eCommerce news #no. 20

No week in eCommerce is exempt from interesting news - with the same regularity we publish every 2 weeks our selection of events that are of importance for people operating in eCommerce. In the newest edition we analyze situation of the Lithuanian company Vinted, we wonder what can be done to make returns as convenient as possible (based on the study by Furgonetka) and question whether live commerce has a chance to develop in a significant way in our country (based on the Inquiry report). Advox eCommerce News - always be up to date! Interested?

Transparent return policy - a requirement of eCommerce customers

Online shopping is convenient provided... that you can easily return the purchased products. This is confirmed by the results of a survey conducted by Furgonetka. The results show that over 70% of Poles return online orders, with over half of them returning an average of 1 in 5 products. More important is the fact that 31% of respondents confirm they are able to resign from shopping because of unclear return policy, and as many as 61% do not buy from a given online store again because of difficulties with the return procedure.

Consumers drew attention to the difficulty of making the return especially in relation to smaller eCommerce stores, which require the whole procedure to be conducted by e-mail - large online stores are free from such concerns due to the automation of the process (e.g. the return made in the customer's account). Problems were also indicated in the case of having to order a courier, print a label or deliver the product to the specified place (to a pick-up point or packaging machine).

What elements related to the return policy matter to Poles? In the first place - the absence of fees for returns. They also paid attention to receiving information from the customer when the return is accepted, as well as when the returned package is received by the company or the money is transferred back to the account. The speed of the return process (e.g. through automation) is also important. It is worth to remember about these issues while constructing the return policy in your eCommerce.

The results of the Furgonetka survey are available here.

What about live commerce in Poland? Data from Inquiry report

Only 40% of Polish Internet users have had contact with live broadcasts in eCommerce - so indicates data published in the report Inquiry. At the same time, 70% of people do not know what is Live Commerce until they hear the explanation: that it is a presentation of products of a brand (although it can also be a private person) live (in real-time), usually on social media channels, during which the desire to make a purchase is aroused. When given a definition of Live Commerce, 71% admit they have heard of this form of selling.

Despite this high level of awareness, Poles very rarely admit to participating in these types of broadcasts. This is all the more interesting because during the pandemic, this trend worldwide increased by as much as 76% in comparison to the time before the pandemic and everything indicates that this is a phenomenon that will be able to change trade-in online channels. For the time being - it has not yet gained popularity in Poland, although it cannot be excluded that it is a niche worth taking an interest in to stay ahead of the potential boom.

A more detailed analysis of Live Commerce is available at Inquiry website.

Vinted with a fine from the President of UOKiK and a new platform

At the same time, the world of eCommerce witnessed two very interesting news concerning a well-known reCommerce platform Vinted, where you can sell clothes and accessories you no longer wear. The platform quickly became very popular due to its incorporation into the idea of sustainable development and other ecological trends. However, due to complaints filed by consumers in September 2021, a procedure was initiated, which ended with the Lithuanian company being fined by the President of the Office of Competition and Consumer Protection due to irregularities reported by users of the platform. Two irregularities were found - on the one hand, the lack of information about the conditions for unlocking the money from the sale, and on the other hand, unclear guidelines on how not to pay extra for the so-called "Buyer Protection".

The first irregularity was that receiving money from the platform's e-wallet comes with additional conditions for identity verification, which was not mentioned either in the terms and conditions or when setting up an account. Consumers complained that they were not informed that without providing a scan of their ID, passport, or other document, the funds from their sale would be blocked. Had they been informed of this fact - they would have probably abandoned the transaction on the platform, wanting to take care of the protection of sensitive data.

The second irregularity concerned the lack of information on how not to be covered by the so-called "Buyer Protection", i.e. a kind of mandatory insurance fee (e.g. in case of receiving faulty goods). The inability to find this information on the platform was important for people who were not worried that the transaction would not be carried out correctly and did not want to pay extra for the protection.

The financial penalty imposed on Vinted amounts to over PLN 5.3 million. The company intends to appeal, disagreeing with the position of the Polish office. It should be noted, however, that doubts about Vinted's practices have also been raised on foreign markets. Consumer Protection Cooperation Network (CPC) is currently analyzing the company's actions.

It is interesting to note that around the same time there was an announcement that from May 16 Vinted is moving to a new platform, which requires accepting the new terms and conditions. Until June 20 it is possible to transfer the account and withdraw all the money in the e-wallet, after that time the account will be blocked.

You can read more about the penalty for Vinted at UOKiK website.