Despite a crushing economic crisis and a reputation as the global home of online fraud, e-commerce grew more than 20 percent in Russia last year to reach $26 billion in sales, according to a report from East-West Digital News. Economic sanctions imposed on Russia by many countries including the U.S. after its annexation of Crimea and tampering in Ukraine have resulted in severe impacts on the ruble, the country’s GDP and most brick-and-mortar retail. E-commerce however, has been buoyed, the report said, by foreign companies including China’s Alibaba, U.S. e-commerce giant Amazon and Asos from the U.K. Cross-border e-commerce is growing the fastest, EWDN said, with 26 percent growth from 2015 to 2016.
“Russia remains a land of opportunity for e-retailers, despite the economic headwinds that have faced the country in recent years,” said Adrien Henni, editor-in-chief of EWDN. “Challenging market conditions have shaken up the e-commerce sector, and the companies that emerge leaner and stronger are well placed to dominate the industry for years to come. In the medium-to-long term, Russia is set to become one of the largest online retail markets in Europe.”
- Cross-Border E-Commerce in Emerging Markets
- Cross-Border E-Commerce in Established Markets
- Policy Review: How are Governments Affecting CNP Businesses This Year?