Allegro e-commerce launches fulfillment service for selected merchants

Darek Delmanowicz/PAP

Poland's listed e-commerce group Allegro launched the pilot stage of a new fulfillment service on Monday through which selected merchants will be able to store, sell and replenish their merchandise directly from an Allegro warehouse.

A leading name in Polish online retail, Allegro has been on the market for 20 years and has, according to its own statistics, around 20 million customers a month visiting its platform.

"On September 13, we are launching a pilot stage of the service named One Fulfillment by Allegro," the firm’s business development officer, Grzegorz Czapski, told PAP.

The new system could take away some of the logistics burden from merchants and speed up delivery times, an increasingly important factor for online buyers.

Some 30-40 percent of merchants cooperating with Allegro say they are interested in fulfillment support, according to Czapski. The pilot scheme aims to gauge the potential of the service and actual interest among sellers.

"This year, we will invite about 30 merchants to take advantage of this service so that we can together test the processes in full," Czapski added.

"From the first quarter of 2022, we want to invite another, much bigger pool of sellers," he continued. "We are preparing the measures in such a way as to ultimately make it available to thousands of sellers."

Allegro will for now rely on its 65,000-square-metre warehouse in Adamow near Warsaw to offer the service.

At the same time, Czapski expects "the demand for fulfillment services to grow" and assumes that "within several years, several such logistics centres may be set up in Poland."

"Allegro has capital resources to be able to realise many more of these projects in the future and we they will generate significant additional turnover on the platform thanks to even more efficient deliveries," according to Czapski.