Table of contents
- Advantages of Allegro from a seller’s perspective:
- What are the disadvantages of selling on Allegro?
- Selling on Allegro and having your own online store
- How to create an online store on Allegro step by step?
- Here’s how to create a business account?
- How can you make managing a store on Allegro easier?
200 million (!) – that’s the number of offers expected to be reached on the Allegro portal by the end of 2020, according to the company’s projections. The number of sellers has already exceeded 140,000. Are you considering using this sales channel? It can be a good solution. Why is it worthwhile to have a presence on Allegro, and how can you conduct business there? Learn more about how to set up an online store on Allegro.
The Allegro portal was established in 1999. Yes! It has been over 20 years since its inception. However, initially, the service focused on private online auctions, where individual users mainly listed items and sold through bidding. Although it is still possible to purchase products in this model today, the profile of Allegro has changed. It has become an advanced sales platform where users can buy almost anything they can imagine. New and used goods, from Poland and abroad, in almost every category you can think of.
Advantages of Allegro from a seller’s perspective:
- Large user base: Allegro has over 20 million registered users.
While not all of them may be active customers, such a large pool of potential buyers who consider Allegro their primary online shopping source represents significant sales potential.
- Recognizability and trustworthiness
By choosing to sell on Allegro, you don’t have to invest in building your recognizable brand (which has pros and cons). Even though you operate your own store on the platform (and customer opinions matter), the most critical aspect is that you are conducting sales under the Allegro banner. This can make acquiring customers easier, especially in the early stages of your business.
- Low initial costs
Starting to sell on Allegro doesn’t involve high costs. Setting up a company store is free, and the registration process is quick. However, you should be aware that expenses will be involved to make your offers attractive and visible to customers, such as creating high-quality product descriptions, using template presentations for your goods, and advertising on the platform through Allegro Ads. Nevertheless, conducting business on Allegro doesn’t mean you have to invest a large sum of money right from the start.
- Easy integration with your order management system/online store
Regardless of whether you operate a separate online store under your own domain or solely use CRM software, you can integrate the functionality of these systems with Allegro using the appropriate plugin. Allegro also provides technical support, which is an additional convenience.
- Finding the right niche will be easy for you
This is particularly advantageous for beginners in e-commerce who are contemplating what products to sell. A quick research on Allegro will allow you to assess which market niches have slightly less competition. This can be a clue to help you kickstart your business.
It will be easier for you to transition to a different industry on Allegro. As mentioned before, despite conducting sales under your own store, the reputation and recognition of the Allegro platform still apply. Therefore, if you decide to change your product range after some time altogether, it will be easier for you to do so on Allegro.
- It’s an excellent place to start
Selling on Allegro can be a prelude to establishing your online store. It provides an opportunity to explore market trends, gauge interest in your products, and learn the specifics of conducting online business.
For these reasons, the number of companies deciding to join Allegro continues to grow each year.
Remember: conducting sales on Allegro does not exclude running a standard online store. On the contrary, you can integrate customer management from both channels. Two-way integration of Allegro and your online store is offered by various SaaS e-commerce platforms. Through these platforms, you can, for example, automatically list new products on Allegro and have access to all orders received in one place.
What are the disadvantages of selling on Allegro?
No e-commerce solution is without its drawbacks. That’s obvious. So, what challenges do those who want to distribute through Allegro face?
- Intense competition
There are 140,000 sellers on Allegro, with over 100,000 being small and medium-sized companies engaged in distribution. These numbers are both impressive and, at the same time, somewhat daunting. Why? Because you may wonder how to stand out among such a sea of offers. It’s certainly not easy, especially without investing in promotion on the platform.
- Price is the key factor
Consider how you search for offers on Allegro yourself. It’s evident that you use the “sort by price” option. People usually search for more or less specific products on this platform, so the purchase cost is crucial for customers. The delivery cost is also essential, especially since the introduction of the Allegro Smart service. Within this service, buyers pay an annual subscription for deliveries and are more inclined to choose offers with free shipping. The reputation and responsiveness of a seller are also important. We are willing to spend a few extra zlotys if there is a significant difference in reliability between two stores offering the same assortment. However, remember that the price on the Allegro is a primary advantage in many industries.
- Limited possibilities for building your own brand
Although it happens that customers return to the same online store on Allegro more than once, they usually make a purchase from a seller who happens to have what they need at the best price and with the fastest delivery. Therefore, it may be more difficult 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 overlook the aspect of your own brand. This can be significant in the long run.
- High commissions
While starting sales on Allegro is relatively inexpensive, you should expect high transaction commissions for the deals you have closed. How much exactly? It depends on the product categories you sell, but the commission rates currently range from 2% to 16%, which can be pretty high. For example, handicrafts, erotic accessories, sports towels, and children’s products are subject to double-digit commission rates. And this, especially in the context of the importance of low prices on Allegro, means that you are doomed to lower profits or struggle to compete with major players.
- Limited promotion opportunities
Allegro, understandably, allows you to highlight your offers compared to others, so they appear above the rest. However, the same options are available in all stores. As a result, your promoted offer (for which you pay a hefty fee) is displayed alongside dozens or sometimes even hundreds of others. Therefore, to stand out here, you need to find your own way or seek the help of professionals who can develop an appropriate strategy. You also have access to Allegro’s internal advertising system, which allows you to place banners within the website, targeting users who may potentially be interested in your product or susceptible to impulse buying.
Selling on Allegro and having your own online store
A good solution, used by most entrepreneurs selling on Allegro, is combining their platform presence with running their own store. By implementing this approach:
- You increase the number of customer touchpoints – reaching them both on Allegro and through your store.
- You gain broader promotion possibilities – you can implement an appropriate marketing strategy for your external store, such as using remarketing, sponsored links, or promotions on social media. This allows you to start building a brand that will eventually become recognized on Allegro as well.
- You can show Allegro customers that you also sell outside the platform – they may choose to make a direct purchase in your store, thus avoiding commissions and increasing your profit margin.
The only thing to take care of is the precise integration of the sales system – the easiest way to do this is by using popular e-commerce platforms like open-source WooCommerce or SaaS-based solutions like Shoplo.
How to create an online store on Allegro step by step?
Do you know that you want to start an online store on Allegro? Then it’s time to take action.
First and foremost: create a business account, not a personal one. Why? Because it provides you with significantly greater possibilities. The differences between the types of accounts are presented directly by Allegro.
You can find a complete description of the differences between a personal and a business account at this link.
Let’s take a closer look at them. As you can see, a business account:
- allows you to assign an administrator who is not necessarily the owner. This is a good solution for companies where employees handle the sales process.
- displays the label “company” next to your seller information, which is vital as it builds trust and presents you as a more reliable partner than a private individual.
- provides immediate access to an invoicing account, making it easier for you to manage customer settlements and issue necessary sales documents.
- gives you the opportunity to achieve the status of Super Seller. This title, obtained by meeting Allegro’s standards, is another element that increases your credibility for portal customers.
It’s also worth noting that having a business account allows you to participate in the Allegro Smart program, which guarantees customers free shipping through specific channels.
Here’s how to create a business account?
- Go to the Allegro registration page.
Choose the “business” option. At this stage, you will be required to provide an email address (preferably a general company email or one associated with Allegro order management) and a login. Note that the login will be visible to buyers, and you won’t be able to change it later. Since it will be your business representation on Allegro, it’s best to use your company name or the domain of your existing online store.
In the registration form, create a password for your account (which can be changed later) and provide a phone number. Choose a number that will be easily accessible to the employee responsible for handling Allegro sales.
Additionally, you need to provide your company’s information: select the country and provide the tax identification number (NIP). Allegro will automatically retrieve the rest of the data from the Central Statistical Office, and you can make any necessary corrections.
Once you have completed these steps, you will successfully create a business account on Allegro.
2. Registration form on Allegro when creating a business account.
Confirm registration by clicking on the activation email
Within a few minutes, you will receive an activation email to the email address provided in the registration form. Click on the link to confirm the account creation.
3. Undergo verification
Business accounts undergo additional verification to enhance customer security. You will be asked to transfer approximately 1 PLN from your company account. This amount will be refunded or credited to your Allegro account for future commissions. The purpose is to verify the data’s compliance.
In most cases, the registration process ends at this stage. However, in some cases, you may be asked to submit additional documents, such as if your company operates within an Academic Business Incubator or a project like “Your Startup.”
After completing these steps, you can start selling on Allegro.
But it doesn’t end there. Another option awaits you now: setting up a store on Allegro.
4. Set up a store on Allegro
Creating a business account is the first step. The second step is to create a store with products. How is it different from regular sales? You’ll be able to create a unique landing page that presents your offers in a more attractive way.
In the “Store” tab, you can include:
- Your company logo can be the logo of the e-store that you run on your domain.
- Background images that enhance the visual appeal of the website.
- Banners featuring promoted products.
- Product series and offer tags.
- Carousels with offers.
- Offers with Allegro Coins.
- Bundle offers that allow you to implement bundled selling.
- Sections showcasing products in specific price ranges (e.g., everything under 50 PLN).
Note! The “Your Store” section is only available with a purchased Allegro subscription. Currently, three subscription programs are available on the platform: Basic, Professional, and Expert – tailored to the needs of sellers operating on a small scale and those fulfilling hundreds or even thousands of orders weekly.
Setting up a dedicated store can be a good solution, primarily if you conduct sales on a large scale and aim to promote yourself more effectively on this platform. It is one of the tools that can help you appear higher on the list of advertised offers and, as a result, achieve better profits from transactions.
How can you make managing a store on Allegro easier?
Allegro provides a Sales Manager – a tool that can assist you in handling customer orders and tracking statistics on the platform. It works well, especially if you have sales on a small scale. However, players in the “higher league” often opt for additional tools that streamline the process of publishing offers, managing them, as well as handling commissions and sales statistics.
If you already have an e-store outside of Allegro, you can integrate your sales through this platform with your existing system. This way, you reduce the risk of missing or incorrectly fulfilling any orders.
So, is running a store on Allegro worthwhile? Absolutely. However, it is important to be aware of all the challenges and limitations associated with this form of reaching customers. It is worth investing in it to expand your sales opportunities. 🙂