Poland, with its steadily growing number of internet users and rapidly advancing technological infrastructure, has become one of the most promising e-commerce markets in Central and Eastern Europe. Consumers are increasingly choosing to shop online, and their expectations are rising. As a result, potential entrepreneurs must assess whether they’re prepared to meet the demands of this market.
In this post, we’ll take a closer look at the advantages and challenges of running an online store in Poland, compare them with available alternatives, and share practical tips to help you make an informed decision.
Overview of the Polish e-commerce market
The Polish e-commerce market is experiencing rapid growth. In 2023, its value reached approximately $22 billion, and projections suggest it will grow to $31 billion by 2027. Poland has over 30 million internet users, 77% of whom regularly shop online. E-commerce currently accounts for about 13% of total retail sales in Poland, and this share is expected to increase to 20% by 2026.
Polish consumers most frequently purchase clothing, electronics, and cosmetics online, with these three categories generating more than half of the e-commerce market’s value. The most popular payment methods include BLIK, fast bank transfers, and credit cards:
- BLIK: The leading payment method, used by 76% of Polish online shoppers. This system enables transactions via a unique six-digit code generated in a banking app.
- Fast bank transfers (pay-by-link): Preferred by 27% of users for their convenience and speed.
- Credit cards: Favoured by 29% of consumers, though their popularity has slightly declined compared to previous years.
For more information on Poland’s most popular payment methods, visit this link.
Advantages of owning an online store in Poland
Starting your own online store offers numerous benefits that can outweigh the choice of using marketplace platforms. Having your own digital space provides unique opportunities for achieving long-term business success. Here are the main advantages:
Full Control
Owning an online store allows complete control over the website’s design, marketing strategy, and customer relationships. You can tailor the store’s design to your brand, implement custom promotional and marketing strategies, and personalise communication with customers to enhance engagement and satisfaction.
Brand Building
Creating and developing your own brand is crucial for standing out from the competition. An online store enables you to establish a unique brand identity, contributing to customer loyalty. You can also control how your brand is perceived and create loyalty programs to boost customer retention.
Higher Profit Margins
Running your own store eliminates the need to pay commissions to intermediaries, allowing for higher profit margins.
Challenges of running an online store in Poland
While owning an online store offers significant benefits, it also comes with several challenges that must be considered. Here are the key hurdles:
Initial costs
Starting an online business requires investments in website design, hosting, and payment integrations. This often necessitates hiring specialists or possessing the technical skills to manage these aspects, which adds to the costs.
Marketing and visibility
To attract customers, you’ll need to invest in SEO, advertising campaigns, and social media activity. The e-commerce market is highly competitive, so effective marketing efforts are essential.
Logistics and customer service
Managing inventory, shipping products, and handling returns can be complex and time-consuming, especially for international sellers. This requires the right tools and processes, as well as hiring additional staff, which increases operational costs.
Competition from Allegro
As the leading e-commerce platform in Poland, Allegro attracts thousands of sellers, offering a wide variety of products in one place. Consumers benefit from easy access to diverse options, price comparisons, and better deals, making it even more challenging for individual online stores to compete.
Considering these challenges is crucial for planning and effectively managing your business to avoid potential pitfalls.
Alternatives to Owning an Online Store in Poland
In Poland, numerous popular marketplace platforms attract consumers with a wide range of available products. These platforms allow entrepreneurs to sell their goods without the need to create and maintain their own website. This lets business owners focus on production and sales, leaving technical and logistical aspects to platform operators. Some of the key marketplaces include:
- Allegro: The market leader, offering a broad product range and various sales options. Allegro ensures high traffic and provides tools for promotions and advertising.
- Zalando: Specialising in fashion, it attracts customers looking for branded clothing and accessories.
- Amazon: A global platform offering extensive reach and access to international markets. While Amazon dominates Western Europe, Polish consumers tend to prefer local alternatives like Allegro.
- AliExpress: Known for low prices and a vast product selection, it appeals to bargain hunters with frequent promotions.
Benefits of choosing marketplace platforms in Poland
Selling on Polish marketplaces offers several advantages compared to running your own online store:
- Lower initial costs: Marketplaces provide the necessary infrastructure, significantly reducing the cost of entering the market. Sellers don’t need to invest in website development, hosting, or security.
- Immediate customer access: Platforms like Allegro provide instant access to a large customer base, increasing visibility without significant marketing expenditure.
- Logistical support: Many marketplaces handle shipping, returns, and customer service, simplifying operations for sellers.
- Integration with the local market: Platforms offer regional marketing campaigns and tailored offers, making it easier to connect with local customers and boost sales.
- Ease of use: Marketplaces offer intuitive tools and technical support, saving time and reducing the need for advanced technical knowledge.
Moreover, Allegro is particularly welcoming to international sellers. Its robust infrastructure, support for cross-border transactions, and large customer base make it an attractive option for foreign businesses looking to expand into the Polish market. For more information on the benefits of entering the Polish market, check out this blog post.
Is it worth starting an online store in Poland? A Summary
The Polish e-commerce market presents immense opportunities for entrepreneurs but also comes with significant challenges. Running your own online store ensures full control over your brand and higher profit margins but requires substantial investments and sophisticated logistics management. Alternatively, selling on marketplaces like Allegro reduces initial costs, provides instant customer access, and offers logistical support.
Allegro is especially appealing for international sellers, making it a highly attractive option for those considering expansion into Poland.
