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eCommerce in Russia

eCommerce in Russia

With Russia having become the largest national Internet audience in Europe, eCommerce has reached a tipping point, growing at annual rates of 􂀀% to 􂀀% in recent years. Further expected Internet penetration and a low eCommerce share in overall retail imply significant growth potential.

Despite ongoing progress, the most significant eCommerce challenges remain the underdeveloped Russian logistics systems and service environment, slow uptake of ePayments, shoppers’ lack of trust in stores without a physical presence, and a lack of qualified workforce.

Russian business-to-consumer (B2C) eCommerce reached a value of approximately RUB 􂀀 trillion in 2013, a year-over-year increase of about 􂀀%. As eCommerce is eating into offline retail sales, convergence towards hybrid/multichannel retail is evident. eCommerce is expected to be significantly more dynamic than the overall economy.

Cross-border trade has been rising sharply, despite rouble devaluation. Increasingly high-growth Chinese vendors and the AliExpress platform are decoupling from l ower-growth Western shops. Tax-free cross-border shipment allowances are likely to remain nonrestrictive.

Rather than blindly “copy-paste” Western business models, the key to success lies in picking elements of functional best practice and adapting and reconfiguring them to fit the Russian environment. OZON.ru and Otto Group are 􂀀examples of leading participants that have build superior operations capabilities that are transforming the industry.

About this report

This Frost & Sullivan research service provides the reader with an overview of the current state and key trends in Russian eCommerce. It showcases Russia as one of the fastest-growing and most-promising eCommerce markets in the world. Acknowledging the attractiveness of Russian eCommerce in recent years, the research service provides a perspective on the state of the market, profiles key participants, and reviews recent trends and key challenges. It also highlights country specifics, recognizing that despite ongoing progress these factors continue represent significant, unique challenges. It provides and original view of industry evolution and a balanced outlook for the future of eCommerce.


  • Executive Summary
  • Methodology
    • Objective, Scope, and Methodology
  • Introduction
    • Introduction to eCommerce Environment in Russia
  • Fundamentals-Internet Reaching Mass Adoption
    • Russian Internet Audience in International Context
    • Russian Internet Penetration by Region
    • Russian Internet Users by Agglomeration
    • Western eCommerce Companies and Russian Counterparts
  • State of the Market
    • eCommerce Sales as Share of Total Retail Sales
    • eCommerce Market Size in Russia
      • Table eCommerce Market: Market Size and Annual Growth Rate, Selected Countries, 2013
    • Revenue Share by Product Segment
    • Segment Revenue
    • Segment Revenue Growth
    • eCommerce Orders by City
    • Notable eCommerce Retailers by Main Category Focus
    • Proliferation of Russian eCommerce Web Sites
      • Table eCommerce Web Sites, Russia, 2007-2013
    • Online Shop Numbers by Size
      • Table eCommerce Market: Online Shop Numbers by Size, Russia, 2013
    • Delivery Methods
    • Payment Methods
  • Trends and Challenges
    • Most Visited Sites
    • Tax-free Threshold Debate
    • A Wide Take-A Selection of Russian eCommerce Challenges
    • Russia-specific eCommerce Challenges
    • Relative Advantages of eCommerce and Offline Retail
    • Traditional Customer Journeys
    • Hybrid Customer Journeys
  • Key Participants Tackling Russian eCommerce Challenges
    • Ulmart
    • OZON.ru
    • Yandex.Market
  • An Operations Perspective
    • Operations' Contribution to Success
  • Conclusions

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