Study: E-commerce sales in Russia could near 30 billion euros by 2018
With online sales expected to swell to 30 billion euros by 2018 according to a study by yStats.com, Russia is a fast growing market on the global e-commerce scene.
Russia also had the fourth largest B2B e-commerce industry in Europe 2013, with online retail there worth 9.41 billion euros. It has also been growing strongly, with a recent study by by yStats.com revealing that its e-commerce industry had grown by 19 per cent last year, putting it in fifth place for growth behind China (79 per cent), Indonesia (71 per cent), Mexico (42 per cent) and India (35 per cent).
The biggest product category was consumer electronics, followed by clothing and shoes. Shopping across national borders is also a strong trend, with roughly 10 per cent of Russian online shoppers ordering their goods from beyond the country's borders.
Russia also ranked first amongst the BRIC (Brazil, Russia, India, China) countries for both online spending and internet penetration. Between 2008 and 2013 the number of internet users doubled, placing it as the fifth fasting growing nation in that metric.
Russia's growing e-commerce sector has not gone unnoticed, becoming a target for investment. A large proportion of investment in 2013 flowed towards online fashion outlets and online retailers of children's goods, a segment the yStats.com report said "has untapped growth potential."
With a population of 143 million, Russia represents a large market, but also one that has largely not been tapped yet. Russia is still largely a cash-on-delivery economy, with e-commerce sales still making up a relatively small proportion of the Russian economy.
"Two trends that are affecting B2C e-commerce worldwide also have their influence in Russia. The practise 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 per cent of online shoppers buy directly from merchants in Europe and the rest of the world," yStats.com said.