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Marketplaces

How Pepita Increased Revenue from Product Recommendations by 39%

Pepita effortlessly boosts revenue by 39% with Luigi’s Box, enhancing product discovery and engagement across millions of listings.

  • Based Central and Eastern Europe
How Pepita Increased Revenue from Product Recommendations by 39%

Pepita, the largest Hungarian online marketplace, implemented Luigi’s Box Autocomplete and Recommender to skyrocket engagement and improve accessibility.

Your go-to online one-stop shop

Pepita is a popular digital marketplace based in Hungary. With almost 5 million active offers ranging from DIY tools and tech gadgets to books, office supplies, and home equipment, Pepita brings a wide variety of products to more than 150,000 daily users.

From Pepita’s beginnings in 2017, the company has experienced tremendous success, even ranking 16th among the 2023 Technology Fast 50 Award by Deloitte. With such achievements, it’s only natural that demands keep increasing. That is why Pepita opted for Luigi’s Box.

Implementing Luigi’s Box has been easy and helpful

We have achieved great results with Luigi’s Box Voice Search and Recommender. After setting it up, we could easily test and adjust everything to suit what we needed. Overall, it’s been a really positive experience as we received continuous support from Luigi’s Box team.

Ádám Köteles
Ádám Köteles
Chief Technology Product Officer (CIO), Pepita

Many challenges, one reliable solution

A large marketplace, such as Pepita, comes with its set of challenges. From concerns about insufficient product discovery to accessibility issues, Pepita trusted Luigi’s Box to provide solutions that would not only recommend the right products to the right people but ensure seamless shopping experiences.

Robust marketplace requirements

The sheer size of Pepita’s operations meant they needed a solution that could handle huge amounts of data and interactions. From 150,000 daily users interacting with 3-5 million products, only 10% of shoppers were using the website search engine, resulting in low discovery. Pepita was looking for a solution that would not only keep up the performance but improve it.

Luigi’s Box was able to boost efficiency by seamless feed processing. Moreover, Autocomplete and Recommender created effortless browsing experiences for users who would otherwise get discouraged by endless scrolling through large catalogs looking for relevant products.

Advanced Autocomplete and product recommendations

One of Pepita’s main concerns was low conversions and average order values from product recommendations. Their previous solution struggled to provide relevant recommendations that would capture shoppers’ interest and prompt them to make a purchase.

Luigi’s Box managed to address this issue by providing relevant autocomplete suggestions and product recommendations. Additionally, Pepita saw an improvement in product recommendations right from the A/B testing phase.

Luigi’s Box Recommender on Pepita’s online store.
Luigi’s Box Recommender on Pepita’s online store.

Supporting multiple languages and currencies

Although Pepita is most popular in Hungary, they operate in many countries, including Germany, Austria, Poland, Slovakia, Bulgaria, and Romania. Naturally, Pepita was looking for a solution that fits all of these markets.

With Luigi’s Box, users can get results in multiple Query Languages, adding even more flexibility to their shopping experience.

Sufficient testing period

With the large marketplace, Pepita’s executives were worried there wouldn’t be enough time to test everything out and catch any potential issues before fully committing to the solution.

Pepita implemented Luigi’s Box during a 3-month-long proof of concept period. During this time, they successfully set up Voice Search, Autocomplete, and product Recommender, boosting website performance and growing revenue.

Concerns about pricing

The cost of e-commerce personalization and product discovery solutions can climb quite high, especially on large marketplaces. Considering Pepita offers millions of products, they wanted a solution that wouldn’t break the bank.

Luckily, Luigi’s Box offers fair and reasonable pricing options even for more complex marketplaces, compared to the competition. Custom pricing allowed Pepita to set up a structure that fit their needs at a reasonable cost.

Pepita’s results after switching to Luigi’s Box

Pepita picked Luigi’s Box as their new website Autocomplete and Recommendations solution to improve website performance, boost CTR, enhance accessibility, and drive more sales. Through extensive A/B testing, Pepita successfully implemented Autocomplete and Voice Search, as well as personalized Recommender, skyrocketing user engagement.

Autocomplete

29.94%

Autocomplete CTR rose to 29.94%, which is 6.69% higher than the industry average.

8.95%

The autocomplete exit rate did not surpass 8.95%.

Recommender

45.43%

Autocomplete popup CTR surpassed the industry median by 45.43%.

39.7%

Revenue from the Recommender grew by 39.7% by the end of the testing period.

What does Pepita enjoy the most about Luigi’s Box?

  • Customization options that tailored Luigi’s Box solutions to fit Pepita’s exact requirements.
  • Flexibility during the testing period, the willingness to address Pepita’s concerns, and taking the time to tweak the performance of Autocomplete and Recommender.
  • Multi-language capabilities were able to support Pepita’s marketplaces all across Europe.

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