Allegro.sk – expansion into the Czech and Slovak markets: new opportunities for e-commerce

Allegro’s presence in the Czech and Slovak markets opens up new horizons for e-commerce sellers who are already thriving on the platform in Poland.

Entering these new markets not only presents an opportunity to increase sales, but also requires being open to monitoring the competition and keeping an eye on the pulse beyond our country’s borders.

The power of new Slovak i Czech markets

The Slovakian market, although seemingly small, represents almost 5.5 million new consumers, 77% of whom have already bought products on foreign e-commerce platforms. In the case of the Czech Republic, we have twice as many potential customers and one of the fastest growing e-commerce markets in Central and Eastern Europe. The average value of purchases, also repairs optimism. The average Czech spent 2843 CZK or about 540 PLN in an e-shop.

Allegro.sk – sales administration still in the Polish variant

Although Allegro.cz and Allegro.sk are available in Czech and Slovak, respectively, Polish companies can still manage their sales in a familiar Polish-language interface. The preparation of sales offers and their handling on these platforms are not significantly different from local sales on the home market. Even the need to use a different currency is not a problem, as the platform will automatically convert product and delivery prices into Czech crowns (and then into euros in Slovakia) according to the current exchange rate, or optionally this can be done manually. In addition, built-in tools will facilitate the translation of offers and communication with customers. In practice, it comes down to listing only once and then being able to sell in many different markets.

The Allegro platform has also taken care to support the process of shipping products to our neighbours, offering local service providers as well as courier companies well-known in the Polish market.

New challenges for monitoring Allegro.sk

Opening up to new markets means access to millions of potential customers, but also the challenge of facing many new competitors. Developing an effective pricing policy and tailoring the offer to the new business landscape is a challenge that a large group of e-commerce owners will face. Not everything that is a sales hit in Poland at an attractive price will be so in the Czech Republic or Slovakia. A key aspect when entering a new market is to research it. Thorough knowledge of the offers and prices of the competition makes it easier to build an appropriate strategy. It is worth stocking up on tools that will help build this strategy. 

“At Dealavo we offer, among other things, special ad-hoc reports that allow us to instantly and efficiently assess how other sellers are performing in a given market. Thanks to such a comparison, we can gain a comprehensive picture of the market situation and decide whether a particular country and platform can be attractive for our business,” argues Jakub Kot – CEO of Dealavo, a tool that analyses huge amounts of pricing data. 

“Today, we can offer our customers individually tailored product monitoring that simultaneously optimises budgets and allows us to increase margins where possible,” adds Jakub Kot.

“At the core of any well-functioning business is strategy and pricing. At Dealavo, we are here to help e-stores improve and automate their price monitoring and re-pricing processes. For this, we use the data we collect, on the basis of which we propose specific solutions. A good example of this are rules that indicate where prices can be increased and where they should be decreased. Our aim is to maximise the efficiency and profitability of the business. We know from experience that often effective collection of information from 3 marketplaces or comparison sites gives better market coverage than, for example, 100 pages of competitors. This translates into both a price offer for the tool itself and the ability to implement the business strategy more effectively,” – concludes Dealavo’s CEO.

Whether operating in Poland, the Czech Republic or Slovakia, an effective pricing policy will allow you to outbid your competitors while maintaining high margins.

Regulations and new legal challenges in Slovakia

In order to sell to foreign markets via Allegro, tax issues and sales documentation must be taken into account. There are currently three options from which to choose if you are interested in selling on selected markets: VAT registration in the Czech Republic and Slovakia, VAT-OSS registration in Poland or remaining on the Polish market only. VAT registration in the Czech Republic and Slovakia is beneficial if you plan to set up, for example, a warehouse for goods in these countries. However, this will require adjusting the relevant VAT rates. VAT-OSS registration in Poland is suitable for global sales expansion and allows for the application of local VAT rates from the destination countries, which are more favourable than the Polish ones. This is especially true for sales of up to €10,000 per year. 

Expansion into the markets of our neighbours is an excellent opportunity to expand your customer base and develop your own business at the same time. However, it is important to prepare for entry strategically and with the right tools to support our business. 

Jeśli już dziś chcesz dowiedzieć się, jak Dealavo może pomóc Ci w zdobyci nowych zamówień, zapisz się na darmowe DEMO narzędzia.

If you want to find out how Dealavo can help you acquire new clients, sign up for a free DEMO of the tool.