Breaking News
0
Ad-Free Version. Subscribe now to follow markets, faster and distraction-free. More details

Battle for Poland’s $19 Billion E-Commerce Market Begins For Real With Amazon Entry

Stock MarketsJan 27, 2021 14:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

(Bloomberg) -- A battle for the control of Poland’s booming $19 billion online shopping market is about to reach a fever pitch after Amazon (NASDAQ:AMZN) Inc. said it plans to launch in the European Union’s largest eastern economy.

Shares in the country’s dominant e-commerce company Allegro SA slumped the most in more than a month after the U.S. retail giant announced on Wednesday it started registering local sellers for its Polish website planned to launch soon. The company is already running 10 fulfillment centers in Poland that process European deliveries, but hasn’t been present on the local market.

Amazon’s arrival is a direct threat to Allegro, which has ridden an unprecedented boom in online sales, which only accelerate after many Poles were confined to work from home because of the pandemic. The Polish platform, which has seen its shares almost double since its Warsaw debut in October, controls more than 36% of the market thanks to its strong consumer base and fast deliveries.

“Amazon’s entry exposes Allegro to a significant competition risk, challenging the view that the company may further boost its market share and raise margins,” said MBank SA analyst Pawel Szpigiel. “Even as Amazon fees may be higher, merchants will get fulfillment and packaging services and access to global shoppers, which will be its advantage.”

Allegro, whose shares were trading 6.9% lower at 70.41 zloty after dropping as much as 7.9% earlier, had no immediate comment when contacted by Bloomberg.

More Rivals

Amazon’s move comes only a week after Alibaba (NYSE:BABA) Group Holding Ltd.’s announced plans to invest in parcel lockers in Poland to speed up delivery from Chinese merchants selling goods via its AliExpress platform. Global e-commerce operators bet that a lower share of online sales in Poland will quickly converge to levels seen in Western economies.

The announcement also coincides with a market debut of InPost SA, the country’s top logistic provider that cooperates closely with Allegro. Its stock soared in Amsterdam trading after its owners raised 2.8 billion euros ($3.4 billion) in Europe’s biggest initial public offering since 2018 amid an online shopping boom that’s driving up demand for the company’s automated parcel lockers.

MBank’s Szpigiel said that Amazon’s decision may further solidify InPost’s business model, as it confirms a high interest in Poland’s e-commerce and may boost its volumes. InPost Chief Executive Rafal Brzoska predicts that in the next five, six or seven years the nation’s retail market could split evenly between a traditional brick-and-mortar model and online shopping, he said in an interview with Bloomberg TV on Wednesday.

“A full retail offer for Polish consumers is our next step and it’s now the time for doing it,” Alex Ootes, Amazon’s Vice President for European Union expansion, said in an email.

©2021 Bloomberg L.P.

 

Battle for Poland’s $19 Billion E-Commerce Market Begins For Real With Amazon Entry
 

Related Articles

Rocket Shares Fall Back to Earth on High Volatility
Rocket Shares Fall Back to Earth on High Volatility By Investing.com - Mar 03, 2021

By Liz Moyer Investing.com -- Rocket Companies Inc (NYSE:RKT) shares tumbled 27% after a wild ride this week, and at least one analyst is throwing up the caution sign. The consumer...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email