IRCE 2017: international online retailers have ambiguous opinions about Russia
For the 13th time the McCormick Place West Center brought together the world's leading online market players in Chicago to discuss trends and innovations, identify problem areas and find ways to solve them.
Boxberry delivery service presented its logistics solutions for online retailers from around the world among other 600 exhibitors. "We talked to representatives of online stores from different countries and concluded that when entering the international market, retailers try to minimize risks and integrate existing business processes into new conditions. They are looking for a partner who offers a turnkey solution that does not require global changes and expect the partner`s service takes into account all customs and legislative requirements of the recipient's country, " — says the head of Boxberry International, Marat Artuganov.
International sellers have a contradictory opinion about Russia. On the one hand, this is a super-attractive market which grows by an average of 20% per year in terms of online sales. On the other hand, one third of respondents had a poor experience of interaction with both their local and Russian postal services when shipping to Russia. Concerns about the safety of shipments, prolonged delivery times and lack of awareness of the work of customs services hamper their desire to conquer our market.
Nevertheless, international online stores are considering the perspective of reaching the Russian audience. Large and small online stores in the US are interested in having a warehouse of a logistics partner in their country and better if the closest to the state where the head office is, the ability to send small volumes, the flexibility of the delivery price policy.
Startuppers and owners of physical stores are worried whether their product will be in demand with the Russian Internet audience. "We analyze the demand and we know that the Russian buyer is attracted, first of all, by the uniqueness of the assortment of foreign shops", — explains Marat Artuganov. – “According to our statistics, clothing, cosmetics, health and home products, electronics are very popular." The second most important issue for foreign retailers is the procedure of customs clearance. It is important that the partner is responsible for that.
In general, the attractiveness for online business of the CIS countries' markets, such as Russia, Ukraine, Belarus, Kazakhstan is noted . "On their own web resources online stores see an increase of visitors flow from these countries and requests for the delivery of their goods. They understand that this part of the audience requires attention, so they are looking for regional partners", comments the head of Boxberry International. "We were asked a lot of questions about the mechanics of the logistics process in the countries of Eastern Europe, about the possibilities of integration and organization of payments receiving from Russian buyers. Transparency and smoothness of all processes are in the top of requests to us, as a supplier of delivery services".