Slovakia Information Technology eCommerce
E-commerce revenue is expected to show a compound annual growth rate of 9.3%, resulting in a projected market volume of USD 3,297.3 million by 2027.
Slovakia is one of the fastest-growing regions for E-commerce in Central Europe. With the Covid pandemic ran from spring 2020 to summer 2022, the online shopping has become an increasingly common way of purchasing goods in Slovakia. The other factors supporting significant growth include increasing internet penetration, smartphone usage and changing customer preferences. According to Statista, the predicted revenue in Slovak e-Commerce will reach USD 2,313.4 mil by 2023. Revenue is expected to show a compound annual growth rate of 9.3%, resulting in a projected market volume of USD 3,297.3 million by 2027. 46% of Slovaks live in rural areas with limited access to large international shopping chains. This group represents a significant purchasing power in online shopping.
The largest category in Slovak E-commerce is Fashion with about USD 502 million in revenues. The second is the Electronics and Media (USD 367 million) followed by Toys, Hobby, DIY (USD 232 million), Furniture & Appliances (USD 135 million) and Food & Personal Care (USD 116 million). The situation during several pandemic lockdowns was very favorable for buying groceries online. The absolute leader in grocery doorstep delivery is British Tesco.
The most popular online shopping platforms in Slovakia include Alza.sk, Mall.sk, H&M and Nay.sk. Alza offers wide range of products such as electronics, appliances, fashion, consumer goods, pet products, toys etc. It provides a user-friendly interface, several secure payment options and delivery through courier services as well as a self-pick up at brick and mortar collect stores offered for free. In 2022, Alza had a revenue of US 362 million. In addition to the local platforms operating in Slovakia, Slovak consumers also utilize international platforms like Amazon.de, eBay, Wish and AliExpress offering a vast selection of products and convenient shipping options to Slovakia.
External customer surveys show that Slovak women shop more than men (68 percent vs. 32 percent). The most popular product categories for online shopping in Slovakia are clothing, footwear, electronics, toys, hobby, cosmetics, drugstores and sporting goods. Slovaks prefer to choose from several delivery options. Brick and mortar collect stores that have an ecommerce arm and allow free shipping to the store are becoming more popular as the physical collection of goods is offered for free. Courier service is still very popular as well as the delivery followed by the picking up at a self-service box where the customer can self-pick up the twenty-four-seven. Timely delivery and efficient logistics infrastructure are crucial for the growth of e-Commerce in the country. The major buying holidays are Christmas, Black Friday (despite Thanksgiving not being a national holiday), Valentine’s Day, and Easter. The average user spends USD 360 online per year.
The most common forms of payments are electronic debit and credit cards. They are considered safe and there their use carries minor additional surcharges. Ninety-six percent of the top Slovak stores offer payment by Visa and Mastercard. Another popular payment method is ‘pay on delivery,’ which usually includes a USD 1-2 surcharge for purchases under USD 100 - 200. Substantial number of Slovaks use their mobile devices when purchasing online. This highlights the need for upgraded mobile versions of shopping sites in the country. Mobile e-Commerce grew in popularity thanks to an increased numbers of local e-Commerce applications. Majority of local websites have implemented Accelerated Mobile Pages to facilitate the reading of their content on mobile devices. With the continuous expansion of e-Commerce and evolving consumer preferences, the future looks promising for online shopping in the Slovak Republic.
U.S. Commercial Service in Bratislava is happy to assist U.S. firms with guidance to ensure a smooth market entry to Slovakia. For more information, please contact: email@example.com