At the GPeC 2024 conference, we spoke with representatives of several successful Romanian online stores to gain a better understanding of the challenges currently facing the local e-commerce sector. From these discussions, it emerged that in 2024, online stores have encountered significant obstacles, from rising advertising costs and tracking difficulties to logistics complexities and international competition.

Here are the main takeaways from these interviews, which may offer valuable insights for Romanian e-commerce businesses.

1. The Rise in Advertising Costs: A Persistent Challenge All Year Round

For most online retailers, advertising has become considerably more expensive. Alexandru Novac, founder of Somnart.ro, a store specializing in bedding products, noted that despite achieving profit growth in 2024, advertising costs continued to escalate, impacting profit margins.

Paul Mihalache from BabyNeeds.ro, a store specializing in children’s products, observed an annual increase in costs of around 10% for both Google and Facebook Ads, prompting his company to continuously optimize campaigns to maintain profitability.

Laura Sardescu from NeaKaisa.ro, a store selling sanitary ware, added that the impact of rising advertising costs has been amplified by pandemic-related changes, with costs doubling compared to pre-pandemic levels. This evolution has required constant reevaluation of marketing strategies to achieve sustainable long-term results.

Laura from NeaKaisa.ro highlighted the major impact recent tracking technology changes have on online retailers. Among these challenges are the transition from Universal Analytics (UA3) to Google Analytics 4 (GA4) and the integration of Consent Mode, imposed by new privacy regulations, which have led to a decrease in conversion data accuracy—from a score of 7-8 in the past, to 3-4 currently, significantly affecting marketing strategy.

With Apple’s implementation of ITP (Intelligent Tracking Prevention) limiting the lifespan of cookies to just seven days, companies like NeaKaisa.ro, which have a conversion cycle of up to 45 days, have faced major difficulties tracking consumer behavior. Laura Sardescu mentioned that this restriction frequently resets traffic sources, making it nearly impossible to faithfully monitor the entire customer journey. Due to these limitations, the reporting period has dropped by 30%, significantly reducing the ability to accurately assess the contribution of various marketing channels.

Similarly, Andrei Zamfirescu from DAZA Haircare noted significant discrepancies in reporting between Google Analytics and other platforms, making it far more challenging to make informed decisions.

In contrast, Paul from BabyNeeds appreciated the accuracy of the server-side tracking solution used, Tagual, rating it at a level of 9 out of 10.

tracking

3. Retargeting: An Essential but Cost-Limited Element

Retargeting remains a central element in many stores’ strategies, but the rising costs of advertising have reduced budgets dedicated to this component.

Paul from BabyNeeds mentioned that he allocates about 20% of the marketing budget to retargeting, while Laura from NeaKaisa estimates that this component represents around 7% of the total advertising budget. Both observed that while retargeting helps strengthen relationships with existing customers, high costs limit the ability to allocate significant resources to this type of campaign.

4. Automation and Optimization of Internal Processes for Operational Efficiency or “What Would Stores Do with a Magic Wand?”

Regarding internal optimization, automation was identified as a priority by all interviewees. Paul from BabyNeeds would use a “magic wand” to automate repetitive tasks such as order processing and returns management, given the large volume of products in stock.

Meanwhile, Laura from NeaKaisa expressed a desire to optimize logistics and shipping costs, which have risen significantly in recent years. These improvements would allow businesses to streamline operations and preserve profit margins amidst high advertising costs.

For Andrei from DAZA Haircare, the “magic wand” would best be used to achieve greater tracking accuracy, enabling informed decisions and efficient investments in marketing campaigns. Similarly, Alexandru from Somnart expressed a desire to be able to get inside the consumer’s mind to simplify and improve business decisions.

5. Global Competition: An Increasingly Pressing Reality

For many local online stores, global competition represents a major challenge. Laura from NeaKaisa raised the issue of unfair competition with international retailers entering the Romanian market, placing significant pressure on local players who face limited financial resources and challenges in maintaining competitive prices.

Conclusion

The interviews at GPeC 2024 show that Romanian e-commerce is going through a period of profound change, where adaptation and innovation are essential for long-term success.

From optimizing PPC campaigns and improving tracking to automating internal processes and developing new retargeting strategies, these businesses shared their recent concerns and challenges, providing a clear picture of the efforts required to thrive in an increasingly competitive and costly business environment.

In this context, Tagual provides a server-side tracking solution, helping businesses adapt and thrive in an increasingly complex and competitive digital environment.

Server-side tracking offers numerous benefits by improving data accuracy, bypassing obstacles like ad blockers and Apple-imposed cookie limitations and providing greater control over collected data. This enables a more detailed perspective on user behavior, ultimately leading to optimized marketing campaigns.

This article is based on discussions held by the Tagual team with online stores Neakaisa, Babyneeds, Somnart and DAZA Haircare at Gpec 2024,to whom we extend our gratitude for the valuable insights shared within an ever-evolving industry.