Weakened Exchange Rate Boosts Domestic E-Commerce

Retail

The weakened exchange rate has increased demand for goods purchased on domestic webshops, according to webshop expert Ferenc Surányi, managing director of MI Solution Kft.

Because the Russo-Ukrainian war has weakened the exchange rate, it has become less worthwhile to order from abroad in euros or dollars, so even more customers are turning to domestic online stores, Surányi explained.

"According to our experience, the number of Hungarian customers in foreign webshops is clearly decreasing," he said. 

"In many cases, it is no longer worthwhile to pay in another currency, so customers have had to carefully consider where to get their products," Surányi added.

He believes that now is the ideal time for domestic e-commerce to open up to foreign markets, while the forint is weak, making exports relatively cheap.

"The financial market situation and exchange rate changes create an excellent opportunity for exporting, so webshops that also deliver to foreign markets can produce a more beneficial business resuls," Surányi said.

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