6th May 2020
It’s now possible for you to send parcels all over Russia effortlessly, easily and cost-effectively via Consignor.
wCargo Ldt is the official representative of the Russian Post in Finland, Scandinavia, and the Baltic countries and is a carrier on our platform.
Sales Manager at wCargo Ldt, Terhi NykÃ¤nen, explains why the Russian eCommerce market presents a big opportunity for businesses.
Russian eCommerce is a hidden gem in the eCommerce market. Many companies think that it is difficult and complicated to start doing business there and subsequently have postponed their decisions to enter the Russian market.
However, the Russian eCommerce market is already the biggest in Europe and has potential for further growth with a population of around 145 million. Around 30 million of the total population can be considered and measured up-to European standards in purchasing power.
Nowadays, only 35 % of Russian customers buy from eCommerce shops, but it has been estimated that Russia will catch up to the EU 60% level by 2023-24.
This estimate was done before the corona pandemic started, which many believe will only speed up the process. with around 30 million new customers predicted by 2023. In a potential market value estimated by Morgan Stanley, the growth will be from $25.3 billion in 2018 to around $53 billion in 2023.
It is also important to research the potential of your products. According to many studies and our own experience, there is currently increased demand for western children’s clothing & accessories, natural cosmetics, and seasonal products like summer sports (cycling, etc.) and gardening. In many cases, these products can be 20-30% cheaper when ordered abroad compared to the local stores in Russia when sold cross border.
Before entering the market, it is important to understand it. We’ve partnered with a Finnish company Treesixty to ensure we can help our clients in every possible way.
Treesixty can help your company with market research, localization, and marketing in Russia. Mikael Krasnov, the CEO of Treesixty says the most important thing for the new players in the Russian eCommerce market is to showcase their trustworthiness.
According to the recent study conducted by the tech giant Yandex and Gfk Russia, 87% of Russians do additional research about the online store if they are not familiar with it.
Communicating trustworthiness can be done with active marketing, by localizing your online store and using a shipping partner which is already familiar to the Russian audience.
Keep it simple is what I like to say. If you want to increase your reach, translate your pages or just keep them in English.
Make efforts like in any other country you’re trying to enter to increase the visibility of your pages. The logic is similar to any other market. The biggest barrier until now has been the actual delivery of the product.
However, exporting to Russia is easy. Here are a few facts about the market when doing cross-border sales:
About the author
From now on, eCommerce shops from all over the world can deliver parcels to Russia efficiently. We are selling this eCommerce service under the brand RusPostExpress https://ruspostexpress.eu/. It is easy to start doing business with us. Just make a transport contract and contact Sales Manager Terhi NykÃ¤nen by emailing email@example.com or by phoning us on +358 43 8244 060.
Start your growth and contact us today!