In the previous two years, 9 out of 10 newly established e-shops remained on the market, only a tenth do not work. Czechs with an entrepreneurial spirit were not idle even in the summer, between June and September they most often set up e-shops with clothes and fashion accessories. The share of food vendors, who mostly offer their own homemade products, has increased slightly. On the contrary, the growth of online electronics stores slowed down by two-thirds. This follows from the data of the company Upgates, a leading supplier of e-shop solutions.
In the last two years, 9 out of 10 newly established online stores have survived, according to the analysis of the e-shop provider Upgates. Most of them occurred from autumn 2020 to spring 2021, with the strongest month being January last year. Of course, the lion’s share of this was due to the measures connected with the pandemic. “In the Czech Republic, there are the most e-shops per inhabitant in the region, around 45,000 of them operate here. Their owners are rewarded for their diligence and consistency in various marketing channels, and such shops then have a chance of success. On the contrary, the most common reason for closing an e-shop is a smaller than expected sales and difficulties with suppliers,” explains Martin Pech, Upgates’ sales director. E-commerce is thriving here, and according to the latest study by a consulting company McKinsey its share in total trade reaches 18%.
The fashion offer is growing the fastest
Clothes or fashion accessories are sold by 3 out of 10 e-shops established this summer. In the previous year, this ratio was only 17%. “The launch of the e-shop took a lot of time from the point of view of negotiations with suppliers or warehouse management. That’s why we started it already in the summer, to take advantage of the opportunity to grow, especially in the run-up to Christmas. This will traditionally be demanding, especially logistically, and that’s why we’re preparing for it now, ” says Nicholas Nazarčuk from the lelio.cz e-shop, which specializes in women’s handbags.
Similarly, Šárka Kubalová, the founder of the e-shop with motivational diaries Zotes.cz, is also thinking about the upcoming holidays: “Especially the end of the year is crucial for the goods from our assortment, that is why we launched the e-shop already in the summer so that we have enough time to prepare everything. we are currently stocking up and gradually adding more items.”
Food also connects via the Internet
Czechs are also starting to sell home-made dishes and snacks, such as coffee, wine, sauces and dried meat. Compared to last year’s holidays, the number of new e-shops with food and drinks even increased by 100%. In total, these sellers represent a tenth of the newly created stores. “The main reason for the increase in the number of e-shops in this category is above all current trends, when people are increasingly looking for honest home-made products. For various small manufacturers, the Internet together with partner brick-and-mortar stores is the ideal sales channel,” comments Martin Pech.
There are not many electronics sellers
On the other hand, the growth of electronics retailers slowed down significantly. While last year the share of new e-shops in this category was 15%, this year they are only 5%. “The main reason for the decline in the number of e-shops with electronics is primarily the fact that it is an extremely competitive industry, which is currently firmly in the hands of the big e-commerce players. It is therefore very difficult to succeed in this area,” concludes Martin Pech.
Source: Tyden.cz by www.tyden.cz.
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