The Logistics Market for Electronic Commerce in Russia Grew by a Third

The logistics market for electronic commerce in Russia increased by a third for the first half of 2019, reports e-pepper.ru with reference information from Data Insight.

According to experts, in the first half of 2019, the Russian logistics market for e-commerce amounted to 218 million transactions, which is 33% more than a year earlier.

“Before our eyes, online shopping is becoming commonplace: the frequency of online purchases is growing, the share of basic consumer goods in these purchases is growing, the average order value is decreasing. Of course, the ‘commoditization’ of online shopping influences delivery preferences: frequent low-cost purchases make fast delivery while simultaneously saving money the obvious option,” commented Boris Ovchinnikov, a research partner at Data Insight.

The most dynamically developing channel for customers to receive parcels has become pick-up points. At the same time, the number of parcels delivered by couriers or mail has not been high.

Within the pick-up segment, the market has become redistributed from the Russian Post system and single order delivery from small online stores, to networks that are rapidly increasing the number of outlets. First of all, this applies to logistics companies, especially those using parcel stations, and the largest online stores.

Data Insight added that 51% of orders (111 million parcels) were delivered by online stores through their own systems. The Russian Post system transported 44 million packages (20%), with logistics companies transporting 63 million (29%). Of these, logistics companies delivered 27 million parcels (17%) with couriers, and 36 million (17%) via parcel stations and pickup locations.