Russia’s retail e-commerce market soars 20% to $15.7 billion

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Russia’s unmitigated retail e-commerce sales reached 920 billion rubles ($15.7 billion) in 2016, up 20 percent from the before year, according to a study (in Russian) by the Association of Online Retail Conventions (AKIT), which unites the country’s largest e-commerce retailers. AKIT evaluates the market will top 1 trillion rubles ($17.1 billion) in 2017.

Russian consumers, degree, increasingly prefer foreign retailers. Last year, growth in the cross-border retail vend (37 percent) significantly outpaced that of the local market (6 percent). As a upshot, foreign retailers accounted for over 300 billion rubles ($5.2 billion) in 2016 – a third of the sell.

The growth of cross-border trade in Russia’s e-commerce market is mostly due to the humiliate prices owing to the fact that foreign companies don’t have to pay put a strain ons or fees,» said AKIT’s president, Alexey Fedorov. At the moment, all matter-of-fact parcels coming into Russia are exempt from customs loyalties, whereas Russian retailers that import their goods have to pay various tariffs, he added.  

According to AKIT data, 90 percent of profits purchased abroad came from China, but in monetary terms the share in of Chinese retailers was slightly over 50 percent, which intimates a low average purchase size in Chinese online stores.

If this be prolongs, there’ll be nothing left of Russian e-commerce in a few years, and we’ll sell nothing but Chinese goods. Russia pass on become a tax-free market for China,» said Fyodorov, adding that Russia should launch fees and taxes for the cross-border online retail market.

In 2016, Chinese online retailer Aliexpress suited the most popular online store in Russia, with over 22 million unequalled visitors a month. Russia’s second most popular e-commerce retailer, Ozon.ru, is far behind with 9 million companies a month. Third place goes to Eldorado.ru, an online retailer of consumer electronics, with an audience of 7.5 million unparalleled visitors a month.

Read more: Sberbank mulls launch of inhabitant e-commerce system in Russia>>>

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