Driven by the dynamic expansion of e-commerce sales in Poland, almost all retailers in the country plan aim to offer same-day deliveries by 2025. That’s according to a new study by FM Logistic on the omnichannel market. However, traditional trade is not yielding easily.
According to the report “Supply Chain: Providing the Best Customer Experience,” traditional sales still dominate, but the online trade segment is growing dynamically. The report also reveals that an overwhelming 99% of respondents aspire to provide same-day deliveries within a year, a significant jump from the current 35%.
Moreover, a substantial 87% of the surveyed companies reported that over 60% of their sales volume comes from traditional channels, underscoring that, despite the rapid growth of online trade since the pandemic outbreak, traditional trade remains the cornerstone of the retail industry. 87% of respondents also noted an increase in online orders since the pandemic began.
“An integrated supply chain that combines B2B and B2C distribution can lead to increased operational efficiency, reduced costs, optimised inventory management, and many other benefits,” the report’s authors conclude.
The main drivers for the development of e-commerce include a wide range of delivery options (67% of responses) and greater internet access (59%).
Other factors like various payment methods, the growing number of young consumers, and the availability of trade at any time are also highly significant.
Omnichannel already available to half of retailers
This surge in e-commerce popularity has heightened the importance of omnichannel logistics. According to the report’s authors, an integrated supply chain enables companies to streamline operations, reduce unnecessary processes, and optimise the flow of goods from suppliers to end customers. The resultant efficiency can lead to lower costs and better resource utilisation.
Already, 56% of surveyed companies have fully integrated omnichannel supply chains in both online and offline sales, while only 12% maintain separate supply chains. The primary motivation for integrating supply chains is primarily cost reduction related to logistics and operational expenses.
Notably, 46% of surveyed companies cited high logistics costs and warehouse shortages as influential factors in their decision to implement an omnichannel supply chain. Other significant factors include ineffective returns policies (44% of responses) and inaccurate demand planning.
The most frequently mentioned benefits include better customer service (62% of responses), more efficient inventory management (60%), greater operational efficiency and flexibility (48%), and a competitive advantage (44%).
Employees, data and technology
However, before the benefits of implementation can be realised, companies face several challenges related to supply chain transformation. As much as 49% of companies indicate that the biggest challenge is hiring and training necessary employees.
Other hurdles include managing data (44%), streamlining order fulfillment processes (36%), and integrating analytics and technology (28%).
External assistance sought
Perceiving the implementation of omnichannel solutions as complex, most companies seek external assistance. They expect external partners to support them in integrating IT systems, ensuring smooth data synchronisation, and implementing efficient operational processes, as well as increasing the speed and accuracy of deliveries.
The survey included 105 respondents from the consumer goods sector (36 companies), retail sales (49 companies), and the beauty and luxury products industry (20 companies), with participants from India (37 entities), France (36), and Poland (32).
Online shopping slowing down
Despite dynamic growth in online trade reported by companies surveyed by FM Logistic, the e-Shopper 2023 Barometer study indicates that the proportion of Poles shopping online decreased last year.
In 2023, 72% of Poles made online purchases, down by 5% points from the previous year. During the peak of the pandemic-driven e-commerce boom in 2021, this figure was as high as 79%.
“However, this trend should not cause concern as the share of regular e-customers remains stable; for about half of the e-consumers, online shopping is a regular practice. After recent events, the e-commerce market appears to be stabilizing, and there is no indication that this form of shopping will lose its relevance,” comments Maksymilian Pawłowski from DPD Polska.
Polish e-shopper faithful to online shopping
Although the percentage of online shoppers in Poland is decreasing, the average Polish e-shopper is more devoted to online shopping than their Western counterparts.
As much as 66% of Poles believe they can buy everything they need online, compared to the European average of 55%. Regular online shoppers account for 91% of transactions in Poland, higher than the European average of 86%.
Online inflation
The behavior of e-consumers shows the significant influence of recently receding inflation. The group of e-shoppers for whom price had the greatest impact on purchase decisions grew—they constituted 65% of online buyers. Interestingly, even the most enthusiastic online traders consider price important when making purchases.
“However, according to regular e-shoppers from Poland, online shopping allows them to save money—a conviction held by 71% of them, compared to 65% in Europe,” notes Maksymilian Pawłowski.
The inflationary pressure on consumers’ wallets also meant that 8 out of 10 regular internet users in Poland made purchases on C2C platforms in 2023. Almost 4 out of 10 of them admitted that they increased this type of purchase last year.
Regular users of e-commerce platforms in Poland are also more likely than their European counterparts to purchase second-hand items (81% compared to 72%).
According to the DPD Polska survey, the most popular delivery method among Polish consumers is parcel machines (68 % of responses), whereas in Europe, home deliveries dominate (76%).
Overall, Poles prefer to receive ordered goods away from home much more than other Europeans. In Poland, as many as 79% of regular e-consumers prefer this method, compared to the European average of 44%. This is promising news for companies investing in the development of omnichannel solutions.