In Russia, B2C E-Commerce is booming, driven by the emergence of new online shoppers
The recent ""Russia B2C E-Commerce and Online Payment Report 2013"" by Hamburg-based secondary market research company yStats.com provides information about B2C ECommerce and the movement toward online and mobile purchase transactions in Russia.
In Russia, a country with the largest Internet audience in Europe, B2C E-Commerce is booming, driven by the emergence of new online shoppers. The competition on the market intensifies, as more online shops enter the scene on a daily basis. Many foreign companies and investors have also entered the Russian E-Commerce market in recent years, but mass merchant Ozon.ru and food and drug online retailer Utkonos.ru were the leading players in terms of online sales. The share of online sales on total retail sales remains a low single-digit percentage, showing a room for more growth.
Cash was still the main payment method in B2C E-Commerce in 2012, but online payments gained in both awareness and usage. Online payment already reaches a double-digit share of the largest Internet audience in Europe. Around a third of Internet users in the large Russian cities pay online. By far the most popular among online payment methods in the beginning of 2013 was bank card, followed by E-Money and online banking. 9
Moreover, electronic payment systems show a strong growth nation-wide. For example, the Russian instant payment provider Qiwi significantly increased its revenues in 2012 and filed for a USD 100 million IPO on Nasdaq in early 2013. The electronic payment market in Russia is characterized by strong positioning of the local players, such as Qiwi, Yandex.Money, and WebMoney.