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E-Commerce Poland: A Research About the Polish Market

Our global e-commerce discovery journey will continue with Poland’s e-commerce market. The country’s economic growth is above the European average, and its promising e-commerce market, in particular, deserves our attention. But first, we’ll look at some figures about the Polish economy.

Polish economic outlook and demographics

  • Population:38.6Mn
  • GDP: $593.29Bn
  • GDP growth: 3.6%
  • GDP/capita:$15,630
  • Urbanization: 60%
  • A diversified economy (agricultural, industrial and service sectors) and a resilient financial sector

E-commerce Poland

The Polish economy became 3rd fastest-growing European country in 2018 with a 5.1% growth rate. E-commerce growth far exceeds overall growth with 11.7%, making the country 13th among the fastest developing e-commerce markets.

75% of Polish citizens use the internet, and this number will increase by nearly 4% in 2020.

E-commerce penetration is 69.5% percent, expected to hit 78% in 2023.

The pace of growth in this local market attracts various online retailers, resulting in 5000 additional online shopping platforms in a year.

Allegro.pl has the largest market share (40%), but the rest of the marketplace is highly fragmented. To keep ahead of the wild competition, let’s look at the characteristics of the local market.

Revenue by Product Category Poland

Advantages of e-commerce in Poland

The Ministry of Digital Affairs was established in 2015 by the Polish government, aiming to develop broadband infrastructure, improve the digital competences of its citizens, and support e-services. By doing so, the government hopes to boost economic growth. On top of that, the Polish government offers a 6 months tax exemption for start-ups and reduced tax rates for up to two years.

As a result of the general economic growth, private consumption is expected to rise in the second half of 2019. OECD’s Poland Economic Snapshot suggests that there is a continuing trend of convergence to higher standards of living, due to strong labor productivity growth along with an increase in labor utilization.

These trends positively affect e-commerce growth, pointing to a $13.5Bn e-commerce market at the end of 2019.

E-commerce Poland

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The Sunday trading ban, introduced in Jan 2018 by the Polish government, prohibits trading activities on 3 Sundays in a month. Luckily, the law has smaller implications on e-commerce. Thus, many traders, hurt by the Sunday ban, consider, or completed switching to online retailing.

How to thrive in the local market

Among all the social media platforms, Facebook has the largest advertising audience with 17Mn people.

The observable influence of social media over shopping behavior compels online retailers to focus on their presence on social media platforms.

Pay-by-link payment accounts for more than half of the online payments, while on the other hand, the cash-on-delivery method is also very popular. Providing both of these options can have a positive effect on consumer satisfaction.

A quick wrap-up

In Poland, economic inequality is decreased in recent years and the purchasing power of Polish citizens rises. Private consumption is anticipated to expand in the upcoming year, and these positive trends in the economy are reflected in the e-commerce market. As opportunities grow, more businesses enter the market. To stay ahead, you should remember:

  • The local government supports digitalization and offers tax reductions to start-ups.
  • Social media platforms have large advertising audiences and inspire the shopping behavior of a large segment of (58%) Polish people. Social media presence is crucial for e-commerce businesses.
  • Pay-by-link and cash-on-delivery are the most popular payment methods, therefore, an online retailer should provide both.
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