Booming E-commerce & Social Commerce expected in huge Russian Market

Russia has more than 140 million inhabitants. With a high Internet penetration rate it goes without saying that E-commerce is growing.  The value of cross-border and cross-border e-commerce is projected to grow by more than 25% annually and foreign brands are still very popular in Russia.

In addition to traditional distribution channels, cross-border e-commerce has begun to offer a variety of opportunities for companies all over the world. Some Chinese, Turkish and European companies are already active in the Russian e-commerce market. As from early 2020, cross-border e-commerce will become even more appealing to Russian consumers. Purchases from foreign online stores will be tax-free if the value of the order before shipping is less than 200 Euros. In such cases, the products shall also be exempt from import duties. Apart from that, companies can often benefit from avoiding mandatory certification and product-specific QR code.

For those who are interested:  there are various ways to penetrate the Russian e-commerce market. Localization of the company’s own e-commerce to the Russian market is one of them. Use of Russian e-commerce stores (eg Wildberries) and/or marketplaces (eg Ozon) is another model. This latest method could be very beneficial as some of them allow cross-border trade. Finally, the so-called social commerce through Instagram, is also on the rise. In short, a booming market within sight!