Bulgarian E-commerce Association (BEA) announces its 6th consecutive edition "PASSPORT 2023 of the e-commerce industry in Bulgaria" with numbers, trends, volume of the B2C (business to end user) market and ranking of online stores in Bulgaria, based on surveys and research conducted by BEA and the results of the European Ecommerce Report 2023. This year's edition is supported by SEO agency Serpact and is available for free use at https://passport.beabg.com.
In 2023 B2C internet sales up 19% year-on-year and exceeded $1.95 billion. in Bulgaria (Figure 1). For comparison, in 2019 the market volume was 0.97 billion euro. Over a period of 4 years, the market volume has doubled. E-commerce and the digitalization of retail and wholesale are fundamentally changing the sector, creating new business opportunities and models, new jobs, new forms of interaction with consumers and attracting investment. BEA's expectations for 2024 are for a smooth double-digit growth compared to 2023, with the B2C e-commerce market continuing to grow, innovate and develop.
Fig. 1 Volume of the B2C e-commerce market in Bulgaria, billions euro
Source: BEA "Passport of the e-commerce industry in Bulgaria 2023" * Forecast data for 2023
At present, the ratio of the volume of B2C e-commerce in Bulgaria to the gross domestic product of the country (e-GDP) is 2.11%. In Europe, the e-GDP parameter is on average between 4 and 5%, in Greece - 7.9%, in Romania - 3.11%. Forecasts show that the Bulgarian online market in the next 3-5 years will have great potential for development.
The largest percentage 94.4% of online shoppers have purchased goods and / or services from Bulgarian online stores, 32% - from online stores in European Union countries, 18% - outside the EU.
Data from a BEA survey conducted in September and October 2023 with a coverage of over 4.5 million online orders shows a tendency to increase contactless deliveries to a courier locker, click & collect (order online with collection from a physical store), an increase in bank and mobile payments and the "Buy Now Pay Later" model of payment for online orders.
User satisfaction
Online shopping has a high level of security and gives consumers more rights, such as to return the order within 14 days of receiving it without giving a reason, and to be refunded the money in the same way it was paid, within 14 days in case of exercising the right of withdrawal. A BEA survey of 4,547,840 online orders showed that 8.63% of all online orders had used their right of withdrawal within 14 days.
In 2024, BEA will introduce the TRUSTMARK on the Bulgarian market, which provides even better protection for consumers and traders by establishing a single European set of rules and criteria for independent third-party audit (152 criteria for Bulgaria in 13 categories) and ensuring clear communication of these rules. TRUSTMARK certified stores will be maintained in a public online register.
Trends and potential for development
There is a trend for growth of e-commerce "Direct-to-Consumer" among brands, as well as "subscription" models in Bulgaria, mainly in the FMCG sector. Online sales are made in many ways, opening up larger niches for brands to sell directly to consumers online.
The trend driving green consumerism is the emergence of Millennials (Generation Y) as a stable group of buyers interested in environmentally friendly products. This demand for green products is driving e-commerce companies to adopt eco-friendly practices and ensure increased purchases among millennials. A recent survey found that 51% of consumers are willing to pay a higher price for a product from a socially oriented business.
Conclusion
The e-commerce industry is changing rapidly every year. This means that businesses need to closely monitor trends and developments. Online businesses that track and follow the "next best thing" can evolve and adopt new growth models.
The most important trends in the world that will shape the direction of development of e-commerce in Bulgaria
Artificial Intelligence (AI)
AI tools occupy a central role in e-commerce platforms. Machine learning and artificial intelligence software enables online businesses to deliver a great personalized user experience to visitors, helping them build a loyal customer base.
Zendesk research confirms that by tailoring the specific needs and desires of each customer, e-commerce brands can deliver personalized shopping that drives revenue. Nearly 80% of leaders say that deep personalization leads to better customer retention, and 66% say it leads to lower customer acquisition costs. And nearly 60% of consumers want brands to collect data and use it to personalize their experiences.
AI Customizes Chatbots
Chatbots can help businesses interact with visitors in real time and also convert leads. With AI (hello ChatGPT!) this technology becomes more advanced and targeted, allowing e-commerce companies to discover what potential customers are looking for on the website and direct them to the information or products. According to a Gartner report, by 2027, nearly a quarter of businesses worldwide will use live chatbots to provide customer service.
Q-Commerce
This term has become popular in recent years when businesses around the world have been hit by the COVID-19 pandemic. Q-commerce (fast trading) is the next best thing in online business. It focuses on improving the customer experience by ensuring fast delivery of food or other products. People expect to get everything in less than an hour. Businesses can partner with a delivery service and automate their processes to transition to Q-Commerce.
Virtual experience in Metaverse
The metaverse has become one of the biggest trends in the digital world. Businesses use a variety of tools to reach the younger demographic and generate higher sales by integrating VR (virtual reality) and AR (augmented reality). Established brands actively leverage the platforms and communities in the metaverse and use technology to improve the customer experience and help people make well-informed decisions.
Visual Search
Visual search is mostly used by Generation Z and Millennials to find products and locate websites. With tools like Google Lens, it has become much easier for users to search for an item they like. Image search allows users to take a picture of a product up close and gain access to the online store that sells it. When the visual search feature is included in various apps and websites, users can be persuaded to make a purchase immediately. This feature can have a huge impact on sales and revenue in e-commerce.
