200 million (!) – that's how many listings are expected to reach on Allegro by the end of 2020, according to the company's goals, and the number of sellers has already exceeded 140. Are you considering using this sales channel? It could be a good solution. Why is it profitable to be on Allegro and how can you do business there? Learn more about how to set up an online store on Allegro.
Genesis
The Allegro portal was founded in 1999. Yes! Over 20 years have passed since its inception. However, initially, the site's activities focused on private online auctions – items were listed primarily by individual users and sold via auction. And while you can still buy products using this model today, Allegro's profile has changed. Today, it's an advanced sales platform where users can buy almost anything they desire . New and used goods, from Poland and abroad, in almost any category imaginable.
Advantages of Allegro from the seller's perspective
- Allegro has a total of over 20 million registered users.
Of course, this doesn't mean that every single one of them is an active customer. Nevertheless, such a large customer base, who treat this portal as their primary source for online shopping , carries HUGE sales potential.
- The portal is recognizable and trustworthy
By choosing to sell on Allegro, you don't have to invest in building your own recognizable brand (which has its pros and cons). Although you sell on the platform from your own store (and its reputation matters), the most important thing is that you sell under the Allegro banner. This can make it easier for you to acquire customers, especially at the beginning of your business.
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Starting to sell on Allegro doesn't involve high costs. Setting up a company store is free, and the registration process is quick. Of course, you should be aware that to make your offer attractive and VISIBLE to customers, you'll need to spend money, such as on quality product descriptions, product presentation templates, and advertising on the portal, i.e., Allegro Ads . However, running a business on Allegro doesn't mean you have to invest a huge sum right from the start.
- Easy integration with your order processing system/online store
Whether you run a separate online store under your own domain or use only CRM software, you can integrate these systems with the appropriate plugin. Allegro also offers technical support in this area, which is also a great convenience.
- It will be easy for you to find the right niche
This is a significant advantage, especially for those new to e-commerce, who are wondering what products to sell. A quick Allegro search will allow you to assess which market niches have less competition – this could be a clue that will help you get started.
It'll also be easier for you to change industries on Allegro – as mentioned, you're still selling under the portal's banner. So if, after a while, you decide you want to completely change your product range, it'll be easier here.
- This is a good place to start
Selling on Allegro can be a prelude to starting your own online store . It's a chance to research market trends, explore interest in your products, and learn the ins and outs of running an online business.
For these reasons, among others, the number of companies that decide to join Allegro is growing every year.
Remember: selling on Allegro doesn't preclude running a standard online store. Quite the opposite. You can integrate customer service across these two channels. E-commerce platforms operating in a SaaS model, among others, offer bidirectional support for Allegro and an online store. These platforms offer, for example, the ability to automatically list new products on the portal or access all orders received by the store in one place.
What are the disadvantages of selling on Allegro?
No e-commerce solution is without its flaws. That's obvious. But what challenges face those who want to distribute through Allegro?
140 sellers, including over 100 small and medium-sized businesses, distribute on Allegro. These numbers, on the one hand, command enormous respect, but on the other… they can be a bit frightening. Why? Because… you might be wondering how to stand out in such a sea of offers? It's certainly not easy, especially without investing in promotion on the portal.
- Price is the most important factor
Think about how you search for offers on Allegro? It's obvious that you use the "sort by price" option. People are usually looking for more or less specific items on this platform, so the cost of purchasing them is paramount for the customer. Shipping costs will also be important, especially since the portal launched its Allegro Smart service. Under this service, buyers pay an annual subscription fee for deliveries and are then more likely to choose offers with free shipping. The reputation and responsiveness of a given seller are also important. We can spend a few zlotys more if there's a significant difference in the reliability of two stores offering the same product. However, remember – price on Allegro is a key advantage in many industries.
- Limited opportunities to build your own brand
While it's not uncommon for customers to return to the same online store on Allegro more than once, they most often choose the seller who happens to have what they need, at the best price, and with the fastest shipping. Therefore, selling on Allegro can make it harder for you to build long-term relationships with customers and expect them to return regularly or recommend your services to their friends. By investing in advertising and commissions on Allegro, you increase your sales volume, but completely ignore your brand. This could prove crucial in the long run.
Although starting to sell on Allegro is relatively inexpensive, you should expect high commissions on successful transactions. How much are they exactly? It depends on the product category you're selling, but commissions currently range from 2% to 16% , so they can be quite high. For example, handicrafts, erotic accessories, sports towels, and children's products are subject to rates in the high teens. This—especially considering the importance of low prices on Allegro—means you're either destined for lower profits or you might struggle to compete with the big players.
- Small promotional opportunities
Allegro, of course, allows you to distinguish offers from others – so they appear above the rest. However, the same options are available for all stores. As a result, your promoted offer (for which you'll pay dearly) is displayed alongside dozens, sometimes dozens, of others. Therefore, to stand out here, you need to find your own way or… enlist the help of experts who can develop the right strategy. You also have access to Allegro's internal advertising system, which allows you to embed banners within the site, targeting users who may be potentially interested in your products or prone to impulse purchases.
Sales on Allegro and your own online store
A good solution, used by most entrepreneurs selling on Allegro, is to combine their presence on the portal with running their own store . By using this solution:
- you increase the number of "touchpoints" with the customer - you reach him both on Allegro and in your store,
- You gain broader promotional opportunities – you can implement an appropriate marketing strategy for your external store, for example, using remarketing, sponsored links, or social media promotions. This allows you to start building a brand that will eventually become recognized on Allegro, too.
- Can you show customers on Allegro that you also sell outside the portal – perhaps they will decide to buy directly from the store again, which will allow you to avoid commissions and increase your margin?
The only thing that needs to be taken care of is the precise integration of the sales system – the easiest way to do this is by using the most popular e-commerce platforms, such as WooCommerce in the open-source version or Shoplo – using the SaaS model.
How to set up an online store on Allegro step by step?
So you know you want to set up an online store on Allegro? It's time to get started.
First and foremost: create a business account, not a regular one . Why? Because it gives you significantly more options. Allegro itself outlines the differences between account types.
A full description of the differences between a private and business account can be found at this link.
Let's take a closer look. As you can see, a business account:
- gives you the option to enter an administrator who is not also the owner – this is a good solution in companies where it is not the owner but the employee who handles the sales process,
- makes the customer clearly see the word "company" next to your details as a seller – this is important because such information builds trust and presents you as a more reliable partner than a private person,
- you gain immediate access to your invoice account – this makes it easier for you to settle accounts with customers and issue the necessary sales documents,
- gives you the opportunity to obtain Super Seller status – this title, obtained by meeting the so-called Allegro standard, is another element that increases your credibility for the portal's customers.
It is also worth remembering that if you have a business account, you can join the Allegro Smart program , which guarantees customers free shipping of goods via specific channels.
How do I set up a business account?
- Go to the Allegro registration page
Select the "company" option there. At this stage, you'll be required to provide an email address (preferably a general business address or one that will be assigned to Allegro orders) and a login. Note: Your login is visible to buyers and cannot be changed later . Since this will be your business card on Allegro, it's best if it's simply your company name or the domain name of an existing online store.
In the registration form, you also create a password for your account (which can be changed later) and provide your phone number. It's a good idea to choose one that will be easily accessible to the Allegro sales staff.
Additionally, we need your company details: you provide your country and tax identification number (NIP). Allegro automatically downloads the remaining data from the Central Statistical Office, allowing you to make any necessary corrections.
Allegro registration form when setting up a company account.
- Confirm your registration by clicking on the activation email
An activation email will be sent to the email address provided in the registration form within a few minutes. Click to confirm your account creation.
- Get verified
Business accounts are additionally verified to ensure customer security. Therefore, you'll be asked to transfer approximately 1 PLN from your business account . This amount will be refunded to you or credited to your Allegro account for future commissions to ensure data integrity.
In most cases, the registration process will end at this stage. However, in some cases, you may be asked to submit additional documents – for example, if your company operates within the Academic Business Incubator or the Your Startup project.
Once you have completed these steps, you can start selling on Allegro.
But that's not all. Now there's another option waiting for you: setting up a store on Allegro.
- Set up a store on Allegro
Creating a business account is the first step. The second is setting up a product store. How does this differ from running a "regular" store? You'll be able to create a landing page that presents your offerings in a more engaging way.
The "Shop" tab will include, among others:
- your company logo – maybe the logo of the e-shop you run on your own domain,
- background photos that will increase the visual attractiveness of the website,
- banners with promoted products,
- product series and offer tags,
- carousels with offers,
- Coin offers,
- offer sets that will allow you to cross-sell,
- sections presenting products in a specific price category (e.g. everything up to PLN 50).
Please note: The "Your Store" section is only available as part of a subscription to Allegro . The site currently offers three subscription plans: Basic, Professional, and Expert – tailored to the needs of both small-scale sellers and those processing hundreds or even thousands of orders per week.
Subscription plans valid on Allegro.
Setting up a dedicated store can be a good solution, especially if you sell on a large scale and want to promote yourself more effectively on this platform. It's one of the tools that will help you appear higher on the list of promoted offers and, as a result, achieve higher profits from transactions.
How to make running a store on Allegro easier?
Allegro offers a Sales Manager, a tool that can help you manage customer orders and track your website statistics. It's especially useful for small-scale sales. However, higher-end players often use additional tools that streamline the process of posting and managing offers, commissions, and sales statistics.
If you already run an e-commerce store outside of Allegro, you can take advantage of the previously mentioned "connection" of sales via this portal to your existing system. This will reduce the risk of an order being missed or incorrectly processed.
So, is running a store on Allegro profitable? Absolutely. However, you need to be aware of all the challenges and limitations that come with this method of reaching customers. It's worth investing in to increase your sales potential. 🙂
Summary
The above article covers the following topics:
- Beginnings: How did Allegro come about?
- How to combine sales on Allegro with your own e-shop?
