One or two years and you can come to the Hungarian Amazon

Following the capture of larger markets, Amazon began networking with smaller countries with typically lower purchasing power in Europe and worldwide. According to experts, all this can be a huge challenge for Hungarian e-merchants, as the question is no longer whether the world’s largest e-merchant will come to Hungary, but when.

Although Amazon’s larger national web stores have largely delivered to Hungary so far, the webshop has not been able to become a serious factor in smaller Eastern European markets such as Hungary. The primary reason for this is that the sales interface and customer service have not been localized, ie the product descriptions are in a foreign language, just as the webshop does not communicate in Hungarian during the purchase process and during possible customer service inquiries.

The ice broke in March this year when Amazon launched its first web store localized in an Eastern European country in Poland, where Allegro, the gun of the local market, is also working on international expansion. In addition, the Polish Amazon is developing extremely spectacularly: the full Amazon Prime subscription, which costs PLN 49 per month, has become available to local shoppers since Tuesday, packing Amazon’s online video streaming platform with a number of discounted shopping options (free shipping, Amazon Prime Day, etc. ).

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According to László Szabó, an online growth expert of the digital marketing agency Growww, Amazon is expected to enter the Hungarian market within a year or two, which means that Hungarian merchants have at most two to three years to prepare, as even such a giant needs a years before he despises his foothold in the market.

According to the expert, the idea is that if Amazon comes, why shouldn’t domestic businesses sell on it, even by accessing global markets? In principle, this is possible, but in practice it is hampered by a number of obstacles, Szabó points out. The costs of an effective presence are so high that only the most prepared actors can meet them.

Prerequisites are advanced customer service and short delivery times, the provision of which is a significant cost in itself. Competitive price is also an essential condition for success in the international field. At the same time, advertising costs within Amazon and commissions paid on sales are high. Together, these costs reach 35 percent of the consumer price, but up to 60 percent at start-up.


Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.

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