In Eastern Europe one country stands out with a dynamic e-commerce market with millions of potential customers and double-digit growth rates: Poland. In the past, online retailers have traditionally concentrated on western markets. The focus is now increasingly shifting to the east – especially Poland. With a large population (38 million inhabitants) and a growing economy, the Polish e-commerce market is one of the most dynamic in Europe.
High smartphone usage and the desire for a convenient shopping experience are also fueling this trend. Even marketplace leaders such as Amazon, which ignored Eastern Europe for a long time, have recognized the potential. The American e commerce giant launched a Polish branch in March 2021. The Schwarz Group is also planning to gain a foothold in Poland with Kaufland.de in late summer this year.
According to forecasts by Statista, the Polish e-commerce market will grow from the current equivalent of EUR 21 billion to EUR 33.3 billion by 2029 – an annual increase of almost ten percent. On average, every Polish consumer currently spends the equivalent of 1,394 euros per year on online purchases. However, competition is fierce: 70,000 to 80,000 online shop are registered in Poland. Among the largest are the two electronics retailers Media Expert and RTV Euro as well as Zalando. Allegro.pl, Poland’s largest online marketplace, accounts for a third of total sales. With brand awareness of 98 percent and 22 million visitors per month, Allegro is the first destination for 81 percent of Polish online shoppers. The Chinese online marketplace Alibaba also has a strong presence in Poland and Amazon was also able to gain a two percent market share in 2022 – shortly after its launch.
If you want to run a successful online retail business in Poland, you need to know what customers expect from e-commerce. Consumer surveys indicate that Polish consumers are price-conscious and make intensive use of price comparison portals. The trend towards buying used products is also on the rise, particularly in the electronics and fashion sectors. Statista forecasts a turnover of 878 million euros for used electronics and 713 million euros for second-hand fashion in 2029. Online retailers in Poland should also experiment with social commerce, because according to the market researcher, sales here will also almost double within a very short time – from 391 million euros in 2024 to 682 million euros in 2028. At that point, Facebook will be the leading platform with 501 million euros in sales, followed by Instagram (167 million euros).
Polish consumers may be thrifty – but that doesn’t mean they can’t afford high-priced goods. According to analyses by management consultants KPMG, the country is seeing a steady increase in the number of wealthy people. This is because the economic situation in Poland is good, the economy is developing quite dynamically and the incomes of people living in the country are rising. Local stores such as Moliera2, Sportofino and Vitkac already cater to this clientele. Polish customers are certainly open to international retailers. Germany ranks first in Poland for cross-border shopping.
However, the thriftiness of Polish consumers can be seen again when it comes to shipping costs: 49% expect free returns, according to the “Global Shopper Survey 2023” by logistics service provider DHL. As Poland has not yet introduced the euro, 55% of consumers prefer prices in their local currency. In addition, 44 percent are disappointed by online stores that are not offered in Polish. Localisation and customer service in the local language should therefore be mandatory for a successful Polish expansion.
Fashion, shoes and cosmetics are the most popular online product group. DIY stores and garden centers are also experiencing strong growth. The growing popularity of online grocery orders is also striking. Most grocery retailers in the country now offer Click & Collect, but doorstep delivery is also becoming increasingly popular, especially in city centers. Suppliers such as Carrefour and Biedronka have expanded their delivery services or use third-party providers such as Glovo, a platform that allows consumers to order from a variety of local stores and restaurants in many major Polish cities.
When it comes to payment, the mobile payment solution “BLIK” dominates the Polish e-commerce market. It is integrated into almost all online stores in the country. In the fourth quarter of 2023 alone, 506.2 million transactions were processed via BLIK. Many invoices for online orders are also paid by credit card in Poland. The western leader PayPal, on the other hand, is less widespread in Poland (with an acceptance rate of 31%) than Google Pay, for example, which can be used in 37% of online stores.
Poland’s rise as an e-commerce hotspot, fueled by Amazon, Alibaba and the IPO of Allegro, has triggered an undeniable logistics boom. While the state-owned company Poczta Polska is struggling with political and structural problems, newcomer InPost has risen to become the leading player in parcel logistics and has overtaken established providers such as DPD, DHL and FedEx. The company, which also works for Amazon, relies on a dense network of parcel stations that are accessible around the clock and efficiently handle the last mile. But the competition is not sleeping: Allegro, Orlen Paczka, Poczta Polska, DHL and Alibaba Cainiao are investing heavily in the expansion of their own parcel station networks.
With more than 37,000 stations, Poland is the largest “locker” market in Europe.
However, the expansion into Poland also brings regulatory challenges, particularly due to the legislative changes in 2023. The Omnibus Directive, which regulates information obligations, consumer ratings and product placement, as well as directives on consumer rights and digital service contracts, require special attention. For example, online retailers must provide a telephone number in the online store where customers can reach them.
Foreign companies must keep an eye on the constantly evolving legal framework. The Office of Competition and Consumer Protection (UOKiK) has stepped up its monitoring of online activities and is cracking down on misleading practices. Compliance with these regulations is not only required by law but is also crucial for building trust and successfully positioning oneself on the highly competitive Polish market.
Poland’s e-commerce landscape is a promising terrain for foreign entrepreneurs due to its strengthening economy, growing online trade and technological progress. Those who understand the market, serve Poles in their national language and keep an eye on the changing legal framework, can easily capture market share in the Polish market and boost their own sales growth.
Sources: Statista, Federal Agency for Civic Education, DHL