Marketplaces in Russia - part 1

Over 40% of Russians shop online. People like that they can compare prices and read reviews for a product / store. In addition, the coronavirus pandemic has made significant adjustments to the development of the Russian e-commerce segment.

Online sales are growing at a frantic pace. Not surprisingly, the popularity of marketplaces is also growing. Large websites provide customers with low prices, reviews, courier delivery or self-pickup.

Marketplaces provide partners with huge turnover. They often handle storage, marketing and logistics. These conditions are beneficial for the supplier, since huge funds are needed to promote and deliver on their own.

Below we will tell you about the 5 largest marketplaces in Russia:

1. Wildberries

The largest marketplace in Russia. The turnover only for clothing and footwear is over 100 billion rubles. The website already ranked 1st in the TOP-100 largest Russian stores in 2018-2019.

The Wildberries marketplace is attractive to suppliers of all product categories. But the bulk of sales comes precisely from the “female” sections: clothing, cosmetics, toys, etc. To become a Wildberries supplier, you need to have a legal entity, as well as the following documents: product declarations, quality certificates and trademark documents.

In 2019, Wildberries' turnover amounted to 223.5 billion rubles, an increase of 88% compared to the previous year.

2. Ozon

One of the oldest online stores in Russia. Last year, they introduced a marketplace format. You can display any product from the FMCG categories.

The disadvantage of the website is a high commission: from 5 to 40%, but on average it is 25-30%. Ozone is recommended to sellers with good profits and large assortments, otherwise the commission will eat up the entire margin.

In 2019, Ozon reported a record sales growth of 93% - up to 80.7 billion rubles.

3. Tmall/Aliexpress

Projects of the Alibaba holding in Russia started working in 2018 and gained high popularity in such a short period. The sites have the greatest opportunities for product customization, description, coverage and sales analytics.

On Aliexpress, oversized and inexpensive goods are selling well, costing up to 3000 rubles. A good profit can be achieved with high sales volumes. The main convenience is that there is no need to rent your own warehouse in Russia, you can organize direct delivery by mail or a transport company from your production.

Tmall - exists for sales from Russia (requires local warehouses with goods) and across Russia. But only large sellers or those who have an exclusive product can get to it. You can get permission through the Category Manager.

At the end of 2019, the revenue of Aliexpress RUS increased by 17.34% and amounted to 13.65 billion rubles.

4. Lamoda 

Lamoda is focused on the clothing and footwear market, as well as products from the lifestyle category. It operates both as a marketplace and as a retailer.

Lamoda's audience is one of the most solvent in comparison with other marketplaces. The average check is more than 3000 rubles.

It is quite difficult to get to LM - there is a tough selection. But the status of a Lamoda partner increases the brand's prestige, especially if it is still little known.

To start cooperation, you need to provide all documents and a link to your  website. The assortment will be studied by the manager, and if he likes it, the company can become a supplier of Lamoda.

Lamoda's revenue in 2019 increased by 14.4%, to 33 billion rubles.

5. Goods.ru 

The Goods marketplace, which is part of the M.Video-Eldorado Group, started working in the spring of 2017. The quarterly turnover amounted to 1 billion rubles, and the number of orders per day reached 5 thousand. Goods are actively developing, they have prompt technical support by phone and email.

Goods commission is from 3%. The market does not have a warehouse: a courier delivers products from a partner within 50 km from Moscow.

In 2019, the marketplace announced a threefold increase in its annual turnover - up to six billion rubles.

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If you need expert advice, you can leave a request through the feedback form on the website ("ask a question" on the right side of the page) or by the contacts below:

Maxim Kuznetsov - vice-president of the RAUIE
investment@raspp.ru
WeChat: maximkuznetsov