Dr. Nina Angelovska – President of the Macedonian Ecommerce Association
How can companies stay ahead of market dynamics, and what strategies have been the most effective in adapting to changes?
In today’s fast-paced digital world companies need to constantly follow trends, learn fast, implement fast measures of what works and what doesn’t, and adapt on the go. Constant change is inevitable and it is truer than ever that today if we are standing still – we are moving backwards. AI brought a new era in e-commerce, posing opportunities for better performance, optimization, and automation on one hand but on the other hand, it posed many challenges for companies who are struggling to adapt. For ecommerce the customer-centric approach and hyper-personalization are key. Data-driven decision-making is also key for navigating effectively in the uncertain changing landscape. Investing in talent development can also ensure a skilled and adaptable workforce that is crucial for successful adaptation and growth.
How does your organization perceive the role of eCommerce in contributing to the economic development of the region?
The transition from traditional to e-commerce is unfolding across all sectors, becoming imperative rather than a choice for businesses, governments, and individuals. This transformation is completely reshaping the dynamics of both companies and end-users. Electronic commerce can catalyze reducing unemployment, increasing productivity and efficiency, and enabling improvements in the economic condition of a country, leading to overall economic growth. While e-commerce has gained significant momentum globally, especially in developing countries over the last decade, the economic growth and development in the Western Balkan markets is still far from those in developed countries and compared to the EU markets, the great economic potential of e-commerce remains untapped. Although each WB market is relatively small individually, collectively, they form an 18 million market. To foster the growth of e-commerce and bridge the gap with developed markets, we believe that facilitating cross-border e-trade can significantly contribute to the overall development of the region. In summary, e-commerce catalyzes economic development in the Western Balkans by promoting market access, innovation, job creation, and efficiency, while also contributing to the region’s integration into the global economy.
Can you point out any regional characteristics in terms of payments, logistics, customer behavior, shopping habits, etc?
The Macedonian eCommerce Association every year publishes a comprehensive eCommerce Analysis Report providing an overview of the state and development of e-commerce in the Western Balkans in comparison to European countries, with the main focus being on Macedonian e-commerce. The analysis is conducted using Eurostat data, considering the progress compared to the previous year and compared with European countries. Serbia is best-ranked among the Western Balkan countries when it comes to online shopping (expressed as a share of internet users who have placed an online order in the last 12 months) with 63.5%, next is North Macedonia with 49.5%, Bosna and Herzegovina with 43%, Albania with 35% and Montenegro 31% according to AETM (2023). Report on the E-commerce Analysis: “Overview of E-commerce in the Republic of North Macedonia and Comparison with the Countries of the Western Balkans and Europe, 2023.
Western Balkan e-shoppers, in general, make less frequent purchases compared to European countries, i.e., once or twice every 3 months – Bosnia and Herzegovina is the best-ranked among the Balkans, with 34% of e-shoppers placing orders 3-5 times in 3 months. Similarly, all Western Balkan e-shoppers place orders under 50 euros online – with Albania holding the highest position. A notable difference is observed in the ranking based on the seller’s origin, i.e., Serbia and Albania stand out with 98% and 93% of online purchases being made from domestic e-sellers. In North Macedonia, 83% of orders are from domestic sellers, in Montenegro 72%, and in Bosnia and Herzegovina 70%. There is also a difference in terms of what Balkan e-shoppers buy. Albania is at the top in buying clothes (89%), followed by Montenegro (78%), while Serbia and North Macedonia are around the average, and Bosnia and Herzegovina is the last among Balkan countries3.
Regarding payment habits cash on delivery is still the dominant and preferred way of payment for customers. This coincides with the data that all Western Balkan countries are ranked at the bottom when it comes to using e-banking, much below the EU average.
Can you share examples of successfully positioned companies in your market in different verticals?
The launch of Ananas in North Macedonia is one of the developments that marked 2023 when it comes to the e-commerce landscape. Ananas Ecommerce is a Serbian company, part of Delta Holding whose mission is to revolutionize e-commerce and bring a new shopping experience in this region as we know it in the developed markets. It started its journey in Serbia and the first market of the expansion plan was Macedonia. It launched in June last year in Macedonia and it already attracted more than 200 merchants who are now selling on Ananas, reaching new clients and growing their sales. The Macedonian shoppers now have a marketplace platform to turn to for their shopping needs. The Macedonian E-commerce Association every year is organizing a contest E-commerce Awards that aims to recognize the award of the best e-commerce players on the market. The initiative has also had an impact on raising awareness about the potential of e-commerce and encouraging and motivating improvement and enhancement in the Macedonian e-commerce offering. The latest “E-commerce Awards” contest for 2022 collected over 150 submissions, over 93.390 votes from 6.584 voters from the public, and awarded 39 e-sellers as winners in 23 categories. Some of the winners in this competition are as follows: Fashiongroup.com.mk was voted as the best e-shop for clothes and shoes, Paket.mk was voted as the best e-shop for food and beverages, Korpa.mk was voted as the best food delivery, Evnonline.mk was voted for best e-shop for bill payments, Literatura.mk was voted for best e-shop for the category – culture, events, and education,Svetotnabibi. mk was voted as the best e-shop for baby and children’s clothes, equipment, toys, etc. The list of all the winners for 2022 in all categories can be seen on the following link:https://ecommerceawards.mk/pobednici/.
This year, the “E-commerce Awards 2023” in North Macedonia will recognize the top e-sellers and e-commerce companies across 25 categories in March 2024.
How do organizations approach innovation in eCommerce, and what role does technology play in the picture?
Technology plays a pivotal role in steering innovation in the local eCommerce landscape. In North Macedonia, organizations in the eCommerce sector approach innovation as a combination of their strategic planning, and adaptation to evolving market trends for technology. Mainly, the innovations are related to digital transformation as many organizations in North Macedonia undergo digital transformation processes to enhance their eCommerce capabilities. This involves integrating digital technologies into various aspects of their business operations, including sales, marketing, and customer service. Also, the adoption of marketplace e-commerce platforms is becoming crucial for organizations to streamline their online operations. These platforms often incorporate features such as user-friendly interfaces, secure payment gateways, and inventory management systems and companies are opening their additional sales channels as a common practice to stay competitive. Lately, the companies also focused their efforts on mobile commerce (m-commerce) by ensuring responsive website design, developing mobile apps for their e-shops, and providing a seamless mobile shopping experience, as well as on data analytics through leveraging data analytics tools to gather insights into customer behavior, preferences, and market trends. However, this adoption of innovation and especially innovations related to AI and Machine learning are not even near to the rest of the world. Therefore, every autumn the Macedonian eCommerce Association organizes the biggest regional e-commerce conference – ecommerceconference.mk, to bring together stakeholders from different brands, from different parts of the world, and different parts of the e-commerce ecosystem. The Conference aims to showcase the latest worldwide trends and innovations in the field of e-commerce, to start discussions on attractive topics related to the sector, and to build long-lasting networking opportunities for its participants.
What rating from 1 to 10 do you give to the local logistic companies and their role in delivery efficiency and customer satisfaction? In the context of increased interest in cross-border sales, how well prepared are the logistics companies from your country?
Local logistics companies play a crucial role in the whole e-commerce ecosystem and its development. They impact the online customer experience as a whole. In order for e-commerce to develop all accompanying sectors needs to play their role. With the increase in volume and offers in ecommerce in the past year logistics companies are evolving and innovating as well, however, I would say we still have a long way to go.
When it comes to cross-border sales – logistics, customs clearance, and lack of standardized regulations are three key obstacles pointed out by e-shops in the CEFTA region. According to the findings of the Report on geo-blocking practices in CEFTA, local courier services lack partnerships or processes to handle cross-market deliveries, whereas international courier services costs are too expensive making the products uncompetitive for other markets. Custom issues involve high customs fees that customers have to pay and complex customs procedures which directly impact the competitiveness of the e-shop in non-domestic markets and are adding administrative burdens and uncertainty. The lack of standardization, clear and uniform rules and regulations, and the lack of hassle-free processes are making the path to cross-market deliveries even harder4.
How do eCommerce businesses leverage data analytics to make informed business decisions?
In North Macedonia, most of the e-commerce businesses use data analytics to enhance their operations. However, according to a recent gap-analysis report that we’ve conducted on 60 MSMEs from North Macedonia and Albania when asked about analyzing sales data, 87% stated that they engage in this practice, while the remaining 13% do not. Additionally, a significant proportion (38%) of those who analyze sales data prefer manual methods. When questioned about their proficiency in Google Analytics or other analytics tools, 30% indicated a lack of proficiency. When combining those with basic and intermediate knowledge, 96.7% scored 3 or below in terms of Google Analytics proficiency. This indicates that the level of usage of data analytics for making informed business decisions is still not at a satisfactory level, and it needs to be improved. As an Association, we promote the usage of data analysis as a very important aspect, which must be taken into consideration by e-shops in the future to thrive in the digital marketplace, foster growth, and enhance their overall digital capabilities.
Where do you see the future of eCommerce heading, and what role does your organization play in shaping that future in your country?
I believe that the future of e-commerce holds exciting possibilities. One of the key trends we foresee is the continued growth of online shopping in North Macedonia, driven by evolving consumer preferences and technological innovations. As an e-commerce association in North Macedonia, our role in shaping the future of e-commerce is pivotal. All of our initiatives and projects are based on the situation, challenges, mapped barriers, and needs of the members and the market, and are implemented thanks to the members and companies, as well as the international organizations that support them and thus contribute to the development of Macedonian e-commerce, and of course thanks to our dynamic and passionate team. By organizing training sessions, educational and networking events, conferences, and workshops, we empower e-commerce businesses with the latest trends, best practices, and technological innovations, ensuring they stay competitive in the evolving market. One of the most promising initiatives for local and regional electronic commerce is the development of the web platform ecommerce4all.eu (a resource and information center for conducting e-commerce business in the CEFTA region), launched as part of the GIZ project, jointly with the e-commerce associations from the remaining CEFTA markets. Another current initiative supported by the USAID project “Activity for strengthening the business Ecosystem” and implemented by Consulting for strategic development, includes a free centralized online platform ecommerce.mk/badge which consists of the first and only registry of all e-sellers in North Macedonia and a badge for a verified e-sellers, which is a tool for increasing trust in e-commerce.
Additionally, the initiative “Digitally Fit for E-commerce”, supported by the USAID EDGE Project, and implemented by AETM in cooperation with the Albanian E-Commerce Association, aims to improve the digital skills of 60 companies from North Macedonia and Albania and support them in opening an additional sales channel – new e-shop. So far, through the many local and regional initiatives through the years, the Association has supported more than 90 MSMEs to start selling online, and more than 365 MSMEs to increase their digital skills.
One of the latest developments is the initiative fo establish a Balkan Ecommerce Alliance for which a Memorandum of Understanding was signed by the founding members – the Ecomm Associations from Serbia, Albania, and Bosnia and Herzegovina. The Macedonian Ecomm Association was elected to take the leading role and chairmanship during the first mandate. The Balkan eCommerce Alliance – BECA, will advocate for facilitating and promoting regional electronic commerce. Its activities are aimed at creating a better future for e-commerce in the Balkans by developing e-commerce-related policies, advocating for changes, and addressing various challenges in the e-commerce ecosystem. This includes tackling challenges related to customs duties, administrative barriers, common delivery strategies, regulatory frameworks, etc.
Can you share key eCommerce or digital marketing events a foreign business person should visit in your country? Which are the key companies and organizations in your region helping the ecosystem grow?
The event and place to be for e-commerce is our annual Ecommerce Conference that we are hosting each year in Skopje https://www.ecommerceconference.mk/en/. When it comes to supporting the growth of e-commerce our members and international development organizations such as USAID, GIZ, Increasing Market Employability Program, and Swiss EP are playing a very important role. The private sector plays also a key role as the banks, payment organizations, IT companies, marketing agencies, delivery and logistics as well as the governmental institutions with whom we have well-established cooperation are important to support the development. All of these companies and organizations can be seen at the biggest regional e-commerce conference, which gathers eminent speakers from well-known international brands and brings together participants from the whole Balkan region to discuss the latest trends and practices in e-commerce. The conference happens every year in Skopje in October/ November and it serves as a valuable networking opportunity, allowing more than 650 attendees to connect with experts and like-minded individuals from the entire regional e-commerce ecosystem, coming from N.Macedonia, Serbia, Bosnia & Herzegovina, Albania, Kosovo, Montenegro and Moldova. Besides the regional attendees, the conference hosts many eminent speakers coming from brands such as Meta, Amazon, Zalando, Nestle, etc. to share their valuable knowledge and insights with the participants.
Which marketing channels have proven to be most effective for reaching a target audience? Are there any cultural or regional nuances that should be considered in brand messaging?
There are many marketing channels, including social media marketing, email marketing, content marketing, affiliate marketing, collaborations with influencers or industry experts, etc; however, the optimal mix depends on factors such as target audience, product/services, and marketing goals, necessitating ongoing analysis and refinement of the strategy. The Balkans use the internet mostly for social media and phone/video calls. In Montenegro for example, 88% of internet users are involved in social media activities, in North Macedonia 86%, and in Serbia, 82%5. Therefore the fact that social media marketing is the main channel for e-shops is logical and expected. Our findings from a survey we conducted in 2022 on Macedonian e-sellers indicate that social media marketing is the dominant channel used the most, followed by email marketing, SEO, and influencer marketing6. Regarding the cultural and regional nuances in the Balkans, of course, there are similarities but there are differences as well – language is different, religion, unique traditions, habits, etc. To win a certain market we must ‘play’ as a local, that’s why we need to get a deeper understanding and have the right local people so we can develop effective marketing messages and strategies.
Size of the eCommerce as % of GDP of the country: E-GDP (2021), 3.02%
Internet usage: 88% of the population in 2022 (Last internet use: in last 3 months)
Number of people buying goods online; as Percentage of individuals who used the internet within the last year 49.5% 2022 (Last online purchase: in the 12 months)
Number of Virtual POS terminals according to the National Bank: 1,908 as of April 2023
Approximate number of e-shops according to the conducted Analysis of the Macedonian Ecommerce Association: 1000 as of April 2023
Average size of a shopping cart in Euro: less than 50 euros
– Key market players:
https://ananas.mk/
https://www.fashiongroup.com.mk/
https://www.sportvision.mk/mk
https://www.neptun.mk/
https://paket.mk/
https://www.zara.com/mk/
https://www.sportreality.mk/
https://www.setec.mk/
https://www.ekupi.mk/
https://korpa.mk/
https://akcija24.mk/ (food delivery platform)