Online marketplaces have been operating in Slovakia for over a year. However, unlike in foreign markets where they are an integral part of online shopping, they are facing greater challenges in gaining traction in Slovakia and the Czech Republic. Established local e-shops maintain a strong market position, supported by direct communication with customers. Nevertheless, local retailers view the entry of foreign e-commerce giants as an opportunity for growth and sales diversification. This was highlighted by Upgates, a company specializing in e-commerce platform development.
According to Upgates, while online marketplaces dominate e-commerce in Western Europe, the situation in Slovakia is different. Michal Benatzky, an e-commerce expert at Upgates, attributes this to the distinct approach of local entrepreneurs. „For instance, when a Polish retailer decides to start selling online, they typically opt for an online marketplace. However, in Slovakia and the Czech Republic, they are more likely to establish their own e-shop. Over the past year, online marketplaces have attempted to disrupt this habit with extensive marketing campaigns,” Benatzky explained.
Benatzky also noted that online marketplaces can serve as a valuable tool for Slovak e-shops seeking international expansion. Customers are drawn to marketplaces because they offer a wider product selection, often at lower prices. „Large international players benefit from economies of scale, allowing them to sell products at prices below the profitability threshold of local retailers. However, this could also present an opportunity for local e-commerce businesses,” he assessed.
He added that such platforms provide a cost-effective and simple way to test foreign markets. Local retailers can leverage insights from international giants to identify promising markets and products before launching their own independent e-shops.
One of the key challenges online marketplaces face in Slovakia and the Czech Republic is the personalized customer approach that local consumers are accustomed to. „Customers frequently report slow customer support and complicated complaint resolution processes. For instance, the platform Vinted has faced a growing number of complaints regarding its customer service. Another common issue is the language barrier, as foreign sellers often do not communicate in Slovak, leading to misunderstandings and delivery delays,” Benatzky added.
According to a survey conducted by Upgates, Slovak and Czech e-shop owners remain cautious about online marketplaces. „Around half of local retailers perceive online marketplaces as a potential threat, primarily due to pricing pressures. On the positive side, the other half does not see them as a concern, as they do not share the same target audience with international giants,” Benatzky concluded.
