The largest e-commerce platform in Poland
Allegro is currently the leader in the e-commerce market in Poland. It is ahead of such marketplaces as Amazon and China's AliExpress.So, what is behind Allegro's success? In its early days, Allegro was an auction platform where individuals listed products. Over time, Allegro changed its strategy, moving from a C2C platform to a B2C model and expanding its offerings through a mobile and fin-tech service.
Although the company is over 20 years old, it continues to grow. In 2022, Allegro Group's net revenue reached more than nine billion zloty, recording a year-on-year increase of more than 68 percent, while the number of active buyers exceeded 14 million.
Allegro's international expansion and growth is gaining momentum
With its sales model, Allegro survived a critical moment in the history of many companies in Poland - the COVID-19 pandemic. When the retail market was in lockdown, e-commerce was undergoing a revival. At that time, Allegro was recording sales increases. Taking advantage of the moment, it debuted on the Warsaw Stock Exchange in 2020, marking its largest IPO.In addition to the marketplace-type platform, the Allegro Group owns the leading price comparison site Ceneo.pl, and the eBilet service. Allegro has also expanded its logistics model by inviting the owner of more than 20,000 parcel machines in Poland, InPost.
In 2022, Allegro acquired the Mall Group and WE|DO CZ, which operate in Czechia, Slovakia, Hungary, Slovenia, and Croatia. Additionally, the company plans to enter the Slovakian market with the Allegro.sk platform in 2024.
Can Allegro withstand competition?
In 2021, Allegro.pl ranked among the world's most popular e-commerce platforms, with more than 197 million visits per month. Allegro is resisting Amazon, eBay, or the Shopee platform. The latter withdrew its operations from Poland after a year and a half of operation.Although Amazon launched a Polish platform in 2021 and China's AliExpress is building logistics centers in Poland, Allegro is the country's most popular e-commerce platform. It outclasses its competitors regarding the number of users, reach, and brand awareness.
Will Allegro manage to maintain its leadership position in the Polish market? Today, Allegro's position seems unthreatened, but Amazon's popularity is steadily growing, and AliExpress continues to compete on price with most online platforms in the Polish market.