Russia, being the largest country in the world, should be the target of every eCommerce business. It is set to become one of the biggest eCommerce markets in Europe. And the country is attractive in a myriad of ways to both investors and entrepreneurs.
Do Russians Purchase Products Through eCommerce?
Online shopping in Russia is high. According to a report by Deloitte, 87% of Russian consumers make online purchases, with 51% purchasing at least once a month.
Russians are active online buyers because it saves time and money. It also provides them with access to brands and products that are not available locally.
Should You Target Russia as an eCommerce Business?
Here are ten reasons to consider Russia for your eCommerce business.
1. The Russian eCommerce Market is in its Growth Phase
Russia’s eCommerce market is rapidly growing. Online retailers in the country, such as Wild berries, have been recording consistent growth.
Forecasts estimate that Russia’s eCommerce revenue will be worth 25.5 billion U.S. dollars in 2024. This is the time for eCommerce businesses to get into the country.
2. Large Market
Russia has an area of 17.1 million km² and a population of over 144 million people. It makes it an attractive and huge market for various players in the eCommerce industry.
This means that although some eCommerce giants such as Alibaba are setting up in the country, there is still room for healthy competition for all eCommerce players in the market.
3. Diverse Payment Methods
Available methods of payment are a big concern when entering a new market. Russians have embraced the use of electronic wallets to make online purchases.
A survey conducted by Mediascope revealed that 78% of Russians use e-wallets. The most methods are Yandex. Money, PayPal, WebMoney, and QIW.
4. High Purchasing Power
Although Russia has experienced some hard economic times, such as 2014–2015, the country’s GDP has been consistently rising since 2015 and is set to get stronger with time.
Russia is also a highly literate nation, and 74% of the population lives in urban areas. The consumers’ purchasing power is favorable for any e-commerce business venturing into the country.
5. Reliable Internet Connection
An integral part of any eCommerce business is access to a fast and dependable internet connection. It provides an excellent platform for excellent service delivery and better interactive functionality.
According to SpeedTest, Russia’s mobile download speed is 20.58 Mbps, while its upload speed is 10.55 Mbps. The download speed of fixed broadband is 61.71 Mbps, while the upload speed is 68.4 Mbps.
6. Consumers Know What They Want
Price is not an issue for Russian consumers. Their main concern when making a purchase is the brand and quality of the product. As for the lower-income households, their main concern is product lifetime.
Focus on offering quality and durable goods. Give some sales and discounts once in a while, and you are sure to build customer loyalty.
7. Consumers are Responsive to Digital Communication
Social media is one of the most effective methods of marketing for eCommerce businesses. But it requires an audience.
There are over 70 million active social media users in the country. This audience, coupled with reliable internet speed, is sure to make your marketing campaigns smooth.
8. Good Infrastructure
Infrastructure is essential for any business to operate smoothly. As an eCommerce, a good transport system will make it easier to ship goods to customers on time.
The Russian government has put a 6-year modernization plan to improve the country’s infrastructure by 2024.
9. Investment Prospects
Opening an eCommerce business in Russia presents a high chance of expansion. Due to the high growth of the eCommerce sector in the country, investors are actively seeking opportunities in the industry.
The government is also encouraging foreign investment. And this could prove beneficial to businesses in the country.
10. Young Workforce
Your employees will play a part in determining the profitability of your eCommerce business. Russia is home to an educated and young workforce.
Working with a vibrant local team will make it easier to market to the locals and provide better customer service.
Russia should be at the top of your list of countries to expand your eCommerce business too. The country has a large and growing market, with enthusiastic consumers.
Business operations are made easy with the availability of reliable internet connections, good infrastructure, and a dependable workforce. Ensure that you supply quality goods and follow the law of the country in all your operations.
Walter Akolo has been a freelance writer and internet marketer since 2011. He’s currently writing for Cardinal Digital Marketing, an Atlanta-based digital marketing agency that specializes in PPC.