Lithuania, Latvia and Estonia are three countries that are often pronounced in one breath, treating them as a certain kind of ‘three-state country’. It’s no coincidence that the Baltic market is referred to as one organism, the countries living in one economic symbiosis. It is an area with a population of more than 6 million people. The three countries have strong cultural, historical and political ties. And today they are united by one more element, one that is increasingly recognized by Western Europe, the e-commerce market. The e-commerce market is growing dynamically there, and marketplaces are gaining a stronger presence in this space. Marketplace platforms, which have developed a complex offer, sell those products that are in demand in the particular country that makes up the Baltic market. So which marketplace platforms are worth cooperating with, where to present your more or less sophisticated offer? Which platforms will allow you to efficiently develop your online sales?
Local folklore wins – global e-commerce giants falling behind
While the Baltic nations have many things in common, there is a reason why this market is made up of three distinct countries. Focusing on the issue of online shopping, these differences are noticeable. What might translate into a set of differences between Lithuanians, Latvians and Estonians? Issues such as the availability of the internet, the technological development of society, but also the level of logistics services provided, play a crucial role. So let’s look a little deeper into the e-commerce market structures specific to a particular country.
Lithuania overperform in e-transformation
The people of Lithuania are distinguished by the fact that they use all kinds of technological innovations with ease and proficiently. Innovative mobile services are viewed positively. Electronic money and licensed payment institutions place Lithuania at the forefront of Europe. Online banking or electronic signatures have already become the norm for Lithuanians. Not surprisingly, the motivating factor for online shopping for innovative Lithuanians has become the exceptionally fast Internet, but also the lower price of products or services purchased online. The latter characteristic determines the Lithuanian population to e-search, perceiving the special value of online shopping precisely because of the possibility to find unique bargains, discounts, promotions, but also good quality products.
Therefore, when looking for a space to develop your e-business, it is recommended to enter into cooperation with marketplaces operating in Lithuania. And this part of online sales may seem quite interesting, as Lithuanians rely on local platforms such as Pigu, Skelbiu or Alio. It is these marketplaces that are scoured for clothing, cosmetics, home appliances, furniture, electronics or supplements. Global giants such as Aliexpress, eBay or Amazon are chosen less frequently.
In Latvia almost every household has access to the internet
Online shopping in Latvia is extremely easy, and that’s because almost every household has access to the Internet. Latvians are most likely to order clothing, electronics, furniture, cosmetics, supplements or household appliances online. It may seem interesting to note that high-quality BIO, organic food products, as well as those described as superfoods, are also increasingly being ordered.
However, there is a brake element in the development of the e-commerce market in Latvia (but not only there), namely the not fully developed logistics. Delivery times have until recently been relatively long, and this has determined Latvians to shift their shopping habits in favour of stationary shopping. The needs of e-commerce must be logistically satisfied in order to derive maximum benefit from this market segment. Therefore, logistics operators entering the Baltic market, such as Venipak, are of great value. Venipak has a well-developed and well-located network of pick-up points, but also supports e-shops in their technological organisation by providing ready-to-connect logistics modules, easy integration with the parcel system or a courier call function. In the context of cooperation between online shops and marketplaces, this is of considerable importance in order to better utilise the multi-channel potential of the network, enabling efficient organisation of shipments in a manner that is convenient for each user.
Latvian residents are also more willing to use local platforms, which they trust, but also consciously support Latvian entrepreneurship. Scaling e-business in this market using marketplaces should focus on good listing of the offer on platforms such as ss.lv or 1a.lv. However, it is also worth leveraging the know-how of e-commerce giants such as Amazon or eBay.
Estonians prefer the local vendors
As it turns out, Estonians seem to have the strongest attachment to local businesses. Although the Estonian population is increasingly enjoying the benefits of online shopping, they remain faithful to their shopping habits and have the utmost confidence in shops operating in their own country. As many as 40 per cent of Estonians rely on local shops. Their shopping habits are basically similar to their Baltic neighbours. Thus, clothing and other items of clothing are most frequently ordered online. Airline tickets and other transport services are also very popular. Toys, hobbies and event tickets are also purchased quite frequently.
As proof that local buisnesses truly excel in Estonia, it is worth noting that the most popular platforms are those with the .ee domain. And these would be kaup24, on24, 1a, hansapost or shoppa.
When taking a closer look at the habits of people in the Baltic countries and trying to find the key to the right door opening the way to the e-commerce conquest of these markets, special attention should be paid to local tastes. Although global giants have found their place, for the time being the most popular marketplaces in the Baltics are those that originate in the country of origin.