B2C E-Commerce in Russia has been growing rapidly responding to a variety of influences including the spread of Internet use in the large population. A new report, “Russia B2C E-Commerce Market 2014“, by Hamburg-based business intelligence organization yStats.com details the growth, the trends and other information about the online retail market in the country.
In comparison to other nations, Russia in among the world leaders in B2C E-Commerce growth. In year on year sales increase, Russia ranked fifth worldwide last year and is forecasted to surpass South Korea to become the ninth largest B2C E-Commerce market worldwide in terms of sales this year. It is first among the BRIC countries in spending per shopper and Internet penetration. In Europe, Russia’s B2C E-Commerce market was the fourth largest by sales in 2013. The growth of Internet users between 2008 and 2013 between 2008 and 2013 ranked fifth worldwide, with a 100% increase over the period. These developments will support we growth for the next five years: yStats.com forecasts that B2C E-Commerce sales will reach almost EUR 30 billion in 2018.
Two trends that are affecting B2C E-Commerce worldwide also have their influence in Russia. The practice of shopping through a mobile device is increasing rapidly, as mobile Internet penetration increased by over half in 2013. Cross-border shopping is also a trend, as around 10% of online shoppers buy directly from merchants in Europe and the rest of the world.
The leading product category in terms of sales in 2013 was consumer electronics and appliances, followed by clothes and shoes, but the fashion segment was the leading category by share of online shoppers making purchases. When paying for online purchases, cash on delivery continues to dominate in Russia, but payment by credit or debit card as well as alternative methods are on the rise.
The top five online shops in terms of revenues last year in Russia were electronics merchants Ulmart and Citilink, fashion retailer Wildberries, mass merchant Ozon and coupons dealer and retailer Biglion. Of the foreign players, the leading in terms of unique visitors from Russia were Aliexpress.com, eBay.com and Amazon.com.
The E-Commerce sector in Russia has been a target for investment. In 2011-2013 the main beneficiaries of large investment sums were fashion online stores, such as Lamoda, KupiVIP and Sapato. This year, online retailers of goods for children have been targeted, as this segment has untapped growth potential. The deals involved online stores for children goods Mamagazin, Esky and Babadu.