Russia E-commerce Market Outlook

The e-commerce industry in russia can be expected to grow substantially over the next decade, driven by a growing population, increasing internet penetration, and greater internet use. according to bi intelligence estimates, e-commerce sales in russia are expected to jump almost fourfold from $17.8 billion in 2018 to $69.6 billion in 2032. this growth rate will be over twice that of the global e-commerce market which is expected to grow from $1.9 trillion to $6.9 trillion over the same period. the rise of online spending in russia is being driven by a number of factors, including the increasing penetration of mobile devices, 3g and lte networks, and an increasing number of technology-savvy russian consumers. as internet penetration continues to expand, and a new generation of online shoppers starts to emerge, online retail will become more mainstream in russian society. already in 2018, russian e-commerce sales represented 3.5% of retail sales,with a large chunk of the population already leaning towards online purchases. the lack of available bank cards has been a longstanding issue stifling the growth of the e-commerce industry in russia, which has traditionally made digital payments difficult. however, recent developments such as the adoption of alternative payment methods such as apple pay and qiwi wallet, have seen a growth in online payments, and increased spending among those without a bank account. furthermore, the russian government’s new plan to roll out a national payment system processing platform is set to stimulate the online payment market in russia, as it will enable debit and credit card transactions to be processed domestically. this will make payments more secure and reduce transaction costs as well as expand the range of available payment options, paving the way for increased spending in the e-commerce sector. in addition to the development of new payment platforms, the russian e-commerce market is expected to benefit from further advances in technology, such as ai and voice-activated shopping assistants, as they become increasingly popular among russian consumers. overall, the future outlook for e-commerce in russia is highly encouraging with the potential for rapid growth over the next decade. with the right focus, investments in both digital infrastructure and payment systems, growing population, increasing internet penetration, and improved consumer confidence, the russian e-commerce market is expected to be a major contributor to the global economy in the coming years.