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Alza marketplace – to be considered in a cross-border e-business strategy.
What?
Alza is the e-commerce leader in the Czech Republic and one of the largest marketplaces in Central Europe. It offers a wide range of products—from electronics to everyday products—and enables businesses from across the region to sell.
Why?
Joining Alza is an opportunity to expand into the dynamically growing Czech and Slovak markets. The platform enjoys high customer trust and provides excellent logistical and marketing support for partners.
Who is it for?
For manufacturers and online stores from Central and Eastern Europe who want to develop cross-border sales and reach new customers in the Czech and Slovak markets.
What is Alza and how does it work?
Alza is one of the largest online marketplaces in the Czech Republic, offering a wide range of electronics, household appliances, toys, cosmetics, and many other categories. It operates as both an online store and a marketplace, enabling sales to third-party suppliers. Thanks to modern technologies, fast deliveries, and a wide network of collection points, Alza is one of the leaders in the digital world in Central and Eastern Europe.
The company was founded in 1994 under the name Alzasoft and initially focused on selling software and computer hardware. In 2006, it rebranded to Alza.cz, expanding its offerings to include new product categories. Since 2004, it has also operated in Slovakia, and in 2014, it began expanding into other European Union markets, such as Germany, Austria, and Hungary. In 2021, Alza achieved a turnover of over CZK 45 billion (approximately EUR 1.76 billion), processing over 17.9 million orders and offering approximately 700,000 products.
Alza operates a B2B2C model, meaning third-party sellers sell their products directly to Alza, which then resells them to end customers. This model eliminates the need for sellers in other countries to register and settle VAT, but it also involves longer payment terms, typical of B2B transactions.
Alza places great emphasis on logistics, offering its own network of pickup points, known as AlzaBoxes. In 2023, the company expanded its "Order by midnight, pick up in the morning at AlzaBox" service to the entire Czech Republic, allowing customers to collect their ordered goods the next morning from one of over 1,400 AlzaBoxes.
Alza is constantly expanding its product and service offerings. In 2017, the company began selling electric cars like Tesla and introduced cryptocurrency payments like Bitcoin.
Opportunities for cooperation for companies from Poland
Alza offers a supplier partnership program called AlzaTrade . However, to register as a supplier in this program, a company must have a Czech VAT identification number. This means that Polish companies that are not VAT-registered in the Czech Republic may encounter difficulties registering directly with AlzaTrade.
Alternative solutions for Polish companies
Polish companies interested in cooperating with Alza have several options:
- Czech VAT registration: A company can choose to register for VAT in the Czech Republic, which will enable it to work directly with Alza through the AlzaTrade program.
- Cooperation with an intermediary: Using the services of an intermediary or trading partner registered in the Czech Republic who will be responsible for selling products on the Alza platform.
- Expanding to other markets: Alza also operates in other European Union markets, such as Germany, Austria, and Hungary. Polish companies may consider partnering with Alza in these markets, although registration requirements may vary by country.
AlzaTrade registration steps for companies with Czech VAT
If your company has a Czech VAT identification number, the registration process with AlzaTrade is simple and includes the following steps:
- Creating an account: Log in or create an account on the AlzaTrade platform.
- Enter your company details: Enter your company identification number (IČO) and other required information.
- Acceptance of terms and conditions: Read and accept the terms and conditions of cooperation and the platform regulations.
- Account activation: After data verification by Alza, the account will be activated, which will allow you to start cooperation.
Alza offers attractive partnership opportunities for suppliers, but Polish companies must meet certain requirements, such as having a Czech VAT number, to be able to use AlzaTrade directly. Alternatively, they can use intermediaries or consider Czech tax registration to expand their business in the Czech market.
Advantages of the Alza platform
1. Wide reach and recognition
Alza is one of the largest e-commerce platforms in Central and Eastern Europe. It is the market leader in the Czech Republic and Slovakia, and is also expanding its presence in Germany, Austria, and Hungary. Thanks to its extensive customer base, sellers can reach millions of potential customers.
2. Modern technologies
Alza utilizes advanced data analysis systems, dynamic pricing, and integration with ERP systems. Sellers have access to tools that facilitate offer management and sales optimization.
3. Fast logistics and own distribution centers
The platform boasts modern logistics and warehousing centers, allowing for rapid order fulfillment. Thanks to its extensive network of AlzaBoxes (parcel collection points), customers can collect their purchases within hours of placing their order.
4. Support for various sales models
Alza offers various cooperation models – sellers can act as suppliers for Alza, eliminating the need for customer service and logistics, or use AlzaTrade, enabling direct sales on the platform.
5. Possibility of international expansion
Sellers working with Alza can easily expand their business to foreign markets, thanks to the platform's presence in many European Union countries.
6. Wide product range
Alza doesn't limit itself to electronics – it offers a wide selection of products, including household appliances, cosmetics, sporting goods, toys, and even electric cars, attracting a diverse group of customers.
7. Innovative payment methods
The platform supports various payment methods, including installment payments, leasing, and cryptocurrencies, making shopping more flexible for customers.
8. Strong brand and marketing
Alza invests in brand recognition through intensive online and offline advertising campaigns. This allows sellers using the platform to gain increased visibility for their products.
9. Modern customer service
Alza provides professional customer service, including chatbots, 24/7 technical support, and dedicated support for buyers and sellers.
10. Possibility to use Alza infrastructure
Sellers can use Alza's logistics infrastructure, which reduces their costs associated with storing and shipping products.
11. Advanced data analysis
Alza provides retailers with analytical tools that allow them to monitor sales results, customer preferences, and the effectiveness of marketing campaigns.
12. B2B and B2C sales
Alza serves both individual customers (B2C) and companies (B2B), offering attractive trading conditions and discounts for wholesalers.
13. Possibility to sell on Alza Marketplace
Sellers can use the Alza marketplace, where they can list their products without having to run their own e-commerce platform.
14. Dynamic development and innovation
Alza constantly invests in the development of new technologies, process automation and expanding its offer, which makes the platform a modern and competitive place for online sales.
To summarize the advantages of this platform:
- Alza provides a huge reach and a wide customer base in Central and Eastern Europe.
- Modern technologies and data analysis support effective sales.
- Our own logistics enable fast deliveries and minimize storage costs.
- Strong branding and marketing increase the recognition of sellers' products.
- Support for international expansion enables easy entry into foreign markets.
Alza is a dynamically developing platform that offers sellers numerous opportunities for development and expansion into new markets.
Disadvantages of the Alza platform
1. High commissions
Sellers must expect relatively high commission fees, which can reduce margins. Depending on the product category, commissions may be higher than on other marketplaces, impacting sales profitability.
2. Strong competition
Due to the large number of sellers, competition for customers is intense. It's essential to employ pricing strategies and promotions to effectively compete with other offers on the platform.
3. Complicated integration process
Full compatibility with the Alza system is required, which may generate additional costs and extend implementation time. Integration requires adapting ERP systems, inventory management, and meeting specific technical requirements.
4. Limited access for foreign sellers
Selling on Alza is primarily available to companies registered in the Czech Republic. Foreign companies, including Polish ones, require a Czech VAT number, which poses a barrier to entry for many potential sellers.
5. Long payment terms
Alza operates on a B2B2C model, which means sellers often receive payments late. For new suppliers, payment terms can be as long as several weeks.
6. Limited control over the customer relationship
Merchants do not have full access to customer data, which makes it difficult to build relationships, remarket, and conduct loyalty activities outside the Alza ecosystem.
7. Service quality requirements
Alza imposes high standards of customer service and product quality requirements on its sellers. Failure to meet these requirements may result in sales restrictions or financial penalties.
8. Lack of price elasticity
The platform uses dynamic pricing, which means sellers don't always have full control over their product prices. This can lead to lower-than-expected margins.
9. The need to invest in advertising
To achieve greater visibility on Alza, sellers often need to use paid options to promote their listings. Failure to invest in advertising can result in low product visibility in search results.
10. Limited marketing opportunities
Unlike proprietary online stores, Alza doesn't allow for the development of a retailer's individual brand. Marketing options are limited to promotions within the platform, making it difficult to stand out from the competition.
11. Complex returns and complaints process
Returns and complaints are handled according to Alza's rules, meaning sellers must comply with the platform's procedures. This may result in additional costs and longer return processing times.
12. Risk of changes to the regulations
Alza may make changes to its terms and conditions, affecting the terms of cooperation, commission rates, and customer service requirements. Merchants must constantly monitor changes and adapt to the new rules.
13. Limited possibility of personalizing the offer
The platform imposes a specific way of presenting offers, which means that sellers have limited opportunities to personalize product descriptions and distinguish their offer from the competition.
14. Platform Dependency
Sellers using Alza are subject to the platform's policies. Sudden changes to search algorithms, commission rates, or offer prioritization can impact sales results.
15. Lack of full control over logistics
When selling through the Alza fulfillment model, sellers lose control over how their products are packaged and shipped, which can impact how customers perceive their brand.
Alza is a powerful sales platform, but sellers must acknowledge its limitations and adapt their business strategy to the platform's requirements.
Is it worth selling on Alza?
Alza is a great option for companies looking to expand into the Czech and Slovak markets. The platform's high popularity, advanced technologies, and advanced logistics are major advantages, although it's worth noting the high commissions and intense competition.
Alza is undoubtedly:
- Wide reach and recognition – Alza is one of the most popular e-commerce platforms in Central and Eastern Europe.
- Advanced technologies – the platform offers dynamic pricing, data analysis and integration with ERP systems.
- Advanced logistics – a wide network of AlzaBoxes and modern distribution centers guarantee quick order fulfillment.
- Support for various sales models – ability to act as an Alza supplier or seller in AlzaTrade.
- International expansion – sales on Alza can facilitate entry into the markets of the Czech Republic, Slovakia, Germany, Austria and Hungary.
But Alza also presents challenges and limitations:
- High commissions – selling on Alza comes with costs that can reduce margins.
- Strong competition – many sellers are competing for customers, which requires the use of aggressive pricing strategies.
- Restrictions for foreign companies – the requirement to have a Czech VAT number makes access difficult for sellers from outside the Czech Republic.
- Long payment terms – the B2B2C model means that sellers can wait up to several weeks for payments.
- Lack of full control over the brand – limited possibilities for personalizing offers and marketing your own brand.
Who is Alza the best solution for?
Alza is a good place for companies that:
- They want to sell on the Czech and Slovak markets without having to build their own e-commerce.
- They have competitive prices and are ready for intense competition.
- They can adapt to the platform's requirements and meet its quality standards.
- They are able to invest in promotion and highlighting offers.
Alza is a powerful e-commerce platform that offers numerous sales opportunities, but it also presents its own challenges. Companies prepared to meet the high level of competition and meet the platform's requirements can take advantage of the marketplace's significant sales potential. However, for some sellers, especially those outside the Czech Republic, entry barriers can be significant.
The final decision to sell on Alza should depend on the company's individual capabilities and business strategy.
Alza FAQ – Frequently Asked Questions and Answers
What is Alza?
Alza is one of the largest e-commerce platforms in Central and Eastern Europe. It operates as both an online store and a marketplace, enabling sales to third-party vendors.
What products can you buy on Alza?
Alza offers a wide selection of products, including electronics, household appliances, cosmetics, toys, sporting goods, and even electric cars. The platform is constantly expanding its offerings with new categories.
How does the Alza marketplace work?
Alza operates on a B2B2C model, meaning that companies deliver their products to Alza and the platform handles the resale. Sellers can also use the AlzaTrade program, which enables direct sales.
Can companies from Poland sell on Alza?
Yes, but they must have a Czech VAT number. Alza requires sellers to be VAT registered in the Czech Republic, which can be a barrier to entry for foreign companies.
How to register as a supplier on Alza?
Registration is done through the AlzaTrade platform. Sellers must create an account, provide a company identification number (IČO), and complete a verification process. Once approved, they can begin selling.
What are the commissions on Alza?
Commissions vary depending on the product category and the collaboration model. Alza charges fees for order processing and, in some cases, for marketing and promotion of offers.
What payment methods does Alza support?
Alza accepts payments via credit cards, bank transfers, BLIK, and cryptocurrencies. Hire purchase and leasing are also available.
How does delivery work on Alza?
Alza has its own distribution centers and a network of pickup points, known as AlzaBoxes. It also offers courier and express deliveries, allowing orders to be picked up within a few hours.
What are the advantages of selling on Alza?
Its greatest advantages include a wide customer base, fast logistics, developed infrastructure, and the potential for international expansion. Alza also provides advanced sales tools.
What are the disadvantages of selling on Alza?
The biggest drawbacks are high commissions, intense competition, and the requirement for a Czech VAT number. Sellers must also adhere to the platform's strict standards.
What is the returns and complaints process for Alza?
Returns and complaints are handled in accordance with the platform's terms and conditions. Customers have a specified cooling-off period, and sellers must adhere to Alza's returns policy.
Does Alza have a loyalty program?
Yes, Alza offers a loyalty program that allows customers to collect points and take advantage of exclusive promotions. Program members can also receive additional discounts.
What markets does Alza operate in?
Alza operates in the Czech Republic, Slovakia, Germany, Austria, and Hungary. The platform is gradually expanding its operations to other EU countries.
How do I contact Alza customer service?
Customer service is available via the website contact form, telephone, and online chat. Alza also provides support at its physical locations.
Contact us and learn how to start selling on the Alza marketplace.
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