Alza is the largest Czech online retailer, and Heureka is the largest Czech price comparison site. Last week, all the Czech media published the shocking news that Alza was pulling out of Heureka. Speculation of all kinds immediately began to swirl: that this decision would cost Alza billions, that it marked the beginning of the end for the Heureka portal, and much more. The truth is that it won’t be quite that dramatic. Let’s take a step back and look at Alza’s reasons.
Why has Alza declared war on Heureka?
Alza announced that it would withdraw its products from Heureka. On the website BezHeureky.cz, it is calling on other online shops to take the same step. So far, however, no online shops are rushing to leave Heureka. Read on to find out why Alza left and why we think it doesn’t matter.
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Heureka is no longer objective (it was bought by the large e-commerce company Rockaway)
AITOM’s take: On Heureka, the most important content is primarily created by users in the form of shop ratings and product reviews. Let’s face it, we’ve all visited Heureka at some point just to check whether we’d chosen the right product model. Heureka’s change of ownership won’t change that. If Rockaway were to try to interfere with the content, users would be up in arms.
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On Heureka, you pay for top positions
AITOM’s take: Yes, that’s true; just like on Google, you pay via PPC on Heureka. Users are used to this. They always check offers from multiple shops anyway. After all, they visit Heureka to find the best price, not the top position.
Besides, PPC is just one of many factors, but even the highest bid won’t help you reach the top positions.
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The Heureka basket weakens your brand
AITOM’s take: Alza states that “if you use the Heureka shopping basket, you’re missing out on building your own brand.” It is true that using the shopping basket undermines branding. We believe that Heureka gives companies plenty of scope to build their brand instead. Heureka allows you to become a category partner and thus advise users. That is exactly how you build your brand. Moreover, most users will remember the quality of your service rather than your logo.
4 questions our clients are asking?
Alza’s decision has caused a stir among other e-shops. Suddenly, everyone is asking whether it makes sense and wondering what will happen next. These are also the most common questions we receive:
1. Will other companies leave? And will Heureka shut down?
It is possible that other companies will leave too. These will most likely be companies that either have very poor reviews or do not receive many customers from Heureka. Alza has a strong brand even offline; it can afford to lose customers from Heureka without jeopardising its profits.
However, Heureka will certainly not go bust. There are an estimated 37,000 e-shops in the Czech Republic. Heureka has nothing to fear for a long time to come.
2. Alza surely knows what it’s doing. Should I leave too?
Above all, Alza has carefully weighed up the risks – Heureka does not generate a significant percentage of its profits. For a typical e-shop, however, it can account for a large portion of profits. Besides, customers also look for product information and are primarily interested in reviews of the shop (delivery, complaints, etc.).
3. How much turnover can Heureka generate? And what impact does this have on my brand?
It undoubtedly has an impact on the brand. Being on Heureka is considered the norm.
4. I didn’t know you had to pay for Heureka; I don’t want to spend any more money. Should I leave Heureka?
Heureka is a marketing tool like any other. Therefore, you have to pay for more prominent positions or impressions. It is, of course, worth considering whether Heureka is the best channel to invest in. Or whether it is more worthwhile to invest in social media. It is certainly not worth overlooking Heureka.