Interview with Shakhil Shah and Allegro Marketplace

To delve deeper into the dynamics of this thriving marketplace, we sat down with Shakhil Shah, to discuss Allegro's operations and strategies. From customer demographics to seller insights, Shakhil offers valuable insights into Allegro's journey and its future prospects.

Allegro is a popular eCommerce platform in Poland. Could you share some insights into your customer base, including their demographics and shopping behaviors?

Allegro has traditionally dominated the Polish market, boasting an impressive customer base of 19 million active buyers in the region.

With the recent expansion to allegro.com and Allegro.cz, our platform has become accessible to buyers and merchants across the EU. We've observed over 20 million visits per month, reflecting the platform's widespread appeal and consumer engagement.

What types of products or sellers tend to perform best on Allegro, and are there any specific categories where you've seen exceptional growth?

Our platform covers 14 categories, with Consumer Electronics, Home & Garden, Fashion, Automotive, and Kids emerging as top performers.

Allegro is the primary consumer touchpoint when buying online in Poland. Over 400m attractively priced offers from more than 140k merchants converted into GMV from Polish operations growing by 10.5% YoY in Q3. This is significantly faster than the country’s overall nominal retail sales, with over one-third of the GMV growth coming from high-frequency categories like Supermarket and Health & Beauty.

However, notable growth has been witnessed in Health & Beauty and Supermarket categories, especially in pet products.

Allegro's value proposition resonates with consumers seeking convenience and competitive prices, driving substantial year-on-year growth in key segments.

Are there any specific categories where Allegro has exclusive offers? What are your categories with the strongest seller and consumer base?

While categories like Consumer Electronics and Home & Garden traditionally attract strong seller and consumer bases, we're constantly exploring opportunities for exclusivity across various segments.

Health & Beauty presents significant growth potential, aligning with evolving consumer preferences and market trends.

For new sellers looking to get started on Allegro, what are the key steps and requirements they need to meet before listing products?

Getting started on Allegro involves creating an account and understanding the platform setup. We provide comprehensive resources, including registration guides and Allegro Academy courses, to facilitate a seamless onboarding process.

Additionally, sellers must ensure competitive pricing, reasonable delivery costs, and efficient delivery times to optimize their listings' performance.

It's also worth noting that Allegro is more than just a marketplace to its consumers, it is also used as a product search engine, 34% of online shoppers in Poland begin their product search on Allegro compared to 26% using Google, however, what's interesting here is the conversions to sales, of the 26% using Google, 49% end up completing their purchase on Allegro.

Can you give a few examples of common mistakes/pitfalls in the product data that sellers share with Allegro?

International sellers often grapple with challenges such as uncompetitive delivery prices or lengthy delivery times, which can deter potential buyers.

It's essential for sellers to conduct thorough market research, optimize product data, and leverage Allegro's promotional tools to enhance visibility and sales, that said there are ways to improve this by becoming a SMART! seller and or using the One Fulfillment service by Allegro.

In addition to the above, while we do not make recommendations on how to price products on the platform, it is always worth looking at what competitors are selling the same product for, this is where its important to do research on similar products being sold on the platform and look at ways where you as a seller can offer added value to the customer.

Finally, creating visibility is imperative to success, promoting, advertising and taking part in the various sales campaigns will help you grow your business.

Can you tell us about any promotional tools or features that Allegro offers to help sellers increase their visibility and boost sales?

Allegro provides a diverse array of promotional tools, including participation in sales campaigns like SMART! Week and Black Weeks, along with self-service marketing and advertising options.

Other than sales campaigns, we have various marketing and advertising tools available, most of these are accessible through the self-service tool on the platform. More information about the specific tools can be found on the Allegro Ads Page.

These tools empower sellers to effectively showcase their products and capitalize on seasonal and promotional opportunities.

Finally, how does Allegro plan to stay competitive and evolve in the ever-changing eCommerce landscape, and what opportunities can sellers look forward to in the future?

Allegro remains committed to expanding its presence across Central Europe, with upcoming launches in Slovakia, Hungary, Slovenia, and Croatia.

By delivering a compelling value proposition and fostering innovation, we aim to cement Allegro's position as the preferred destination for online shopping in the region.

Sellers can anticipate continued growth opportunities and a dynamic marketplace environment conducive to success.

It’s our aim that, by the end of 2024, shoppers all over Central Europe will be choosing their Christmas gifts on Allegro - Roy Perticucci, Allegro CEO, stated in the Q3 results press release.

Shakhil Shah has provided valuable insights into the value of Allegro, Poland's leading eCommerce platform, and its growth journey.

With a keen understanding of customer behaviors, a diverse array of product categories, and a commitment to empowering sellers, Allegro may be the next channel needed in your multichannel mix.

Check out more on you can get selling on Allegro with Channable today.