April 10, 2020
The Romanian e-commerce market | CustomSoft at eCommerce Academy

The Romanian e-commerce market | CustomSoft at eCommerce Academy

First of all, I would like to tell you a little
bit about the statistics about Romania. So as you see, we are, let’s say,
as a population, around 19 million, and around half of that those
people are Internet users. The number of online shops in the last three years are growing
pretty much, so it’s a growing online market, people are gaining
trust more and more in online shops. The average number of online purchases
is also growing, and basically this is, I think, it’s a very good set up for
opening something in Romania. There is a lot of interest in the
Romanian market. Actually, I’ve been in Prague at the beginning of this year, and
last year they had a similar event in the Czech Republic, because it’s a very big
interest of Czech e-commerce companies to come to Romania and open an online store. How does e-commerce look in Romania? Well, the e-commerce market is almost
more than doubled in size in the last three years. Also the average amount
spent online has doubled in size. The growing
e-commerce market from the total retail, you can also see it has doubled in size in
the last three years, and of course the year-on-year increase has
slowed down a little bit last year, but we are looking at a possible growth this
year, as we are approaching the end. A comparison between desktop transactions
and mobile transactions. As you can see, people are buying less expensive things
on mobile, and I was really impressed about Fotis’ presentation about the
Greek market, as people usually buy on desktop In Romania, there is a very high
usage of e-commerce on mobile devices and there is this behavior on finishing
the transaction on desktops, and usually high priced products are
preferred to be bought on desktops, but there is also a high presence
on the mobile for finishing actually the transaction. The card transactions are, as
you can see, the number is 50 or 60 euro and 48 euros in 2018. And also the total card transactions are growing. The preferred payment method in Romania is
cash on delivery still, although we are in 2019. It’s still the preferred method, but it’s
slowing down from 90 percent to 83 percent last year, and hopefully 2019 will bring a
smaller amount. There is a big trust issue, so maybe for you, it would be important that
people are preferring in Romania, for example, because of the trust in the
online shops, to see the product and to be able to have the peace of mind that
they can open the package and they can see the product before they
actually pay for it. So this is why cash on delivery is the
preferred payment method in Romania. As we discussed earlier, the
online traffic, most of it right now is mobile. We grew in in the last three
years from 30-40 percent to 80 percent nowadays. There are online buyers and
offline buyers, as you can see the statistics here, we have a different
approach in each of the two behaviors. The types of transactions per industry.
Well, it’s the IT&C, electro IT&C, it’s, as you can see here is more
oriented towards desktop because it’s a technical product, you need to check for
a lot of specifications, and you need to compare things, so you definitely need a
bigger screen. But as you go towards the home and garden, or children items, or
beauty, or something like auto, adult or pet shop, you go more towards mobile. The transaction value for each industry. This is in lei, the national currency in
Romania. It’s around five lei for each euro, or the comparison for Leva
it’s like two Leva for one leu, so it’s just to wrap your mind around these
prices. We have a growing average transaction value, but also it
depends on the industry that we are looking at. Electro IT&C, which
means laptops and household appliances. It’s a higher value once we go to home&garden and children items, and so on. The growing segments that can be targeted. This
could be very interesting for you, as you want to go towards Romania, it’s organic
food, telecom, IT, electronics, small appliances, and large appliances. Well, for appliances I think
will be difficult with the shipping, but I think that there are very good relationships
between couriers in Bulgaria with Romania, so I think there are deals that can be made
for delivering, and also the return policy for a shop in Bulgaria that
wants to ship to Romania. Let’s talk about Black Friday. I’m not familiar with
Black Friday in Bulgaria, but in Romania it’s a very big event. It’s
growing each year. As you can see here in the last three years it grew a lot, it almost doubled in size. Each online shop is trying to organize the
Black Friday earlier and earlier. We actually have a summer Black Friday now
for some of the shops and there is a lot of interest in
campaigns similar to Black Friday throughout the year. You can see
campaigns during Christmas or Easter, or other other events, for example
back to school for some industries, like books or things for children
that go to school in September, or when school starts, and the biggest event, of
course, it’s Black Friday. We can talk about Black Friday in 2018.
We have pretty high buyers’ intention that grew between 2017 and 2018. Almost
everybody knows about Black Friday. This event is growing
so much that we also have it in offline right now, so basically people that are
not used to buy online, they know about Black Friday and they go to offline
stores to buy products during the event. The yearly volume is almost 10% from
the total volume throughout the year, so this is a very important event for
online retailers. In our experience it needs a lot of preparation. As you know we are a software company, we deliver e-commerce platforms and for us
it’s a lot of preparation for these events, because you know you need a lot
of technical preparation for such a high stake compressed in a single day. What do customers want from retailers in Romania?
I don’t know if this is different than in Bulgaria, but they want good products, they want
customizations for their website, or the services that they get, they want an
online-offline integration depending on the product and on the industry, they
like to be able to see the products, especially in some fields
like, for example, fashion. People like to see the product and to be able to
access an offline place where they can can check them out.
Community is very important because you have
access to feedback from other people like yourself, that have used the
products that you can buy, and it gives customers more trust in the retail
shop. And, of course, constant innovation. Everyone wants something new and
interesting to access. The common fears that Romanian buyers have, of course, the security. The image is very important, the one people have about your shop, so you have to have a good looking website, responsive of course. This is
2019 and you need trustful payment options. You would probably need to have integrated a
Romanian payment provider, which customers are already trusting. This is
if you if your line of business is targeting online payments.Online
payments in Romania are around 10%, so you need to take that into consideration
once you open the Romanian shop. Of course, they want to
see the products, so they need clear pictures, the higher definition you can,
it raises the trust level of the customers. Return policy, of course, people
need to have the peace of mind to be able to return. This is different from
from product to product, because you have very low priced products, maybe this
is not so important because people wouldn’t think about
returning it, but if you have medium to high-priced products, you really need to
take this into consideration. The business does not exist. Okay, so here you
need updated social media pictures or anything that can let the customer know
that you are a true business, and you are doing things, and to prove that you are
there, and they trusting you should be fine. And the
ordering process. The ordering process should be as simple as possible.
There are two options in the Romanian stores. We also have one-page
checkout, which is everything in one place and the process is very
streamlined, and we also have, this is more for mobile, checkout is with a
couple of steps, like two or three steps, but not a lot, so that people can check out the order as fast as
possible. You can also save credit cards, or login information, so that the
customer can very easily check out. There is a very high abandonment of the
checkout process if it is too complicated, and, just to give you an
example, it would be good to integrate with an
authentication process that users are already using, like Facebook
or something like this, in order to relieve the customer from the pain of
adding the personal data again in your website when they first come. This is an important thing because you can increase the
conversion rate of your customers. This is about our company. We
are in the market since 2006 and we are the creators of Eva e-commerce. It’s a
platform that has three versions: one for B2C, for retail, one for B2B, for distribution, and one marketplace, and you can
check our website, we do a lot of interesting stuff. You can contact us
on our website, or email, or mobile phone.

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