Insights into the growth of Russian eCommerce

Economy

Russia is home to 144.32 million people with a total GDP of 1.28 trillion USD and GDP per capita of US$12,270, which is expected to reach US$15,769 by 2024.

Digital User Insights

There are currently 62.6 million eCommerce users in Russia, who spend $374.86USD online annually. In 2024, this is expected to increase to 71 million online shoppers who will spend approximately $434.13 USD each.

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Internet usage

Dividing internet usage into age groups gives a better picture of the Russian eCommerce market – 95% of 16-24 year olds, 88% of 25-34 year-olds and 83% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing a 70% and 68% daily penetration rate, respectively.

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Product Categories

Total Russian ecommerce revenue across all product categories is US$23.5 billion and is expected to grow to US$30.8 billion by 2024. Electronics and Media is currently the leading product category in Russia, accounting for US$6.6 billion market share, followed by Fashion, which generates US$6 billion in sales.

By 2024, Electronics and Media will still be the most purchased online category, with an estimated value of US$8.39 billion, and second favorite, Fashion, will have an expected worth of US$8.11 billion.

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Logistics

In 2018, Russia was ranked 85th up from 99 in 2016 in the World Bank Logistics ranking.

Preferred Online Payments

In 2019, debit card was still the most preferred form of online payment at 28%, but eWallet has become increasingly popular at 25%.

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Where does Russia buy from?

China supplies Russia with US$4.56 billion in imports – ranging from cars to machinery. Russia’s other key import partners are Germany ($1.78 billion), Belarus ($956 million), Italy ($876 million) and the United States ($1.14 billion).

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Internet and Device Usage

Internet penetration in Russia is currently 75.9% (110.7 million users), and should reach 78.7% (114.5 million users),  by 2024. Smartphone penetration is a little less (72.8%), but is projected to grow to 78.5% in the next four years.

90% of online shoppers in Russia buy via desktop, a stark contrast to the amount of smartphone (4%) and tablet (4%) shoppers.

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Advertising

In 2020, an estimated US$7.92 billion of Russia’s ad spend will be spent on internet advertising, increasing to US$9.6 billion 2024.

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Social Media

72.81 million people in Russia are active social network users, thanks to YouTube, VKontakte and Odnoklassniki, which are the leading social networks.

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To Russia With Love- The Cross-Border Ecommerce Market Guide