Dear partners and friends,

2008 was a year of success        ery system which was in­
for OZON.ru! In April, we         t...
OZON.ru turnover in 2008                                                  Much attention is paid to the de­     developmen...
It increases the chance to find a

OZON.ru Audience
                                                                      ...
OZON.ru is the Runet Main E-Shop                                                                                          ...
In 2007, sales of electronic devices,                                                                                     ...
OZON.ru New Projects                                                                                                     O...
“Borovlevo-2”                                                                                                             ...
OZON.ru Regional Expansion                                                                                        OZON.ru ...
OZON.ru Team




                          Victor Bondarev        Kirill Grodinsky         Alexey Timonin         Elena Or...
OZON.ru Annual Report 2008 (published April 2009)
OZON.ru Annual Report 2008 (published April 2009)
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OZON.ru Annual Report 2008 (published April 2009)

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OZON.RU is the largest e-commerce company on the Russian speaking Internet, selling millions of products per year. Current product range consists of over 450,000 units available from OZON.RU's warehouses. 2008 Turnover: >$100 million, staff: 730. Investors in OZON.RU are Baring Vostok Capital Partner (Yandex), Index Ventures (Skype, last.fm, MySQL a.o.), Holtbrinck Ventures (Bol.com), Cisco.

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OZON.ru Annual Report 2008 (published April 2009)

  1. 1. Dear partners and friends, 2008 was a year of success ery system which was in­ for OZON.ru! In April, we troduced in September in celebrated our 10th anni­ Moscow and Saint Peters­ versary; in June, we started burg: orders placed before building our new warehouse 3:00 MT PM, are delivered in Tver; in December, de­ the next day upon the cus­ spite the difficult economic tomer’s request. environment, we estab­ lished a set of new records Furthermore, we have mas­ for 2008 – total turnover of sively spread our network of 12,3 mln. USD, 2500 orders regional delivery agents, and delivered by couriers in Mos­ now cover over 20 regional cow and Saint Petersburg cities. All our agents deliver per day, one of the Moscow parcels, process cash­on­de­ collection points distributed livery payments and accept 800 orders per day. returns. The 55% growth in total As you will see in the follow­ Our reaction to the economic ing pages, OZON.ru is in $102,4 mln company sales downturn was fast and deci­ excellent shape and stands is excellent and proves that sive: between October and ready to increase its market our strategy of broad assort­ November we implemented share in 2009. Each of its ment and low prices is cor­ important cost and cash­sav­ operating companies is fo­ rect. ing measures which enabled cused on a specific area of us to strengthen our cash In 2008, we processed and the e­commerce value­chain, position, almost completely delivered 1,268,724 or- with a strong and dedicated eliminated inventory risk, and ders to our customers, in- team at its head. moved further toward building cluding 2,937,915 books. our new warehouse in Tver. We expect 2009 to mark an acceleration of the penetra­ We consolidated our position In Spring 2009, we start­ ed OZON-TRAVEL to give tion of e­commerce in Rus­ in new product categories sia, and OZON.ru will lead (Home and Decor, Cosme­ OZON.ru a footfold in the this trend. tics, Sports and Leisure) which fast growing travel business show extremely high growth in Russia. It gives our clients Best regards and large potential. an opportunity to book and Bernard Lukey, buy a wide assortment of CEO The other important achie­ travel products, including op­ OZON.ru Internet­shop vement is the fast deliv­ tions for individualized tours. 1
  2. 2. OZON.ru turnover in 2008 Much attention is paid to the de­ development, information and awarded (among other awards) velopment of operational and feedback schemes existing in with many national prizes award­ is $ 102,400,000 logistic systems, information society. ed for industry excellence, such technology, customer services During its eleven year history, as the “Russian Commerce Ol­ and goods delivery departments. OZON.ru has always been a pi­ ympus” award, and “Best logis­ OZON.ru applies the most mo­ oneer and innovator of the Rus­ tic operator in Russia” diplomas OZON.ru Total Turnover, USD, mln dern system in Russia to register, sian e­commerce market. of honor. process, and dispatch orders. It OZON.ru puts into practice all According to Runet research 110 the newest technical and intel­ agency ROMIR, OZON.ru is 100 lectual innovations, which make considered to be one of the most 102,4 the Internet shopping process popular national Internet­shops. 90 through OZON.ru convenient OZON.ru is a member of In­ 80 and attractive. ternational Club of State Hermi­ 70 Being one of the largest В2С tage Friends, and sponsors serial 66,1 projects in Russian e­commerce, publications of popular scientific 60 and providing the widest as­ books “Hermitage Halls and 50 sortment of cultural goods in Buildings”. 40 the Russian language, we con­ sider that our mission is to pro­ 34,3 30 supplies its customers with unique vide our compatriots no matter 20 web­services and a convenient where they are on the planet 19,5 10 search system. Earth with access to our prod­ 12,8 OZON.ru offers its clients the ucts so that they can maintain 5,96 3,5 0 highest and the most modern lev­ links with their heritage and na­ 2002 2003 2004 2005 2006 2007 2008 el of services at all stages of the tional culture. order process. OZON.ru’s shop OZON.ru always observes pro­ OZON.ru is the largest Russian the already compounded elec­ tal Partners», which made a supports 18 methods of pay­ tection of consumers’ acts and Internet­shop offering books, tronic bibliographical catalogue $4,800,000 investment. This ment and 14 delivery options. copyright laws. movies, music, electronic equip­ and through the Internet­shop gave OZON.ru a unique oppor­ The partners of OZON.ru are OZON.ru Public Recognition ment, photo devices, mobile one might purchase books being tunity to develop and improve its the most well­known providers phones, software and multimedia discussed. chosen business model. of electronic payment systems, OZON.ru is an innovative lead­ games and a lot of other goods. At first OZON.ru founders aimed All the directions of the project banks and financial institutions, er in the e­commerce service OZON.ru is one of the founders at creating an effective and sca­ began to develop rapidly when including the Russian mail, TNT industry. OZON.ru’s activity in and active members of the Inter­ OZON.ru history is a story of lable business: on the one hand, its operational base was moved and CPCR post services; all ex­ developing and introducing e­ net and Business Association cre­ success and development. The In­ building a logistic and operation­ from Saint Petersburg to Moscow. ports are processed by the Rus­ commerce standards; delivery of ated in 2007 by Russian leading ternet­shop was opened in 1998 al structure providing order regis­ The existing assortment of books sian International Post. premium quality services and in­ Internet­companies in order to and became one of the first tration, processing and delivery, and music discs was widened. Eleven years of hard and creative novative technologies has been develop educational programs, prominent e­commerce projects and on the other hand offering Video discs, computer games work carried out by OZON.ru’s staff highly appraised by the profes­ coordinate organizational ef­ in the В2С segment. Initially, it the newest and the most conve­ and software were added; a sec­ and the trust of millions of our sional community. OZON.ru was forts establishing legislation for was started by a group of enthu­ nient web­services, which would tion of old and antiquary books customers, has made OZON.ru the whole Internet business­com­ siastic fantasy and fiction lovers make Internet shopping simple appeared later. In the middle of the most well recognized and munity. OZON.ru is an organizer from Saint Petersburg, who cre­ and accessible for Russian users 2005, web­site visitors got ac­ highly regarded Internet­shop in and an active participant of the ated a special Internet resource all over the world. cess to electronic devices, com­ Russia. annual Internet and Business As­ for exchanging opinions about As time passed, the Internet­shop puter equipment, photo prod­ sociation conferences. This year OZON.ru Mission favorite literary genres and new constantly needed to update its ucts and mobile phones. Over OZON.ru will take part in the books. During discussions, par­ logistics and technical setups, the years, OZON.ru has turned The Internet is more than tech­ United conference­2009, orga­ ticipants expressed interest about which required additional in­ from a cultural goods shop to a nology. It is an absolutely new nized by the Internet and Busi­ where they could buy their fa­ vestments. In December 1999, web supermarket with the wid­ spirit of life that helps to sat­ ness Association and Russian vorite books. So the idea of an OZON.ru became one of the est variety of goods. Today each isfy mankind’s numerous needs. Public Center of Internet Technol­ Internet­shop was born. The shop first Internet related investment customer is offered more than The Internet has and continutes ogies (ROCIT). was supposed to be based on projects of «Baring Vostok Capi­ 450 000 articles to choose from. to radically change systems of 2 3
  3. 3. It increases the chance to find a OZON.ru Audience rare book without leaving the site. Our clients buy first and foremost books, then DVDs, software and music. We strive to make the serv­ ice more convenient and OZON. New at OZON.ru the clients’ database. OZON.ru ru a comfortable place for selling Number of Accepted Orders, has an active customer base of OZON.ru’s website is a person­ and buying things. thousands over 400,000 users who make at alized dynamic Internet resource 4000 Advertising at OZON.ru least one order every six months. which has no analogue in the Rus­ 3500 Most OZON.ru clients (65%) are sian e­commerce industry. OZON.ru is an Internet­shop which 3000 over the age of 19, but less than succeeded in transforming its shop­ 2500 Personalized 35 years old. Men (57%) prevail window into a very popular in­ 2000 3938 Recommendations 3371 over women. 60% of OZON.ru’s teractive area with high level of 1500 2656 clients list their income as higher In September 2007, each regis­ credibility. OZON.ru offers places 1000 2175 1555 than average. tered OZON.ru client was given a for advertising banners with refer­ 500 832 0 Every day OZON.ru’s web site is personal web­page with a number ences to inner website pages (for 2003 2004 2005 2006 2007 2008 visited by over 230,000 unique vis­ of articles selected on the basis of instance, to a detailed description itors. Each month OZON.ru’s clients automatic analysis of such client’s The inquiry results show that 85% zine also serves as an informative of the product, or to a catalogue OZON.ru is the most famous In­ record on average 7,000,000 ses­ site behavior. Order history, bas­ of interviewed customers appre­ guide to all that OZON.ru offers. branch). It also delivers informa­ ternet­shop operating in the Rus­ sions and review over 40,000,000 ket contents, searched items and ciate the recommendations pro­ tion to all its customers; including C2C Selling at OZON.ru sia market. According to IPSOS pages. comments are compared with oth­ vided by OZON.ru. promotion samples, souvenirs and quantitative research conducted In order to study customers’ behav­ er clients’ preferences. Such anal­ OZON.ru allows its clients not only other advertising articles through OZON.ru WEB-Site Content in March 2009, 93% of Russian ior and monitor key webmetrics, yses and comparison form unique to buy products through its web­ insertion of such information in Internet users know OZON.ru In­ OZON.ru partnered with OMNI­ personalized recommendations. A The website’s greatest advantage site, but also to sell products. C2C parcels with orders. Special con­ tent projects such as “Author’s ternet­shop, over 47% of those TURE Inc, the worldwide leader customer may take part in forming is its information and reference project started in December 2007 Week”, and concrete promotion interviewed constantly buy on in online business optimization. his personal window and adjust section, in particular, bibliogra­ and is developing rapidly. Now such as “Product of the Day” OZON.ru. In 2006, OZON.ru implemented his recommendations system. Each phy, movie and discography, per­ more than 10,000 clients use this At the beginning of January “Site Catalyst” web analytics tool, recommendation is given with a sonalities’ basis, and archives of service and every day approxi­ are effective advertising techniques 2009, the number of registered which allows to evaluate web­ suggestion to evaluate the articles personal opinions and reviews. mately 100 deals are arranged. used by OZON.ru. All these adver­ visitors on OZON.ru’s website­ marketing campaigns, optimize recommended and the quality of All these elements are interrelat­ More than half of the products sold tising instruments and techniques exceeded 2.77 mln. Every month page navigation. the tips. ed and form the reference body are second hand goods which are are specifically selected for every 60,000 new users are added to The efficiency of the recommen­ of the site. Most of the website’s no longer available at OZON.ru. partner. dations system is proven by the content might be formed by its us­ fact that 30% of cart additions are ers who place new information on OZON.ru Audience, unique visitors generated by this engine. personal pages or comments on forums and take part in different 2008 2007 Instant Tips rating inquests. “Magazine” is a Interrelations between goods and project of OZON.ru, and a part of their features, such as author’s the website, where journalists and name and publishing house; infor­ observer publish exclusive book mation about what items are usu­ reviews, tell about new films and ally bought together, etc – is used music albums; writers, actors, di­ to define instant tips. The informa­ rectors and musicians write about tion received is used to form such life and creation. Here a visitor to marketing strategies as: “cus­ the website may find advice about tomers who bought this item also gifts to give to their loved ones, bought…”, what customers buy how to choose a computer or a after viewing this item…”, “Best­ phone, theater recommendations; y y ch ril ay ne ly st r r r er sellers of the section …” they may even win a ticket to a be be be ar ar gu Ju Ap mb ar Ju M nu ru em cto em Au M ce b Ja concert or performance. Maga­ pt ov O Fe De Se N Source: Omniture.com 4 5
  4. 4. OZON.ru is the Runet Main E-Shop In 2008 OZON.ru sold 2 261 508 books 2008 OZON.ru Sales Structure (% from total turnover) Sport & Cosmetics 1,9% Toys 1,6% Soft 4,9% Antiques 4,8% Others 0,1% Average Cost of the Order Value, USD Music 3,4% 60 OZON.ru: Books, Books, Books OZON.ru Internet shop is the per­ Books 34,4% The largest OZON.ru product manent participant in Moscow In­ Movies 13,2% 50 on offer is is “Books” it contains ternational Books Fair. 300 000 titles: 130 000 in Rus­ 40 Home & Decor 1,8% sian and 170 000 in foreign lan­ $61 30 guages. OZON.ru has a universal $57 Gifts 1,6% assortment of: fiction, science­fic­ $41 20 tion; science popular, scientific, $30 $27 $22 business, education and children’s 10 Electronics 32,2% literature; manuals, socio­politi­ 0 OZON.ru proudly considers itself inaccessible in traditional shops cal, historical and reference edi­ Over 57 000 music CDs and 2003 2004 2005 2006 2007 2008 one of the largest Russian web­ are available at OZON.ru. Eve­ tions; books on arts and books for 30 000 CDs produced by in­ shops. Its product assortment in­ ry item is located on a separate gifts. The assortment foreign lan­ ternational major music labels cludes over 450,000 items. page containing images, detailed guage books which include many are offered through OZON.ru’s “Music” section. The assortment description, and other necessary European languages is constantly OZON.ru’s platform has unique information. increasing. In 2008 the quan­ includes music and vocals per­ advantages which include: rich tity of books in foreign languag­ formed by national and foreign 2009 variety, rapid search, user­friendly OZON.ru effectively takes ad­ es increased by 55%. Annually composers and singers of differ­ OZON Travel interface and high class service. vantage of the Internet to extend OZON.ru sells over 3,000,000 ent genres and styles. Beginning highly visual and informative in­ books which may well place it with 2009, OZON.ru presents 2008 The products on offer are sub­ formation about its goods and in the top ten of Russian retail more than 6,000 original Warn­ Digital Books, Tickets divided into sections. Items in services. Among the means used bookshops. In 2008, OZON.ru er Music CDs which will be de­ these sections are arranged in are high quality photos; “turning introduced a new catalogue sec­ livered directly from OZON.ru Gifts, Sports & Leisure OZON.ru Movies and Audio the catalogues, which are con­ over the pages” function; video warehouse. OZON.ru also offers 2007 Beauty Salon, Jewelry, House Appliances Catalogues stantly renewed. Search systems and music samples; reviews and 4,000 limited edition and exclu­ which provide effective and rapid customers’ opinions, a system of Over 23.000 national and foreign sive CDs. movies in the “DVD and Video” search capabilities, covering a individual tips, cross­references 2006 Home and Decor Software and Multimedia at wide spectrum of characteristics and inner banners. section are on offer. The assort­ OZON.ru ment offered comprises national “Software and Games” section and foreign classic movies; mod­ 2005 Electronics, Mobile Phones, Photo and Video ern movies, national television seri­ presents computer games, home 2008 Sales Geography (% from total turnover) als, author’s and intellectual mov­ and business computer software, Abroad 1,5% ies, children and animated movies, educational programs from na­ CIS Countries 0,5% 2003 Russian Regions documentaries, study and scien­ tional and foreign producers, also Toys 24,7% tific­popular programs. In 2008, videogames and consoles. Cur­ the BLU­RAY video format became rently, the assortment consists of 2001 tion «VIP and Luxury Books», more popular and prices for DVD’s 10,000 items available for cus­ Music, Soft, DVD which resulted in sales of premium and Videos were decreased. Eve­ tomers. A priority for 2009 will price books increasing by 97% ry month OZON.ru delivers over be the promotion of business soft­ 2000 Antique and Rare Goods, compared to 2007. 135,000 DVD to its customers. ware. Out­of­print Books Saint Petersburg Moscow 16,3% 55,3% 1998 OZON.ru Establishment, Books Moscow Region 1,7% 6 7
  5. 5. In 2007, sales of electronic devices, OZON.ru in Saint Petersburg photo and video cameras and mobile Saint Petersburg is the place in Saint Petersburg. The main line river, the Internet shop offers its where OZON.ru’s first Internet of business in Saint Petersburg is customers a unique possibility to phones reached $24,800,000 shop started. The fact, that the antiques and the sale of old, rare enrich their collections with the city has a reputation of the cul­ and antique books. Collaborating best and rarest books published Electronics, Photo and Video, tural capital of Russia determined with the best booksellers and anti­ all over the world at all times. 2008 Electronics Sales, items Mobile Phones and Household the specialization of it’s branch quarians of the town on the Neva Accessories Appliances. 11,2% Others Out-of print and Old Books at OZON.ru 24,7% Household appliances 6% In autumn 2005, OZON.ru found­ OZON.ru’s books catalog in­ range of the most interesting, use­ The out­of­print and old books ed three new sections: “Elec- cludes the unique section of out­ ful and valuable books of different assortment is being formed ac­ tronics”, “Mobile Phones” of print and old books. It is rightly genres. It means that a customer cording to the following principle: Computers and “Photo and Video” which considered to be the leader in In­ may find here not only the wide “Second life for the best books 3,7% cover a wide variety of digital ternet sales of old books, albums, popular books but also the editions published over the last 50 years!” Computer accessories electronic equipment, computer collected works, encyclopedias printed with small number of copies. It means that through OZON.ru Digital cameras 16,8% 4,4% devices and accessories, photo and entire libraries. Currently, the OZON.ru also provides a unique you can find publications verified and video cameras, and mobile OZON.ru out­of­print and old service to clients who are unable by time and still required by real phones. books catalogue contains over to or unwilling to search for such connoisseurs. Mobile phones Today this category of goods is 30.000 books published over the books in other libraries. All books 33,2% the most rapidly growing sec­ last 50 years. on offer in this catalogue section tion in OZON.ru catalogue – in The main task of this activity is to are in good or well condition with Catalogue New Sections 2008 the turnover increased present to its customers a wide no page or picture exceptions. by 76% compared with year In “Home and Decor” section 2007, and it was 32.2% of total OZON.ru actively penetrates into OZON.ru sales. new commercial niches, develops the wide range of textile goods, In 2007­2008 a new section new territories, and does its best kitchen utensils, decor utilities, “Household Appliances” was to take into consideration con­ season goods for house and gar­ opened. It offers popular goods sumers’ and Internet site visitors’ den from well­known Russian and for the home, kitchen, and music opinions and requests. European producers are on offer. “Gifts” — one of the most rapid­ equipment made by the world After the successful start of “Elec­ leading producers. tronics” section, in 2006­2007 ly developing section at OZON. describes them and makes adjust­ OZON.ru offers only premium OZON.ru founded the sections ru, is accessories for ladies and ments before putting the articles “Home and Decor“, “Gifts”, quality goods which have all gentlemen, business and VIP sou­ on sale. In 2008, the turnover of “Sports & Leisure”, “Beauty required licenses and certifi­ venirs, which now total more than this section increased by14.5% Salon”. cates. 3,000 items. compared with the year 2007. At “Sports & Leisure” the In the beginning of 2009 a new section – “Handmade section” OZON.ru visitor could find prod­ ucts useful in sports, travel jour­ with batiks, tin soldiers, glasses, neys, countryside recreation. This ceramics, gems, watercolors, section now contains 3,500 items. leather goods was introduced. “Beauty Salon” was started at Antique Books and Rarities at OZON.ru OZON.ru in 2007, and contains more than 2,000 items of 150 The antique section is obviously the assortment of this section con­ world leading perfume and cos­ of great interest for lovers of rare tains over 3,000 unique goods metics brands. OZON.ru has the things. It offers antique books and The antique books and rarities stable reputation of the online rare objects – antique graphics, section is operated by the Anti­ shop with one of the widest rang­ ancient luxurious books editions, quary Department, whose per­ es of high quality and original ceramics and porcelains, old sonnel determines the assortment perfume and cosmetic goods. photos and postcards. Currently offered, searches for rare articles, 8 9
  6. 6. OZON.ru New Projects OZON.ru New Projects OZON–TRAVEL – a New Strategic Business Unit Digital Content at OZON.ru easy and reliable booking platform mats and are significantly cheap­ and convenient payment options. er than traditional books. All dig­ The project’s potential hinges on ital books offered by OZON.ru strong technological, marketing and are sold with the copywrite hold­ operating experience of OZON.ru ers’ permission. in the area of e­commerce and ris­ Today, the assortment of the cat­ egory “Digital books” has more ing demand for up­to­date and con­ venient tools to purchase tickets and than 2,500 digital books of vari­ tourist products. ous genres available for down­ OZON-TRAVEL offers a unique loading. technological solution which can In the fall of 2009, OZON. be used not only to buy electron­ ru plans to enter the market of ic air and railway tickets, book digital musical content. Co­ a hotel room or arrange airport operation with world leading transfer, but also to plan a multi­ record companies will enable stay trip at a reasonable price. OZON.ru customers to access High level of trust and loyalty of more than 1,000,000 tracks of Electronic tickets, various tourist approaches, immediately after the client base of OZON.ru as domestic and international art­ products and business trips for a the completion of booking and well as proven logistical schemes ists. long time have been one of the payment for the ticket, a customer will facilitate success of this strate­ In spring of 2008, OZON.ru One memory card can accommo­ Our mission is to make OZON.ru main categories of the global receives e­mail containing a route gically important project. started to sell digital content. Dig­ date hundreds of various digital the largest online resource in Rus­ OZON-TRAVEL is an online trav­ e­commerce market. Last year receipt. All information about the ital books have become the first books. Usually, digital books are sia selling legal digital musical around 52% of all airline tickets booking (personal passenger el agency which offers very flex­ type of content for this new busi­ available in several popular for­ content. sold globally were distributed data, route details and price) is ible online booking tools for both ness direction and can be found in the “Books” category of the electronically. stored electronically in each car­ separate services (tickets, hotel Online booking systems enable rier’s database. rooms, transfers) and packaged OZON.ru website. customers to buy railway and air­ In spring, 2009, OZON.ru tours, providing customers with a Digital books are books in the form launched OZON-TRAVEL. The line tickets without queueing up at wide range of best offers from re­ of computer files. Customers can the ticket office as well as quick­ main goal of this project is the de­ liable tour operators and carriers. make an order and pay for digital ly and accurately choosing and velopment of a high­tech online Its mission is to make every jour­ media by means of credit card or changing the planned time, des­ booking system which will offer ney comfortable and economical other electronic payment methods. tination, means of transportation customers superior quality service, for its customers. Then, the file is downloaded from and excursions. Internet booking the web­page to the customer’s is also very convenient when it is computer, other mobile devices (mo­ necessary to make an optimum bile phones, communicators, smart business trip route taking into ac­ phones) or special gadgets for read­ count personal preferences. ing books in electronic format. Although, in Russia, this segment Digital books do not compete of e­commerce has just started to with traditional books but rather gain popularity, it is clear that it complement them. In many cases, can have great growth potential it is more convenient to read dig­ considering the country’s size and ital books. For instance, on vaca­ location. The start of e­ticket sales tion it is easier to take a special in Russia has accelerated the device for reading books or use a process. Through electronic sales regular communicator. 10 11
  7. 7. “Borovlevo-2” “O-Courier”: Number of Completed Orders, thousands • Territory – 7. 65 ha • Moscow – up to 4 000 orders per day 1200 • Area – 12.0 thousand • Saint Petersburg – up to 2 000 orders 1000 800 square meters per day 1 296 600 998 OZON.ru Integral Operational and Logistical System O-Courier Company: Rapid and Reliable Delivery 400 729 OZON.ru has a unique modern orders and check their correctness In Moscow and Saint Petersburg, 625 452 200 integral operational and logisti­ as well as to keep accounts. where the majority of OZON.ru 249 cal system based on its in­house The main element of the op­ customers live, OZON.ru has in­ 0 IT­platform. erational and logistical system tegral logistics and delivery sys­ 2003 2004 2005 2006 2007 2008 It enables the company to ef­ of OZON.ru is the warehouse tems which enable it to guarantee ficiently off­load merchandize, “Borovlevo-2”, which is lo­ two warehouses in Moscow and its customers 24 hour order de­ place it on the shelves, assemble cated in Tver. Besides, there are Saint­Petersburg. livery from the moment the order was taken or on the same day by express delivery service. In 2008, O-Courier delivered O-Courier offers up­to­date high more than 1,000,000 orders, quality services through order tak­ 85% of which were received by ing, processing and delivering. customers of OZON.ru. All de­ The company assumes the follow­ partments within OZON.ru are ing functions: connected by means of a global • Telephone contact with cus­ June, 2008. Laying of the foundation September, 2008. Constructing of the February, 2009. Beginning of inte- information system which facilitates tomer to arrange the time and stone. Governor of the Tver region main building. rior decoration works. immediate information updates terms of delivery; D. Zelenin and CEO of OZON.ru and synchronization of activities. • Order delivery to customer B. Lukey. Operational and Logistical Complex “Borovlevo-2” One of the main departments, its by courier or at a collection Opened in 2009, the complex can be sent per year. Around 450 perts are assisting OZON.ru to de­ warehouse, is operating 24 hours center; “Borovlevo-2” was constructed people, mostly residents of Tver, fine the optimal logistics concept, a day which makes next day de­ • Cash collection from client; O-Courier which is specializing in the industrial zone nearby Tver. are working at the complex. from merchandise flows operation livery for the majority of customers • Set of necessary documents, The total area of building exceeds The total investment in the Borolv­ system and goods registering to in courier services is responsi­ possible. Key logistical operations including cash receipts, given 12,000 square meters. The mod­ levo­2 project including construc­ shipping process planning. Their blefor order delivery and order are performed at night, while day to customer; ern telecommunication and logistics tion of building and purchase of consultants provide OZON.ru collection at points in Moscow, time is used for the customer serv­ • Receiving and processing of equipment enables “Borovlevo-2” technological equipment amount­ with access to the latest know­how Moscow region, Saint Peters­ ice and processing of incoming orders returned by customer; to process up to 7.6 m of inventory ed to $20 mln. Our partners in about e­fullfilment. burg and its region. There are and outgoing shipments. • Reporting and accounting. The complex “Borovlevo-2” is units per year. Besides, up to 4 m designing and technical planning more than 100 couriers deliver­ unique items can be accommodat­ are the leading international com­ the largest logistical facility for ing daily up to 2,500 orders to ed on the shelves of the warehouse panies Swisslog (Switzerland) and e­commerce­related business in OZON.ru customers in Moscow at one time and up to 4.7 m orders DOCdata (Netherlands). Their ex­ Eastern Europe. and up to 600 orders to those in Saint Petersburg. The network of collection points is comprised of 3 own points and more than 40 partner points in Moscow and the Moscow region and 2 own points in Saint Petersburg. More than 2,900 orders per day are dispatched to customers at the collection points in Moscow and Saint Petersburg. 12 13
  8. 8. OZON.ru Regional Expansion OZON.ru – more than 700 employees High level of regional Internet tive advantages OZON.ru re­ ers. Partner companies provide penetration in Russia, banking in­ gional expansion. more than orders delivery but frastructure and channels of com­ Traditionally OZON.ru gives its cash collection from custom­ munication quality improvements customers the option to choose ers and return orders process­ lead to active Internet use both how they would like to pay and ing. Partner companies allow as a free information source and take delivery. Today, OZON.ru OZON.ru to reduce delivery as a tool for purchasing goods customers have 18 payment and time and to personify OZON. and services. It`s increasing the 14 delivery options. OZON.ru’s ru in the eyes of regional cus­ OZON.ru’s popularity in Russian primary delivery partners are tomers, thereby increasing their regions. “Russian Post”, TNT and CPCR. confidence both in OZON.ru Though e­commerce in Mos­ Today Russian post services can­ and e­commerce in general and OZON.ru is a dynamically de­ acknowledged and appreciated. OZON.ru Staff not provide rapid delivery to cus­ as a reliable and efficient way veloping company with a quali­ OZON.ru invests in programs that 700 tomers. One of the e­commerce of shopping. fied staff of 740 professionals, increase personnel loyalty, moti­ advantage is not only the wide A strategic way to improve the ambitious and committed to busi­ vation, assistance in adaptation, 600 assortment but also a possibility delivery service in regions is to ness. training and professional self­re­ 500 to receive an order in time. increase the number of partner Among them those who recently alization. Using fulfillment and delivery ex­ companies by providing courier came and introduced new skills, The corporate culture of OZON.ru 400 740 perience in Moscow and Saint order delivery and managing of and those who for many years is based on mutual respect, posi­ 614 300 Petersburg OZON.ru extends collection centers; to raise quality work with OZON.ru and have tive thinking, partnership be­ 539 cow, Saint Petersburg and other courier delivery service and of services and to reduce the time unique experience in the e­com­ tween managers and subordi­ 200 317 large cities are well established, opens collection points in the re­ of order delivery. In 2009, it is merce industry. nates. 215 100 Russia’s regional users are mak­ gions. planned to introduce time stand­ The results reached by every All the company’s branches, irre­ 142 ing their first steps toward Inter­ 22 largest Russian cities with 19 ards for regional order delivery professional as well as the suc­ spective of their location, follow 0 2003 2004 2005 2006 2007 2008 net usage, including purchasing million inhabitants have courier and obligations to observe them. cess of a project group in effec­ the same principles of personnel goods which are not accessible delivery and collection points OZON.ru is an Internet shop that tive realization of their ideas is management. in local retail shops. A wide va­ provided by partner companies. gives access to both a wide vari­ riety of goods, one price for all Collection points located in the ety of goods and a high quality of regions and rapid delivery to the down town and fully equipped services to all Russians irrespec­ customers are the main competi­ for the convenience of custom­ tive of their residency. 14 15
  9. 9. OZON.ru Team Victor Bondarev Kirill Grodinsky Alexey Timonin Elena Orlova First Deputy CEO Chief Operation Chief Marketing Chief Financial Officer Officer Officer Bernard Lukey Chief Executive Officer Natalia Alieva Alexander Alekhin Alexey Vaisberg Nikita Dobrynine Chief Accountant IT Director Purchasing Director Commercial Director Oksana Chertilina Tatiana Yanina Mikhail Yatkovsky Anna Matveeva Legal Department HR Director PR Director Director, Director St. Petersburg Branch Mikhail Gritsenko Yevgeny Anna Tsygankova Tikhomirov General Director, General Director, O­Courier Co General Director, Internet Travel Co Internet Logistics Co 16

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