Czech Republic, e-commerce and logistics
The e-commerce market in the Czech Republic is amongst some of the fastest growing markets in Europe.
So is this a good destination for e-trade right now?
Why Czech Republic?
The Czech Republic, also known as Czechia, and historically known as Bohemia is home to over 10 million people. Located in Central Europe, it is a landlocked country, bordered by Austria, Germany, Poland and Slovakia. The capital and largest city is Prague.
The Czech e-commerce market is among the fastest growing in Europe. It is the 35th largest e-com market with a predicted revenue of US$ 8,023.5 million by 2024, placing it ahead of Bangladesh.1 Approximately 54% of the total Czech population shops online and e-commerce now holds a 16% share of total retail in the market.2
- 197bn CZK
- E-commerce turnover in Czechia
- 86.1%
- Share of Czechs making domestic purchases online
- 15%3
- Share of Czechs selling good or services online
The e-commerce landscape
Online shopping has become very widespread among consumers in the Czech Republic. 86% of the total population has access to the internet, according to Statista. In 2015, only 31.8% of those internet users were shopping online. By 2023, however, that share had grown to 72.5%. This is slightly below the European average of 75%.4
It’s worth noting, however, that whilst Czech e-commerce sales have increased in recent years, their tempo has dropped. A downturn was reported in 2022 after Russia invaded Ukraine, likely due to economic uncertainties and affected consumer confidence. This was further exacerbated by high inflation, which increased the cost of living and reduced disposable income. In 2023, the average amount spent on purchases online had decreased by half. 5
There are seven dominating e-commerce markets, according to ECDB. Hobby & leisure is the largest market and accounts for 26.3% of the Czech e-commerce revenue. Followed by electronics (20.7%), fashion (17.3%), furniture & homeware (11.7%), care products (9.4%), DIY (8.9%), and grocery (5.7%). 6
Opportunities
Interest in cross-border e-commerce is growing among Czech customers. The reasons for purchasing via foreign online stores are largely cited as lower prices and access to products not available at home. The international markets from which Czechs like to shop include Germany ($42.7 billion) and China ($8.7 billion), followed by other EU countries and the United States.
Customer support and site trustworthiness are important for Czech customers. For cross-border e-commerce, the most sought-after items include digital products and electronics, followed by clothes, jewellery, watches and cosmetics.7
In 2023, 35.6% of online shoppers placed orders from other EU countries and 16.6% bought form non-EU sellers.8
Virtual shopping is gaining popularity with several Czech firms attracting clients with cost savings and home delivery. The youngest generation (ages 16-24), purchase products and services via smartphones, while the financially strongest group (ages 25-45) uses smartphones and tablets. The remaining population mainly uses desktops.9
Number of people shopping online in the Czech Republic.
Logistics
While the e-commerce delivery system in Prague and central Czechia is well serviced, it remains immature in other regions, according to Savills. However, the rise of e commerce is pulling supply chains closer to consumers, which is producing regional distribution centres (as opposed to centralised distribution models) that facilitate online retailers to keep inventory closer to consumers to meet the shorter delivery times they demand. A J.P.Morgan report found that three out of four Czech customers expect same-day delivery.
Further logistics growth is planned in Prague’s brownfield areas as e-commerce seeks to use all available space located closest to consumers. These facilities will be an extension of established supply chains, not only taking goods to retail centres and storefronts, but also enabling delivery all the way to where consumers live and work.10
You can familiarise yourself with the weights and prices of sending a package to Czech Republic using our helpful shipping rates chart .
Keep in mind
As of July 2021, new VAT regulations, which apply to online shopping outside the EU, came into force. The new regulations will make online shopping in China more expensive and therefore less profitable, since VAT will also apply to cross-border online shopping with a declared value of up to 10 euros.
What our experts say
“Bearing in mind geopolitical events, the Czech Republic has a growing interest in cross-border purchasing, making it an international e-commerce destination worth exploring.”
Simon Perkins, Commercial Director, SAMOS.
To find out more about how SAMOS can help you achieve fast and cost effective deliveries to Czech Republic get in touch today
1. https://ecommercedb.com/markets/cz/all
2. https://www.trade.gov/country-commercial-guides/czech-republic-ecommerce
3. https://www.statista.com/topics/9274/e-commerce-in-czechia/#topicOverview
4. https://ecommercedb.com/markets/cz/all
5. https://www.statista.com/topics/9274/e-commerce-in-czechia/#topicOverview
6. https://ecommercedb.com/markets/cz/all
7. https://www.trade.gov/country-commercial-guides/czech-republic-ecommerce
8. https://ecommercenews.eu/ecommerce-in-europe/ecommerce-in-the-czech-republic
9. https://www.trade.gov/country-commercial-guides/czech-republic-ecommerce