- More than 3000 online stores from Czechia and Slovakia have already expanded to Hungary. Czech e-commerce stores are looking to expand due to market saturation at home. - Reasons for expanding include larger players entering the market, fewer logistical barriers in neighboring countries, and fast growing potential in Central and Eastern Europe. - When selecting new markets, companies should consider population size, earnings, currency stability, level of competitors, distance, customer trust, costs of expansion and compliance with local legislation and language. The best markets for expansion are seen as countries like Romania, Croatia, and Slovenia.

3. ●
Naše služby

4. KTO SME?

5. KTO SME?
More than 3000 online stores from Czechia and
Slovakia are already localized in Hungary.

6. Czech online stores expands
- Czech e-commerce market is one of the most overloaded markets in EU
- More than 40k online stores
- A lot of competitors
- Great experiences
- High quality services
- Strong logistic partners (Csomagkuldo.hu, GLS, DPD, PPL…)
Czech, Slovak and Polish online stores are focusing on expansion mostly to Hungary and
Romania.
In 2019 more than 20% of Czech online stores want to invest more money in expansion
(ceska-ecommerce.cz)

7. Reasons for expansion
- big players are coming, e-commerce world is rapidly globalizing (Amazon, Zalando,
ASOS, ebay..)
- smaller logistics barriers (better prices, delivery time)
- global payment methods
- growing local competition
- limiting local market opportunities (little potential for further growth)
- fast growing markets with big potential (f.e. CEE – RO/BG/HR/SLO)
- unique products
- margin

8. 33% of online customers in EU bought from abroad
Why ?
- 40% better price
- 39% product availability only internationally
- 33% unique products
- 20% better delivery options
(Enet.hu; ecommerce-europe.eu)
In 2015 around 1,5 million of Hungarian customers bought online abroad
In 2017 it was more than 2,7 million of Hungarian customers buying online abroad.
Total value of abroad purchases in 2017 was aprox. 1,28 billion euros.

9. Expansion of Hungarian online stores
Hungarian online stores should expand. Why?
The benefts comparing to Czech and Slovak online stores
- close to fast growing e-commerce markets:
Romania, Croatia, Serbia, Slovenia
- The cheapest and fastest delivery options
Don`t wait and catch your expansion train!

10. How to handle expansion?
Market selection
Localization
Online store running abroad

11. Market selection
Follow the news:
Local:
International:

12. How to choose?
– Mark your strongest and weakest indicators (SWOT Analysis)
(competitors, marketsize, logistic, locallaw, local VAT, marketing, margin….)
– Check the local price comparison sites
(Arukereso.hu, Compari.ro, Ceneo.pl, Idealo.de, Emag.hu/.pl/.ro, Pricerunner.uk, Amazon, Ebay, Emag,…)
– Mystery shopping
– Free online tools: KW Planner , Google Trends, Market Finder,
Similar Web
Market selection

13. West vs East
West
+ population
+ earnings
+ currency
- competitors
- distance
- trust
- costs
- Costs return
- legislation
- language
- diffculty
East
+ fast growin markets
+ competitors
+ costs
+ trust
+ distance
+ costs return
+ legislation
+ diffculty
- currency
- language

14. Expandeco recommendations
West
Local company
Trustmarks
Terms and conditions
Perfect translations
Perfect localization
Bank account in €
Cheapest is not always the best
PayPal, Sofort
Express delivery
East
Perfect translations
Customer support in local language
Local bank account
Local price comparators
Social media
Local address
Localization
Romania, Croatia, Slovenia, Slovakia,

15. Basic numbers
SL HR SK RO PL CZ DE AT
No. of
online
stores
4 k ? 11 k 8 k 30 k 42 k 175
k
9 k
E-commerce
Turnover
300
mil.
EUR
450 mil.
EUR
937
mil. EUR
2,2 bln.
EUR
9,5 bln.
EUR
4.5 bln.
EUR
58,4
bln.
EUR
3,2
bln.
EUR
Growth 10-12% 18% 15 % 30 - 35 % 8 – 10 % 18 % 10,9 % 9,2 %
Total retail
share
3% 3% 6 % 4 % 9 % 10,5 % 7,3 % 4,3 %
Internetusers 72% 78% 87 % 60 % 75 % 89 % 90 % 83,6 %
Population 2 mil. 4 mil. 5 mil. 19,7 mil. 38 mil. 10,5
mil.
81,8
mil.
8,73
mil.
VAT 22% 25% 20% 19% 23% 21% 19% 20%
source: ecommerce-
europe.com

16. VAT Rates
Country Standard
%
Reduced1
%
Reduced2
%
SK 20 10 -
CZ 21 15 10
PL 23 8 5
HU 27 18 5
RO 19 9 5
BG 20 9 -
CR 25 13 5
SL 22 9,5 -
AT 20 13 10
DE 19 7 -
ES 21 10 4
UK 20 5 -
FR 20 10 5,5
source:
Alavara.com

17. Basic benefts
Croatia: Less distance, Less VAT, 76% of customers are buying from abroad, weak
local competitors
Expandeco`s opinion: Online Customers in Croatia have strong trust to foreign online stores
Slovenia: Less distance, Less VAT, E-commerce market at beginning
Expandeco`s opinion: in the next few years we can expect fast development of local e-commerce
market
Romania: Less distance, Less VAT, The fastest growing market in EU, EMAG,
Compari.ro.
Expandeco`s opinion: best market for expansion

18. How to handle expansion?
Logistic
Online store system
Local VAT and accounting
Marketing
Right e-shop name
Local address
Translations
Customer support
Local bank account

19. Logistic
99% ofourclientsareshippinggoodsfromtheirhome
warehouse
- Ask your current partner
- Ask other logistic companies
- Fulfllment

20. Online store system / administration
- What options does your current solution offer you?
- Is it prepared for expansion? (different VAT, curency,
invoices)
- What are the diffculties and cost of new
implementations?

21. Right name of your domain
How to choose?
- think in advance
- in local language
- multilingual
- simply is the best
Dognet.sk edonget.hu

22. Local address and local bank account
Why?
Local address: trust, psychology, local return
point, returns management
Local bank account: trust, currency, COD,
refunds, another payment method

23. Translations
The most important are translations!
- Do your own research of agencies and freelancer offers
- Do the testing translations
- Use profesional agencies for checking testing translation
- Profesional translations from 12 – 20€ per normpage

24. Local language
Local phone number
Own employees
Freelancers – Womensatmathernityleave–pros/cons
Evaluate the work and level of customer support – use helpdesk
system
Outsourcing – whyandwhenitisuseful?
Customer support

25. - The obligation to register to pay VAT in another Member State after
turnover limit
- VAT registration duty comes from the Sixth Council Directive no.
77/388 / EEC
- May change in upcoming years
- Costs
300 – 1000 € - registration
150 – 600 € - monthly / accountingdependsononlinestoreturnover
VAT duties

26. zdroj:
Alavara.com

27. Price comparators
www.expandeco.com

28. M arketing strategy
– Multichannel strategy
– What you can do by yourselves – GoogleAds,
Social media
– What is better to do with agency or native
people: KW Analysis, Inluencers, Affliate
marketing, Offline media
– What works at home market doesn´t have to work
abroad
–

29. Myths associated with expansion/FAQ
Advice: You can make it on your own. Use free tools from Google
(MF,GT,KW planner), or even paid tools (MarketingMiner), check local
comparision sites/marketplaces, combine it with local/native people
to check main compatitors. That`s it.
Myth: I have to pay for external and extensive analysis.

30. Myths associated with expansion/FAQ
Advice: It depends on whether you want to enter e.g. German market
or Romanian market. In general, no you haven`t. You can sell online
abroad in the long run, e.g. as Hungarian company. BUT you have to
register local VAT
Myth: I have to set up a local company.

31. Myths associated with expansion/FAQ
Advice: Just translate your current GTC- that's the most pragmatic
way. Yeah, there is a decision of the European Court of Justice...
Myth: I need local genereal terms and conditions, even though I sell as a foreign company.

32. Myths associated with expansion/FAQ
Advice: Think about SEO. Choose local people, with basic knowledge
of SEO and daily contact with language. Do corrections.
Myth: It would be the best if a professional translator translates my e-shop.

33. Myths associated with expansion/FAQ
Advice: Think about outsourcing services. In the beginning cost are
much lower.
Myth: I need to hire local support team from beginning.

34. Myths associated with expansion/FAQ
Advice: SRSLY?! Great localization (using local payments, couriers,
knowing your local customer, use local marketing strategy etc.) is the
key to success.
Myth: Local strategy works globally.