The Russian e-commerce is growing. Last year, the total value of the market contained 13.7 billion euro. This year, it is predicted to be worth 17 billion euro. By 2023, the Russian e-commerce market is predicted to have grown to more than 45 billion euro, an expected increase of 170%. These are the results from a Morgan Stanley report on Russian e-commerce. In Russia, the current share of e-commerce in the market is small, still, about 3%, while internet penetration is relatively high (80%), as well as the usage of smartphones (66%). The report states that it is believed that Russia is reaching a critical mass of mature internet users, which will lead to more online transactions and an accelerated growth of the market.
According to the Morgan Stanley report, there are numerous e-commerce initiatives in Russia that have received fundings over the past years which will, aside from the willingness of consumers to shop online, boost the e-commerce market. It helps Russian retailers to focus on key pain points, like delivery times, to create a better customer proposition.
A lack of international players
The Morgan Stanley report refers to the lack of international players in the market. This is partially true, as large companies like Amazon never developed local operations in Russia and they are less successful in selling goods from abroad. Despite that, there are several German and Chinese players that play an important role in the Russian market.