Drivers and Constraints of Russian E-Commerce growth,

Russian emerging E-Commerce market has a strong potential for growth.Russia is an emerging E-Commerce market where a double-digit development rate in the duration from 2018 to 2022 is expected. The share of total retail sales coming from digital commerce was half the international average in 2017. There is still much space for development in Russia’s online retail.The evolution of the online shopping trends is the primary E-Commerce growth indicator.E-Commerce growth reveals

that Russian consumers have a strong disposition towards online shopping, mainly since of the lower rates, wider range and unique items that are not offered in offline stores. B2C E-Commerce in Russia is driven by young tech-savvy population groups, with majority of online consumers aged under 35 years of ages. The greatest market advancement patterns are the popularity of mobile and cross-border digital shopping. Smart devices are used by close to a half of online consumers in Russia to research products and make purchases. When it comes to cross-border online shopping, B2C E-Commerce imports’share of total B2C E-Commerce in Russia more than doubled within the last 7 years.Lack of self-confidence in online purchases is a fundamental barrier for E-Commerce development in Russia.Despite these trends and the growth of online shopping, there are still barriers hindering more advancement such as fairly low Web and online shopper penetration, absence of rely on sharing individual and payment data, and increasing taxes

or tasks on worldwide purchases. Logistic facilities is extremely underdeveloped in Russia, particularly in the rural areas. The majority of courier and shipment services are expensive and run just in large cities. Russian Post is also out of favor because Russian consumers consider it as a low reliability and sluggish shipment operator. Lack of abilities amongstthe older population, absence of confidence in general shopping on the Web and technical troubles, such as insufficient Web speed, show the great potential for further improvement of the E-Commerce facilities and attitude of the Russian customers to online shopping.Russian government attempts to support the E-Commerce development in Russia. To handle the barriers to more extensive E-Commerce growth, the Russian federal government has presented different laws and policies that are straight or indirectly related to the digital commerce sector.

To encourage a greater level of consumer confidence in onlineshopping, amendments to the Consumer Rights Protection law associating with the regulations of online shopping aggregators will go into in force in the start of 2019. The law aims to increase the responsibility of Internet aggregators, such as Yandex.Market, and to secure consumers from damage brought on by undependable information about a services or product on the Internet. In 2018 the Ministry of Industry and Trade of the Russian Federation elaborated a strategy for the development of E-Commerce in Russia for the period up to 2025. The primary aims of the strategy are to develop extra market mechanisms that will even more the growth of online retai l, through enhancing the associated regulations, establishing electronic payment systems, supplying legal protection for market participants, improving cybersecurity, and accomplishing a balanced operating environment for the Russian and foreign online shops.

Be the first to comment

Leave a Reply

Your email address will not be published.