. Number and age of online
shops
Polish eCommerce is constantly growing, although the growth rate has
slowed down in the last years indicating that the process of market maturation has begun. Back in 2009, every
other Polish online store had been operating for less than two years, while
in 2012 the beginner shops represent
slightly more than a quarter of the total
number (29.2%).
The largest increase in
the number of new online
stores in Poland in recent
years was reported in the
food industry.
The largest decrease in the growth rate
among web shops affected the electronics industry and book stores (9%),
while the delicatessen (17%) and cloth-
Number of online stores in 2006-2012
2000
4000
6000
ing (14%) are leaders of the relative
increases. This is not surprising in the
case of grocery stores. Given the structure of Polish consumer spending, market for these products has the greatest
potential and the competition in this
industry is relatively low.
2.2. Employment and market
area
Almost half of all shops in Poland is
staffed by one person (24.5%) or two
people (22.2%), while companies employing more than 50 people represent a narrow margin of retailers (3.3%).
Among online shops that have operated less than a year, only 32,5% of
firms sell offline, while in the group of
retailers having operated more than 10
years, 64,5% possess a land-based store.
85% of Polish online shops
are micro-enterprises.
Figure 2.2.
8000
10000
12000
Age of online stores
14000
5,1% 12,7%
2 762
23,2%
4 230
16,5%
5 841
7 576
24,2%
18,3%
9 289
10 814
12 117
less than 1 year
1 - 2 years
2 - 3 years
3 - 5 years
5 - 10 years
more than 10 years
Partners
11.
12. eCOMMERCE
POLAND 2013
internet software house
Figure 2.3.
Number of shops in different retail sectors
[quantity] 0
500
Does your company also
sell offline?
Figure 2.4.
1000
1500
2000
643
Automotive
331
Delicatessen
2 491
House and Garden
984
Goods for Children
46,0%
932
Photo and RTV-AGD
54,0%
602
Hobby
977
Computer
566
Books and Multimedia
1 278
Clothing
1 312
Presents and Accessories
yes
1 145
Health and Beauty
Number of employees in companies running online shops
[%] 0
5
10
15
20
25
30
24,5
one person
22,2
2 people
26,7
3-5 people
11,5
6-10 people
7,4
11-20 people
4,3
21-50 people
3,3
over 50 people
Figure 2.6.
no
856
Sport and Tourism
Figure 2.5.
2500
Having a brick and mortar shop, depending on the business age
[%] 0
20
40
32,5
less than 1 year
64,5
more than 10 years
yes
100
60,7
52,4
3 - 10 years
80
67,5
39,3
1 -3 years
60
47,6
35,5
no
Partners
12.
13. eCOMMERCE
POLAND 2013
internet software house
would reach for clients from the rest of
the European countries.
2.3. Polish cross-border
eCommerce
Only every third of Polish
shops sells products in
other EU countries.
Almost all Polish online stores (99,8%)
operate within the national market.
Every third Polish seller we surveyed
(33,1%) is willing to accept orders from
countries belonging to the European
Union, while only every tenth (9,6%)
Figure 2.7.
This is due to the fact that unfortunately, many companies are not able to
overcome the major barriers of crossborder e-commerce, which are mainly
time and cost of international transport. In addition to logistics, the other
obstacles are language differences, different currencies, taxes, additional demands of search engine optimization
and marketing, and last but not least,
the challenge of gaining the trust of the
foreign client.
2.4. Average basket value and
gross margin
The average basket value in Poland is
EUR 62 (PLN 260). Average basket values are reflected in the shop’s total income, however, the profitability of the
shops depends heavily on the trade
margins that they negotiate.
Business sectors that reach the highest trade margins in Poland are gifts
and accessories (26%) and clothing
(25,8%), while the toughest competi-
Sales coverage of Polish online stores in EU and other countries
[%] 0
25
50
75
100
99,8
in Poland
33,1
European Union countries
9,6
European countries from outside of the EU
other countries
Figure 2.8.
6,8
Average basket value of Polish e-stores
[%] 0
less than 5 EUR
5
10
15
20
8,6
24,2
12 - 24 EUR
16,5
24 - 36 EUR
13,7
36 - 48 EUR
13,5
48 - 71 EUR
8,7
71 - 119 EUR
5,9
119 - 238 EUR
4,1
238 - 478 EUR
hard to say
30
0,5
5 - 12 EUR
more than 478 EUR
25
1,6
2,6
Partners
13.
14. eCOMMERCE
POLAND 2013
internet software house
tion and the lowest margins are associated with computer shops (10,2%) and
stores offering photography products
and household appliances (13,5%). Obviously, we have to keep in mind that
these are the average market values
and many shops that offer niche products, thereby avoiding competition,
achieve significantly higher profitability.
Figure 2.9.
Margin trading of e-stores, depending on their product range
[%] 0
10
20
30
Presents and Accessories
26,0
Clothing
25,8
23,2
Delicatessen
22,5
Sport and Tourism
Average gross margin
of Polish online stores is
21.7%.
22,2
Health and Beuty
21,4
House and Garden
20,0
Hobby
19,7
Goods for Children
2.5. The size and profitability of
sales
17,8
Books and Multimedia
16,8
Automotive
13,5
Photo and RTV-AGD
Almost two-thirds of Polish retailers reported an increase in sales. Compared
to 2010, our survey shows an increase
in the number of stores with a turnover
greater than EUR 11,850 (PLN 50,000)
and over EUR 47,401 (PLN 200,000).
However, these are relatively minor
changes, indicating the structural stabilization of the Polish Market. The
turnover of online stores has a direct
correlation with the profitability of the
businesses directly impacting margins
for their respective owners. The absolute majority of the surveyed retailers
(66.2%) achieved gains, while losses
were recorded by 14.5% of respondents.
At least 2/3 of online shops
in Poland are profitable.
As might be expected, mature stores
(83.3%) make a profit more often than
the small and beginner shops (49.1%),
of which nearly one-third (29.1%) are
not able to determine whether they
will make a profit or a loss.
10,2
Computer
Figure 2.10. How the sales figures will
change this year compared to the
previous one
15,3%
12,4%
Market share of shops having various sales figures
Figure 2.11.
15,7%
13,3%
40,7%
43,6%
59,0%
decrease
invariable
increase
hard to say
up to 2 385 EUR
2 385 - 23 833 EUR
more than 23 833 EUR
Partners
14.
15. eCOMMERCE
POLAND 2013
internet software house
Figure 2.12.
itable?
Are online retail sales prof-
Figure 2.13. The probability of profits depending on age, number of employees and
sales volume
[%] 0
10
20
30
40
14,5%
hard to say
70
80
90
83,3
21,8
we do not achieve profits
66,2%
60
49,1
yes, we achieve profits
19,3%
50
11,1
29,1
5,6
shops up to 3 years old, employing up to 2 people
with a monthly sales value up to 11 917 EUR (50 000 PLN)
shops more than 3 years old, employing more than 2 people,
with a montly sales value over 11 917 EUR (50 000 PLN)
yes, we achieve profits
hard to say
no, we do not achieve profits
Table 2.1.
The biggest European and Polish eStores, eCommerce turnover in million Euros
Rank in
Europe
Company Name
eCommerce Turnover 2012
Country of origin
Main Sector
% eCommerce
[Europe only, Mio Euros]
1
Amazon
16.710
USA
All sectors except food
100%
2
Otto
5.700
Germany
Fashion
48%
6
Tesco
2.466
UK
Food / all sectors
4%
Carrefour
1.500
France
Food / all sectors
3%
16
Zalando
1.150
Germany
Footwear, leather and fashion
100%
24
Dell Inc.
810
USA
Consumer electronics
n/a
25
Mark & Spencer
804
UK
Fashion
6%
43
Conrad
500
Germany
Consumer electronics
63%
50
H & M Henner & Mauritz AB
450
Sweden
Fashion
2%
55
Ozon
383
Russia
Books, Music, electronics
100%
57
Tchibo GmbH
360
Germany
All sectors except food
n/a
72
C and A
270
Luxembourg
Fashion
4%
87
DocMorris N.V.
178
Netherlands
Medicines
n/a
88
Redcoon GmbH
175
Germany
All sectors except food
n/a
Adidas
158
UK
Footwear, leather and fashion
9%
Walbusch Walter Busch GmbH
& Co. KG
144
Germany
Footwear, leather and fashion
n/a
10
94
100
Rank in
Poland
Company Name
eCommerce Turnover 2011
Country of origin
Main Sector
% eCommerce
[Europe only, Mio Euros]
1
NEO24.PL sp. z o o.
57
Poland
2
Oponeo.pl S.A.
40
Poland
Automotive
n/a
3
Komputronik S.A.
35
Poland
Computers and Electronics
n/a
4
Merlin.pl S.A.
35
Poland
Books, Music, Games
n/a
5
Empik Digital & Publishing
34
Poland
Music, Games, eBooks
n/a
Photo
n/a
used exchange rate: 1EUR=4,24 PLN; Source: iBusiness.de
Partners
15.
16. eCOMMERCE
POLAND 2013
internet software house
3. Online shops marketing and advertising
Importance of service customisation
grows in Polish eCommerce, focused
on winning niche by delivering services
of the highest possible quality, accompanied by wide product assortment.
According to our research, established
web stores have well-diversified marketing channels and use them efficiently. Sales value is strongly dependent on
the intensity of marketing activities.
The degree to which higher turnover is
achieved by a shop is directly reflected
in the intensity by which its products
are advertised across marketing channels.
most popular forms of advertising of
eCommerce websites, are presence in
online catalogs of shops (over 74% of
our interviewees) and Search Engine
Marketing (more than 71%). The next
quite common marketing method is
promotion on social networking sites
(62% of stores declared as having ran
profiles in social media) as well as having featured products on price comparison websites and auction platforms
(56 and 52% respectively).
Only slightly more than 1%
of online stores do not use
any form of eMarketing.
3.1. How do online shops
advertise?
According to our research, the two
Figure 3.1.
It turns out that price comparison websites are almost twice as likely to be
used by stores with revenue of over
Featuring in online
directories and SEO are the
most popular marketing
forms.
EUR 23,700 (PLN 100,000) than by the
ones with a turnover of less than EUR
2,370 (PLN 10,000). It is similar in the
case of SEM (Search Engine Marketing),
whereas daily deals websites and e-mail
marketing are three times more likely to
be used by the sales leaders. Interestingly enough, the biggest difference
concerns affiliate marketing. It is used
as much as six times more frequentlyamong well-prospering players (16%)
than the new ones (only 3%). The only
things that the “newbies” do more than
the mature vendors are buzz marketing
and promotion in online directories.
Marketing activities of online stores
[%] 0
25
50
75
74,3
listing in online catalogs of shops
71,2
SEO
62,8
social media profile
56,3
listing on price comparison websites
52,7
selling through web auction platforms
42,8
SEM
40,4
e-mail marketing
31,6
buzz marketing
26,0
advert on thematic websites
14,2
own affiliation program
11,7
promotion on daily deals websites
9,4
affiliate ads networks
other
we do not perform marketing activities
100
3,6
1,3
Partners
16.
17. WANT TO AUTOMATE
BULK ADWORDS
CAMPAIGNS?
internet software house
AdWords
LET YOUR SOFTWARE HANDLE IT
YOU DETERMINE THE GOALS, WE CREATE THE TOOL
SAY WHAT YOU NEED
”
Dotcom River provided us with a complete and reliable product
that has significantly enhanced promotional activities of our company.
DotcomRiver.com
info@dotcomriver.com
+48 71 7889510
SEE CASE STUDY
Let’s talk in English,
German, Russian or Polish
”
18. eCOMMERCE
POLAND 2013
internet software house
Figure 3.2.
Forms of marketing used by shops with respect to their sales value
[%] 0
25
50
75
100
44,3
59,5
listing on price comparison websites
82,4
28,1
42,5
e-mail marketing
69,2
60,9
63,5
67,0
social media profile
32,3
44,4
SEM
65,9
8,1
10,7
promotion on daily deal websites
26,4
3,8
affiliate ads networks
8,7
23,1
monthly turnover up to 10 000 PLN (2 370 EUR)
10 000 - 100 000 PLN (2 370 - 23 700 EUR)
more than 100 000 PLN (23 700 EUR)
Figure 3.3.
Profitability of online sales, by the use of marketing
[%] 0
20
use marketing activities
do not use marketing activities
40
60
66,6
37,5
yes, we achieve profits
19,2
25,0
hard to say
80
100
14,2
37,5
we do not achieve profits
Partners
18.
19. eCOMMERCE
POLAND 2013
internet software house
Figure 3.4.
Forms of marketing used by online shops with respect to their age, employees number and sales volume
[%] 0
10
20
30
40
50
90
45,5
76,9
22,4
e-mail marketing
66,7
78,2
listing in online shops catalogs
65,7
65,5
63,9
social media profile
47,3
selling through web auction platforms
62,0
30,3
SEM
61,1
24,2
advert on thematic website
34,3
34,5
29,6
buzz marketing
6,7
promotion on daily deals websites
22,2
10,9
own affiliation program
we do not perform marketing activities
80
79,6
listing on price comparison websites
other
70
65,5
SEO
affiliate ads networks
60
17,6
3,6
16,7
4,2
1,9
1,2
0,0
shops up to 3 years old, employing up to 2 people with a monthly
turnover up to 50 000PLN (11 820 EUR)
shops over 3 years old, employing more than 2 people with a monthly
turnover over 50 000 PLN (11 820 EUR)
Partners
19.
20. eCOMMERCE
POLAND 2013
internet software house
Among stores that claim not to perform
any kind of marketing activities, only
37% said their stores were profitable.
The rest of the shops report losses, or
their owners do not know if the stores
are profitable (25% of cases).
3.2. Social Media marketing
Figure 3.5.
Social networking sites popular among online shops
[%] 0
25
62,5
Twitter
8,1
NK (Nasza-Klasa)
7,6
3,4
Blip
2,9
Google+
2,6
3.3. Daily deals websites
Nearly 12% of online shops declared
promoting their products on daily
deals websites. This form of advertising
is mostly used by the clothing industry.
Figure 3.6.
Grono.net
1,3
Flaker
Polish owners of online shops say that
social media does not sell. Only 10%
of our responders said direct sale was
the main purpose of their social media
activity and they represent mostly the
smallest firms. The biggest shops, much
more often use social networking sites
to share information about new offers,
competitions or to interact with clients
and get to know their opinions.
75
Facebook
Goldenline
Most of the Polish online
shops use social media to
share the news.
50
1,1
Fotka 0,0
other
0,8
37,2
no account
Shops offering books, computers or
hobby accessories advertise this way
very rarely.
Among retailers, who cooperate with
daily deals website, 46% choose Groupon. The second most favored daily
deals portals are Allegro Citeam.pl (chosen by 31% of online shops) and Gruper
(listed by 24% of answerers).
They are also one of the first choices
when it comes to eCommerce marketing strategy, regardless of the store age.
Given the popularity of various comparison sites, Ceneo.pl is leading the
Polish market (cooperating with 37.7%
of our responders), Nokoaut.pl ranks
second (35.9%), followed by Okazje.info
(29.8%).
Price comparison websites are a source
of customers for 56% of online stores.
Main goals of social media marketing for online shops
[%] 0
25
50
75
87,9
information about new products
62,7
news and company announcements
57,0
special promotions / contests for followers
55,4
constant contact with clients and knowing their opinion
10,2
direct sale through the social account’s profile
other
100
2,6
Partners
20.
21. eCOMMERCE
POLAND 2013
internet software house
Figure 3.7.
Popular daily deals websites
[%] 0
5
10
5,4
Grupon
MyDeal
1,3
Okazik
1,3
FastDeal
1,2
Frupi
64,5
62,9
62,8
61,3
57,3
56,1
Hause and Garden
Presents and Accessories
54,4
Clothing
1,5
Other
75,9
Goods for Children
0,2
100
82,1
Automotive
0,2
DealLx
75
Books and Multimedia
0,5
Ofeteria
50
Sport and Tourism
0,7
Happyday
25
Health and Beauty
1,3
Cuppon
[%] 0
Photo and RTV-AGD
2,8
Gruper
Usage of price comparison sites in e-retail sectors
Computer
3,6
Citeam
Figure 3.8.
53,9
Hobby
Delicatessen
immaterial products
other
50,0
48,1
44,4
47,3
Price comparison websites
popular among online shops
Figure 3.9.
[%] 0
25
50
37,7
Ceneo.pl
35,9
Nokaut.pl
29,8
Okazje.info
26,7
Skapiec.pl
17,6
Radar.pl
10,7
Kupujemy.pl
Smartbay.pl
8,1
Twenga.pl
7,9
Bazarcen.pl
3,4
Torturacen.pl
2,3
Other
Do not use
comparison sites
5,0
43,7
Partners
21.
22. eCOMMERCE
POLAND 2013
internet software house
4. Transactions and payments
The recent results of our study showed
that, for the first time in years, the Polish
payment market of online trading has
begun to follow European trends. The
visible success of online transfers suggests that currently our market is evolving in the direction of the Dutch model,
in which solutions like Pay-By-Link (PBL)
are commonly used. At the same time,
67.6% of online transfers are operated
by payment service providers, reflecting the large success of these entities
on the Polish market.
It should be noted at this point that a
separate trend in the field of Internet
payments may soon become the solution based on mobile payments, with
the use of smartphones. Especially,
if they are integrated with sale and
distribution of products through applications installed on these devices.
Observation of unusual development
dynamics of mobile solutions in different usage areas in Poland suggests that
in the coming years they will likely be
able to challenge other services of online payment.
Are you satisfied with payment methods available in Poland?
Figure 4.1.
3.4. Popular payment methods
The current trend for accepted payment methods in Poland indicates the
dominant coverage of COD payments
and bank transfers. Noteworthy in recent years is a significant expansion of
the scope of the acceptance of a few
important methods: payment service
providers from 46.29% to 78.42%, online transfers from 51.19% to 63.59%
and payment cards from 54,97% to almost 60%. The popularity of virtual payment services is gradually growing and
amounts to about 20% at present.
3.5. Cross-border sales and
evolution of online payments
A significant increase in availability of
credit card payment in Polish online
stores is related to the fact that they
are the most important instrument of
payment in foreign markets. In the UK,
where the market trends are a comFigure 4.2.
2012
[%] 0
16,8%
2010
13,3%
2012
69,9%
yes
hard to say
mon indicator of changes expected
in Poland, 40% of online transactions
are carried out using a credit card, and
35% - a debit card. In Poland, the cards
are usually widely accepted for crossborder payments, but currently operating e-transfers, in principle, allow for
payments exclusively with Polish online
stores. This is due to various organizational reasons and because they use
national bank transfers.
Percentage of sales served by the certain payment method in 2010 and
20
35,4
38,6
bank transfer
cash on delivery
40
60
37,9
29,3
online transfer
payment upon pickup
80
100
4,9 7,8 5,5 6,2
11,5
6,7 6,6 4,8
payment card
e-payment integrator
other
no
Partners
22.
23. eCOMMERCE
POLAND 2013
internet software house
Figure 4.3.
Payment methods accepted by online stores in Poland in 2010 and 2012
[%] 0
10
20
30
40
50
60
70
80
90
100
94,8
95,6
bank transfer
92,4
90,0
cash on delivery
46,3
e-payment integrator
78,4
69,9
68,9
payment upon pickup
51,2
quick online transfer
63,6
55,0
60,0
payment card
virtual payment service
18,5
19,9
installment credit / loan
17,8
18,9
such as PayPal
bill payment network
3,4
1,8
mobile payment
1,3
0,7
online payment coupons
1,5
0,7
Premium SMS/MMS payment
0,7
0,0
other
2,4
1,6
2010
2012
Partners
23.
24. eCOMMERCE
POLAND 2013
internet software house
Payment methods accepted by online stores in Poland, with respect to
their attitude towards international trade
Figure 4.4.
[%] 0
10
20
30
40
50
60
70
80
90
96,6
95,0
bank transfer
88,3
90,8
cash on delivery
72,2
67,2
payment upon pickup
63,9
63,4
quick online transfer
69,8
payment card
55,0
22,9
16,9
installment credit / loan
33,2
virtual payment service
13,2
such as PayPal
bill payment network
100
2,9
1,2
mobile payment
1,0
0,5
online payment coupons
1,5
0,2
Premium SMS/MMS payment
other
0,0
0,0
2,9
1,0
sale in Poland and abroad
only in Poland
Partners
24.
25. eCOMMERCE
POLAND 2013
internet software house
Payment methods accepted by online stores that receive over 500 and
less than 50 orders per month
Figure 4.5.
[%] 0
10
20
30
40
50
60
70
80
90
100
95,5
93,0
bank transfer
85,3
99,0
cash on delivery
67,7
e-payment integrator
62,1
payment upon pickup
50,0
quick online transfer
88,0
77,0
74,0
41,9
payment card
18,2
instalment credit / loan
16,2
virtual payment service
such as PayPal
bill payment network
0,0
1,0
Premium SMS/MMS payment
26,0
0,5
1,0
mobile payment
29,0
1,5
1,0
online payment coupons
81,0
0,0
0,0
Other
1,5
1,0
less than 50 orders
Figure 4.6.
over 500 orders
Factors influencing the shop owners’ decisions on the provision of certain payment methods
[%] 0
20
40
35,8
36,6
complexity of the service
36,3
34,0
easy integration with IT system
15,7
9,7
38,4
28,9
16,3
8,6 4,2
34,3
42,1
the waiting time for payment
5,1 3,2
31,9
50,0
popularity among clients
17,8
100
27,1
53,8
the risk of not getting paid
settlement in other currencies
80
63,0
costs of transaction service
fact that competitors have it
60
27,1
27,6
10,1 3,6
very important
important
neither important nor unimportant
of little importance
unimportant
12,8 7,2
16,4
8,3
15,2 7,6 4,8
14,6
13,7
28,5
Partners
25.
26. Investor’s voice
SOFORT AG about the Polish branch
eCOMMERCE
POLAND 2013
SOFORT AG IN POLAND - ANOTHER STEP
TOWARDS EUROPEAN EXPANSION
We talked with Dagmara Kruszewska, the Country Manager of SOFORT AG in Poland, about the entry of the German
payment company into the Polish market in 2012.
Why did SOFORT AG decide to enter the Polish
eCommerce market?
E-commerce is booming in Europe and the
trend is only going one way: upwards. Very good
news for all market participants in general, but
there are some areas in the European Internet
and e-commerce landscape which in the past
have been identified by the SOFORT AG, a European company, as less positive. These are first
of all, the lack of cross border transactions taking
place in Europe via the Internet and secondly
the domination of American business models and corporation’s such as Amazon, Google,
EBAY, Facebook etc. in the e-commerce business. Despite the power of these companies, we
believe that there is still a chance for European
companies to defy the dominance of American
companies in the online payment services sector. Therefore, SOFORT AG follows the strategy of
establishing a successful pan-European e-commerce payment service as soon as possible. Due
to this fact we want to ensure that all Europeans
have access to SOFORT Banking and are able to
easily pay for their purchases – nationally and internationally – with direct bank transfers based
on the online banking structures.
Logically, the expansion plan of SOFORT Banking Poland was one of the highest priorities due to the size of the market with the highest
growth rates in Europe, a high internet penetration and the popularity of online banking. In addition, we have had a lot of requests by existing
business partners and customers to offer a solution for cross border transactions to and from
Poland. Following this strategy, SOFORT Banking
is expanding continuously and is currently available in 11 countries. By the end of 2014 we want
to have added two more countries.
What were the main obstacles you had to face
while entering the Polish market and how
long did the preparation take?
Beside the development of the technical solution for the Polish market, the challenge was the
localization of our service in all areas. We have
had to adapt our website, payment pages, administration area, user and merchant communication and ensure a high usability factor for the
user’s journey. Of course, this is an ongoing process. In February 2014 we will have a re-launch
of our Polish website with a brand new look.
What was the biggest surprise after launching
your services in Poland, comparing to the native German market?
Right from the start we were very impressed by
the high conversion rate of SOFORT Banking
in the checkout process. We believe we have
done a good job, but additionally the high acceptance and commonness of online banking
in Poland was definitely a significant factor for
the positive results and this was a big difference
to some other markets such as e.g. in South Europe.
What, in your opinion, is the key to success on
the Polish market?
We will keep working at ongoing improvements
e.g. in areas like localization, product and usability improvements and the better understanding
of the country, mentality, business behavior and
cultural differences. We have already built interfaces to the major shop systems in Poland and
we will continue adding new partners. Market
players gave us the feedback that we have stimulated the competition in the Polish payment
market and that we will help lower their costs
and get better solutions or innovative products.
In addition, the low cost for international transactions attracts merchants for SOFORT Banking. In comparison to most of other solutions,
SOFORT Banking does not offer higher rates for
international transactions such as for domestic
ones.
With the payment system SOFORT
Banking, SOFORT Überweisung Paycode and the online verification system
SOFORT Ident, SOFORT AG offers innovative products for a secure payment
of merchandise and digital goods on
the Internet. With its product SOFORT
Banking, the company based in Gauting near Munich is the market leader
amongst the direct transfer procedures
in Germany. Over 25,000 E-commerce
shops process more than two million
transactions with SOFORT Banking per
month. Apart from Germany, the service can also be used in Austria, Switzerland, Belgium, France, the Netherlands
and the United Kingdom, Italy, Spain
and Poland.
In hindsight, was it a good decision to enter
the Polish market and was the decision made
at the right time?
Yes, we are sure it was the right decision. At the
moment, Poland is the market with our highest growth rate and taking this into account we
would be happy to have entered earlier. Poland
has a really high potential for our product and
we are looking forward to make our contribution in the fast developing of the e-commerce
market in Poland.
Taking into account the strategic location of
Poland in Europe, was SOFORT AG’s investment into the Polish branch the first step
made towards the further expansion into the
Eastern European markets?
As explained, we want to establish a successful
pan-European e-commerce payment service,
therefore we will continue adding more countries. Planned are two more countries by the
end of 2014. We have two strategic hubs for the
future expansion to Eastern Europe: Poznan in
Poland and Vienna in Austria.
Partners
26.
27. I WANT
MORE GROWTH.
I WANT IT NOW.
SOFORT Banking – the international
payment system that benefits you.
> 25,000
online shops
> 12 million user
transaction fees
from 0,8%
> 100 shopsystem
interfaces
s:
ntact unal@
co
rnatio
les.inte rt.com
sa
sofo
YOUR ADVANTAGES WITH SOFORT.
SOFORT Banking is a direct payment system and works like an automated advanced payment
(by bank transfer) within seconds.
Use the advantages of the practical and secure SOFORT Banking as self-evident payment system in
your online shop. Your customers pay with their familiar online banking details without any additional
registration.
Available in 11 European countries (AT, BE, CH, DE, ES, FR, IT, HU, NL, PL, UK)
Currency conversion is possible with SOFORT XXL
www.sofort.com
28. eCOMMERCE
POLAND 2013
internet software house
5. Inventory management and logistics
5.1. Number of eCommerce
orders
More than 50% of the entities in Poland receive on average 100 orders per
month, and only 7.8% carry out more
than 1,000 orders. The share of stores
filling less than 100 orders per month
has declined in recent years from 54.9%
to 50.6%, and the share of stores carrying more than 1,000 orders has risen
by just 1.1%. The obtained data justifies the low number of people working
in Polish online stores - 73.4% of them
employ only 1 to 5 people.
Are you satisfied with the
courier services?
Figure 5.1.
5.2. Popular courier services
In Poland, as many as 86.4% of online
retailers are satisfied with the courier
services and only 3.9% are dissatisfied.
This result proves the competitiveness
of the market and the high level of customer service provided by the courier
companies.
The largest increase in the
Polish market share among
the courier services was
gained by DHL.
Figure 5.2.
Popularity of courier services in Poland
[%] 0
10
20
30
19,6
DHL
14,6
GLS
13,8
Siódemka
10,7
K-EX
86,4%
7,5
Opek
6,8
InPost
3,2
3,0
EMS Pocztex
no
Schenker
Raben
hard to say
50
29,8
DPD
9,6%
40
41,6
UPS
3,9%
yes
According to our study, UPS is the
leader (41.60%) of courier companies in
Poland. DPD ranks second (29.80%), followed by DHL (19.60%), which gained
the largest increase in the Polish market
share among the courier services in the
last 3 years. Such classification may suggest that e-stores pay significant attention to the quality of service, because
the three courier companies are far
from the cheapest ones on the market.
2,9
Spedpol
0,2
TNT
0,2
other
3,9
Partners
28.
29. eCOMMERCE
POLAND 2013
internet software house
6. Shopping cart software
From 2009 to 2012, we have observed
within the Polish eCommerce arena a
very dynamic shift in the market share
for SaaS platforms. Since 2009 their
popularity has basically doubled from
14.4% to 29.1%. SaaS solutions have enjoyed a great boon to their popularity
catapulting them into the leading position ahead of licensed solutions with
a score of 26.8% at that time. In recent
years popularity of licenced software
with self hosting has dropped by more
than 10%. This process is consistent
with global trends visible in developed
markets.
In terms of the IT solutions
popularity, the Polish
eCommerce follows global
trends.
Figure 6.1.
6.1. Technological solutions in
the Polish eCommerce
The leader of SaaS platforms in Poland
is the fast growing Shoper, which was
identified by more than 9.1% of respondents. The second most popular option
in terms of building online shops appeared to be using a free open source
license (28.1%). The clear leader in
open source software is, as every year,
osCommerce (12.0%), although its position may soon be threatened by the
more mature Presta Shop (9.1%). The
third most popular option for running a
web store is developing a custom solution (14,5%).
Only 15.9% of store owners decided to
purchase a licence to build their businesses. The leaders of the licenced software category are SOTE (6.1%), KQS.
Store (4.4%) and i-shop (1.6%).
Buying licensed software
has become a less popular
option for running an
online store.
eCommerce solutions used in Poland in 2009 and 2012
[%] 0
5
10
15
20
30
35
14,4
Software as a Service (SaaS)
29,1
21,3
free, Open Source Software (OSS)
28,1
26,8
licensed software, own hosting
15,9
19,6
dedicated software, comissioned
14,5
15,7
own, copyrighted software
hard to say
25
10,0
2,1
2,4
2009
2012
Partners
29.
30. eCOMMERCE
POLAND 2013
internet software house
Figure 6.2.
future
Type of software that is going to be used by Polish online retailers in the
12,6%
13,7%
SaaS
free, OSS
licenced, with own hosting
dedicated app, comissioned
own, copyrighted software
hard to say
8,4%
17,9%
17,9%
29,5%
Figure 6.3.
The most popular eCommerce solutions in Poland
[%] 0
5
10
15
13,8
dedicated software, commissioned
12,0
osCommerce
9,6
own, copyrighted software
9,1
Shoper
8,4
Presta Shop
6,1
SOTE
5,3
Click Shop
4,9
IAI-Shop
iStore
4,4
KQS.store
4,4
3,0
Redcart
2,0
Magento
SaaS
dedicated software, commissioned
free, Open Source
own, copyrighted software
licenced, with own hosting
Partners
30.
31. WANT TO EXPAND
YOUR eBUSINESS
TO THE POLISH MARKET?
internet software house
USE OUR
KNOW-HOW
TO DO IT RIGHT
Market
research
Complying with
the legal norms
Website
translation
& proofreading
Organization
of the branch
Liaising
with partners
Marketing & PR
We launched the Trusted Shops services
on the Polish market in 2010
SEE CASE STUDY
European leading seal of approval for online shops
DotcomRiver.com
info@dotcomriver.com
+48 71 7889510
Let’s talk in English,
German, Russian or Polish