New changes in the law that may affect some platform owners, challenges related to the development of artificial intelligence, and finally - new online shopping habits of Polish consumers - these are just some of the topics currently making headlines in the eCommerce industry. Do you want to stay up-to-date and at the same time not get lost in “the jungle of information”? Read the 64th issue of Advox Press Release, where you'll find a brief summary of the most interesting news from the eCommerce world!
DAC7 Directive - new year, new changes in the European law
In 2023, the attention of eCommerce owners was focused on the Omnibus Directive, which introduced many changes to online business operations (such as displaying prices or customer reviews on the website). A year later, entrepreneurs should pay attention to another act issued by the European Union, namely the DAC7 Directive. What and who will its provisions apply to?
The primary obligation arising from the DAC7 Directive (also known as CESOP or SUP) is the requirement to provide information about sellers operating through sales platforms who offer goods and services (including renting real estate and transportation). Platform operators will have to regularly provide tax authorities with information about sellers who have conducted at least 30 transactions on the platform, and their income from these transactions exceeded 2000 thousand euros.
The aim of introducing these provisions is to create a new tool for EU member states to obtain information about transactions carried out through digital platforms (both on websites and in mobile applications). This is intended to help detect cases of tax evasion by sellers and the use of legal loopholes in tax settlements, especially in international transactions.
However, the new obligation arising from the directive will not apply to all representatives of the eCommerce industry. It is primarily directed at owners of marketplace-type sales platforms that enable the sale of their own products to sellers and service providers, such as Vinted, Allegro, OLX, eBay.
According to guidelines, the DAC7 Directive was supposed to come into force on January 1 2023. Although in Poland, this deadline was not met. However, according to reports from the Polish Ministry of Finance, the provisions should come into force in mid-2024. It is worth remembering, however, that the Polish legislator has expanded the scope of the provisions so that the reporting obligation will also cover the period including the year 2023.
Do the provisions of the directive concern you? You can read more about it here.
Polish consumers are more willing than ever to buy second-hand products online
Shopping for so-called "second-hand" items has turned out to be not just a passing trend, but an important lifestyle element for many Poles. According to the latest research by Allegro Lokalnie, as many as 75% of Poles took advantage of the opportunity to buy and/or sell used items in 2023. Interestingly, trade in C2C (customer to customer) goods, i.e., between private individuals (often through professional platforms), is growing both online and offline. What contributes to this popularity?
The main motivation for buying used items is economic - 64% of Poles admit to doing so because of inflation and rising prices of new products. However, this is not the only reason. It is supplemented by:
- environmental issues,
- a fondness for unique vintage items,
- the chance to sell products at a profit.
Still, the most popular items bought "second-hand" are clothing and fashion accessories (59%). However, more and more people are taking advantage of the opportunity to purchase various categories of products, such as: electronics (39%), culture and entertainment, including books and computer games (30%), and furniture and home decorations (30%).
You can read more about new purchasing habits of Poles here.
Generative artificial intelligence helps online businesses, but it also needs help
New tools based on generative artificial intelligence are emerging at a rapid pace. Recently, the market giant, Amazon, boasted the launch of another AI functionality in its offer. In February, the company introduced the beta version of the Rufus chatbot for selected users. The creators assure that Rufus will be able to answer various questions about shopping, ranging from advice on specific products to help choosing gifts or preparing for a mountain hike. To create an algorithm capable of such a task, it was necessary to provide it with a huge amount of data, such as Amazon's extensive product catalog, customer reviews, community questions and answers, and internet data.
However, Amazon is not the only player investing in artificial intelligence. A study by Deloitte showed that as many as 80% of surveyed companies from developed countries predict that generative artificial intelligence will change the way their businesses operate within 3 years. In addition to the benefits associated with implementing AI features (such as improving efficiency, cost optimization, or opportunities to expand the offer), companies also recognize the need to devote additional work to ensure the safe and smooth development of this technology.
Among the challenges associated with the development of generative artificial intelligence, the following are mentioned:
- development of comprehensive legal regulations,
- increasing competencies related to AI management within the company,
- preparing for new risks associated with the use of artificial intelligence (such as errors in data analysis or the possibility of copyright infringement),
- the need for global cooperation in the development of AI tools.
What other challenges associated with the development of generative artificial intelligence do you see? Check out the full report here.
