Recently, the number of products on “Pigu” reached 15 million; now the assortment includes 8.3 million. The e-commerce company “PHH Group,” which operates platforms such as “Pigu.lt,” “220.lv,” “Kaup24.ee,” and “HobbyHall.fi,” is initiating major changes. After thorough analysis, it has decided to reduce the number of products from Chinese sellers on its marketplaces by more than 80%. These changes will take effect this week. “In the past, we focused too much on the quantity of products and expanding the assortment, rather than on customer value. Today, it’s clear that quality and the customer experience must come first. Therefore, we are removing products that raise concerns about quality or delivery timelines,” says Dainius Liulys, CEO of “PHH Group.” This strategic move—assortment optimization—is part of a broader quality improvement program aimed at strengthening customer trust, ensuring fast delivery, and high product quality. According to Liulys, the decision is based on a comprehensive review using both internal teams and AI-based analysis tools. Previously, “Verslo žinios” reported that the company was undergoing a period of transition: Dainius Liulys, one of the company’s shareholders and founders, returned to lead “Pigu,” and top management was being reshuffled. “The formula for success in e-commerce remains unchanged—good prices, a broad but valuable assortment, and fast delivery. We are steadily returning to this formula: strengthening quality, rebuilding trust, fostering sustainable partnerships with sellers and suppliers, and keeping promises—these are the cornerstones of our renewed strategy. Our shareholders fully support this direction,” Liulys emphasizes. According to him, in recent months the group has taken significant steps—strengthening quality control mechanisms, accelerating product delivery in all markets, and now it's time to optimize the product offering. “These strategic changes will also benefit the sellers. Raising the bar on quality control will help those offering quality goods—making their offers more visible. Quality standards are being reviewed not only in the assortment but also in the post-purchase phase, as poorly performing sellers harm not only themselves but the entire platform ecosystem,” Liulys highlights. Only Verified Partners Remain Earlier this year, “Verslo žinios” reported that in just over a year, the number of products on the “Pigu” platform had doubled—from 3 million to 6.14 million—and recently it had peaked at 15 million. Currently, the e-commerce platform offers 8.3 million products, with the most significant cuts made to items from Chinese sellers. However, based on customer behavior and purchases, not all Chinese sellers have been removed. Only those that meet delivery deadlines and offer relevant, in-demand assortments remain. Most sellers on the “Pigu” platform are from the Baltic States (59.32%), Poland accounts for 9.83%, and other EU countries make up 5.85%. Chinese sellers represent 18.18%. Meanwhile, competing marketplace “Varle.lt” currently offers an assortment of 2.5 million products. Marius Butauskas, founder of “Varle.lt,” specifies that the vast majority of their sellers are Lithuanian companies. “We only have a few sellers from Latvia, Estonia, or Poland, and no Chinese sellers at all. In this market, the problem is not so much delivery time but product quality—photos make the items look nearly perfect, but in reality, they barely resemble the image,” says Butauskas. “Verslo žinios” reported that UAB “Varle,” which operates the online marketplace “Varle.lt,” generated €90.4 million in revenue last year—10% more than in 2023, when turnover reached €82.15 million. However, net profit fell by nearly 25%, to €0.7 million, according to the company’s annual report submitted to the Center of Registers. The most recent report from “Pigu” is for the financial year ending March 31, 2023. The e-commerce company recorded a consolidated loss of €27.6 million (40% higher than the €19.8 million loss in the 2022 financial year). Sales fell to €187.2 million (from €202.2 million in FY2022).