GUEST ARTICLE
This article has been provided by Ecommerce Europe’s national association in Bulgaria: Bulgarian E-commerce Association
Bulgarian E-commerce Association (BEA) announces its 7th consecutive edition “PASSPORT 2024 of the e-commerce industry in Bulgaria” with figures, trends, volume of the B2C market and ranking of online stores in Bulgaria, on base of studies and research conducted by BEA and results of the European Ecommerce Report 2024. This year’s edition is supported by BORICA AD.
“In 2024, B2C sales on the Internet will see a 20% growth and exceed 2.34 billion euros in Bulgaria, accounting for 2.34% of our country’s gross domestic product (GDP). For comparison, in 2020, the market volume was 0.97 billion euros. In a period of 4 years, the volume of the market has doubled. E-commerce and the digitization of retail and wholesale trade are fundamentally changing the sector, creating new business opportunities and models, new jobs, new forms of interaction with consumers and attracting investment,” commented Janet Naydenova, Chairperson of BEA, who cited data from “PASSPORT 2024 of the e-commerce industry in Bulgaria”.
“The growth of the e-commerce industry in Bulgaria in recent years has been impressive, but I believe that there is potential for even better results. Current data and information about new trends are an important element of the formula for successful development of e-commerce. It is an honor for the BORICA team to be a partner in the implementation of the ”PASSPORT 2024 of the e-commerce industry in Bulgaria”, as well as to contribute to the implementation of attractive payment solutions for the e-commerce business in the country. Diversifying and improving digital payments will enable e-stores to attract even more and more loyal customers,” says Boyan Damyanov, Head of the E-Commerce Department at BORICA AD.
B2C online sales of goods & services /in billion euro/
Source: PASSPORT 2024 of e-commerce industry in Bulgaria
*forecast data
The leading reason for the increase in e-commerce purchases among consumers is the convenience of e-commerce. Consumers, many of whom were not online shoppers before the pandemic, are seeing the utility and convenience of online shopping. Already over 50% of online consumers in Bulgaria aged 16-74 shop online and this percentage will continue to grow. The convenience of e-commerce is the new loyalty.
The largest percentage 95.5% of online buyers in 2023 purchased goods and/or services from Bulgarian online stores, 27.4% from online stores in European Union countries, 12.9% – outside the European Union.
Tha data from a study by the Bulgarian E-commerce Association, conducted in the period September – October 2024 with a scope of over 4.9 million online orders, shows a trend towards an increase in contactless deliveries to a courier’s locker, click & collect (order online with pickup from a physical store) and an increase in bank and mobile payments and card payments on account of cash on delivery.
Consumer satisfaction
Many more people are buying online and more retailers are selling online. The easy combination of online and offline shopping makes the whole process even more transparent and secure for consumers. Online shopping has a high level of security and gives more rights to consumers, such as returning the order within 14 days of receiving it without giving a reason, and being refunded in the way they were paid in 14 daily period, without questions from the merchant in case of exercising the right of refusal. A study by the Bulgarian E-commerce Association covering 4.9 million online orders showed that in 7.99% of all online orders, buyers exercised their right of withdrawal within 14 days.
In 2024, BEA introduces TRUSTMARK on the Bulgarian market, which provides even better protection for consumers and traders by establishing a single European set of rules and criteria for independent third-party audit /152 criteria for Bulgaria in 13 categories/ and ensuring clear communication of these rules. The TRUSTMARK placed on the website of an online store that users visit means that the company has made a commitment to work in accordance with the E-Commerce Code of Conduct, ensuring ethical standards in the online market.
Development trends and potential
In online businesses, sustainability is highly valued by potential customers. As people become more aware of their impact on the environment and society, they are looking for ways to minimize it. The growth of e-commerce offers an opportunity to rethink the use of secondary materials and goods, expanding and promoting reuse, repair, repurposing and DIY. The e-commerce sector plays a key role in connecting businesses and consumers to the booming second-hand goods market.
When it comes to online business, sustainability is something that most potential customers are looking for. When people realize the impact of their behavior on the environment and society, they tend to adopt ways to reduce it. The trend driving green consumerism is the emergence of Millennials as a stable group of shoppers interested in environmentally friendly products. This demand for green products is driving e-commerce companies to adopt green practices and ensure an increase in e-commerce purchases among Millennials. A study found that 51 percent of consumers are willing to pay a higher price for a product from a socially conscious business.
With policies promoting the development of the sector, Bulgarian retailers can make the most of the potential of the European market with over 500 million online shoppers with an established shopping culture. Bulgaria is fully competitive for cross-border e-commerce to European consumers, and the industry must achieve a supportive environment for development and a fruitful dialogue with the institutions. The European consumer has long adopted online consumption in his life and uses it in an informed manner, regularly receiving all the advantages of distance shopping. Among the first preferred markets by Bulgarian online merchants for cross-border trade are Romania and Greece, followed by Poland, the Czech Republic, Slovakia and Hungary.
A challenge for businesses is the dynamic change in the business environment in terms of legislation and regulations in the industry. The significant amount of new legislation from the outgoing EU mandate poses a challenge for local businesses, which must be implemented at national level. A better balance is needed between implementing new regulations and maintaining competitiveness and sustainable growth.
The expectations of the Bulgarian E-commerce Association for 2025 are for a smooth double-digit growth compared to 2024, as the B2C e-commerce market will continue to grow, innovate and develop. At present, the ratio of the volume of B2C e-commerce in Bulgaria to the gross domestic product /e-GDP/ of the country is 2.34%. In Europe, the e-GDP parameter is on average between 4% – 5%, in Greece 7.87%, in Romania 3.32%. Forecasts indicate that the Bulgarian online market in the next 3-5 years will have enormous potential for development.
The “PASSPORT 2024 of the e-commerce industry in Bulgaria” can be downloaded for free here.
About BEA
Bulgarian E-commerce Association (BEA) is a non-profit association, carrying out activities for the public benefit, which unites companies from the entire ecosystem, developing e-commerce in Bulgaria – electronic stores, platforms, e-commerce services, electronic payments, logistics, etc. . services related to e-commerce.
BEA aims to support the creation of a good environment for the development of e-commerce business in the country, to create and support good practices among online merchants in the direction of greater consumer satisfaction, and to promote better communication with institutions and the media.
The main priority of BEA is to cooperate with the institutions in the creation of normative documents related to the implementation of e-commerce, as well as in the control of their implementation.
BEA is a member of Ecommerce Europe: https://ecommerce-europe.eu/
For more information: https://beabg.com
About BORICA AD
BORICA AD is a joint-stock company and its shareholders are 19 banks in the country. The company provides and operates the technological infrastructure of the Bulgarian payment industry and has been a trusted partner of payment service providers and the public sector for over 30 years. Its broad portfolio covers both traditional and innovative solutions. Over the past 2 years, the company has also taken on a new role, provoked by the need to service the entire commercial process and offer ready-made technological solutions for e-commerce card payments.