Technological progress and the growing popularity of purchasing over the internet inspired many retailers to rethink their business models and adapt to the online world, making various product categories available for online purchase. During the last year, fashion, electronics and media, toys, hobby and DIY were the most lucrative industries, accounting for approximately one quarter of total e-commerce revenue, respectively.
The large variety of products sold online forced e-tailers to do more to attract customers, opening the way for improved services, enhanced communication and strong price competition. One of the most important indicators of the rudimentary consolidation of the Hungarian e-commerce market is the planned merger of two key players in the country, E-mag and Extreme Digital. The consolidation of the domestic market is crucial for the economy, since local online retail platforms need to keep pace with their international competitors, such as e-bay or Amazon, as an increasing number of Hungarian online buyers decide on cross-border shopping.
When it comes to paying for goods purchased online, interestingly, in 2018, Hungarians still preferred cash on delivery, while card payment proved to be the second most popular option, with only a few people choosing online payment solutions. Mobile payment is still in its early days, as Hungarians seem somewhat hesitant about accepting new payment methods. Even though a rising number of people use their phones to initiate bank transfers, the use of mobile payment apps still lags behind.