Assist Group, a major online payment service provider in Russia, provides online stores with the ability to process MIR cards, the national payment card system in Russia. Some of the acquiring banks are already connected, the rest is at the stage of testing and integration.
The ecommerce growth rate in Russia has decreased significantly in 2015, although the number of online shoppers is growing steadily. In 2014, the B2C ecommerce industry in Russia increased by 31 percent, but the growth rate was just 6.6 percent in 2015.
In April, performance-marketing agency Artics Internet Solutions gave a presentation during the forum RIF+KIB 2016. It was about marketing in the cross-border segment. CEO Alexander Simanovsky talked about the specific nature of the Russian market, as well as the things that are most important to consider when launching a product on the Russian market.
The domestic ecommerce market in Russia increased from 560 billion rubles in 2014 to 650 rubles last year. It now accounts to 2 percent of the total retail industry in Russia, so there is still great growth potential. And while the domestic market is slowing down, cross-border purchases continue to grow rapidly.
In Europe, more and more consumers like to pay using their smartphone or tablet. In share of mobile device owners who already have experience with mobile payments, Turkey is the absolute leader in Europe. This is apparent from the latest report by yStats.com, called “Europe Online Payment Methods: First Half 2015”.
Ozon, the popular online retailer from Russia, will begin hosting merchants from both Europe and China. The ecommerce company wants to dive deeper into the booming cross-border trade. If the first steps into this market happen to be a success, Ozon will expand and invest more.
KupiVIP.ru, one of Russia’s largest online retailers, announced its own one-day sale. Today it’s “Shock Sale” and the main purpose is to beat the sales records and to attract the maximum number of users to its website in 24 hours.
Ecommerce in Europe is mainly being dominated by the United Kingdom, France and Germany, but this may be about to change. Today, Russia is still not that prominent in terms of ecommerce, but it’s just a matter of time before Russia will dominate the European ecommerce sector.
Things are going well for KupiVIP.ru. The online shopping club from Russia changed a lot at its website and company, but it has paid off. It began to break-even in earnings before interest, taxes, depreciation, and amortization and it closed last year with a revenue in the fourth quarter that has increased by 44% compared with the same period in 2013.
Osell, the B2B subsidiary of major Chinese cross-border sales platform DinoDirect.com, has acquired TDPRO at the end of last year. TDPRO is a Russian company that provides logistics, warehousing and supply chain management services. With the acquisition, Osell is going to build the first Chinese products experience center in Moscow.
The European influence on the Russian ecommerce market is declining rapidly. And it’s losing its share to Chinese companies, as their growth in Russia had been fueled thanks to the devaluation of the ruble. The Russian currency has fallen nearly 40% against the euro this year, so Russian consumers are now even more conscious of price.
TopDelivery, which offers several integrated delivery services for online retail in Russia, has raised investments from Impulse VC. With this money, TopDelivery wants to further improve its logistics, customer services and IT system. TopDelivery also wants to expand its delivery area, which now covers the whole territory of Russia.
While Cyber Monday is still more popular in the United States, in Europe retailers increasingly embrace this day to boost their sales. In the UK and Germany there was an increase in conversion in consumer electronics during Cyber Monday last year, while there was a decrease for clothing and footwear in the UK and Spain.
Global investors are looking with increasing interest to the ecommerce industry in Eastern Europe. The growth and trends in this region attracts the attention of international ecommerce players and investors. For example in Turkey, there’s a raised interest of investors, mostly in the clothing sectors.
The ecommerce industry in Eastern Europe is expected to reach 23 billion euros worth of sales in 2014. In absolute numbers, this region may not be top notch, but when we consider the average growth rate of 47% over the year 2013, the ecommerce market in Eastern Europe is showing the strongest increase in Europe.