Founder of the Lithuanian Ecommerce Company Successfully Growing in Baltics: “The Real Challenges Start After the First Sale”

Klipshop.lt, an e-shop selling professional cosmetics, was launched in Lithuania in 2015. It has a large loyal customer base not only in the Baltic States, but also in Great Britain. However, not everyone knows that the roots of the successful e-tailer lie in Šiauliai.

According to Justinas Valiūnas, the Director of Klipshop.lt, the Klip beauty salon that has been operating in Šiauliai for almost two decades now is a family business that has developed into a personal project.

“We were selling particular products for professional use, so there was a natural need to offer our products to a wider audience. This wasn’t my first attempt at online trading – I’ve been doing it since I was 17, so I’ve experimented a lot over the years. I have always been very interested in e-commerce, its principles of operation and the e-commerce platform itself, including its development,” said Mr Valiūnas.

Klipshop.lt was launched online in 2015. It has grown steadily and expanded its product range, and in 2017 three more e-shops were launched in Latvia, Estonia and the UK.

Business challenges

Justinas Valiūnas explained that when he first set up the e-shop, which today offers more than 40,000 different products, the most difficult challenge was finding the right solutions to fit Klipshop.lt’s business model. At that time, there was a lack of affordable warehouse management solutions on the market, so tools had to be developed in-house. Today, the e-shop has a strong IT department, thanks to which all our technological solutions are born, ranging from the stocking of goods and the product selection, to our customer service team.

“In those days, the simplest warehouse management solution could cost 400,000 litas, so only the market giants could afford it. With our turnover at the time, such a large investment seemed impossible, so we started to create the tools we needed ourselves,” explained Mr Valiūnas.

He added that setting up an e-shop today is not so difficult. However, the real challenges start when the first product is sold: “An e-shop is a rather primitive organism. In the modern world, if you pay €20, you can have a working platform tomorrow. However, the more interesting issues start to emerge once commerce gets underway, and the most expensive part of an e-commerce business is managing those processes.”

Lithuanian buyers are demanding

The e-shop, which focuses on products for beauty salons – in particular, hair, face and body care cosmetics – is aiming to further expand and strengthen its position in the Baltic States. According to Justinas Valiūnas, Klipshop.lt has the potential to grow by at least three or four times in the competitive Baltic e-commerce environment.

When asked to compare customers from different countries and their needs, the entrepreneur noted that Lithuanian customers are the most demanding. The entrepreneur joked that “Lithuania is our most beloved child, who needs the most care.”

A trusted partner helps to please the most demanding consumers

The entrepreneur admitted that the right choice of partners is one of the key ingredients for long-term business success. Klipshop.lt has been cooperating with Venipak, the international parcel delivery company, almost from the very beginning.

“Since our customers receives their parcel from our partners or from a courier, or picks it up from a parcel terminal, it is very important for us to provide a high-quality service and to maintain our good name in the eyes of the customer and their experience. I am glad to confirm that Venipak’s approach is in line with our philosophy and that, over the years, we have had many opportunities to see how flexible they can be in all possible situations,” stated Mr Valiūnas.

When asked about this partnership, Justas Šablinskas, Manager of Venipak, added that the company has always aimed to be more than just a logistics service provider.

“We are partners and mentors, who strive to contribute to the growth and success of our clients. Our long-standing synergy with Klipshop.lt is one such example. Over the years, we have implemented a number of proven practices, such as same-day delivery, where a customer who places an order in the morning receives a parcel the same day. We always listen and, if necessary, look for out-of-the-box solutions to help local businesses grow and expand,” said Mr Šablinskas.

“All parcel companies, and the specifics of their operations, use more or less the same technological processes. But what really improves customer satisfactions is the ability to take a human approach to these processes. Venipak helps us to satisfy even the most demanding customer,” added Justinas Valiūnas.

Couriers have become family members

In speaking about the partnership, Mr Valiūnas had nothing but praise for Venipak’s couriers who, he confirmed, truly represent the international parcel company and help create a good customer experience.

“These couriers are passionate about their work, extremely flexible and work with us to get the best results. In addition, they do not change too frequently. For example, we have been working with Venipak for many years, and their courier Virgis has been working with us for just as long and has now become part of the company. Like other couriers, we can always call him, but he now has the courage to call us and ask how many parcels we have today, and when would be the best time to for him arrive. We consult and cooperate with Venipak, even at the courier level. This is a key point that really contributes to the success of our business,” confirmed the Manager of Klipshop.lt.

Justas Šablinskas also emphasised Venipak’s commitment to effectively representing its partners, adding that “Our couriers are our ambassadors. We understand the importance of each delivery and the impact it has on the customer experience, which is why our couriers shoulder a huge responsibility.

An equally important part of a good customer experience is the convenience of picking up your parcel at a parcel terminal. According to the latest research, this is the fastest growing method of collecting parcels, which is why we are continuously expanding our network of parcel terminals across the Baltics and introducing functionalities that make the process of collecting your parcel faster, easier and smoother.”