Selling your products on e-commerce seems a great approach. You don’t have to spend huge amounts on opening a store and bringing up-to date inventories. The number of online shoppers worldwide increased from 1.32 billion to 2.14 billion, and global e-commerce retail sales grew from $1.34 billion to $4.28 billion. Moreover, 47% of global sales are made on ecommerce platforms like Amazon, ebay allegro and others. However, when it comes to selling products online, sellers have numerous options such as Amazon vs Allegro.
Amazon, being an e-commerce tech giant, operates in more than 100 countries. Allegro has a massive customer base allowing sellers to gain huge profits. In 2020, 17.39 million users visit Allegro, which was the fourth largest audience visit on any platform. While in the same year, number of people visited on amazon was more than 450 million.
Allegro is known for the user-friendly interface while only operates in Poland. Which can increase competition for the Amazon.
Overview
Amazon
Amazon, a leading e-commerce platform with more than 5 million visitors a month was started in 1990 as a book selling website. Overtime, it has included more products into the catalogue and now you can find product of every category over here. Currently., it is running in more than 100 countries including USA, UK, Germany France Italy and Poland.
In addition, there is a fulfilment facility for the sellers, meaning Amazon will pick-pack and deliver the products on seller behalf. Which attracts almost every seller to create an account on amazon and start selling its products.
Allegro
Allegro is Poland’s top e-commerce platform, established in 1999. It offers a wide range of products, from electronics to home goods, at competitive prices. Focused on Central and Eastern Europe, Allegro attracts millions of users with its easy-to-use platform and localized services, making it a regional leader in online shopping. Currently, it is ranking on 13th number amongst top e-commerce platforms.
Product Line
Allegro specializes in providing a wide variety of products, including electronics, home appliances, fashion, and toys. Known for its competitive prices, it caters largely to the Polish market with localized services. Allegro also supports small businesses, offering categories tailored to regional preferences. It stands out with its extensive catalog and user-friendly platform.
| Category | Product Range |
| Electronics | Mobile phones, gadgets, smartwatches, computers, and accessories |
| Clothing & Fashion | Men’s and women’s apparel, shoes, jewelry, bags, and accessories |
| Home & Garden | Furniture, kitchen appliances, home décor, gardening tools, and outdoor products |
| Digital Products | eBooks, music, movies, streaming services, and Alexa-enabled devices |
| Automotive | Car parts, accessories, tools, and motorcycle products |
Allegro specializes in providing a wide variety of products, including electronics, home appliances, fashion, and toys. Known for its competitive prices, it caters largely to the Polish market with localized services. Allegro also supports small businesses, offering categories tailored to regional preferences. It stands out with its extensive catalog and user-friendly platform.
| Category | Product Range |
| Electronics | Smartphones, computers, gaming consoles, and accessories |
| Home & Kitchen | Appliances, furniture, kitchenware, and home improvement tools |
| Clothing & Fashion | Apparel, footwear, bags, and accessories for men, women, and children |
| Toys & Hobbies | Games, puzzles, educational toys, and outdoor activities |
| Automotive | Vehicle parts, maintenance tools, and car accessories |
Amazon Business Model
Amazon’s business model is multifaceted and offers several avenues for sellers to tap into, depending on their goals and product types. Here’s a detailed look at Amazon’s business model from the perspective of sellers:
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E-commerce & Marketplace Model
- Direct Sales (First-Party Selling): Amazon sells products directly to customers. As a seller, you can list your products for sale directly through Amazon’s platform. Amazon handles all the logistics, fulfillment, and customer service, but you need to price competitively to stay relevant in the marketplace.
- Marketplace (Third-Party Selling): This is Amazon’s most significant model, where independent sellers can list products for sale alongside Amazon’s own inventory. Sellers pay a referral fee to Amazon, which varies by category, and often use Amazon’s Fulfillment by Amazon (FBA) service to handle storage, packing, and shipping. In return, sellers gain access to Amazon’s massive customer base and global reach.
- FBA (Fulfillment by Amazon): Amazon’s FBA service allows sellers to store their inventory in Amazon’s fulfillment centers. Amazon handles storage, packaging, shipping, and customer service. Sellers benefit from Amazon’s robust logistics and fast delivery systems (including Amazon Prime) but incur additional costs for using FBA. This model is especially beneficial for sellers who want to scale without handling logistics.
- FBM (Fulfillment by Merchant): In this model, sellers handle their own inventory, packaging, and shipping. Sellers are responsible for managing orders and returns, offering them more control over the process. However, they miss out on the advantages of Amazon’s shipping network.
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Subscription Services
- Amazon Prime: Sellers on Amazon can benefit from the Prime membership program, which offers customers perks like free shipping, access to Prime Video, and exclusive deals. Sellers can tap into Prime’s vast customer base, driving repeat business.
- Kindle Direct Publishing (KDP): Authors and publishers can use Amazon’s KDP to sell e-books and physical books, benefiting from Amazon’s massive reach and self-publishing tools.
- Amazon Music, Video, and Audible: Through Amazon’s various subscription-based platforms, sellers can promote digital content, such as music, videos, and audiobooks, to a global audience.
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Amazon Web Services (AWS)
- AWS is one of Amazon’s most profitable segments, offering cloud services and computing infrastructure to businesses. Though not directly related to product sales, sellers using AWS benefit from Amazon’s technological advancements, including cloud storage, big data analytics, and machine learning services, which can improve their own business operations.
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Advertising and Marketing
- Amazon offers a range of advertising options for sellers. These include Sponsored Products, Sponsored Brands, and Sponsored Display Ads, which help sellers increase visibility on the platform. Amazon’s A9 algorithm plays a significant role in how products are ranked and shown to customers, so optimizing product listings with relevant keywords and high-quality images is essential.
- Amazon also uses email marketing, retargeting campaigns, and seasonal promotions to engage with customers, providing sellers with opportunities to participate in these efforts.
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Private Label & Retail Arbitrage
- Amazon allows sellers to create private label brands (e.g., AmazonBasics) or engage in retail arbitrage, where they buy discounted products from other retailers and resell them at a profit. Private labeling enables sellers to build their own brands and gain control over pricing and branding.
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Global Reach
- Amazon operates in over 200 countries and provides support for multiple languages, currencies, and localized services. It is ideal for sellers looking to expand internationally and reach a broad customer base.
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Revenue & Fees
- Amazon charges various fees including referral fees, FBA fees, closing fees for certain categories, and monthly subscription fees for Amazon Professional Sellers. These fees can add up, so sellers must carefully consider the costs when deciding whether to sell on Amazon.
Allegro Business Model
Allegro, a leading e-commerce platform in Poland, primarily operates through a marketplace model where it connects buyers and sellers. However, its business model differs from Amazon’s in some key areas, especially with a more localized focus.
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Marketplace (Third-Party Selling)
- Product Listings: Allegro allows individual sellers and businesses to list products in categories such as electronics, fashion, home goods, and more. Sellers pay a fee based on the category of the product, and these fees can vary.
- B2C Focus: Allegro’s marketplace is built primarily for business-to-consumer (B2C) sales, where businesses list their products for sale directly to customers. It’s not as heavily focused on third-party seller listings as Amazon is but still offers substantial reach.
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Subscription Services
- Allegro Smart!: Allegro’s subscription service, Allegro Smart!, offers benefits like free shipping and returns for customers, which incentivizes them to purchase more frequently. Sellers who participate in this program benefit from increased visibility and customer loyalty, as users of Allegro Smart! are more likely to buy products that offer these perks.
- Premium Listings and Ads: Sellers can pay extra for promoted listings to boost visibility. Allegro also offers tools like Featured Products, Category Ads, and Banner Ads, allowing sellers to get their products in front of more customers.
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Low-Cost Goods & Global Reach
- Allegro is known for offering a variety of affordable goods from manufacturers, especially those in Poland and Eastern Europe. While its focus is on cost-effective products, Allegro is expanding its market reach, attracting more international sellers.
- Localized Focus: Allegro’s primary market is Poland, but it has expanded its presence in other European countries. Sellers in Poland or those targeting Polish consumers benefit most, though international sellers can also join the platform.
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Advertising & Marketing
- Allegro offers multiple marketing options for sellers to increase product visibility. Its advertising system allows sellers to feature their products in prominent areas of the site. Sellers can promote their products through various advertising tools to increase product exposure to a local, European audience.
- Discounts and Flash Sales: Allegro supports sellers with promotional tools, such as flash sales and time-limited discounts, which are ideal for sellers looking to attract bargain hunters and boost product visibility quickly.
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Buyer Protection & Logistics
- Buyer Protection: Allegro provides strong buyer protection policies, offering guarantees such as product refunds and return services, which help build trust with consumers.
- Logistics and Delivery: Allegro partners with several logistics companies to provide fast and reliable shipping. Sellers can offer shipping solutions through Allegro’s infrastructure, and the Allegro Smart! subscription service helps with offering free shipping.
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Payment and Fees
- Allegro’s fees for sellers include a commission on sales, which varies by product category. There is also a fee for using promotional and featured listings. While the fees are lower than Amazon’s in many cases, they still represent a significant part of the business model.
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Focus on Localized Selling
- Allegro’s primary market is Poland, and it has a strong foothold in Central and Eastern Europe. Sellers looking to target this market will find Allegro to be an ideal platform due to its understanding of local customer preferences, competitive pricing, and regional payment methods.
- Localization: Allegro offers a localized user experience with Polish language support, regional shipping options, and local payment gateways. Sellers targeting Polish customers can take advantage of these services to optimize their operations.
Amazon Marketing Strategies
Amazon’s marketing strategies are designed to help sellers reach a massive customer base with advanced tools and support. The platform uses Amazon Ads to drive product visibility through Sponsored Products, Sponsored Brands, and Sponsored Display Ads. These options allow sellers to place their products in prime positions on search results pages and product detail pages, increasing visibility and driving traffic to listings. Amazon Prime Day and seasonal promotions, like Black Friday and Cyber Monday, also provide opportunities for sellers to participate in high-traffic events, boosting sales.
Furthermore, Amazon’s A9 algorithm ranks products based on relevance, pricing, reviews, and sales history, so optimizing listings with the right keywords and high-quality content is essential for success. Using Fulfillment by Amazon (FBA) enables faster delivery times and makes products eligible for Amazon Prime, attracting a loyal customer base. Additionally, Customer Reviews play a significant role in conversion rates, so actively managing reviews is crucial.
Allegro Marketing Strategies
Allegro’s marketing strategies focus on creating a user-friendly shopping experience and driving traffic to sellers’ listings through targeted promotions and localized efforts. One of the key strategies is Allegro Smart!, a subscription service that offers free shipping and returns for customers, which encourages purchases and creates loyalty. Sellers can take advantage of this by enrolling their products in the program, increasing visibility among users.
Allegro’s advertising options include Featured Products, Category Ads, and Banner Ads, allowing sellers to increase their product’s exposure. The platform also runs flash sales and seasonal promotions to capture attention during peak shopping times. Discounts and special offers help drive sales, particularly among price-sensitive customers.
Additionally, Product Reviews and ratings on Allegro hold significant weight, influencing customer decisions. Sellers can benefit from focusing on product quality and customer service to garner positive feedback, which in turn drives more sales.
Amazon Reporting and Analytics
Amazon provides sellers with robust reporting and analytics tools to track performance, identify trends, and optimize listings. Amazon Seller Central is the main hub where sellers can access various reports, including Sales Reports, Advertising Reports, and Inventory Reports.
The Business Reports section gives insights into daily and weekly sales, traffic, conversion rates, and customer behavior, helping sellers adjust strategies. The Advertising Dashboard offers metrics on ad performance, cost-per-click (CPC), and return on ad spend (ROAS), allowing sellers to refine their marketing campaigns.
Additionally, Amazon Brand Analytics provides detailed insights on customer search behavior, competitors, and popular keywords, enabling sellers to optimize listings and target the right audience. Regular analysis of these reports helps sellers improve product visibility, sales, and overall performance.
Allegro Reporting and Analytics
Allegro provides its sellers with comprehensive reporting and analytics tools through Seller Dashboard. This includes Sales Analytics, which displays product performance, order volume, revenue, and sales trends, allowing sellers to identify top-performing products and make data-driven decisions.
Allegro’s Advertising Dashboard enables sellers to track the effectiveness of ads, including impressions, clicks, and conversion rates, to adjust their advertising strategies. Additionally, sellers can view Customer Feedback and Review Analytics to evaluate product satisfaction and manage ratings.
Allegro also offers inventory management tools, which help sellers track stock levels, plan reorders, and avoid out-of-stock issues. Using these analytics tools, sellers can fine-tune product listings, pricing strategies, and marketing campaigns for optimal performance on the platform.
Amazon Account Creation
To create an Amazon seller account, visit Amazon Seller Central and select between Individual or Professional account types. The registration process involves providing business details, tax information, bank account data, and a valid ID. After submission, Amazon will verify the information before granting access to the Seller Central dashboard, where sellers can list products and manage sales.
Allegro Account Creation
Creating an account on Allegro is straightforward. Sellers need to visit Allegro Seller Portal and sign up using an email address or social login. After providing business details, such as company name, tax identification, and bank information, sellers will verify their account. Once approved, they can access the Allegro dashboard to list products, manage inventory, and track orders.
Conclusion
Both Amazon and Allegro offer unique opportunities for sellers depending on their target market and product offerings. Amazon, with its global reach, is ideal for businesses looking to scale internationally, while Allegro is a leading platform in Poland, focusing on local e-commerce needs. Sellers should choose based on their market and product strategy, considering fees, shipping logistics, and customer base.
FAQs
Which platform is better for global sales?
Amazon is better suited for sellers targeting international customers due to its widespread reach across many countries.
Is Allegro only for Polish sellers?
While Allegro is popular in Poland, international sellers can also list products, although they must adapt to local regulations and language.
How do Amazon and Allegro differ in fees?
Amazon has various fees including referral and closing fees, while Allegro charges a lower commission but includes additional costs for promotion and ads.
Can I sell the same products on both platforms?
Yes, you can sell the same products on both platforms, but you should optimize listings and strategies for each marketplace’s audience.
