Czech Republic - eCommerceCzech Republic - eCommerce
Information on online shopping follows:
Age Purchase method for online shopping
16 -26 61 percent only use smartphones
25- 34 67 percent use tablets and smartphones
35-49 59 percent use desktops, tablets; only 3 percent use smartphones
50-65 44 percent mainly use desktops; 14 percent use tablets
65+ 8 percent only use desktops
In 2016, smartphones were used for 43 percent of every 100 purchases from eStores.
The Czech Government strongly encourages B2B and B2C eCommerce. An eShop can be operated by both Czechs and foreigners. Czech entities and foreign branches need to obtain a trade license from the Czech Trade License Office, covering the intended scope of activity to be carried out by the eShop, unless they are registered elsewhere in the EU. Both individuals and companies must be registered in the Commercial Registry. Foreign entities, with an established eShop elsewhere in the EU, may wish to use a Czech Republic address. The operator of an eShop needs to determine which legal jurisdiction governs relationships with its customers to ensure that they fulfill all statutory obligations (e.g. rights and obligations of the parties to the contract, customer claims in the case of defects or limitation periods, etc.).
Product safety testing and certification is mandatory for the EU market. U.S. manufacturers and sellers of goods must perform due diligence in accordance with mandatory EU legislation prior to exporting. For information on EU regulations pertaining to eCommerce, please refer to Doing Business in the European Union: 2017 Country Commercial Guide for U.S. Companies report.
The market infrastructure is integrated with that of other EU countries.
Czech eShops most often sell textiles and accessories (17 percent), home and garden items (11 percent), electronics (7 percent) and groceries (6 percent).
Articles on eCommerce appear in just about all news media in the Czech Republic. The main topics are new online products and services.
The Czech Government strongly encourages B2B and B2C eCommerce. There are no obstacles to establishing an eCommerce business in the CR. http://www.scalefast.com. ECommerce web services can be found at: http://www.shopify.com. Czech companies use the above-mentioned non-Czech websites. Several principles are important for effective management of intellectual property (IP) rights in the Czech Republic. It is important to have an overall strategy to protect company IP. Second, IP may be protected differently in the Czech Republic than in the United States. Third, the IP rights must be registered and enforced in the Czech Republic under local laws. For example, a U.S. trademark and patent registration will not protect a U.S. company in the Czech Republic. There is no such thing as an “international copyright” that will automatically protect an author’s writings throughout the entire world. Protection against unauthorized use in a particular country basically depends on the national laws of that country. However, most countries do offer copyright protection to foreign works in accordance with international agreements. www.alza.cz; www.mall.cz; www.kasa.cz; www.CZC.cz ; and www.123shop.cz; www.monkeydata.cz Credit cards are popular among Czech consumers for online purchases. Multinational financial corporations like Visa, MasterCard, Maestro, American Express and Discover process payments between merchants and card issuing banks. Online payments in the Czech Republic are processed as follows: 76 percent - credit cards, 20 percent - pre-paid cards, 10 percent – ewallets, eight percent - bank transfers and three percent – mobiles. All major international credit cards are accepted. Electronic banking is a common practice. Banks in the Czech Republic are considered safe.
In the past few years, the Czech Republic has experienced a boom in mobile marketing. Mobile visits to eShops have doubled. Customers increasingly use mobiles to conduct eShop searches, however, purchases still tend to be finalized on a PC as it is considered more user friendly. An estimated 35 percent of the population regularly shop by mobile. Mobile versions of eShops are also increasing. Currently, 46 percent of eShops have mobile versions.
In 2016, companies spent almost $820 million on online advertising, a growth rate of 25 percent over the previous year. TV advertising was the most popular and consumed 45 percent of companies’ advertising budgets. In 2016, digital marketing was second in advertising spending for the first time, with a 21 percent market share. Digital marketing spending displaced press advertising which fell to third place. eCommerce digital marketing spending is expected to double in 2017 (compared to 2014).
Czech eShoppers look for special online offers throughout the year. Pre-Christmas eSales are a popular time for online purchases. Around two years ago, the Czechs started to adopt U.S. online sales practices, such as Black Friday.
The most popular social media in the Czech Republic include YouTube and Facebook. It is estimated that almost 95 percent of the internet connected population in the country use YouTube although users are generally watching and not uploading videos. Facebook has 4.5 million active users. Skype is used by three million Czechs every month. LinkedIn has an audience of 650,000. There is a growing interest in Instagram which has 600,000 users in the country. Google+ has 400,000 users. Compared to worldwide numbers, Twitter is less popular in the Czech Republic with 300,000 active users. Pinterest has around 60,000-100,000 users. Viber is also gaining in popularity.Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Czech Republic eCommerce Industry Trade Development and Promotion eCommerce