E-commerce continues to grow consistently: Statista has forecast that the revenue in this market will approach USD 3 billion in 2023. Players in the sector have no time to relax – the unstable geopolitical situation, ever-changing consumer expectations and the intensely competitive environment are encouraging businesses to look for more and more intelligent solutions that can guarantee a smooth and convenient shopping process, and a good consumer experience.
“The e-commerce sector has reached a stage where conventional solutions no longer guarantee good results. What is required are smart technologies, flexibility, continuous analyses of internal processes and their improvement, as well as assessments of the consumer expectations. Moreover, the ability to optimise operations and efficiently manage costs is having a much greater impact on success during this period of time than ever before,” noted Vytautas Romeika, Chief Marketing Officer of the Kesko Senukai Group.
Quality and a good price are not enough
According to Romeika, offering high-quality products and attractive prices is not enough. In order to stay competitive, an e-commerce business needs to create a multi-channel, personalised experience, and constantly analyse how they can make both the consumers shopping experience and their everyday lives easier. The growth of e-commerce has undoubtedly changed customers’ expectations – speed, convenience and personalisation are now the market standard.
“Consumers expect their shopping experience to be seamless and tailored specifically for them. It is important to emphasise that these expectations need to be met throughout the entire shopping cycle. This means not only during the search and presentation of the product, but also during the payment, delivery and return phases,” said Romeika.
Despite the numerous changes taking place in e-commerce, according to Romeika, the most important thing to keep in mind is to always offer customers the highest quality goods at a good price, and to maintain an extremely high standard of service.
“We also understand the importance of data. We use it to create personalised and new offers for our customers, as well as to find new ways and channels that can make our customers’ shopping experience and everyday lives easier,” added Romeika.
In what way do shoppers in the Baltic region differ from those in other European countries and the US?
Sanita Bērziņa, Country Manager of Venipak Latvia, noted that customers are focusing on fast and convenient deliveries more and more. She explained that after the surge in the demand for e-commerce services during the pandemic, there has been a slight slowdown this year. That is why e-commerce players are putting more effort into platform development and are focusing on the user experience and convenience.
“Ideally, the customer can choose the date and time of their delivery. We understand this need, and we are already developing IT and logistics solutions that will bring us closer to a more convenient customer services,” she said.
According to Bērziņa, the habits of consumers in Western Europe and the Baltic States are not the same, and there are some nuances and differences: “In the Baltic States, customers prefer to have parcels delivered to their home or to the nearest parcel machine, while in Western Europe the trend is for customers to collect their purchases themselves. In the Baltics, same-day delivery solutions are being considered, while in Europe and the US, shipments can be delivered no earlier than on the next day.”
As Bērziņa stated, there is a general trend in Latvia and worldwide to expand the number of parcel machines. Venipak has invested both time and resources in this area in Latvia, where 200 parcel machines have already been installed this year.
Personalisation, automation and artificial intelligence
According to Romeika, the main trends in e-commerce in the Baltic States will remain similar: the ability to process and use data, to automate operations, and to make processes – both internal ones and those related to suppliers and partners – more efficient, will continue to be the critical factors in business operations.
“Personalisation, quality assurance and keeping promises will have an increasing effect on attracting customers and encouraging loyalty. The geopolitical and economic situation is also likely to ensure businesses stay alert and flexible,” he said.
Romeika also noted that data analytics, process automation and artificial intelligence have become even more important in recent years: “The impact of these factors on business is likely to continue growing in the future, so only the companies that have adapted and mastered these tools will have an advantage in the market.”
The growing importance of sustainability
According to Bērziņa, the main challenge e-commerce players are facing today is to provide customers with convenient and accessible services: “Consumers will choose an e-commerce intermediary that can ensure a convenient shopping experience on a modern platform, a simple and transparent product range, and a fast delivery to the place and in the way that suits them. This year, we expanded the parcel market by increasing our network to include 200 parcel machines. Our priority is to continue providing a top-quality service, with 24-hour deliveries throughout the Baltic States, and to encourage customer feedback to highlight other areas for improvement.”
Romeika added that sustainability has become an increasingly important topic this decade. “Even though e-commerce services are naturally much eco-friendlier than shopping in physical stores, the expectations of consumers and partners, as well as our own expectations for sustainability are growing. We have dedicated staff who streamline our packaging standards, carefully select suppliers for various services and products, work with partners to improve the logistics chains, and develop and amend the company’s internal processes. It’s all about leaving as small a CO2 footprint as possible and contributing to a better environment,” he concluded.