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Russian cross-border e-Commerce market in 2012-2021. Customer behavior when making purchases in foreign online stores

June 2020

Analytical Report (full version)

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Analytical Report (full version)

Russian cross-border e-Commerce market in 2012-2021. Customer behavior when making purchases in foreign online stores
Russian cross-border e-Commerce market in 2012-2021. Customer behavior when making purchases in foreign online stores
June 2020

Russian cross-border e-Commerce market in 2012-2021. Customer behavior when making purchases in foreign online stores

June 2020

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The volume of cross-border Internet trading of material goods in the Russian Federation in 2017 increased by 24% and amounted to 374.3 billion rubles. The market grew mainly due to Chinese online stores; more than half of the market volume in monetary terms are purchases of clothing, shoes, electronics and home appliances. The growth of the market will continue, its volume in 2021 will be 177% compared to 2017. More than two-thirds of the Russian e-Сommerce audience has made purchases in foreign online stores.

 

J'son & Partners Consulting presents an updated version of its study dedicated to the cross (trans‑) border e-Commerce in the Russian Federation. The updated report has significantly expanded the amount of available information on the Russian transborder e-commerce market.

 

The current version of the report, in addition to the data bank on the volume of cross‑border trading of material goods, also contains:

 

- data on the volume of cross‑border Internet trading of services in physical (number of transactions) and monetary terms

 

- market data by product and service categories, the geographical location of foreign online stores (USA/EU/China/other countries), and payment methods.

 

In addition, the report contains data on the behavior of customers who make purchases in foreign online stores. The data obtained to give an idea of how often, in which countries and what categories of goods people purchase, as well as what amounts of money they spend on such purchases on average per year. Respondents also answered questions regarding selecting and ordering products, payment and receipt, as well as how they get advertising information about online stores.

 

According to J'son & Partners Consulting, at the end of 2017, the volume of transborder trading of material goods amounted to 374.3 billion rubles, which is 24% more than in the previous year, 2016. The main growth of the Russian market is expected to be provided by Chinese online stores; their market share continues to grow.

 

Just like in 2016, the largest product categories by sales volume are clothing, footwear, electronics and home appliances (Fig. 1).

 

Pic. 1 The structure of the cross-border market of e-Commerce in the Russian Federation, tangible goods, 2017

The volume of cross-border trading of services in 2017 increased by 22%. Among all categories of services, the category "Online games and mobile content" became the most dynamically developing in the past year.

 

When forecasting the cross-border e-Commerce market development, the basic scenario implied that in the following 4 years the regulation of this market would not undergo significant changes. According to this scenario, experts predict that the cross-border e-Commerce market growth will continue and its total volume at the end of 2021 will be 177% compared to 2017. At the same time, the growth rate of its product segment will be 22% higher than the growth rate of the services segment.

 

According to the results of the study, 77.7% of the Russian e-Commerce audience have made purchases of goods or services in foreign online stores and more than half of customers make purchases in foreign online stores at least once a month.

 

Customers use various electronic devices to make purchases, but the dominant way to shop online is still using the Web interface of a desktop computer or laptop. At the same time, about half of the survey respondents have at least once purchased something in foreign stores using a special online store app, and the most popular online store app used on electronic devices is the AliExpress app.

 

The most popular payment method for transborder purchases is bank card payment, but in some categories, e-wallets have become a significant competitor to bank cards. This payment method is the second largest in the total transborder online trading market and in terms of popularity among buyers, but its share is significantly less than that of bank cards.

 

The preferred method of receiving foreign purchases for Russian buyers is by Russia Post, while 40% of all cases just did not leave the buyer any other option (Table 1). When the most important factor for the buyer is convenience, reliability, or speed of delivery, they prefer other methods.

 

Table 1. Reasons for choosing a delivery method

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This information note was prepared by the J'son & Partners Consulting. We work hard to provide factual and prognostic data that fully reflect the situation and available at the time of release. J'son & Partners Consulting reserves the right to revise the data after publication of new official information by individual players. 

 

Copyright © 2020, J'son & Partners Consulting. The media can use the text, graphics, and data contained in this market review only using a link to the source of information - J'son & Partners Consulting or with an active link to the JSON.TV portal

 

™ J'son & Partners [registered trademark] 

 

Detailed research results presented in the full version of the Report:

 

“Russian cross-border e-Commerce market in 2012-2021. Customer behavior when making purchases in foreign online stores”

 

Content

1. Research methodology

2. Definition of the Russian cross-border e-commerce market 

3. Russian e-commerce audience in 2012-2021

4. Cross-border e-commerce in the Russian Federation in 2012-202

4.1. Online trading. Material goods 

4.1.1. Volume in physical terms, dynamics in 2012-2021

4.1.1.1. Structure by geographical location of online stores

4.1.2. Volume in monetary terms

4.1.2.1. Total volume, dynamics in 2012-2021

4.1.2.2. Structure by geographical location of online stores

4.1.2.3. Structure by product category

4.1.2.4. Structure by payment method 

4.1.2.4.1. Structure by main payment methods

4.1.2.4.2. Structure of bank card payments by method of receiving goods

4.1.2.4.3. Structure of cash payments by method of receiving goods

4.1.2.4.4. Structure of e-wallet payments by e-wallets used

4.2. Online trading. Services 

4.2.1. Volume in physical terms, dynamics in 2012-2021

4.2.1.1.   Structure by geographical location of online stores

4.2.2. Volume in monetary terms 

4.2.2.1. Total volume, dynamics in 2012-2021

4.2.2.2.   Structure by geographical location of online stores

4.2.2.3.   Structure by service category

4.2.2.4.   Structure by payment method

4.2.2.4.1. Structure by main payment methods

4.2.2.4.2. Structure of e-wallet payments by e-wallets used

5. Customer behavior when making purchases in foreign online stores

5.1. Use of online stores

5.1.1. Share of e-commerce audience using foreign online stores

5.1.2. Categories of purchased goods and services

5.1.3.  Frequency of purchases

5.1.4.  Spending on purchases

5.2. Selecting and ordering

5.2.1. Factors determining the choice of an online store and product

5.2.2.  Devices used for product search and selection

5.2.3.  Using applications of online stores and aggregators

5.2.4.  How to order product

5.3. Payment for goods and services

5.4. Receipt of goods

5.5. Channels for informing customers

6. Main conclusions

 

Data bank

This data bank contains data on the volume of the Russian Internet market of goods and services in 2012-2017 and forecast to 2021:

  •        Market volume in physical terms (number of transactions)
  •        Market volume in monetary terms by categories:

Goods:

o   Car parts and products 

o   Books, games, and other content on physical media (not in electronic form) 

o   Computers and computer software

o   Cosmetics / perfumery 

o   Footwear

o   Clothing other than footwear 

o   Food  

o   Other

o   Sporting goods / inventory 

o   Household goods / furniture 

o   Electronics and home appliances

Services:

o   Air tickets, railway tickets

o   Housing and public services

o   Online games and mobile content