Amazon challenges Allegro. The end of the monopoly on the Vistula

Amazon challenges Allegro. The end of monopoly on the Vistula

The battle for Polish e-customers intensified when Amazon announced its plans to enter the Polish market. For the giant, Poland is a sweet spot. An analysis conducted by PwC shows that in 2026. The gross value of the Polish e-commerce market will reach 162 billion zlotys, with 12 percent of. growth dynamics. What’s more, a report by 300Research predicts that just in 2020 Polish e-commerce will record 30% growth. growth and €15 billion turnover. This result places Poland as one of the most dynamically growing markets in Europe.

Poland has Allegro

Until now, our market has been dominated by Allegro, which has been accompanying Polish Internet users in their shopping. Over this period, it has gained the trust of users – even more so during the pandemic, when the marketplace experienced a boom in online sales and gained even more popularity among buyers. Retailers’ perspective is different. Some of them complain about shrinking margins, poor contact with service, unbending rules and regulations that work in favor of the platform (and not the entrepreneur), high competition that forces to lower prices. And the Allegro Smart service introduced some time ago, after paying for which the buyer gets unlimited free deliveries, shifts most of the costs to sellers. These and other comments, however, do not discourage them from listing products. The reach and recognition of the platform is unquestionable. However, after the announcement of Amazon’s expansion, shares of the former e-commerce leader and largest Polish marketplace quickly fell on the stock exchange.

Amazon reinforces itself

Just a few weeks ago Amazon notified its customers about signing an agreement with InPost. Another news was the availability of BLIK payments on Amazon.en. According to Tpay’s research, 80% of Internet users choose instant payments, including 58% who choose BLIK. However, internet users‘ preferences do not always match actual availability and 71% of respondents say that BLIK is their favorite method, but probably due to limited availability in e-commerce, it is not always possible to use it.

However, establishing partnerships with Polish partners is a strategic move. Amazon is not yet recognizable, has not developed a good reputation, and reports of harsh working conditions and questionable efficiency standards in the giant’s logistics centers do not reflect well on its reputation. While changing Amazon’s thinking and perception will be a long process, a high PR and marketing budget will certainly accelerate this adaptation process.

From the sellers’ perspective, the high standards of service provided on Amazon will certainly convince them to use Bezos’ platform. However, this is not obvious to everyone. Allegro remains stubborn and continues to invest its time and resources in buyers rather than in keeping loyal sellers. In response to the emergence of Amazon, Allegro added a deferred payment option, which should support sellers and keep consumers. However, according to the survey, deferred payments account for only 1 percent of the. among the payment methods most frequently made by the surveyed. Even with high dynamics, such a low entry threshold may not be a sufficient argument.

The end of the monopoly in Poland

The Polish market has been targeted by foreign giants for years. Relatively low labor costs encourage investment. Amazon has been present in Poland for a long time. Over time, it has expanded the number of logistics centers that handle the delivery of European orders, and it was only a matter of time before it entered the Polish market with a sales platform.

The beginning of the year was filled with announcements of e-commerce growth. Amazon’s expansion decision came just a week after Alibaba Group announced plans to invest in parcel machines in Poland to speed up deliveries from Chinese sellers via the AliExpress platform. And Amazon’s announcement coincides with the market debut of InPost, whose shares soared in Amsterdam after its owners raised 2.8 billion euros ($3.4 billion) in Europe’s biggest IPO since 2018.

According to Bloomberg, global e-commerce operators assume that online sales in Poland will quickly approach Western levels, hence the high interest in our market.

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