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E-commerce market on a roll in the Czech Republic

E-commerce market on a roll in the Czech Republic

The market for online commerce has seen a significant increase in recent years, bringing more business opportunities to countries such as the Czech Republic.

According to an analysis on the e-commerce market, 2015 is responsible for record sales in the Czech Republic. The year’s turnover for online shopping reached sums of around 81 billion CZK (2,99 billion EUR). Moreover, analysts see potential for further growth, in 2016, with 20% more business out of the online market expected by the end of the year. Statistics also show that money spent on online shopping has steadily increased in recent years. Compared to 2012, for instance, the industry managed to accumulate 30 billion more CZK (1,11 billion EUR), in 2015.

The number of online stores also increased, to 36.800 in 2015, 2.800 more than in 2012. An estimated 8,1% of the country’s retail sales is reserved for online shopping.

Furthermore, the most active group for online shopping is the 25 to 34 year-olds, with 67% of the group’s total population having bought something online, in 2015. In second place are the 16 to 24 year olds, with 61% of the group’s population and the 35 to 44 year old in third, with 59%. The least active category is that of +65 year olds, but still managed to represent 8% of its group population.

In 2015, online users bought clothes and shoes the most, at 22% of all shopping orders, with cinema tickets second (16%) and cosmetics and healthcare products in third (11%). On the other hand, in 2016, the largest segment of the e-commerce market is occupied by fashion-related shopping. As a result, online fashion spending amounted to 724,3 million EUR. Furthermore, online shopping is expected to increase, at a compound annual growth rate of 7,3%, until 2021.

The Czech market abides by laws used inside the European Union. As a result, the customers receive certain benefits and are protected against fraud and other means to harm them financially. For everyone’s online shopping needs, the Czech Republic has a vast networks of private and state-owned couriers, engaged with transporting goods to people’s homes. Companies such as Delibarry, Drinkservice Praha or the Czech Post service are present and serving the country’s citizens. However, the population doesn’t necessarily put much emphasis on the courier services. If close to 75% of customers prefer same day delivery, only 6% will pay extra for premium services.

The Czechs still prefer the conventional method of paying the couriers, with direct payment to the delivery personnel, at 38% of all online purchases. Furthermore, 29% preferred to pay when they pick up their products from a storage zone. Only 13% of all orders were paid online, using a credit card and 9% opted for bank transfers.