What does Polish e-commerce look like? [REPORT 2018: MULTI CHALLENGES].

Shoper, the largest provider of online stores in Poland, takes a look at the condition of Polish e-commerce in the just-developed "Multi Challenges" report. The publication is based on a survey of 445 online store owners. The report is the 9th such summary of the year. This time its creators modified the formula of the survey, focusing on the issue of business expansion and ways for e-stores to grow.

- The past year has been marked by the enactment of RODO and the Sunday trading ban, the launch of Allegro Smart and the online debut of many global brands. However, none of these events turned online commerce upside down. The industry has clearly solidified and is growing, investing heavily in itself, writes Lukasz Kozlowski, Client Growth Expert of Shopera, in the introduction to the report. "The multitude of attempts made by our sellers to develop their stores shows that, contrary to appearances, in e-commerce you also have to commit and dedicate enough time to achieve sales success," the expert adds.

Polish e-commerce at the threshold of 2019.

An online store can conquer the market by operating from anywhere in the country, but most are concentrated in local e-commerce "basins," with almost half (48.1 percent) located in three provinces - Mazowieckie, Malopolskie and Slaskie. The largest number of e-tailers sells items from the "Home and Garden" (22.7 percent), "Clothing" (17.6 percent), and "Health and Beauty" (22.7 percent) categories.

Above all, however, most stores are selling at a profit. Nearly 3/4 of sellers report that their revenues in 2018 increased, for one in eight this jump exceeded 50 percent. As e-businesses grow, their importance to owners also increases. It turns out that the longer the seniority of a store, the more often it becomes the main or significant source of income for the owner - among stores of 5 years, it's already 39 percent. The ratio of those who run the business themselves to other sellers who hire employees is also reversing. 67 percent start selling online on their own, but already among stores with several years of seniority, as many as 76. percent of owners operate with a partner or hire employees.

- In the survey, nearly half of the retailers acknowledged that the e-commerce boom is behind their growth. Nevertheless, they are not resting on their laurels. Most of them have invested in developing their product offerings, advertising and building their own brand. This shows that Polish e-commerce is a place for ambitious players," notes Jacek Zientkiewicz, Brand Manager at Shoper.

Many paths to success

The report's creators looked at store owners' investments in their own business. They take a range of measures - from taking care of data security (36 percent bought an SSL certificate) and improving the layout (41 percent), to better positioning and adding new payment methods (both options - 29 percent each).

It has also become very important for stores to diversify their sales channels and reach customers. As many as 70 percent sell outside their store, often in several places, although most (57 percent) choose the Allegro website. The same is true of social media promotion. Facebook and Instagram get the most engagement from stores - 82 and 42 percent, respectively. Most owners, operating on these networks, also opt for paid promotion. The same is true for Google search - Adwords campaigns are chosen by even more sellers (41 percent) than positioning (36 percent).

Growth and development: what works and what doesn't?

Most owners (53 percent) say they handle marketing activities themselves. Just a year ago, the figure was 69 percent, which clearly indicates that more and more are entrusting campaign management to specialists. It can also be assumed that many of them have found out which activities are fruitful. Half indicate that the most important influence on sales is the very essence of business - a competitive offer and good service. The use of appropriate pricing and advertising campaigns, as well as social media presence, are also rated as effective. On the other hand, the largest number of retailers (55 percent), when asked about their plans for development in 2019, say that they would like to deal with the positioning of the store's website, and one in four intends to improve its appearance.

- Stores rely on proven solutions that bring quick and measurable results. Innovations such as PWAs for mobile sites, new marketing trends such as collaboration with influencers, or ambitious growth paths such as overseas expansion - receive moderate attention. However, more and more similar e-businesses are emerging, so long-term it is worth looking for something that stands out in the crowd. Eighteen percent of sellers said that a distinctive brand associated with quality sets them apart. I'm sure this number will be higher in the coming years," concludes Jacek Zientkiewicz.

The report is available for free download: REPORT.