General Overview
eCommerce has grown in popularity. At the end of 2022 there were about 15,630 e-shops in Slovakia that generated sales worth EUR 2 billion (USD 2.18 billion). According to Statista, Slovakia is the 60th largest market for eCommerce with a revenue projection of USD 2.31 billion by 2023.
Top Products or Services Sold Online
The largest category in Slovak eCommerce is fashion with about USD 502 million in revenues. The second is the electronics and media (USD 367 million), followed by toys, hobby, DIY (USD 232 million), furniture & appliances (USD 135 million), and food and personal care (USD 116 million). Several pandemic lockdowns increased demand for streaming services and online shopping for groceries and other products, which in turn increased demand for faster internet connections. U.S. providers of online services, such as video on demand, software, games, and music, should seek to penetrate the Slovak market for those products and offer fee-based services to consumers who already have fiber optic and broadband Internet connections at home. Many younger Slovaks speak English, and the general population is interested in American entertainment products. Many consumers have already purchased fiber optic connections and are receptive to cutting-edge technology.
The strongest buying season is traditionally Christmas. Most Slovaks use their mobile devices when purchasing online, so mobile versions of shopping sites are important. Current eCommerce user penetration is about 80 percent. It is expected to grow to 3.1 million users by 2025. Younger users comprise the largest share of online shoppers. Almost half of online buyers (42 percent) are people aged 25 to 34, following by 35- to 44-year olds (22 percent), and 18- to 24-year olds (13 percent). The remaining 23 percent are customers over 45. B2B is the second fastest growing segment of eCommerce. Local companies offer products and services to business clients. Companies exploring eCommerce for their own purchases usually start with the purchase of office supplies and then look for other products and services to increase their efficiency and lower operational, transportation, and storage costs.
Legal & Regulatory
Slovakia is a part of the European Union. The European Commission removed online barriers so consumers have full access to all goods and services offered online by businesses in the EU. If a U.S. company located in an EU country offers online products in another EU country, the following apply:
• the revised Payment Services Directive and new rules on cross-border parcel delivery services that are already in force;
• rules to stop unjustified geo-blocking;
• revised consumer protection rules that entered into force in 2020;
• new VAT rules for online sales of goods and services that entered into force in July 2021.
For background information, please visit New EU Rules on eCommerce.
The Slovak Ministry of Investments, Regional Development and Informatization is the main ministry responsible for smooth digital transformation in Slovakia. More information can be found at the ministry’s website.
Consumer Behavior
Customer surveys show that Slovak women shop more than men (68 percent vs. 32 percent). The most popular product categories for online shopping in Slovakia are clothing, footwear, electronics, toys, hobby, cosmetics, drugs/pharmaceuticals, and sporting goods. Slovaks prefer having several delivery options. Brick and mortar stores that have an eCommerce arm and allow free shipping to the store for pickup have increased in popularity. Courier service is still very popular as well as delivery to self-service box locations. The major purchasing holidays are Christmas, Black Friday (despite Thanksgiving not being a national holiday), Valentine’s Day, and Easter. The average eCommerce user spends USD 360 online per year. Ninety-eight percent of 16-24-year-olds access the internet daily.
Consumer-Preferences for Platforms, Payment Methods and Other Consumer Services
Cross-border eCommerce is common. The most popular websites for Slovaks are eBay, Amazon DE, and AliExpress. Among the top 100 Slovak stores, eBay is used more than Amazon for online marketplace activities. The most popular local eCommerce sites include alza.sk and mall.sk, which are also popular in neighboring countries. Alza.sk heads the list of top ten Slovak eCommerce stores, followed by mall.sk, nay.sk, zalando.sk, itesco.sk, lidl-shop.sk, notino.sk, ikea.com, drmax.sk, hm.com, and sportisimo.sk. The biggest player in Slovak eCommerce, Alza, had a revenue of USD 362 million in 2022.
The most common forms of payments are electronic debit and credit cards. Consumers consider electronic credit/debit payments safe, and their use carries minor additional surcharges. Ninety-six percent of the top Slovak stores offer payment by Visa and Mastercard. Another popular payment method is ‘pay on delivery,’ which usually includes a USD 1-2 surcharge for purchases under USD 100 - 200. Mobile eCommerce grew in popularity thanks to an increased numbers of local eCommerce applications. Most local websites have implemented accelerated mobile pages to facilitate the reading of their content on mobile devices.
Digital Marketing & social media
Many local companies using digital marketing have implemented machine learning to better target potential customers. YouTube and TikTok have overtaken television in Slovakia as the most watched video content providers among younger audiences. Younger and middle-aged populations often get their news from social media channels. Instagram is popular among the younger generation of Slovaks. Facebook is more popular with Slovaks in their forties and up. Slovak online stores use Facebook and Instagram as their primary social media network interface with customers. Hoaxes are a growing problem, which can impact public opinion about a business or product and spread quickly via multiple social media channels. Products most likely to be sold on social media include real estate, insurance, and consumer goods.
Digital Events
Regional events focusing on eCommerce are limited to Upterdam, and New Retail Summit.
Local Service Providers Overview
To learn more about promoting digital services to U.S. businesses, see the eCommerce BSP directory, which is currently aggregating the U.S. based ecosystem of service providers.