Present Situation of E-commerce Business
Currently, Russia is one of the leading countries in Europe in terms of using the Internet, and the e-commerce market is constantly growing. The volume of trade on it in the first quarter of the last year has more than doubled compared to the same period a year ago. In 2017, Russian buyers spent 37 percent more, making purchases in foreign online stores than last year.
In the US, the e-commerce market continues to grow, and consumers use different channels to create online orders while in Russia. What significantly distinguishes the US e-commerce market from its analog in Russia is the fact that in America the growth of the online sales continues to grow in the retail market, and sellers have been intensively focused on expanding their online platforms to meet the ever diverse needs of consumers.
In Russia, among the main factors in the growth of online trading, one can note the increase in the number of Internet users. According to experts, the potential for the e-commerce market in the United States.
It is worth making one important note, many Russian buyers still do not trust the security of online transactions and, in some cases, the honesty of online stores, despite the fact that online payments are becoming more reliable. Russians often prefer to pay their cash purchases when delivered by courier than to use any other method of paying for their purchases. Russian online shoppers are still trying not to use their bank cards to pay for goods even in reliable and popular stores.
The most used payment methods are Yandex Money, Webmoney, and QIWI Wallet, and in recent years also PayPal. In the US, e-commerce is developing rapidly through the latest advances in the online processing of electronic payments. Buyers in the United States are actively buying with online payment, and the number of such transactions has grown by $ 115 million over the past year.
It is also interesting to see how consumers spend their money online in Russia and the US. So. In Russia, most often they buy household appliances and electronics, clothes and shoes, computers and laptops, auto parts, mobile phones, furniture, equipment and building materials. Please note that, for example, are a more popular product in Russia than books and DVDs.
Products in the categories of electronics and fashion account for 57% of the total number of online purchases made by Russians. In the US, three segments are in the lead: media, sporting goods, and hobby goods. Meanwhile, electronic goods are still popular among users of online stores from America, and almost every fourth purchase of electronics is made online from 2014.
Despite some probable problems with logistics, buyers in the e-commerce market in the US. It is worth noting that in the US buying clothes and accessories online is not as successful as in Russia, and yet 25% of such transactions occur on the Internet, which costs almost 80 billion US dollars, including the best e-commerce platform. Finally, medical goods and personal care items account for 8% of all sales in this segment.
It is also interesting to pay attention to the age of online shoppers, which for many years has changed dramatically when it comes to online shopping. In the US, the youngest group, whose age ranges from 18 to 30 years, is 54% of the total number of buyers, while people aged 31 to 44 years account for the largest part – 68% and the share of the most adult buyers in the e-commerce market ( 66 years and over) is about 48%. In Russia, 43% of online users who bought goods online were young people between the ages of 18 and 24. At the same time, buyers aged 35-44 years, a total of 22%, buying goods with a slightly higher cost and making more frequent purchases in online stores.
The largest Russian player on the e-commerce market in Russia is Ulmart.ru, with a variety of products ranging from electronics to home and garden products. Among other key players, it should be noted – Ozon, which can be viewed as a Russian analog of Amazon, KupiVIP (a copy of Venteprivee.com), the Billion platform and Avito. If we talk about the world’s online platforms for selling goods online, then the three absolute leaders in Russia – AliExpress, Ozon, and eBay.
The Chinese site AliExpress has become the most popular, attracting an average of 23.8 million unique visitors per month and about 3.6 million per day. The Russian site Ozon showed more modest results in this regard, with an average monthly visitors of 9.2 million people and 800 thousand daily. Speaking about the prospects of e-commerce development in Russia,
When it comes to e-commerce in the US, Amazon certainly dominates, followed by Apple, Wal-Mart and Macy’s. Over the past year, Amazon has made online sales of $ 94.7 billion US dollars, accounting for 70 percent of the company’s total revenue. The company noted an increase in online sales of 19.4 percent compared with the previous reporting period. Apple’s sales in the e-commerce market grew by 40 percent compared to last year. Wal-Mart’s online stores, as a percentage of total revenue, have always held at 3 percent, but over the past year, this figure has increased by 9 percent.
To summarize, let’s say that by the end of the year, the most attractive e-commerce markets are of course the United States, followed by China and the United Kingdom, Russia occupies the 8th place in the rating with a total attractiveness of 48.7, which is 32% less attractive than the US market. Nevertheless, the demand for foreign online stores in Russia is very high. In 2017, Russian consumers spent online on 106 percent more than in 2016, and the number of incoming international shipments of goods increased by as much as 182 percent compared to the previous year. About 95 percent of all items sent to Russia from foreign online stores were delivered by the “Post of Russia”, and more than half of online shoppers live in Moscow (46 percent) and in St. Petersburg (11 percent).