– e-commerce projects development for clients: platform,
logistics, payments, digital marketing, client support services, etc.
Hermes NexTec countries of operation: the EU, USA, China, Brazil, Russia.
– Launching e-commerce projects for global
brands in the Russian Internet.
The unique e-commerce experience of Otto Group & Hermes.
Cross-Border E-Commerce Data Sources
Cross-Border E-Commerce Facts Mismatch
orders per year
orders per day
orders per day
of orders per day
parcels per year
of orders per day
Source: companies ‘ data, Russian Post, Federal Customs Service
Data Mismatch Reasons
Mixture of B2C and B2B cross-border e-commerce markets
Mail forwarding companies consolidate 5-10 orders in 1
Russian Post’s cross-border delivery market share steadily
decreases, it means the less centralized statistics
Experts forecast 30-50% of the cross-border
B2C delivery market growth (in num. of
China-Russia direction growth rate is expected
to reach 100%.
According to the financial projection the crossborder e-commerce market might be up by 6080% in 2013.
At year-end 2012 a share of parcels
coming in Russia from China in the total
amount has risen from 8 up to 17%
(Russian Post’s Data).
750 000 search queries about JP per month
Internet interest in JP has risen 2.5 times within 2 years
Typical cross-border JP in Russia:
- A dozen of purchasers is united in one order by a private facilitator
- Parcel weight – 15-20 kg
- Delivery cost - $10-15 per 1kg
- Dispatching point – China
Source: Hermes NexTec, Yandex
Showrooming is still a phenomenon of big
especially popular for apparel & footwear,
The product line stretching in offline retail
ironically provokes showrooming.
Client services and marketing to some part
might help the offline retail.
Cross-Border Purchases Re-Sale
More than 100 000 private classified ads aiming to resell cross-border purchases
appear in the Russian Internet monthly.
The most popular reason for reselling is «It doesn’t fit».
It’s easier to resell than to return or to change.
Sometimes it’s a kind of business.
Cross-Border B2C E-Commerce 2013
World facts (2013):
B2C e-commerce ≈ $1 298 bln
B2C cross-border e-commerce ≈ $209 bln
One expects the cross-border B2C ecommerce to triple by 2018.
China will provide the greatest contribution in
a growth rate.
Source: eMarketer, Nielsen, Hermes NexTec Russia
There are 18 mln of cross-border purchasers in China.
The Chinese shoppers prefer to buy goods via the Internet in the US
(84%), Hong Kong (58%), Japan (52%), the UK (43%), Australia
The cross-border B2C e-commerce export is equal to $ 18.2 bln.
95% of cross-border e-commerce export qualify as B2B ($376 bln).
China’s Cross-border E-commerce Inspiration
China sees the huge development opportunities in
the cross-border B2C e-commerce.
Since 2012 China pursues an active policy of the
cross-border retail stimulation.
5 industrial estates specialized in the cross-border ecommerce are already founded.
A simplified procedure for the cross-border retail
payments is also adopted.
30% of the retail e-commerce account for cross-border.
This share is expected to rise even further.
68% Canadian shoppers buy goods via the Internet from
Prices in Canada are on average 30-40% higher.
The cross-border retail skewness costs Canada $20 bln
yearly, thereby the Canadian treasury receives $8-10 bln
In 2013 the cross-border online retail sales are expected to reach $47 bln. It
amounts to 11% of total B2C e-commerce volume.
38% year-on-year growth rate.
1/2 European purchasers buy online.
1/3 online shoppers are the cross-border e-commerce market participants.
60% of cross-border order attempts within the bounds of the EU are not
successful due to technical and legal reasons.
Still there is no integrated e-commerce space in the EU.
The European Commission has developed and finally approved The
Common European Sales Law (CESL) being a uniform set of EU-wide
rules for cross-border sales (September, 2013).
What Should the Russian Companies Do?
One shouldn’t be afraid of the cross-border ecommerce. It is essential to avoid threats and
The Russian companies can and should come
into external markets, the cross-border ecommerce provides exiting opportunities for that.
One might produce consumer goods anywhere –
in China or in Russia (as international companies
do) and to come into the external markets with
the Russian brands.
The Russian brands have a great potential in
many countries. All one needs to do is to set up