Are you ready to tap into one of the world’s most rapidly growing eCommerce markets? In this episode, Bartek Makuch, a key player in the PHH Group, reveals the secrets behind their explosive growth across the Baltics and Finland.
With over 3,000 vendors and a fiercely loyal market, there’s no better time to expand your eCommerce operations into this lucrative region. Bartek shares invaluable insights on navigating the complexities of multiple languages, strict regulations, and the importance of going all in when entering a new market. Whether you’re a seasoned seller or just starting, this episode is packed with actionable strategies that could redefine your global expansion plans.
About
Bartek Makuch is a builder at heart, passionate about driving innovation and excellence in the fast-paced tech landscape. Known for his “can-do” attitude, Bartek thrives on challenging the status quo and asking the right questions to push boundaries. He brings a unique approach to every project, going beyond the job description to deliver exceptional results. His reputation for turning challenging projects into reality speaks volumes about his commitment and work ethic.
With a solid background as a seasoned venture capital professional, Bartek has a keen eye for identifying overlooked opportunities. He is proficient in SQL, Python, and R, which he leverages for data analysis and informed decision-making. Bartek’s experience and skills make him a formidable force in the tech and eCommerce industries, where he continues to drive growth and innovation.
PHH Group, formed in 2021 through the merger of Pigu Group and Hobby Hall, has quickly established itself as the largest online 1P/3P platform in the Baltics and Finland. As a market leader, PHH Group is committed to being the number one choice for buyers and the best partner for online businesses and sellers. With a clear mission and ambitious goals, the company is transforming the online shopping experience across the region.
Operating in Lithuania, Latvia, Estonia, and Finland, PHH Group owns and manages leading marketplaces and e-shops, including Pigu.lt, 220.lv, Kaup24.ee, and HobbyHall.fi. With over 3,000 European sellers and a loyal customer base, PHH Group’s platforms are the go-to destinations for online shopping in these markets. Additionally, PHH Group owns 16 physical stores, which also serve as convenient pickup points, with 45% of customers choosing in-store pickup as their preferred delivery method.
The Key Takeaways
The Untapped Potential of the Baltic Market
- The Baltic eCommerce market is growing at a staggering 60% year-over-year.
- Despite its rapid growth, the market remains less competitive, offering a prime opportunity for new sellers.
Why Amazon Struggles in the Baltics
- Different languages and strict consumer regulations make the Baltics a tough market for Amazon.
- Local marketplaces have established strong brand recognition, making it difficult for Amazon to gain a foothold.
Opening Doors to International Sellers
- PHH Group is now ready to support international sellers with new infrastructure, including API and logistics solutions.
- Hundreds of international sellers have already started capitalizing on this opportunity, particularly from neighboring countries like Poland.
Challenges for Sellers Expanding into New Markets
- Sellers must navigate legal requirements, language barriers, and logistics to succeed in new regions.
- Understanding local consumer behavior is crucial for setting competitive prices and building trust.
Customer-Centric Approach: A Winning Strategy
- PHH Group provides local customer support in all languages, reducing the burden on sellers and increasing customer loyalty.
- This approach helps prevent customer churn, which is costly and difficult to reverse once trust is lost.
Go All In or Don’t Go at All
- Sellers who fully commit to a new market, with proper translations and market research, see the most success.
- Half-hearted efforts often lead to poor results, reinforcing the importance of a well-executed entry strategy.
The Future of eCommerce: AI and Hyper-Personalization
- AI will revolutionize online shopping, offering hyper-personalized experiences for each customer.
- Expect to see more AI-driven features, such as personal shopping assistants and dynamic pricing, becoming mainstream.
Success Stories: From Zero to Hero
- International sellers have achieved impressive growth, with some reaching €60-70k monthly in just a few months.
- Local sellers, too, have transformed their businesses by expanding their product ranges and tapping into new customer bases.
Subscribe & Follow
Don’t miss out on future episodes filled with practical advice for growing your eCommerce business. Subscribe to the eCom Ops Podcast and stay ahead of the curve.
The No.1 eCom Operations hack
“Successful businesses try to make their customers loyal customers, retain them by offering personalized promotions, asking and coming back with special offers, remembering that, okay, this buyer bought a product a couple of months ago. Well, the product is probably already running out, in case it is some product that wears off after a certain period of time.”
