Bulgaria E-commerce Market Size

Bulgaria E-commerce Market Analysis

Bulgaria E-commerce market is expected to grow at a CAGR of 4.8% during the forecast period (2022 - 2027). The Bulgaria E-Commerce market is becoming increasingly pervasive in the economies of European Union countries. Bulgaria has about 772,000 online retailers, and the number continues to grow. About 60% of online purchases come from international sources. About 41% of sellers are from the EU, and 19% are from other countries.

• Economic growth in the Bulgarian market has also changed the behavior of Bulgarian consumers. More cities are showing great interest in organic and healthy foods in big cities. The wealthier part of society prefers smaller local stores to global supermarket chains. More Bulgarian people are also shopping online. Despite growing interest in online shopping, this market still has significant growth potential.
• The use of applications for mobile e-commerce has increased, especially last few years. It provides a quick and easy way to buy goods and services. Better broadband network coverage and 3G and 4G services make it attractive. All major e-stores have developed mobile applications that complement their customers.
• The popular payment method is mobile, covering 80% of the Bulgarian payments market. For instance, Mobiano is a mobile payment solution in Bulgaria. Another solution in Bulgaria is MINT, a prepaid card solution that allows users to make secure and easy payments.
• Digital marketing technologies and methods such as search engine optimization (SEO), search engine marketing (SEM), social media marketing, display advertising, and digital campaigns make products, goods, and services more popular and target audiences and are widely used in Bulgaria, leveraging the e-commerce market in the coming days.
• The regulations' modifications are analyzed to bolster the market growth rate further. In July 2021, new VAT regulations for business-to-consumer (B2C) sales were enacted. BEA firmly supports the EU's initiatives to streamline VAT regulations and create a level playing field for European businesses. The new e-commerce bundle with VAT gives Bulgarian e-traders a significant advantage. Since the VAT exemption of EUR22 has been eliminated and all imported shipments will now be subject to VAT, regardless of their value, the new regulations prevent unfair business practices by non-EU traders. By enabling some sellers to declare all of their pan-European sales through a single VAT registration in their home country, these VAT amendments simplify VAT duties for B2C e-commerce sellers.
• Since businesses from all sectors have made significant investments in e-commerce, the demand for technical know-how has increased significantly. The pandemic further accelerated this trend, which increased the pressure on e-commerce service providers to expand and keep up with demand. More than 15 businesses in Bulgaria are part of the Salesforce Commerce Cloud (SFCC) ecosystem. But for the nation to truly become a regional hub for e-commerce tech solutions, SFCC businesses need access to talent to meet client demand and the fast-moving market. In collaboration with Telerik Academy, seven players recently established a 3-month program for Salesforce Commerce Cloud Developers to increase the popularity of e-commerce development within the developer community. These factors are bolstering the market growth rate.
• According to the Passport of the E-commerce Industry In Bulgaria 2020 report published by the Bulgarian E-Commerce Association, the key e-commerce vendors in the country that are members of the associations witnessed exponential growth during the COVID-19 pandemic. Several online stores registered a growth of over 60% in the number and volume of online sales. The development has been attributed to the impact of the COVID-19 pandemic and is expected to continue over the forecasted period, having made a permanent change of course in consumer buying patterns.