Hungarian E-Commerce: A Goldmine for Your Business18. 10. 2023 Autor Mário Baross
Hungary, with its storied history and strategic Central European location, represents a goldmine waiting to be explored. As businesses seek to expand online, understanding the unique specifications of the Hungarian market- it’s specific Ugro-finnic language or patriotic population – could be indispensable.
Table of Content
- Hungarian Culture
- Hungarian e-commerce in numbers
- Average Hungarian online customer
- Specifications for Hungarian websites
- Building Trust
- Use most common payment methods
- Logistics and Fulfillment
One of the oldest countries in Europe is rich in history and has a lot more to offer than just thermal baths, tasty goulash, Rubik’s cube or fun vacations by lake Balaton. Before we dive into Hungary’s e-commerce scene, it’s important to understand their culture and find ways to resonate with the audience.
Some might consider Hungarians as pessimists, however they view themselves rather as realists. This explains a more cautious or even skeptical approach on their end, when it comes to accepting new trends like e-commerce. They prefer to thoroughly assess the risks and challenges before embracing new technologies or business models, so building trust is important.
Hungarians support local goods and businesses
This market might be difficult to enter for foreign entrepreneurs, unless they adapt their websites and communication styles to engage the local audience. Hungarians prefer to purchase local products and that’s why a proper website localization is a must!
Hungarian e-commerce in numbers
Hungary, similarly to the Czech Republic, has 10 million residents, however e-commerce stastistics show that there is still room for growth in this market.
E-shops: Hungary boasts of a vibrant e-commerce scene, with approximately 32,000 active online stores. In comparison, back in 2021 the Czech Republic recorded 51 000 online stores. This translates as less competition in the Hungarian market and good news for those that are thinking about expanding!
Shopper Enthusiasm: Hungarian consumers are no strangers to online shopping. On average, each Hungarian customer made 21 online purchases annually in 2022, demonstrating a strong preference of choosing the convenience offered by e-commerce.
Gross Merchandise Value (GMV): a critical metric for measuring the economic scale of online retail reached a substantial 2.7 billion euros in Hungary in 2022. This figure underscores the significant role e-commerce plays in the Hungarian economy.
Order Frenzy: Hungarians’ love for online shopping is further reflected in the sheer volume of orders processed in 2022. An impressive number of 77.1 million online orders was reached during the same year, demonstrating the robust demand for products and services delivered through digital channels.
Average Hungarian online customer
As we delve into Hungary’s digital landscape in 2022, we encounter a rapidly evolving ecosystem characterized by impressive figures and trends.
- 90% of the population has access to the Internet, from which 6.5 million are active Internet users.
- The average e-commerce basket value per Hungarian customer is a substantial 45.3€, reflecting their willingness to make purchases online.
- On average, an online shopper in Hungary spends up to €883 annually, showcasing their consistent engagement with e-commerce platforms and services.
- The highest revenue product categories are Fashion and Electronics according to ecommercenews.
Specifications of Hungarian websites
As we explore the immense potential offered by the Hungarian market, it becomes evident that thriving in this distinctive and highly patriotic landscape requires a strategic approach.
Trust is a crucial element for success in the Hungarian market. Inaccurate translations or incorrect information can lead to mistrust and negatively impact your conversion rates.
Hungarian customers highly value reviews and recommendations, so it’s essential to cultivate a positive online reputation. Addressing concerns related to post-purchase support, such as easy communication with the seller, reliable service, and data security, is vital.
The most popular review portal in Hungary is TrustPilot.
Website certifications help to build trust towards customers. Some of the certification portals used in Hungary are:
Most common payment methods
Cash on delivery still holds sway, given Hungary’s traditional tilt. Customers maintain a conservative approach to online purchases and are often somewhat skeptical or even afraid to pay in advance for a product. That’s why they prefer paying once the product is delivered.
Online card payments lead by Visa and MasterCard, are gaining traction. Hungarians also like to use Pay Pal, Simple Pay and Apple Pay. It’s important to note here that Simple Pay is their “national hero”, as it’s a Hungarian payment provider.
Bank transfers are still a common method of payment in Hungary.
If you also want to know about the expansion to Poland, take a look at our article.
Logistics and Fulfillment
Hungary is known for having a simple logistics system. Most of its population resides in urban areas, making further infrastructure development likely.
Main parcel box delivery providers in Hungary are:
- MPL and FoxPost (their national post service)
- Express One
When it comes to preferred delivery options, most Hungarians still prefer home delivery. The automated parcel boxes are on the rise together with pick-up points, but they still have a long way to go. Some of the most commonly used automated parcel box providers are GLS and FoxPost.
Expanding your business to Hungary presents exciting opportunities in a growing e-commerce market. By carefully addressing these key factors, you can position your business for a successful entry into the Hungarian market.
Here is a checklist for your expansions to Hungary:
- Content Localization: Beyond translation, adapt your content to reflect Hungarian culture, preferences, and specific trends. Consider creating content that addresses Hungarian holidays, traditions, and local events.
- Local Trust Signals: Hungarians tend to trust websites that display local contact information prominently. Include a Hungarian phone number, physical address, and a localized contact form.
- Payment and Shipping Options: As previously mentioned, Hungarian consumers prefer to see local payment options. Make sure to offer these choices during the checkout process. Clearly communicate shipping details, including estimated delivery times and costs in Hungarian Forints.
Local Reviews and Testimonials: Highlight reviews and testimonials from Hungarian customers prominently on your website. Hungarian users are more likely to trust feedback from their fellow citizens.