The dynamic and exceptionally responsive Baltic e-commerce market is gaining momentum each year. New technologies, cyber-solutions and marketing strategies contribute to the effectiveness of implemented e-campaigns, and so does the ability to react, be vigilant, test or analyse ongoing activities. Every year, serious studies are being conducted regarding current industry trends, news worth weaving into your e-strategies and testing in terms of their effectiveness and potential for one or another e-business. So how can e-commerce trends help Polish entrepreneurs expand into the Baltic market?
What are the characteristics of the Baltic e-commerce market?
The Baltics are fairly unanimously considered one of the most promising markets for the Polish e-commerce. The growing e-economies of these countries, more than 6 million inhabitants, as many as 80% of online users are arguments that should easily stimulate the entrepreneurial imagination.
Other advantages include the value of the Baltic online market, estimated at around €3 billion, and the potential that lies in the fact that up to 70% of the population of the Baltics reside in cities. It’s not without reason that the West is taking a closer look at this part of Europe. It is a fairly small, well-connected area, which can still be developed effectively. Compared to the Baltics, the combined value of the Slovak, Bulgarian and Croatian markets is not necessarily competitive due to the vastness of the borders and geography. The Baltic market offers another advantage – the availability and high quality of the Internet with average speed of 80-120 Mbps.
The annual growth of e-commerce in the Baltics is at 15%. Polish entrepreneurs, having recognised the favourable trend, are increasingly open to choose this direction for further development. The sale of electronics is thriving in all three Baltic countries in particular.
47% of Estonians, 54% of Lithuanians and 57% of Latvians choose to order such products online. Clothing, cosmetics, and household goods are also frequently ordered via the Internet.
What are the e-commerce trends in the Baltic market?
If you wish to successfully enter the Baltic e-commerce market, it would be a wise move to verify the current shopping trends that prevail in the given region. As in the Polish e-comm, the mobile trend has been the most significant direction of development in the Baltics. Already more than half of Baltic e-shoppers place orders using smartphones. The speed of shopping and good availability of the products they are looking for are significant factors. Innovative technologies that allow AI (artificial intelligence) to be plugged into chatbots, using, for example, an API key, significantly shorten the path for e-customers to finalise purchases and are widely appreciated. Going hand in hand with technological trends are those related to ecology and localism. Lithuanians, Latvians, and Estonians are eager to support local e-entrepreneurship with their consumer choices.
What opportunities can the Baltic e-commerce market offer Polish companies?
The Baltic e-commerce market is a forward-looking direction for Polish companies seeking to expand their operations. The proximity to the Lithuanian, Latvian and Estonian markets allows Polish companies to increase business opportunities, reach out to new groups of customers, diversify their revenue sources, and strengthen the company’s position in the European market. However, Polish companies must realise the differences between the Polish and Baltic e-commerce markets. It is necessary to thoroughly understand consumer preferences or the specifics of local regulations. The challenges require careful planning, adaptation of marketing strategy and effective market analysis.
Although there is talk of a single, cohesive Baltic market, one cannot ignore the fact that it consists of three culturally distinct countries whose inhabitants speak different languages. Marketing tactics should therefore capture these elements separately, with special attention paid to consumers, sales behaviours and habits.
Realising that the Baltic market still has a lot to offer to Polish e-entrepreneurs, it is also important to look for its opportunities with well-arranged logistics. In the Baltics, consumers expect fast deliveries directly to their homes or to pick-up points. It is worth choosing a logistics partner that not only has its own fleet, but also a well-developed network of the above-mentioned pick-up points. It will be even better if the partner is prepared to cooperate in terms of technological solutions. That is, it has ready support modules in the form of appropriate plug-ins, integration with popular sales platforms. Provider of logistics services Venipak, having recognised development opportunities in the Baltic markets a few years ago, now has a strategically located network of pick up points and offers innovative solutions that support e-commerce. It also provides state-of-the-art, turnkey WMS [Warehouse Management System] systems, self-service options, returns handling, labelling services and repackaging, manual handling, cross-docking and other flexible eFF solutions.
Salaries up to 40% higher, more opportunities for e-commerce growth
The Baltic markets also stand out when it comes to significantly higher average salaries compared to the Polish market. As of 2023, the average salary in Poland amounts to PLN 5,146 net. Despite the dynamic upward trend of average salaries in Poland, it does not stand up to comparison with the Baltics. Lithuanians earn an average of €1,900, or more than PLN 8,500, which is much higher than Polish earnings. Estonians also earn significantly more than Poles, averaging €1,775, or more than PLN 8,000 per month. Only Latvians have average salaries similar to those in Poland, at €1,126, or just over PLN 5,000. These figures are important for Polish entrepreneurs, as wealthy Baltic residents are more likely to invest their funds in online shopping.
Logistics abroad is no longer an obstacle
Multi-channel has always been important in e-commerce, but even in this area, there are two directions, somewhat resembling back-end and front-end. Online marketing should be carried out on many online fronts, Google campaigns, SEO, content marketing, influencer marketing or cooperation with affiliate networks count. And this is what the user sees. Drawing on web design terminology, in this case the back-end will be the entire management machinery related to logistics, among other things. A broad view of the Baltic market, learning about the behaviours and habits of e-consumers, implementing the latest technological solutions, but also an organised logistics system all give the Baltic market a chance to make its presence felt in the prospectively developing Baltic market.
Sources:
https://delante.pl/e-commerce-litwa-lotwa-estonia/
https://www.gemius.com/all-reader-news/e-commerce-study-2022-online-shopping-in-baltics.html
https://ersj.eu/journal/2918/download/Development+of+E-Commerce+in+Poland+and+the+Baltic+States.pdf
https://journals.umcs.pl/ijsr/article/download/5069/4942
https://zw.lt/rozmaitosci/litwini-w-internecie-kupuja-wiecej-niz-finowie-lotysze-czy-estonczycy/
https://ewp.pl/charakterystyka-e-commerce-w-krajach-baltyckich/
https://ewp.pl/najlepsze-rynki-ekspansji-dla-polskiego-e-commerce-kraje-baltyckie/
https://www.olzalogistic.com/!data/files/Fact_Sheet_Kraje_Baltyckie.pdf