6x faster than Polish e-com – shumee after Q3 2023
2023 has been a difficult time for e-commerce, due to the economic slowdown, significant cost increases and strong competition. Nevertheless, the Shumee platform is growing at a rate of nearly 60% y/y after Q3 2023 – which means that we are growing 3x faster than the European cross-border market and 6x faster than the Polish e-com (estimated growth in Poland is approximately 10% y/y).
PLN 50 million in revenue and PLN 110,000. transactions
After the Q3 we have generated approximately PLN 50 million in revenue, serving over 110,000 transactions.
Strength in CEE
Approximately 70% of our sales are to the markets of Central and Eastern Europe: The Czech Republic, Slovakia, Hungary, Slovenia, Poland, Lithuania, Latvia and Estonia. On these markets, we sell through the largest local marketplace platforms, such as: Alza, Mall, Aukro, Allegro and Pigu. We are one of the largest Polish sellers on these platforms. We have a great advantage by working through our cross-dock warehouses, thanks to which we are optimizing delivery costs and can adapt to the logistic requirements of the Alza platform or the Mall delivery service.
In Q3, we launched our sales on the Skroutz platform in Greece (great potential), BigBang in Slovenia and Rakuten in France.
New Partners in 2023
These include: Adler, Vershold, AutoPartner, Coffedesk, BauerFitness. We regularly sell over 1 million products on auctions from all shopping categories.
MaaS and the use of AI
As part of building the target Merchant as a Service solution, we are currently working on the Central Product Database, i.e., a backend for automating product management processes from one place (translations, mapping categories and parameters, updating prices and stock levels, defining multipliers and delivery costs, product imports on platforms). We are also successfully using AI to automate these processes on an increasingly large scale.
Recent months have also seen very intensive work on the implementation and business servicing of www.velomarket.pl – a green, innovative marketplace platform with eco-products. Currently, merchants interested in selling on this platform can use the full Baselinker integration and enjoy Shumee’s business and technical support as part of the registration, KYC and product on-boarding processes. After the implementation phase and the first optimizations, the platform is being prepared for intensive marketing and sales activities.
In the last quarter of this year we want to take advantage of the best season in e-com and additionally start selling on the Trendyol platform in Germany, Heureka in the Czech Republic and Kaufland Czech Republic/Slovakia. As part of the strategic partnership with Zalando, we will expand sales to new markets: France, the Netherlands, Belgium, and Switzerland. We have also planned to return to the Ukrainian market through the marketplace belonging to Nowa Poczta – the largest logistics operator in Ukraine.
Despite the e-com slowdown in many European markets, our focus on the development of pan-European sales is bringing good results at the business and financial level.
Netflix for merchants
Our platform provides added value to manufacturers and distributors interested in foreign sales on European markets, solving the problem of complexity and the need to arrange all key elements of the e-com value chain (technology and integration, translations and product display, multilingual customer service, cross-border logistics) in each market individually. Our long-term goal is to launch a fully automatic Merchant as a Service model for merchants to start and scale cross-border sales.