LAVONIO Story

They sold drugstore goods in several brick-and-mortar shops. After the Covid pandemic, LAVONIO noticed that the market was rapidly moving online, so they launched their first e-shop. Shortly after, two more followed – in Slovakia and Hungary. What is it like to run a business with such a competitive assortment? And which Shoptet Pay features help them the most? 

Just two years ago they only had physical shops, today they operate e-shops in the Czech Republic, Hungary, Slovakia and are preparing to expand into Romania. All e-shops are united under the LAVONIO brand. We spoke with the owner of LAVONIO, Eva Koudelová, about:

• the move online,
• trends around payment methods (including Czechs’ persistence in paying cash on delivery),
• rebranding and the differences between Czech and Slovak markets,
• practical payment gateway features that make an e-shop owner’s work easier,
• the benefits of Shoptet Pay and how much it helps reduce unpaid orders.

Entering the Online World

You had several physical stores in the Czech Republic and Slovakia. Why did you decide to go online and how did it go? 

After Covid we noticed the market was moving significantly online. In our physical stores we began to see a decline in sales, which led us to try e-commerce. We chose Shoptet. The Shoptet platform seemed affordable and suitable for our needs, unlike the expensive development of our own e-shop or using pricier platforms. We said: let’s try it and see how it goes.  

The first half year was interesting because we tried to understand the e-commerce world as best we could. In the end, we found out it wasn’t as complicated as we originally thought, and we began to succeed online.  

Eva Koudelová, owner of LAVONIO e-shops

In the Czech Republic we started in January 2022 with just dozens of monthly orders, but by the second half of the year we were already at 1,000 orders. In 2023 our orders grew by 224%. Within two years we had grown rapidly. After one year we expanded our premises and realised that combining e-shops with physical stores was the right way for us.  

Today we run three Shoptet e-shops – in the Czech Republic, Slovakia lavonio.sk, and since February also Hungary lavonio.hu. And we plan expansion into Romania. Our biggest market is the Czech Republic, Hungary is just starting to grow.

We Found Our Place in the Market, with Interesting Suppliers

You entered the drugstore market, a very competitive environment. Was the start slower than you expected, or were you in the right place at the right time and the market wasn’t oversaturated? 

The drugstore segment is indeed very widespread. However, I think we managed to find our place mainly thanks to our prices. We have interesting suppliers, mainly from abroad, which allowed us to compete with low prices. That attracted the first wave of customers who were looking for cheaper alternatives.  

It was during a time when prices in general were rising, especially energy costs, and it was clear that people were starting to save more. Entering the market with low prices paid off, and it showed in positive reviews. Customers praised us for having really good prices and quality services. We also focused a lot on customer care, because a good approach to customers is key in our opinion. Our goal was to stand out not only with prices, but also with exceptional customer service, and that allowed us to compete with bigger players.  

By 2022 you had already launched an e-shop in Slovakia. How did the start differ compared to the Czech Republic? 

Growth in Slovakia wasn’t as fast as in the Czech Republic. Originally, we thought that since we’re Czechs, it would automatically be easier in Slovakia, but at first it was a struggle. Maybe it was because Slovakia has fewer inhabitants and a smaller market. We also heard in podcasts and from acquaintances that Slovakia is a much tougher market. The demand is there, but Slovak customers are very selective about where they shop.  

To be specific, we launched the Slovak e-shop in the second half of 2022, and compared to the first half of 2023 there was growth of about 255%. But in the second half of the year we saw stagnation, which we didn’t experience in the Czech Republic, where we continue to grow.  

Did you apply any interesting strategy in Slovakia to support growth? 

I wouldn’t call it an interesting strategy, but we tried to focus on customer care and target customers with newsletters offering discounts and promotions. We focused on the products that were most popular in Slovakia. We simply invested more into e-mail marketing, because we noticed that customers who had bought from us often returned. And we wanted to strengthen this base, so we sent a lot of newsletters, which wasn’t as necessary in the Czech Republic. In the Czech Republic customers came automatically and the growth curve was stable.  

We Want a Strong and Unified Brand Across Markets

On some markets you operate as LAVONIO, and you’re preparing a change for the Czech Republic too, where you’re still drogerieshop.cz. Why did you decide to rebrand?

To unify our brand under the new name LAVONIO. This step is part of our strategy to build a strong and unified brand across all markets we operate in, and also to prepare for future expansion.

What will the LAVONIO brand bring customers?

Under the LAVONIO brand we want to offer customers not only a wide assortment of quality drugstore products, but also ensure that our new name is easily recognisable and memorable. Our goal is to become the preferred choice for consumers looking for quality at an affordable price.

The rebrand to LAVONIO also brings us closer to our goal of becoming a strong market player and expanding into other countries. With this step we want to strengthen our position and create a strong foundation for further growth, building a brand that will be synonymous with reliability, quality, and above all customer satisfaction, which we value highly.

With Shoptet Pay, a 22% Lower Rate of Unpaid Orders

You use Shoptet Pay as your payment solution. What impact does it have on your growth? Does it help you grow? 

Shoptet Pay definitely contributes to growth, since it increased the share of prepaid orders, which improves our cashflow. And I’d also mention that after switching to Shoptet Pay, our rate of unpaid orders decreased by 22%.  

When you launched the e-shop, you had another payment gateway. What made you switch to Shoptet Pay? 

The main impulse came when we noticed through analytics that many customers were abandoning the payment gateway, which meant a lot of orders weren’t completed and paid. We discovered Shoptet Pay and found out we could simplify many things thanks to its direct integration into the e-shop admin. Refunds especially became much easier. Our previous gateway didn’t allow refunds directly from the admin – everything had to be handled through the bank, and we didn’t want our employees to have direct access to bank accounts. Shoptet Pay allows managers to refund money themselves, for example in case of order cancellation or claims, which is very useful.  

Now that employees can refund money directly, have you ever had issues with mistakes or wrong refunds? 

You know, we have it well organised. In the Czech Republic we have two e-shop operations, and each one has a manager. These managers are responsible for refunds, so we don’t let packers or pickers handle it. We also didn’t want managers to access bank accounts directly – that used to be only for accountants or higher positions. But we found out it’s much more efficient if the operations manager handles refunds. This way, we ease the workload of accountants and make the whole process more flexible and faster. 

Clear Transaction and Refund History Makes Life Easier

What other benefits does Shoptet Pay bring you? 

One thing I appreciate is the clear history of transactions and refunds. For example, once a colleague accidentally sent 10 CZK instead of 100 CZK. The customer was upset and it reached me. Thanks to Shoptet Pay I could quickly check the order history, see who made the mistake, and fix it right away. It’s great that we can see exactly who did what, and solve it directly without wasting time searching.

You mentioned that thanks to Shoptet Pay you have more completed orders. E-shops can also send automatic e-mails via Shoptet Pay, for example when a payment fails or a customer closes the payment gateway by mistake. Do you use this feature? 

Yes, but I must admit we didn’t know about this option for a long time. Later, during a support call with Shoptet Pay, I learned that automatic e-mails save us a lot of work. Before, we had to contact customers manually, for example if they had problems with payment or when goods were out of stock, which happens in summer when suppliers take holidays. Thanks to automatic e-mails, we can easily inform customers directly from the order without creating separate messages. These templates have simplified our work a lot.  

Do customers often add items to their order, or remove/replace products and need to pay the difference? Do you use the additional payment feature? 

Yes, very often. We also discovered this thanks to Shoptet Pay support, who explained how it works. Before, we handled additional payments manually via e-mails, which was very time-consuming. Customers would call saying they wanted to add more goods to their order, but they had paid by card or transfer. We had to manually send payment details and then check whether the money had arrived. Now it’s much easier thanks to the integrated Shoptet Pay feature, because customers can pay the balance directly, which saves us lots of time and work. We use this feature all the time now.  

Did your previous payment gateway offer similar services? 

No, not at all. That’s the advantage of Shoptet Pay – it’s directly integrated into Shoptet. Before, we had to solve everything through the bank, which was complicated, especially since we didn’t want employees to have access to bank accounts.  

Czechs Still Stick to Cash on Delivery

With Shoptet Pay you can use online card payments, QR payments, bank connections or payment terminals. Which services do you use? 

We definitely use the bank connection. We try to use all services Shoptet Pay offers, because it’s easier than having multiple apps from different providers. When we have one provider, communication is much easier. Before, when we had several providers, it was complicated – everyone had different support, and often nobody answered our e-mails. With unified support from Shoptet Pay, I just call one person or write one e-mail, which saves me a lot of time and makes management easier.  

If I had to highlight one key Shoptet Pay feature, it would definitely be refunds. Sometimes we have uncollected COD packages or card orders that customers don’t want. Once I cancel the order, the system automatically asks me if I want to refund the money. That’s really great – it’s a quick and simple step. I click cancel, a refund box pops up, I confirm, and it’s done. This process is very convenient and saves time, which is a big advantage in daily operations. 

Eva Koudelová, owner of LAVONIO e-shops

What’s the ratio of COD, transfer, and online card payments for you? 

Online payments and COD are quite balanced, although COD still slightly leads. I think it’s partly because Czechs are used to it and don’t fully trust e-shops. Even though we set online card payment as the default option, customers can change it and many still choose COD. Customers often call and ask to switch to COD because they don’t trust payment gateways.

This behaviour is common especially among older people and mums with children. For us it’s more complicated in terms of cashflow, because COD payments take longer to reach us. We tried to support card payments with various promotions, but the results weren’t as expected. I think it’s deeply ingrained in Czech consumers. From talking to other e-shop owners, I know they struggle with this too. When COD makes up the majority of payments, it’s not very advantageous for business.  

What about the increasingly popular Apple Pay and Google Pay? Do you see their usage rising?  

Yes, we see growth in Apple Pay and Google Pay. I have to say that in terms of card payments, these methods are definitely on the rise. Many people shop with their phones today, and when I look at Analytics stats, mobile users are about 119.41% higher than desktop users. In those cases, Apple Pay and Google Pay are often used.  

So you do see a trend towards online card payments, including traditional card entry?  

Yes, when we talk about online payments, we definitely see Apple Pay and Google Pay rising. Traditional card payment numbers are higher too, but among mobile users Apple Pay and Google Pay clearly lead.  

If you had to give e-shop owners one practical tip about Shoptet Pay, what would it be? 

I would recommend e-shop owners to learn how to use automated refunds and additional payments. It’s also important to carefully explore all available features – if we had done this earlier, it would have saved us a lot of time and simplified operations. Many people may not even know about features like automatic e-mails, and that’s a pity, because they can really make work easier. E-shop owners should realise that Shoptet Pay isn’t just for customers, but primarily for themselves – it makes running and managing an e-shop easier. It’s important to see it as a tool designed for us e-shop owners.  

The Key is Always to Inform the Customer

And do you have a general tip for online business? 

Every e-shop owner should focus on customer care. Good customer service is crucial, because not only do customers expect it, but they are often pleasantly surprised when you really care for them. For us, communication with customers is very important. We always try to respond to any problems, call customers, or write emails.

We know that good customer care contributes to customers coming back. We even had situations where customers called us just to chat because they liked our communication. That shows how much people value a personal approach and how important it is to build good relationships with customers.  

Let’s talk more specifically about how you manage customer care and how to improve customer service.  

Our priority is to inform customers as much as possible about their order status – from acceptance to delivery. We always respond to e-mails as quickly as possible. If there’s a problem with an order (change of pick-up box due to overflow, or if a courier damages a parcel), we immediately inform the customer. We have workflows and processes for handling customer queries, even for complaints. Communication is very important – the key is to always inform the customer.  

When it comes to customer care, did you use Shoptet’s support or community channels when starting your e-shop? 

For us, the Shoptet forum is excellent. It’s a great place where a community of people gather to help each other. When we had a problem, we joined discussions several times and got quick answers. Shoptet support is also excellent. Whenever we had an issue, they responded immediately. That’s extremely important for us, because in e-commerce it’s crucial to react quickly. Running e-shops is 24/7, so any problem can quickly impact revenue and traffic. Quick support from Shoptet helps us solve issues in time, which is really essential for us.