How to build a competitive advantage on the Polish e-commerce market?

The e-commerce market in Poland is not just growing, it’s skyrocketing. In 2023, its value soared to over PLN 170 billion, and the forecasts for the coming years are even more promising. This presents a wealth of opportunities for businesses that can adapt to these dynamic trends and outpace the competition and gain a competitive advantage in e-commerce.

However, it’s crucial to be aware that the competition is fierce. Millions of online stores are vying for customers’ attention, and the margin between success and failure is becoming increasingly slim. To not just survive but thrive in this demanding landscape, strategic and proactive action is a must.

The data doesn’t lie:

• 80% of Poles shop online at least once a month.
• The number of online stores in Poland has increased by 20% over the last year.
• 53% of consumers choose an online store based on the product price.
• Fast and efficient delivery is crucial for 90% of buyers.

Is your business ready for these challenges? Do you have a strategy that will allow you to stand out from the competition and build a lasting advantage in the market? If not, it’s time to act!

In this article, we will present proven ways to gain a competitive advantage in the Polish e-commerce market. We will explain how to understand the market and customer needs, optimize business processes, and leverage the power of proven partners such as OEX Fulfilio.

Understanding the market and competition

To build a competitive advantage in e-commerce, you must thoroughly understand your market. This means examining market trends, consumer behavior, competitor strategies, and the factors influencing success in your industry.

Ways to collect information about the market and competition

Conducting market research is a key element in developing your business. Of course, you can outsource this task to a specialized external or consulting company, but if you want to have a good understanding of your client and the area in which you operate, a good strategy is to conduct surveys and interviews with potential clients and competing companies and create focus groups with clients. This will teach you about their needs, expectations, and preferences.

E-commerce owners often act by intuition, and the key to success is collecting reliable information directly from the people you work with daily and for whom your business was created.

Another way is to conduct an in-depth analysis of the competition. By analyzing real market competitors’ websites, marketing strategies, product offers, and prices, you will gain a powerful source of knowledge about their activities. This knowledge will allow you to audit your own activities, compare development opportunities, and inspire you to take action.

A third good step in examining your position in the market is to monitor trends. How to go about it? First, it is worth subscribing to RSS channels and newsletters of widely read industry magazines or consulting companies to keep up with industry publications. A good step is to participate in conferences and webinars, during which you can ask questions, listen to experts’ opinions, and expand your network of business contacts through networking.

Also, use analytical tools to draw conclusions about your online activity. Data is collected automatically, but its analysis is up to you and your advisory team. Commitment and consistency in these activities lead to satisfying business results for a competitive advantage in e-commerce.

Good practices in market and competition analysis

Okay, but where to start? First, create your customer personas or detailed profiles of your ideal customers. Based on the collected data, you know who buys from you. It is worth conducting solid research that selects several people. The next step is to use an empathy map, which will verify the most important aspects of who your customers are, what they are looking for, what their needs are, and what annoys them or makes them willingly reach for your service or product.

Then, by collecting such information, you can name your potential customers and create an appropriate offer that fully meets their needs and expectations.

Regularly monitoring your competition is a strategy that can give you a significant edge and gain a competitive advantage in e-commerce. By establishing a monitoring system, you can stay updated on your competitors’ activities, such as their webinars, mailing lists, and media mentions. This proactive approach allows you to stay one step ahead in your business activities and offerings.

Knowing and using analytical tools is essential to building your competitive advantage. You probably know and use Google Analytics, but it is also worth using the built-in business managers on your social media profiles, Brand24, or CRM. Thanks to this, you can also check which customers come to you, what they buy, and who visits your website with inquiries.

One of the most valuable aspects of using analytical tools is gaining insights into customer behavior. These tools not only track website traffic but also provide detailed information about your customers’ purchasing process, shopping cart abandonment rates, most viewed products, and the content that interests them the most. This knowledge is key to improving your market and competition analysis strategies.

Example from the market

Allegro is one of the largest Polish marketplaces, famous for its well-designed processes and strategies. Allegro regularly conducts market research to understand the needs of its customers. The platform also has advanced analytical tools that track website traffic and optimize conversions.

In addition to the above activities, it is also worth:

• Attend industry fairs and conferences.
  • Digital Marketing Forum: https://medium.com/@b2blgs.com/top-21-digital-marketing-forums-in-2024-d1d575cf4df0
  • E-commerce Polska Summit: https://www.trade.gov.pl/en/news/e-commerce-in-poland/
  • Arena eCommerce: https://www.arenacommerce.com/
  • Warsaw Fashion Week: https://www.instagram.com/fashionweekwarsaw/
  • Internet Retail Conference: https://retailinnovationconference.com/irce/
• Establish contacts with other companies in the industry.
  • Read blogs and expert articles
  • Use reports and market analyzes.
    • Report “E-commerce in Poland 2023”: https://eizba.pl/wp-content/uploads/2023/06/Raport-e-Izby-Omni-commerce-Kupuje-wygod-2023-short-2.pdf
    • “Polish e-commerce trends 2024” study: https://rocketjobs.pl/
    • Report “The future of Polish e-commerce”: https://pitd.org.pl/news/e-commerce-2021-ewolucja-czy-rewolucja/
    • Analysis “Polish e-commerce startups”: https://startuppoland.org/raporty/
    • Study “Polish trends in online payments”: https://www.google.pl/?hl=pl

Remember that these are just a few examples. There are many other valuable sources of information about the Polish e-commerce market. Monitor new publications and reports regularly to stay current with the latest trends. Thus it might be much easier to win a competitive advantage in e-commerce.

In addition to the sources mentioned above, it is also worth following the profiles of e-commerce experts on social media.

Collecting and analyzing information from various sources can build comprehensive knowledge about the Polish e-commerce market and develop an effective business strategy.

Use the list of tasks and questions below to help you verify your strategy in identifying trends and the needs of your customers and the market.

 

Focus on customer needs in the digital era

In the ever-evolving landscape of e-commerce, customer needs are transforming at an unprecedented pace. Consumers now demand a diverse product range, competitive prices, personalized shopping experiences, swift and efficient delivery, and top-notch customer service.

The data doesn’t lie, as 84% ​​of Polish consumers give up on a purchase if the purchasing process is too complicated or time-consuming. As many as 75% of consumers expect online stores to remember their purchase history and preferences. However, 67% of consumers are willing to pay more for products from companies that care about the protection of their data and privacy.

Getting to know the customer

Start by getting to know your customer. To make this task easier, start using analytical tools. It’s also worth learning about the latest market research and following industry leaders on social media to create detailed profiles of your ideal customers. Understand their needs, expectations, preferences, and lifestyle. This could elevate your competitive advantage in e-commerce.

Don’t overlook the value of learning from your competitors and market leaders. Their experiences can provide valuable insights and help you stay competitive in your industry.

• Zalando uses artificial intelligence to analyze its customers’ purchase history and preferences to create personalized profiles. This allows the platform to offer customers product recommendations that perfectly suit their needs.
• Sephora regularly conducts market research to understand cosmetics and beauty care trends. Based on this research, the company creates personalized offers and promotions for its customers.
• Allegro monitors social media to track customers’ opinions about products and services. This allows the company to respond quickly to problems and improve its offerings.

Creating a personalized experience

Creating a personalized experience is crucial in attracting a potential customer’s attention and getting a competitive advantage in e-commerce. What can you do? Offer your customers product recommendations based on their purchasing history, preferences, and lifestyle. Use marketing automation to send personalized emails and offers.

• Nike offers its customers the opportunity to create personalized sports shoes. Customers can choose colors, materials, and accessories to create shoes that match their needs and style perfectly.
• Spotify creates personalized music playlists for its users based on their listening history and preferences, allowing users to discover new music they like.
• Netflix recommends movies and series to its users based on their viewing history. Thanks to this, users can save time and watch movies that they will like.

Excellent customer service

Remember that your business is not only based on well-coordinated delivery and marketing. Customers increasingly pay attention to how they are served. So, provide your customers with quick and easy access to support, e.g., via live chat, hotline, or e-mail. Be empathetic, polite, and helpful in solving problems.

It is worth taking a look at the activities, including:

• IKEA offers its customers the opportunity to contact a consultant by phone who will help them choose furniture and interior design. This allows customers to feel confident and safe when shopping.
• Apple offers its customers technical support online and in stores. This allows customers to resolve issues with their devices quickly and easily.
• com offers its customers 24/7 customer support in multiple languages. This allows customers to get help at any time and anywhere.

Ensuring data security and privacy

Emphasize the paramount importance of high data security standards and the necessity to transparently inform your customers about their personal data usage. In the digital era, where online purchases are prevalent, data security is not just a requirement, but a crucial aspect that can make or break your business.

Examples of good practices from the market:

• PKO BP Bank applies high data security standards and protects its customers’ personal data. The bank also regularly informs its customers about how it uses their data.
• Allegro encrypts its customers’ data and applies strict data protection procedures. The company regularly conducts security audits and trains employees in personal data protection.
• Google offers its users several privacy control tools. Users can, among others, decide what data Google collects and how it uses it.

Underline the significant role of customer-centricity in the digital era, not just as a matter of business ethics but as a critical driver of success in e-commerce. Companies prioritizing understanding and meeting their customers’ needs are more likely to build loyalty, boost sales, and secure long-term success.

Remember that the customer is the most crucial person in your business. Prioritizing their needs builds lasting relationships and lays the foundation for long-term success and win a competitive advantage in e-commerce.

Collaboration with business and marketing experts

In the dynamic world of e-commerce, cooperation with experienced experts may be the key to success. It is estimated that 78% of e-commerce companies cooperating with experts record increased sales. This could be an excellent opportunity for your business.

Experts can help companies with various aspects of business, including developing an e-commerce strategy. Experienced specialists will help you create a business development plan tailored to your business goals and the specific nature of your industry.

Also, store optimization should be taken care of, not only regarding search engines and conversions. Review your UI and UX and see what you can improve to make your customers happy with their shopping experience. This will make your store more visible to potential customers and generate more sales.

Therefore, remember about marketing and advertising. Experienced specialists will help you create and implement an effective marketing campaign to reach your target group and increase sales.

Again, a good example is the Allegro Group, which regularly cooperates with experts from various fields to improve its e-commerce platforms and offer its customers the best possible shopping experience. Thanks to this cooperation, Allegro can, among other things, optimize websites for search engines, create effective marketing campaigns, and provide high-quality customer service.

Logistics and fulfillment

Since your business is based on shipping products to customers, remember that companies such as OEX Fulfilio can help you automate logistics and fulfillment processes, ensuring fast and efficient delivery of orders to your customers.

Experienced experts will help you create and implement an effective customer service strategy to ensure a positive shopping experience, thus gain a competitive advantage in e-commerce.

A good logistics partner that also has specialized fulfillment services for e-commerce can provide support in the following areas:

1. Automation of logistics processes: OEX Fulfilio offers a wide range of automated logistics services, such as warehousing, packaging, shipping, and returns. This allows e-commerce companies to save time and money and increase efficiency.
2. Scalability: OEX Fulfilio can adapt its services to the needs of e-commerce companies of all sizes, from small startups to large corporations. This allows e-commerce companies to scale their operations as they grow quickly.
3. Experience: OEX Fulfilio has many years of experience in the e-commerce industry and offers its customers the highest quality services. The company employs qualified employees who are constantly trained and updated with the latest trends.
4. Technology: OEX Fulfilio uses the latest technologies to provide its customers with the best possible services. The company has a modern warehouse and shipment tracking systems that enable e-commerce companies to track their orders in real-time.

Tangible benefits from cooperation with a logistics and fulfillment partner

Increasing sales is critical to cooperation between e-commerce and a logistics and fulfillment partner. You will achieve this thanks to the fast and efficient delivery of orders. Your customers will be encouraged to make repeat purchases, and you will sell more.

A comprehensive approach to shipping is supported by correct and well-functioning customer service. This positive shopping experience can build customer loyalty and reduce returns.

Let’s remember the budget. By cooperating with a logistics partner, you primarily save time and money. This happens through the automation of logistics processes. The logistics partner takes care of the entire preparation, packaging, shipping, and delivery of parcels, and you can invest the time and budget saved in developing other areas of your business.

Summary: How to build a competitive advantage in the Polish e-commerce market

The e-commerce market in Poland is moving at breakneck speed, and the competition is becoming increasingly fierce. To succeed in this dynamic environment, companies must develop a competitive advantage.

In-depth knowledge of the market is the key to success. To develop an accurate business strategy, a thorough analysis of the trends and preferences of Polish e-commerce consumers is necessary. Focusing on customer needs is another pillar of success in winning the competitive advantage in e-commerce. By putting customer needs first, e-commerce companies build loyalty and increase sales.

Cooperation with experienced partners can prove invaluable. Skilled experts can help e-commerce companies in various aspects of the business, such as logistics, marketing, and customer service. The use of modern technologies is another critical factor. Modern technological solutions allow e-commerce companies to increase efficiency, reduce costs, and significantly improve the quality of customer service.

Flexibility and adaptation to changes are necessary to succeed in the dynamically developing e-commerce market. Companies must be ready to adapt to new trends and technologies.

Building a competitive advantage is a long-term process that requires commitment and hard work. Only companies that consistently implement these principles can count on success in Polish e-commerce.

Success in Polish e-commerce is within reach for companies ready for commitment, hard work, and consistently building a competitive advantage.