E-commerce had a rougher emergence in Russia due to a lack of logistics infrastructure and the broad geographic range. E-commerce accounts for less than 5% of retailing but is growing fast as the services become more reliable.
Russian web search company Yandex to launch an online marketplace e-commerce site called Beru today with the goal of becoming one of the region’s top three platforms for local goods by the end of 2020.
Amazon has stayed out of Russia due to logistics and political tensions. Yandex would compete with other local players like a $2B venture with an Alibaba partnership and Kremlin backing.
Beru will offer nearly 100K different products and will own many of the top-selling goods and connect buyers to third-party sellers for less common items at a 10% commission.
State bank Sberbank is funding warehouse construction. The bank’s participation could help ease citizen nervousness about buying goods online.