Page 56 - CBM13

~ Boxberry ~

6 Facts about Russian

E-Commerce

The Russian e-commerce market is booming. For cross-border retailers, this comes with
numerous opportunities. With a population close to 147 million (2019), Russia is one of the
most populous countries in the world. As the e-commerce market becomes more integrated
into the daily lives of Russian citizens, the importance of this market becomes more
significant. Alex Krasnov, CCO at Boxberry International, highlights six benefits for online
retailers in the Russian market.
ACCELERATING

1. Fast and cheap internet 5. Fewer taxes in 2020 for cross-border purchases
In large cities such as Moscow, free WiFi is available in The Russian government is opting to boost the e-commerce
numerous places, such as in public transport, parks and sector. Therefore, new legislation has been put into place GROWTH
shopping malls. Moreover, Russians can obtain a limitless since January 1st, 2020. The most important change is a
THROUGH
internet connection for as low as $10 a month. No wonder new duty-free import treshhold that has made cross-border
the e-commerce market benefits greatly from the mobile online purchases more profitable. In 2019, additional duties
industry, helping it grow steadily year by year. had to be paid if the total price of all cross-border purchases
exceeded a threshold value of €500 or 31 kilos per person ONLINE
2. High consumer activity per month. Above the limit, purchases were subject to a 30%
According to a study by GfK and Yandex, e-commerce par- tax. In 2020, this limit changed. Now, taxes have to be paid
ticularly flourishes in cities. This study concluded that 42% if the value of one parcel exceeds the value of €200 or 31 MARKETPLACES
of citizens between the ages of 16-65 have made an online kilos per parcel - and the tax rate has lowered to 15%. This
purchase in the last six months. This was double the number means that more cross-border purchases without taxes can
of 2015. be made.
Pentagon is a technology company that
3. Comfort and price: just as important 6. Pick-up points and parcel lockers are gaining popularity
Russian consumers, especially inhabitants of big cities, very Generally, consumers do not want to stay at home waiting helps brands and retailers connect with
much consider comfort. The benefit of not having to go for a courier to arrive. That is why the use of pick-up points
anywhere and still be able to shop is an important reason for and parcel lockers is steadily increasing in Russia. In 2019, each other and with leading global
marketplaces. We are also a services
them to shop online. 49% of Muscovites, for example, make 87% of cross-border orders were collected in pick-up points
online purchases for this reason. On top of this, consumers and parcel lockers, and only 13% of buyers used courier
business that can provide full
can buy products whenever they want to. Not only inhanbi- delivery. ••
tants of large cities love online shopping! In smaller Russian
towns, local offline store often have a limited variety of management of your store, or sell your
goods. Therefore, purchasing things online makes a lot of products through our stores, anywhere
sense. The borderless aspect of e-commerce gives them the About the author: Alex Krasnov, CCO Boxberry International:
possibility to buy alternative goods and – sometimes rurally The Russian market appears complex. This is one of the things I in the world, or enable your website or
unavailable – brands. hear from our potential customers. The fact is that a local logistics
partner could solve many of the difficulties the client might mobile app to become a transactional
4. The share of cross-border purchases has grown stumble upon when entering the Russian market. At Boxberry marketplace.
The Russian consumer is increasingly finding their way International, we have an easy and efficient integration system
across borders. A study performed by GfK concluded that that can, for example, help with customs. With Boxberry, it
29% of Russian online shoppers have made a cross-border usually takes just one day to finalise customs clearance. We take
purchase in the last twelve months. At Boxberry Inter- care of personal data operations. Basically, if you desire to ship
national, we have data that supports the notion that the to Russia, we can take care of everything. If you are interested in
growth rate for 2019 stands at 45% compared to 2018. selling across borders online in Russia, feel free to contact me:
[email protected]

wearepentagon.com | +44 (0)20 8940 5392

56