Why faster means better when it comes to online shopping? eCommerce News No. 73

Do you want to know what attracts Poles to Chinese shopping platforms like AliExpress, Temu, or Shein? Or maybe you are interested in how Allegro is responding to changing consumer trends? In the 73rd edition of the Newsletter, you'll find answers to these questions, as well as the latest news on eCommerce payments - including the Click to Pay service, which promises to simplify and speed up online transactions. Read it now!

What attracts consumers to shop on Chinese platforms?

Chinese eCommerce platforms like AliExpress, Temu, and Shein draw customers with their low prices and intensive advertising efforts. It seems these incentives are effective, as a study by the Pollster Institute shows that over two-thirds of surveyed Poles are familiar with these platforms. Moreover, one in three Poles has made at least one purchase through one of these platforms. But what else, besides low prices, attracts customers to shop on Temu or AliExpress?

• Frequent advertisements - 45%,
• Recommendations from family or friends - 33%,
• The ability to buy similar quality items cheaper than in other stores - 19%,
• Influencer and public figure endorsements - 8%.

Despite their popularity, some people remain sceptical about shopping on these platforms. The study found that the main concerns are about product quality and long delivery times. Men are more likely than women to worry that the ordered goods will turn out to be counterfeit. Women more often have ethical concerns about working conditions in China and the safety (e.g., certifications) of the purchased products.

Read more about consumer attitudes towards shopping on Chinese platforms here.

The faster, the better - understanding compressed commerce. Allegro Report

Millions of Poles regularly shop on the Allegro platform (in March 2024, the number of active buyers reached around 15 million). This translates not only into significant profits for the brand but also a vast amount of data on customer behaviour and market trends. The most interesting insights from this data have been included in the report titled "Customer Journey 2024: Searching for and Purchasing Products Online." What exactly can be learned from it?

• Over the past year, consumer sentiment has stabilised, as evidenced by a decrease in the percentage of people who say socio-economic events influence their purchasing decisions (38% in 2024 compared to 47% in 2023).
• Poles most often start their product searches on marketplace platforms (41%), with only 26% beginning with a Google search.
• The decision to shop online on a particular platform is usually influenced by several factors, such as price, convenience, security, trust in the seller, and the availability of products and information about them.
• Most consumers admit that advertisements play a key role in their purchasing decisions. Half of the respondents said they found a product at an attractive price thanks to an ad.
• An increasing number of Poles (36%) identify as smart shoppers, meaning they make rational purchasing decisions by comparing different offers and seeking a balance between quality and price.

The Allegro report also introduces a new concept - compressed commerce, which addresses the need for quick purchase finalisation. Customers value fast transitions from the inspiration phase, through purchasing on the platform, to lightning-fast delivery. As many as 57% of Polish internet users admit they shop online following the principles of compressed commerce.

What trends in consumer behaviour caught your attention? Check out the full Allegro report - you can find it here.

Payments in eCommerce made simpler - click to pay service

Traditional online payment methods, such as entering your card number for every transaction or filling out transfer details, once considered standard, now often frustrate customers who want to complete their purchases quickly. That's why more and more people are opting for BLIK payments (where entering a code is not required if the user agrees to save their data) or using smartphone payments (e.g., Google Pay or Apple Pay). Even though there are already plenty of quick payment options, operators continue to introduce new solutions. One of these is the Click to Pay service, a project by the Polska Bezgotówkowa Foundation in collaboration with Visa and Mastercard.

Click to Pay is based on the global SRC (Secure Remote Commerce) standard. With it, card data is stored and secured by payment organisation data centres, so users do not have to enter their card numbers for each online transaction.

To use Click to Pay, users must first register and create an account in the system. They can then link their account to their chosen payment method, such as a debit or credit card. When making a payment, users will only need to confirm the transaction on their account.

The Click to Pay service has already been piloted by payment operator Autopay, and by the end of 2024, it will also be available with companies such as Fiserv Polska, PayNow, PayU, Przelewy24, Tpay, and Wordline.

For more information about this new payment standard, click here. Do you think Click to Pay will improve the eCommerce customer experience?