MARKETPLACE and E-COMMERCE — the cake that grows as you eat it.
E-commerce in Poland, i.e. the Internet commerce market, is a tasty cake, which many companies have an appetite for. The market is developing so dynamically that it cannot keep up with its own service.
Foreign competition will soon follow, because who wouldn’t be hungry for a tasty morsel. E-commerce in Poland can be discussed endlessly, counting product categories, logistics, sellers and buyers. Currently, there is a trend of specialization of e-commerce platforms. Alibaba will deal with low-cost products, Amazon with high brands and ccFOUND with intangible goods, launching its own MARKETPLACE.
Let’s start with what’s most important in business, which is demand. Over 13 million Polish people buy on Allegro. It means that over ⅓ of the whole nation does it! A survey of Polish consumers revealed that 74% of them will not give up online shopping after the lockdown ends and 10% have become so fond of it that they will increase it. As they say, appetite grows with eating :)
Now let’s take a look at the supply.
Undoubtedly, the leader on the ecommerce market in Poland is Allegro — it is the number one marketplace for everything, you can even say that it is a monopolist. Allegro’s net profit for the first quarter of 2020 jumped to €64.2 million from €41.7 million in the same period of 2019. This company is discounting the growth of e-commerce sales in Poland and is unquestionably dragging it up.
The following pandemic year was already even better. The group ended 2021 with a solid growth rate. Revenues were 34% higher at PLN 5.34 billion. Adjusted EBITDA, i.e. profit before tax, exceeded PLN 2 billion and was PLN 318 million higher than in 2020. Net profit amounted to PLN 1.1 billion.
Imagine the amount of dividend that was paid out and the joy of shareholders when they got it.
Allegro will also consume the biggest piece of the pie, i.e. e-commerce shopping, as most of the assortment goes through their marketplace. E-commerce revenue is projected to grow at an annual rate of 9.4% (Average annual growth between 2020–2024). This will make the market for electronic goods alone worth $17 billion by 2024!
However, Allegro is not “just” a marketplace. It is a sales channel, a commerce platform, an online super site, a technological hybrid, developed over decades, by IT teams.
Behind it are millions of entrepreneurs of all shapes and sizes. From Adidas to a certain highlander from Szczyrk who sells oscypek cheese. The platform struggles with content overload. Too many choices, too many categories, tiring promotions and ads.
It is getting cramped. And it is very tight.
Even Allegro’s current development strategy doesn’t include a dynamic search for new users, but instead focuses on logistics and handling the massive traffic that exists. And rightly so.
Because even the biggest cake, has this in common that if it is not serviced properly, it starts to fall down inside and go rotten.
The marketplace is like this cake, to keep the users, you have to take care of their absolute comfort. The slightest competitive advantage can bring the loss of platform users.
The thickening of traffic on a single e-commerce platform, poses new challenges to everyone how to unload this excess of everything.
ONE CAKE DOES NOT SATIATE ALL
In response, competition emerges: Amazon, AliExpress, ccFOUND, Alibaba, Vinted. Basically, everyone wants to “take out” their shelf from the Allegro platform.
The decade of specialization is beginning.
Amazon set off with strong marketing for new and quality products and hired the prestigious Price Water Cooper to handle it, investing heavily in market entry.
AliExpress has built its huge distribution center in Poland, and is absolutely targeting the retail market.
Alibaba wants to embrace the low-cost Chinese sales market and treat Poland as a hub for Europe.
ccFOUND will embrace the intangible goods market.
Vinted sells second-hand products.
It’s a crowd, but the free market has the ability to relieve this crowd with its invisible hand. This will happen, also with the participation of international cross-selling platforms, on which Polish companies are more and more often hosted.
WILL THE COMPETITION WIN WITH TECHNOLOGICAL INNOVATION?
Amazon has ultra-modern technologies and the highest level of customer centricity, which translates into consumers and increases sales. AI, or artificial intelligence solutions, will determine how quickly a personalized offer reaches the customer.
Dedicated sales — that’s what AI research teams are betting on. Before the consumer can open his computer for good, Amazon will have already delivered what he wants to buy straight to his desktop — this is how the platform’s ambitions can be presented in a nutshell.
The ccFOUND platform is associated with quality, not erzac. Because “wisdom” as a commodity, in the market release, has such a narrative. ccFOUND has invested huge funds in blockchain, the emergence of a unique translation technology, bet on an IT team to operate. The internal currency is tokens, whose trading on blockchain is transparent and secure. Products have the highest level of security, like cryptocurrencies.
ccFOUND HAS POSSESSED ITS OWN BRAND
The edutech, or education and knowledge, market is no smaller than the electronics market. Despite such a challenge, ccFOUND creates its own sales channel, its own platform.
Why not use the existing ones. After all, knowledge, advice, expertise, or consulting are also goods and services, although intangible.
ccFOUND could start by cooperating, for example, with Amazon — they would provide books, and ccFOUND would provide house designs, courses or reports in files, videos or ebooks….
Oh no! ccFOUND decided to operate on its own tools and created its own blockchain platform, already worth tens of millions at the start.
Most importantly, it is launching an entirely new marketplace — of intangible goods, with serious consequences:
- ccFOUND is an ambitious company and in a demanding field. With top of the range products. Advice, expertise, reports, research results, contracts, science — such a product is a market specialization that requires sophisticated marketing, very specific user relationship management, and secure technologies that everyone trusts.
- The ccFOUND marketplace is based on DAO, its customers remain active participants in the revenues of the whole platform,
- The ccFOUND marketplace will be global, so its operation will not cause as many logistical problems as with the transport of goods or services,
- The ccFOUND marketplace assumes no advertising, in line with the founders’ manifesto, but only to provide customers with objective products.
Not surprisingly, with such qualities, ccFOUND has taken on unique solutions, and as the overall e-commerce market grows, it will not only occupy its niche, but expand its offerings to many sellers and buyers around the world.
It is a matter of a decade as it will join the global giants. It is the first, as Facebook and AirBnB were first in their respective markets.
QUITE A CONVENIENCE FOR THOSE WHO LIKE CAKES
Last but not least, it is worth mentioning that the specificity of the Polish e-commerce market is bank transfers, which account for 50% of all e-commerce transactions, with an annual sales value of EUR 5 billion.
It is also predicted that by 2021 cards will grow at the rate of 25% per year and will take over 30% of the payment market on Polish shopping platforms.
This is a huge convenience for all online shopping gourmets, including those who are waiting for their purchases at the largest ccFOUND knowledge store. www.shop.ccfound.com