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This article has been provided by Ecommerce Europe’s National Association: The Chamber of Digital Economy (Poland)
New e-Chamber Report: “e-Accurate: E-commerce sector spending to adapt to regulatory changes”
The Polish e-commerce sector spends billions to comply with new regulations. As many as 87% of consumers appreciate changes brought by the Omnibus Directive, while the average cost for companies to adapt to new EU regulations exceeds 159,000 PLN. These insights come from the e-Chamber report, “e-Accurate 2024. E-commerce sector spending to adapt to regulatory changes”.
The Chamber of Digital Economy, a leading organization supporting the development of e-commerce in Poland, has presented its report, “e-Accurate 2024. E-commerce sector spending to adapt to regulatory changes”, highlighting the scale and costs incurred by Polish companies to comply with new regulations. The report reveals that compliance with regulations such as GDPR, the Omnibus Directive, and the Digital Services Act (DSA) has required significant financial investment and organizational changes within the e-commerce sector.
Each implementation involves costs, including IT development and creating new compliance-related business processes. These expenditures divert substantial financial resources that could otherwise be used for investments and innovative solutions. Moreover, the plethora of legal acts often leads to regulatory inconsistencies, overlapping competencies among supervisory bodies, and a lack of uniform understanding of regulations across EU member states.
The need for change
Legal changes in the e-commerce sector are essential to ensure consumer protection, data security, and transparency in commercial relationships. GDPR safeguards personal data, giving customers rights such as data access. The Omnibus Directive prevents price manipulation and fake reviews, fostering trust in both online and offline sellers. Meanwhile, the Digital Services Act (DSA) introduces new obligations for online platform providers, enhancing user safety.
These regulations significantly impact the growth of the e-commerce sector. While they increase consumer trust, they also impose high costs on businesses, particularly small and medium-sized enterprises (SMEs). It is crucial for legislative processes to allow sufficient adaptation periods so that companies can prepare without losing competitiveness. This is especially important given the uneven playing field with non-compliant Asian businesses. Collaboration with organizations to facilitate understanding and implementation of these regulations is vital for both consumer protection and long-term trust-building in the market.
Changes worth PLN 55.4 billion
The report shows that annual compliance costs for regulations such as GDPR, the Omnibus Directive, and the DSA total 55.4 billion PLN, equivalent to approximately 6% of the annual B2C and B2B e-commerce sales and 18–20% of company margins. The average compliance cost per company is 159,500 PLN, with larger businesses spending up to a million PLN. These significant financial burdens exacerbate the competitive disparity with Chinese entities.
Compliance takes time
Implementing new regulations is not only costly but also time-consuming. Most companies reported that adaptation took several months, but 10% of businesses faced implementation challenges for over two years. Large firms with complex organizational structures experienced the longest delays, requiring coordination across multiple departments.
Smaller entities, while faster to implement changes, often faced regulatory uncertainty due to insufficient resources to fully understand the laws. The Omnibus Directive posed the most significant challenges, necessitating changes in IT systems, sales processes, and customer service protocols.
Consumers value the changes
Consumers appreciate the changes brought by these regulations. As many as 87% of those aware of the Omnibus Directive rated the adjustments positively, citing greater price transparency and reliable reviews. Similarly, 63% expressed satisfaction with GDPR provisions. Key consumer benefits include eliminating review manipulation, price transparency, and greater control over personal data. These regulations enhance customer safety and loyalty towards compliant retailers.
Challenges in compliance
Companies face numerous challenges in adapting to new legal norms. Significant employee time investment was cited by 19% of businesses, while regulatory uncertainty and fear of penalties concerned 17%. Additionally, 16% of respondents highlighted the need for external experts and consultants as a major hurdle.
Levels of compliance
The level of compliance varies across different regulations. For GDPR, 57% of companies confirmed full implementation of required changes. The Omnibus Directive, which includes the obligation to disclose the lowest product price in the last 30 days, has been adopted by 45% of businesses. Meanwhile, 53% of firms have taken actions aligned with the Digital Services Act (DSA). Despite the challenges, companies are making efforts to meet these legal requirements.
Support matters
Ensuring equal legal frameworks for competition with non-EU businesses while upholding EU values is a major challenge for the e-commerce sector. To address these challenges, the Chamber of Digital Economy has launched extensive initiatives to support Polish businesses. Through its “The Same Start” campaign, it collaborates with national and EU administrations to promote the growth of Polish e-commerce. Additionally, the e-Chamber conducts market research, shares insights, and educates entrepreneurs through its Digital Economy School programs.
Download the full e-Chamber report: “e-Accurate. E-commerce sector spending to adapt to regulatory changes” here.