Catalyst Conversations: Igniting the eCommerce Ecosystem in CEE, Ep. 3 with Evgeni Yordanov

Venture into the ever-evolving world of e-commerce with our interview series, CatalystConversations. Join us as we delve deep into the entrepreneurial journeys of leading figures in the e-commerce realm in Central and Eastern Europe, uncovering insights on revenue growth, sustainable business models, and international scaling. Whether you're a budding e-commerce entrepreneur or a seasoned pro, these conversations are bound to ignite fresh perspectives and actionable wisdom.

Evgeni Yordanov is the CEO of NEXT BASKET, a SaaS for online stores with extensive features and integrations. He is also a professor of SEO marketing, with a comprehensive view of the digital and e-commerce world.  

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A Deep Dive into Czech & CEE's Fintech and eCommerce Landscape with Radim Oulehla, Fintree.cz Co-founder 

Based on your extensive experience in the industry, how would you describe the growth and development trajectory of the e-commerce market in Bulgaria over the past 5-10 years?

E: Over the past 5-10 years, Bulgaria's online shopping scene has boomed big time! Picture this: more people than ever before are shopping online, thanks to better Internet access and trust in secure payment methods. Bulgaria is actually at the forefront of this, with one of the fastest Internet speeds in the whole world. Plus, everyone's glued to their smartphones, right? Well, that's led to an uptick in shopping, even on their mobiles - making e-commerce way more accessible than ever before.

The e-commerce playground has gotten more crowded too. From more-or-less nonexistent, to more than 30,000 online stores currently opened in Bulgaria alone, offering all sorts of goods and services. This healthy competition has been great for consumers - more options and better deals. And let's not forget the magic of faster deliveries and smoother logistics, those have also refined and gotten better over time.

When the pandemic hit and locked everyone indoors, e-commerce was the hero. More people turned to online shopping for everything from groceries to gadgets. Long story short, e-commerce in Bulgaria has skyrocketed, and it doesn't look like it's slowing down anytime soon.

As the CEO of NEXT BASKET, do you believe that every physical store would eventually have a digital counterpart? What obstacles do physical retailers typically encounter when transitioning or expanding into the online space?

E: Think about it like this: not every physical shop might jump into the online game, because if you put yourself in their shoes, it’s this super-scary new thing that everybody is talking about, but at the same time it’s still unexplored by some. Peer pressure or not, it is becoming more and more common. For those entrepreneurs who are choosing to make the leap, there are some tricky bits they've got to figure out. First off, technology is a bit of a headache for most shop owners who are used to face-to-face sales. Going digital means setting up in-store or warehouse management software, e-commerce websites, managing online orders, and handling tech stuff they might not be familiar with.

Then there's the whole delivery puzzle. It's not just about selling online; it's about making sure stuff gets to customers' doors on time. That means juggling inventory for both online and in-store sales and figuring out how to ship everything efficiently.

Making the online shopping experience as good as strolling through a store is another challenge. Giving customers the same kind of personal touch and guidance they'd get in person is tough in the digital world. Plus, standing out online among all the other stores is a real hustle—they've got to get savvy with digital marketing and make sure folks trust buying stuff from them online. It's a learning curve, for sure, but it's opening up new opportunities for stores willing to take the plunge.

With the increasing popularity of marketplaces that aggregate products from various sellers, do you foresee a shift where individual e-commerce stores become less prevalent? In terms of sales strategy, what are the opportunities and disadvantages provided by both options? 

E: Both individual stores and marketplace selling have their own set of opportunities and drawbacks when it comes to sales strategy. The future might see a balance between both models. Some sellers may prefer the ease and audience reach of marketplaces, while others might focus on individual stores to create a unique brand experience. Successful businesses might even opt for a hybrid approach, leveraging marketplaces for wider reach while nurturing their own e-commerce presence to build a loyal customer base. Ultimately, the choice between individual e-commerce stores and marketplace selling depends on a seller's specific goals, resources, and target audience.

Payments are a crucial element of the e-commerce experience. In your perspective, what are the primary challenges that merchants face when it comes to integrating and managing payment gateways? 

E: Imagine running an online store - it's all about getting paid, right? But getting those payment systems up and running smoothly isn't always a walk in the park. First off, it's like trying to fit puzzle pieces together - integrating payment gateways into your website can get pretty technical. Dealing with different coding languages and making sure everything works seamlessly without any glitches is a real challenge.

Then there's the big concern about security. You've got to make sure that your customers' payment details are super safe. Following all those security standards and rules to protect sensitive information from any potential breaches is a top priority. There’s a standard that all banks and payment systems should comply with PCI standards. Plus, people these days want different ways to pay- credit cards, digital wallets, you name it. Integrating all these payment methods into your system can be like juggling a bunch of different balls at once. And let's not forget the fees that payment gateway providers charge- it can eat into your profits, especially for smaller businesses.

What are the most important aspects of choosing the right payment processing solution from an eCommerce perspective (in the different stages of growth of an ecommerce business)? Looking at consumer preferences, do you see any emerging payment trends? 

E: Choosing the right payment processing solution evolves with an e-commerce business's growth. In the start-up phase, prioritizing flexibility, integration ease, and diverse payment options within budget constraints is key. During growth, scalability, security, and analytical tools to manage higher transaction volumes and glean insights for strategic growth are vital. For established businesses, customization aligned with brand experience and international capabilities, including multi-currency support and regulatory compliance, take precedence.

Handling payments across different countries and currencies can add another layer of complexity for those selling internationally. Making sure everything works smoothly for customers worldwide and dealing with currency conversions- it's like a whole new level of challenge! Ultimately, it's a constant hustle for online merchants to keep their payment systems up-to-date, secure, and customer-friendly while dealing with all these hurdles along the way.

In terms of emerging trends, some like contactless payments (during the COVID-19 pandemic), digital payments and mobile wallets, the BNPL (Buy Now, Pay Later) craze, and crypto payments are among the leading ones, which merchants should take a look at.

How can merchants identify which are the most effective for maximizing their revenue and scaling internationally via digital channels? Are there any specific strategies that NEXT BASKET recommends or has seen success with?

E: If we are talking pure maximization - then cash is the way, haha. Joking aside, cash is quite prevalent in the Bulgarian market with the so-called CoD (cash on delivery) service being offered on the market. But, after the COVID-19 pandemic, there’s been a stir-up, which led to growth among some of the rest of the trends I already mentioned. As for actual maximization and having scalability and internationalization in mind, the thing that we at NEXT BASKET can recommend is getting the right payment partner, who is providing the services you need at the cost you can pay.

Finally, for those young entrepreneurs looking to venture into the e-commerce realm in CEE, what piece of actionable advice would you offer?

E: Now, here's the secret sauce: start small and smart. Don't break the bank on fancy setups right off the bat. Begin with a stripped-down version of your idea—a pilot, if you will. Test it out, gather feedback, and tweak your game plan based on what works and what doesn't. Remember, Rome wasn't built in a day, and neither is a successful online business. Stay connected to your customers, give them top-notch service, and build trust like it's your superpower.

Oh, and don't go it alone! If you can’t or even better can but don’t want to - build a squad of mentors, fellow entrepreneurs, and pros who've been there, done that. They'll be your guiding stars when the e-commerce universe feels a bit daunting. Such is the team at NEXT BASKET. Keep learning, keep adapting, and keep that passion burning bright. With resilience, a customer-focused mindset, and a pinch of adaptability, you'll be soaring in the e-commerce world in no time. 

 

Through this interview series, we at CatalystPay are trying to bridge the gap between our customers’ needs and the latest industry trends as seen through the eyes of successful entrepreneurs. Understanding the inner workings of the payments industry means gathering constant insights - some of which we have decided to share with our audience as well.