In all the glory of Russia, the largest online market in Europe that keeps growing at astonishing rate, other members of CIS often get neglected both in press and business.
This time the focus of my post is not on Russia, but on Ukraine, where e-commerce starts picking up the pace as well.
According to the report recently published by KreditPromBank the turnover of e-commerce in Ukraine reached 1.6 billion US dollars in 2012, which is a 45% increase comparing to the year before.
On average, Ukrainians spend around $714 per year on their online shopping, which is actually more than in Russia, where the average spend per shoppers is $591. This is, however, mainly because Ukrainian online shoppers live in large cities, while in Russia in no longer the case and e-commerce in regions is booming.
When it comes to products, the most popular categories in Ukrainian e-commerce are similar to the ones in Russia: books, household appliances, clothes and sports-related goods.
Online payments in Ukraine
The situation with online payments in Ukraine is even more difficult than in Russia. 85% of all online purchases are still paid by cash (vs. 60-70% in Russia), only 4% pay with a credit card (vs. 14% in Russia) and just 2% pay with e-currencies (vs. 5-6% in Russia). This might not seem like a big problem to the local merchants, but creates a lot of problems for foreign companies trying to operate in the country.
Generally low trust to online shops and especially online payments in the Ukrainian market results into low conversion rates and high percentage of people, who prefer to pay with reliable cash on delivery. However, despite its difficulties, the market is growing fast. The turnover of Ukrainian e-commerce is expected grow by another 49% in 2013 and to reach 5.65 billion US dollars by the end 2016.
Disclaimer: the data for the post and inforgaphic is taken from research made by Morgan Stanley Research, Fintime, Forbes.ua, Gemius Украина, InMind, ИнАУ and summarized by PayOnline payment provider in Russia and CIS.