A hot trend in the Romanian e-commerce market: Demand for organic products is on the rise
The total turnover of €2.8 billion was made up purely of the sale of physical products that were ordered online. The total turnover did not include the sale of services, airline tickets, holidays, accommodation, other tickets and downloadable content. If we were to include the sale of these items, the total turnover of the Romanian market would increase exponentially.
The European Union is striving to develop this market, as in 2021 it wants up to 38% of all energy to be renewable
Based on our experience in other segments and an analysis in collaboration with our dedicated Google team, we have found that the Romanian market is a great opportunity to export ‘eco’ business. Electronics and media account for the largest turnover in e-commerce in Romania. This is followed by toys, hobbies and homemade products (22%), fashion (22%), furniture and appliances (17%), food and personal needs (8%).
Evaluation of the location of the new market
In Romania, the topic of renewables is steadily growing in popularity to the point that it is directly reflected in the demand for solar panels and other ‘eco’ products. In addition to these attributes, we also took into account the locations with the highest solar radiation in Romania and linked this information to areas with well-developed electricity infrastructure.
Bucharest together with the Dobrogea region proved to be the areas with the greatest potential.
Google marked Romania as the best market for organic products
Google proposes Romania as an ideal export market, as there is a strong demand for eco-friendly products such as solar panels, home heating and air conditioning, lighting, batteries and chargers, along with other eco-friendly products.
Planning to Export to Romania? Go mobile!
Mobile search has grown significantly in Romania since 2018 and still continues to grow, with 80% of all mobile devices running on Android and 18% on iOS. The number of mobile queries has grown by more than 13% since 2018 compared to other devices.
At the same time, during Q4 of 2019, there was a year-on-year decrease in CPC (cost per click) on all devices by a total of 1.75%. This decrease occurred before the decrease in CPC due to coronavirus in March 2020. The average CPC is $0.12. The level of CPC during the years 2016 – 2019 fluctuates with the usual tendency to increase every year, but in Q4 of 2019, there was a decrease in CPC for the first time when compared to the previous year.
Due to the growing demand for mobile-based online shopping, the number of clicks increases regularly every year for mobile devices, in contrast to desktops and tablets, where there has been a dramatic reduction in clicks since 2016.
In the table below, you will find reference values related to solar panels, air conditioning, water heaters, electronic components, solar chargers, anemometers, electronic fans and other ‘eco’ products. Their CTR (click-through-rate) is high, with CPC being lower than average.
Romania is undoubtedly one of the most promising markets
A good marketing strategy for entering any market must be based on research and analysis of a specific segment. For inspiration, see the presentation that Google has prepared for us as a basis for our analysis of the ‘eco products’ market in Romania. You’ll find a variety of up-to-date information and graphs presenting a comparison of CPC, clicks, impressions, Ad depth, Ad CTR, and more to help you set your expectations.
Legal requirements for e-commerce in Romania
Romanian legal requirements for online stores are based on European regulations. So, in order to meet the requirements, two important things need to be implemented if you want to avoid a fine or legal disputes about your returns policy:
1. Every online store needs to have information regarding online dispute resolution available on their web page. When a consumer has a problem with a trader regarding a product/service he bought, he can settle his dispute outside of court proceedings through an Alternative Dispute Resolution procedure. Without this information, the seller can receive a fine of RON 2,000 – 5,000 (EUR 440 – 1.100).
2. Information related to the return policy has to be clearly displayed. According to Romanian laws, a grace period of 14 days from receipt (since delivery time is taken into consideration for online stores) has to be provided for a customer to initiate a product return. If the seller wants to extend the period, that’s up to them, but the minimum required period is 14 days. In addition, the seller has to provide a returns form right from the beginning of the sale (whether in paper format or on the web page), otherwise the returns period can be extended up to a year.
Export abroad with confidence with our export analysis
In addition to taking into account the cultural and online aspects of each country, our export team provides information on e-commerce legislation. Each market has different rules and laws applicable to online stores.
An analysis of competing companies in individual countries is a must, in order to enable the client to get to know the risks, as well as the opportunities, in the new market as thoroughly as possible. If you need a help, tell us about your business.