In 2018, internet retailing saw an impressive current value growth rate. The convenience of internet shops and the wide selection of products they offer were amongst the key factors driving growth.
The largest obstacle to the popularity of online shopping is a lack of trust regarding the payment and delivery process. Cash-on-delivery is still common amongst Ukrainian consumers when purchasing products online.
The Ukrainian parliament recently passed new legislation which aimed to increase tax revenue from imports made using postal services. Previously, any Ukrainian citizen could receive an unlimited number of parcels with a value of up to EUR150 each, without having to pay customs duty.
In 2018, a major company merger was seen in internet retailing – Rozetka acquired the shares of Naspers in EVO Company, a corporation behind Ukraine’s largest intermediary marketplace, Prom.ua.
Leading global internet retailing companies Amazon and eBay are not operating to their full extent in Ukraine: they do not have localised versions of their websites, and delivery of their products to Ukraine is often impossible. In 2018, neither Amazon nor eBay considered entering the Ukrainian market due to its small size.
Chinese online shops, led by the e-commerce giant AliExpress, are amongst the leaders in cross-border internet retailing in Ukraine. AliExpress has been present in the market for several years already; however, many consumers are not willing to purchase products on this website, as this requires making payment in advance using a debit or credit card.
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This industry report originates from Passport, our Retailing market research database.