Lithuanian e-commerce potential remains high, but we should be bolder in branching out abroad

  • 2022-07-26

The news of a slowing economy is weighing on e-tailers. But while we are, indeed, experiencing a slight slowdown in trade, the global trend shows that Lithuania, as well as the other Baltic countries, has not yet reached the e-commerce volumes present in Europe. To a large extent, this slower growth is caused by a timid exploration of the foreign markets.

According to data from the international delivery company Venipak, which offers comprehensive order fulfillment (e-fulfillment) services to e-commerce companies, the need for e-fulfillment services in Lithuania is growing by about 40-50% every year. However, in 2020 the number of parcels abroad only accounted for 2% of the total flow. In 2021, this figure increased slightly to 3.3%.

“We’ve noticed the number of shipments abroad is growing, but the potential is still huge. This is especially true considering that consumers in the rest of Europe shop online more often than residents of the Baltic countries,” said the company’s CEO, Justas Šablinskas.

When businesses reach a level of growth where their employees start struggling to effectively sort, pack and ship out parcels, while also seeking to direct the company’s resources toward business development, improving the quality of customer service and advertising activities, those companies turn to delivery companies that provide e-fulfillment services. The third party then stores part of the company’s goods in its warehouses and takes care of the selection and shipment to the buyer, as well as the accounting.

According to Grand View Research, an international e-commerce market research company, the global e-fulfillment market will continue to grow by 9.5% annually until 2030.

Poland – a market with huge potential

According to the Venipak representative, the Baltic States neighbour one of the fastest-growing markets – Poland. The Polish e-commerce market is expected to become the seventh-largest in Europe. Therefore, those looking to explore foreign markets should definitely consider including this country. Having assessed the potential for e-commerce development, the Venipak company has already established an e-fulfillment unit in Poland.

“Shipping your goods to a country like Poland is now as easy as working within the Latvian or Estonian market. Customers can also integrate their e-shop into the warehouse management system and see their balance information. Shipment stickers, etc., are generated on the site, so e-store representatives can make changes or simply monitor the status of their goods without leaving their desk.

A logistics partner operating in the export country can help a business solve other challenges as well. When working with retail giants like Amazon or Allegro, it is usually impossible to store all products in their warehouses. However, the goods stored in an e-fulfillment warehouse are already in the destination country, ensuring a fast delivery speed and saving costs on transportation to the warehouses.