AliExpress Russia Cuts China-Russian Delivery Times By 50%
- Russian ecommerce market to be worth US$32 billion by 2025
- Largest growth area is in electronics and media
Dmitry Sergeev, the Chief Executive Officer of AliExpress Russia, has revealed that the average delivery time for goods from China to Russia delivered by AliExpress has decreased since the end of 2019 to just 15 days on average.
“There is a huge request from many clients for the quality of service, whereas the quality of service means quicker delivery, guaranteed delivery, the return and exchange possibility. Many things that we are doing, are connected with improvement of that service. For example, our delivery from China demonstrates very good dynamics as the average delivery time is 15 days. The average time of delivery around Russia is 4.5 days. Many goods are now delivered by air, previously they were supplied by shipping via Vladivostok, after which they slowly crossed Russia. (on the Trans-Siberian route) Many people are ready to pay for that through consolidation, purchasing two items instead of one, and enjoying a quicker delivery.” he said.
In April 2020, the retailer launched a service called Plus with guaranteed 14-15 days’ delivery. Currently it has 56,500 sellers, whereas its share in total GMV (gross merchandise volume) stands at around 38%, Sergeev added.
In November 2019, the delivery time was 25-30 days on average.
AliExpress Russia is a joint venture of AlibabaGroup, Mail.ru Group, Megafon and the Russian Direct Investment Fund (RDIF) in e-commerce in Russia and CIS states, and was established in October 2019. The Russian Direct Investment Fund together with Middle Eastern funds purchased 7.85% of shares in AliExpress Russia from Alibaba Group at the end of January, as a result of which the latter’s stake in the joint venture amounted to 47.85%, whereas the share of RDIF increased to around 12.9%. Megafon owns about 24.3% in AliExpress Russia, while Mail.ru Group holds 15%.
Developing improved access to Russia’s market is a key aspect of developing the Russian ecommerce industry, and especially to and from Russia and China. The Russian ecommerce market is worth about US$26 billion and has been growing at 10% per annum, with a growth rate to 2025 of about 5.2% reaching a projected US$32 billion by 2025. The market’s largest segment is Electronics & Media with a projected market volume of US$734 million in 2021. User penetration will be 45.3% in 2021 and is expected to hit 50.4% by 2025, with an average revenue per user (ARPU) amounting to US$393.46.
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Russia Briefing is written by Dezan Shira & Associates. The firm has 28 offices throughout Eurasia, including China, Russia, India, and the ASEAN nations, assisting foreign investors into the Eurasian region. Please contact Maria Kotova at email@example.com for Russian investment advisory or assistance with market intelligence, legal, tax and compliance issues throughout Asia.