Why is it worth your while to run a store on Allegro?
Allegro is the most popular marketplace in Poland. At first, it was mainly used by private individuals. Later on, major brands from all industries started to list their auctions. In this article, we have compiled the most important information regarding sales on this site:
- Why is setting up a store on Allegro beneficial for your business
- Different promotion opportunities offered by Allegro
- What sells best on Allegro
- What are the benefits of e-commerce logistics outsourcing
- Who can benefit from setting up a store on Allegro
Why is setting up a store on Allegro beneficial for your business?
One of the biggest benefits of setting up a store on Allegro is the lack of high entry costs. It is worth noting that the site is not based on a commission system. It means that you only pay for maintaining your offers and possible marketing activities. The next advantage consists in the fact that this platform has access to thousands of potential customers. Annual reports confirm that Allegro is the most popular shopping site in Poland used monthly by over 20 million customers[1]. The site is easy to use, and both start-ups and global brands can see its clear benefits.
Spontaneous awareness of sites in e-commerce. Source: raport E-commerce w Polsce 2022, Gemius PBI IAB: https://www.iab.org.pl/aktualnosci/raport-e-commerce-2022-juz-dostepny/
Different promotion opportunities offered by Allegro
Allegro vendors can have their offers promoted for a suitable fee. Such factors as the right budget and marketing tool selection often determine the account success and its volume of sales. A mere presence on this marketplace is not enough to achieve sales success, so advertising is essential to stand out from millions of listings. The Allegro Ads network offers several promotion opportunities:
- Sponsored listings: make it possible to present a listed offer, e.g. as the top one on buyer’s search result list;
- Graphic advertising: particularly beneficial for companies aiming mostly at enhancing their brand awareness on Allegro. It makes it possible to display an ad on the homepage and e.g. above the search result list[1].
- Advertising network: a possibility to present sponsored listings on external sites, i.e. Facebook and Google. Broadcasting in Google Ads enables companies to reach new buyers, and Facebook Ads makes it possible to reach out to users who have seen an offer, but have not made a purchase[2].
All sponsored listings are contextually matched to a query entered into the Allegro search engine by a user[3].
Other options available to Allegro sellers include joining various internal programmes aimed at driving their sales volumes: Allegro Smart, Monety Allegro (Allegro Coins) and Strefa Marek (Brand Zone). What conditions should a seller meet and how can they benefit from the above-mentioned options? In order for an offer to gain the Allegro Smart status, a seller’s account must meet three conditions:
- high sales quality, i.e. at least 5 positive reviews during the last 12 months and the referral rate equal to at least 98% or the Super Sprzedawca (Super Seller) status;
- shipment methods: a vendor provides at least one of the methods in their listings: Allegro Kurier DPD; Allegro Kurier UPS; Allegro Pocztex Kurier 48 or Allegro przesyłka polecona (registered delivery);
- product return conditions: a vendor has included necessary product return conditions in their listings.
The Smart status significantly enhances your account credibility, and statistics show that customers more often opt for buying products listed on such accounts. Importantly, obtaining this status is completely free of charge. All you have to do is to ensure that an account meets the conditions described.
Another option available on Allegro is the Monety Allegro (Allegro Coins) functionality. These are virtual points collected by buyers when shopping on the platform. The points enable them to pays less on subsequent purchases. For every 1 coin, there is a PLN 1 saving on such purchases. The data published by Allegro shows that the frequency of such listing selection is 18% higher than in the case of other listings[1]. Sellers appreciate the fact that they pay for the Coins only if they sell a product included in such a featured listing. If a customer withdraws from the transaction, they is reimbursed for the costs incurred.
Strefa marek (Brand Zone) is another method to highlight your listing. What is it and what does it consist in? It is an Allegro section where established brands present only new, original products that are offered directly by a brand owner or authorised distributor. The Allegro Brand Zone also facilitates promoting products offered by manufacturers and authorised retailers. Its main advantages include the opportunity to enhance credibility, as well as additional marketing and promotional options. It allows for full integration with the seller’s social media accounts, and thus combining marketing campaigns with those conducted on Facebook or Instagram. In addition, the Zone makes it possible to take advantage of activities organised by Allegro itself. They consist in reducing the business running costs depending on achievement of individually set objectives. The Zone is aimed at companies intending to invest in marketing and development of their Allegro accounts. The minimum monthly cost of running an account amounts to PLN 3,000.
What sells best on Allegro?
E-commerce has been constantly evolving. According to the „E-commerce w Polsce 2022” (E-commerce in Poland 2022) report published by Gemius PBI, the percentage of Internet users declaring that they do their shopping on-line is currently 77%. Clothes and all related accessories are at the top of the list of products most frequently purchased on-line. This category is followed by footwear, cosmetics, perfumes and household goods. The survey indicates that men’s shopping preferences are slightly more technology-oriented than women’s, as they are more likely to buy games, computer equipment, white goods and TV/radio equipment. The products most frequently ordered for children include shoes and toys[1] Invariably, some of the most popular products include seasonal items such as holiday products (suitcases, towels, water sports equipment), inexpensive footwear, seasonal clothing, souvenirs, special-occasion products (Halloween decorations, fireworks, occasional gifts), candles and artificial flowers, winter sports equipment or souvenirs.
On-line shoppers. Source: raport E-commerce w Polsce 2022, Gemius PBI IAB: https://www.iab.org.pl/aktualnosci/raport-e-commerce-2022-juz-dostepny/
What do consumers pay special attention to while doing e-shopping?
The most important factors driving people to shop on-line are: around-the-clock availability and possibility to do shopping without leaving home. The third factor most commonly mentioned by respondents are prices lower than in brick-and-mortar shops. The importance of the financial factor is likely to increase, especially in the current inflation-related situation.
Factors motivating consumers to shop on-line. Source: raport E-commerce w Polsce 2022, Gemius PBI IAB: https://www.iab.org.pl/aktualnosci/raport-e-commerce-2022-juz-dostepny/
Problems encountered when shopping on-line, indicated most frequently by all shopper groups, include three areas:
- long delivery times;
- high delivery costs;
- intrusive advertising of previously viewed products.
Reports from previous years confirm that these trends are fairly constant, regardless of economic conditions or pandemic-related circumstances. Interestingly, the first two complaints are closely linked to logistical issues.
Factors that would potentially encourage users to do their shopping on-line more frequently, and problems encountered. Source: raport E-commerce w Polsce 2022, Gemius PBI IAB: https://www.iab.org.pl/aktualnosci/raport-e-commerce-2022-juz-dostepny/
What are the benefits of e-commerce logistics outsourcing?
Ever increasing consumer expectations and rising standards set by marketplace platforms mean that e-tailers increasingly opt for outsourcing their logistics operations to specialised providers, i.e. fulfillment service providers. Most of all, entities operating in the 3PL (third party logistics) industry demonstrate a significant technological advantage. Professional management of e-commerce warehousing and shipping processes has long since forced them to make necessary investments in latest technologies (WMS systems, warehouse equipment, integrations with marketplace platforms and couriers), as well as in professional personnel. A warehouse team working in a fulfilment service provider’s logistics centre is usually quite large, which results in the fact that temporary increase in capacity of several tens of % for a single project is no problem for them. The OEX Fulfilio Logistics Centre is operated by over 200 warehousemen and customer service staff. The situation is similar as far as the warehouse space is concerned, as dynamic allocation of shelves and pallet spaces to goods and contractors ensures flexible space management and rapid allocation of resources in response to the logistics centre individual customers’ needs. Logistics outsourcing for e-commerce reduces the number and severity of errors at each stage of logistic processes in on-line sales. It also ensures faster deliveries at more attractive prices. Another benefit of this solution is the improvement of company management’s comfort, as they may focus on increasing sales and its growth. Moreover, outsourcing exerts positive impact on customer experience related to on-line shopping[1].
Who can benefit from setting up a store on Allegro?
Setting up a store on Allegro is an excellent solution for anyone who wants to find out whether it is profitable for them to sell specific products on-line. They do not need to create their own on-line shop for this purpose. By using the marketplace’s resources, both technological and those related to a huge number of users, i.e. potential customers, they are able to significantly reduce the entry costs for on-line sales. As for large brands with already developed on-line sales networks, but without presence on the Polish market, it can be particularly interesting to study consumer behaviour and the popularity of the products sold by the brand, before possibly setting up their own e-store in Poland.
OEX Fulfilio supports brands in terms of analyses and correct planning related to introducing them in the Polish market. In addition to providing logistics services, we also handle our customers’ Allegro accounts and deal with auction positioning and promotion. For more related information, visit the tab on marketplace handling.
[1] “E-commerce in practice”
[1] https://www.iab.org.pl/aktualnosci/raport-e-commerce-2022-juz-dostepny/
[1] https://allegro.pl/kampania/monety/sprzedajacy
[1] https://allegro.pl/ads
[2] https://allegro.pl/ads
[3] https://allegro.pl/ads
[1] https://www.gemius.pl/wszystkie-artykuly-aktualnosci/wyniki-badania-mediapanel-za-styczen-2022.html
