A large number of sellers enter this platform
Compared with the fiercely competitive Western European and North American markets, more sellers have gradually shifted their focus to the Central and Eastern European markets with stable economic development and fast-growing e-commerce markets.
As of 2021, the cross-border e-commerce market in Central and Eastern Europe reached $109.2 billion, an increase of nearly 30%, and the growth rate far exceeds that of Western Europe. The e-commerce market in Central and Eastern Europe led by Poland is a market with huge business opportunities. The economic growth rate of Poland, the largest economy in Eastern Europe, is 2.5 times that of the EU average, and the number of Internet users is as high as 20 million. In the Czech Republic, Slovakia, Croatia and other regions, there are still many potential consumers. In other words, the Central and Eastern European market is the next focus for cross-border sellers.
Allegro platform monthly visits increase
Allegro is the most popular e-commerce platform in Poland, founded in 1999 by the Poles themselves. 75% of Poles know about the platform, and Allegro’s brand recognition in Poland is as high as 98%, so it is also known as the Polish version of eBay. Some believe that Allegro’s status in Poland is equivalent to that of Tmall and JD.com in China. Allegro currently holds 57% of the e-commerce retail market share in Poland, with 14 million monthly active users, 165 million monthly visits, and 2 billion page views. According to data, more than 85% of Poles give priority to Allegro when shopping online, and only 21% of people have used Amazon.
The quarterly report for the first quarter of 2023 shows that its GMV and profits are in a state of continuous growth. At the same time, the Allegro Poland station has achieved four consecutive quarters of growth in the number of active buyers, reaching 14.2 million. Poland has a population of 38 million, with a per capita purchasing power of $37,323, and the proportion of online shoppers exceeds 70%. There are currently only 135,000 Allegro sellers. Compared with other platforms, there is not much competition among sellers on the Allegro. This is a good opportunity for Chinese sellers. Sellers can try to enter this platform where there is not much competition.
Allegro develops Czech market
The Czech version of the Allegro listing platform allegro.cz. Sellers on allegro.pl do not need to register for the Czech version, they can sell across borders on one platform, and set different product prices in different markets. In the first day of operation of the Czech version allegro.cz, the Czech platform had about 100 million offers. Czechs started shopping online in 2013. Among the population of 10 million, 6 million people shop online, and the penetration rate of the Internet is as high as 88%. With the saturation of larger markets, it is a correct decision for platforms and sellers to develop into small and medium markets such as the Czech Republic. The Central and Eastern European market is their next plan, and Allegro is a very effective platform for them to develop these markets.
The rise of cross-border e-commerce in Central and Eastern Europe
Cross-border e-commerce is not only developing rapidly in Poland and the Czech Republic, but also has great room for development in Slovakia, Hungary and other regions. Taking Slovakia as an example, there are currently 3.5 million consumers who often shop online, and the e-commerce market penetration rate is as high as 75%. In the Central and Eastern European market, Allegro, with hundreds of millions of users, has been deeply involved in the Polish market for more than 20 years, and its brand awareness and customer loyalty far exceed the same level in the industry.
In order to help Chinese sellers, the platform has also given a lot of policy support. It not only provides free seller training, professional Chinese support and Chinese help center for Chinese sellers, but also simplifies the entry process for Chinese sellers. Chinese sellers do not need to provide translated documents to enter Allegro, and can directly upload the original Chinese documents. At the same time, the platform also provides preferential policies such as fee reductions for new sellers. In new markets such as the Czech Republic, the platform has also prepared related specialized solutions.
After sellers settle in Allegro, they can gradually develop Czech Republic, Slovakia and other regions, with about 70 million potential customers. The opening of a new market also means more potential and opportunities. This kind of market is suitable for cross-border sellers to cultivate their own brands and attract loyal customers. For sellers, joining Allegro and developing in the Central and Eastern European market is a new opportunity.
