1. E-COMMERCE in Ukraine 2016
U k r a i n i a n o n l i n e m a r k e t e n t r y
Prepared by Jan Růžička
HTTP://MEEST˜GROUP.
2. E-commerce Volume in Ukraine
1
2
3
4
5
300 mln USD
80 mln USD
19 bn UAH
2014 2015 2016 (forecast) 2017 (forecast)
25 bn UAH
33,7 bn UAH
44 bn UAH
50 mln USD
49,5 mln USD
36,75 mln USD
27,75 mln USD
Clothes, shoes, accessories
Household goods
Electronics, household appliances
Sporting goods
Health& beauty products
The best selling product categories The biggest e-commerce market players, volume (2014):
Total volume in retail 2014
903,5 bn UAH
2,1%
Market share of e-commerce in total retail
(expected growth in 2016 up to 3.2%)
(According to prom.ua)
HTTP://COMFY.UA
HTTP://WWW.MOBILLUCK.COM.UA
HTTP://WWW.FOXTROT.COM.UA
HTTPS://F.UA
HTTP://ALLO.UA
HTTP://ROZETKA.COM.UA
3. The penetration of Internet in Ukraine
22,8 mln
Regular
internet users
(March 2016)
42,7 mln
3,7EUR
Population of Ukraine:
is the monthly cost of high speed internet connection with unlimited
data streaming
(March 2016)
100.000+
96%
62%
63%
85%
The biggest number of Internet users
is concentrated in cities
Internet is used by
of population has an access to the Internet
(the growth of 4% in last six months)
of population has an access to the Internet at
home
More than
Over 98% accessibility of high speed
Internet in cities
of Ukraine is covered by 3G service
of population in age of 16-24
4. Demographics of Ukrainian consumers
Gender: Income
Women
Percentage of women, who do
their shopping via mobile devices
This data might be misleading as many Ukrainians reluctantly speak on their incomes
No income
up to 700 UAH
Higher
(University)
Primary
700 - 1500 UAH
1501 - 3000 UAH3001 - 4500 UAH
4501 - 5500 UAH
5501 - 6500 UAH
6501 - 8000 UAH
8001 - 10 000 UAH
10 000 UAH and more
Refused to answer
Man
47,6%
61,8%
52,4%
18-24
16,4%
25-34
51,5%
Age
35-44
17%
45-54
8,2%
55+
6,9%
12%
5%
17%
21%11%
4%
42%
Education
6%
Higher without
getting degree
43%
Secondary
9%
3%
2%
2%
3%
19%
5. Main Ukrainian players of e-commerce market
(Internet stores without cross-border only)
Marketplaces
Electronics,
household
appliances
Clothes,
fashion
www.evo.company
(Prom.ua, Goodini.ua,
Bigl.ua, Craſta.ua)
www.modnakasta.ua
www.rozetka.ua
Perfumes /
beauty products
www.makeup.com.ua Baby/child goods
www.pampik.com
www.kidstaff.com.ua
www.ihrashky.ua
www.garnamama.com
www.parfums.ua
www.yves-rocher.ua
www.mobilluck.ua
www.foxtrot.ua
www.fotos.ua
www.allo.ua
www.lamoda.ua
www.fame.ua
www.privatmarket.ua
(project of PrivatBank)
69 000>
The total amount of
online shops in
Ukraine:
6. Cross-border players in Ukrainian e-commerce
(Online stores that offer payment on delivery and customer support)
Clothes, fashion
www.lamoda.ua
www.bonprix.ua
www.next.ua
www.stylepit.ua
www.astratex.ua
www.answear.ua
www.leboutique.com
www.astratex.ua
Perfumes and beauty
products
www.parfumeria.ua
Electronics
www.eurobuy.ua
www.rozetka.ua (only some of their
products are available
Cross-border e-commerce has a great potential, in spite of weak Ukrainian currency the amount of purchases has been growing. Big
Ukrainian online shops start to implement cross-border trade within the expansion of assortment.
7. Payment methods in Ukrainian e-commerce
80
-
96%share of C.O.D.
(cash on delivery)
4%
10%
share of payments
by card
в average
up
to
share of clothes,
health& beauty
products
In the same time significant cash inflow comes due to psychological factor:
from the exchange of physical goods for cash.
Percentage of card payments in cross-border increases, if payment in UAH is
available through payment bank interfaces, which are trusted (PrivatBank)
According to statistics the share of card payments is small, considering the fact that
relatively few Ukrainian online stores offer online payment so far.
The example of online shop with 100% card payment: e-shop
www.next.ua offers payment by card only and amount of their orders
exceeds 1000 per day. This is based on the fact that e-shop does not
implement returns in Ukraine, so therefore customers can only return Next
goods by sending them back to the United Kingdom at their own
expenses. The advantage of Next is fast delivery service (4 days) and
frequent promotion campaign that offer free delivery.
In case of frequent sales (for example, www.aukro.ua or www.olx.ua) prepayment on
the contrary prevails. It is interesting that credibility to prepayment among people is
higher than credibility to e-shops. Traditionally confidence to the foreign online shops
is higher than to local.
WWW.NEXT.UA
8. Price comparison websites
32%
20%15%
4,5%
7,5%
5,5%
2%
1,5%
3,5%
4,5%
www.hotline.ua
www.price.uawww.market.yandex.ua
www.nadavi.ua
www.m.ua
www.ek.ua
www.hotprice.ua
www.sravni.ua
www.ava.ua
www.technoportal.ua
PPrice.ua offers a clear analysis of your
competitors’ prices.
Hotline.ua and Price.ua offers opportunity to publish
customer reviews. The reviews are especially
important for hotline.ua
The price per click depends on the product category
and varies from 0.9 up 10UAH. It is usually
determined by the auction, which allows you to see
the highest price from the competitor and you can
set the higher price per click. Promotional positions
operate on the top. There is no need to transmit
information about the purchases.
The fee for services of price comparison
websites can be done by bankcard from
abroad, sometimes you need to have a
contract with the Ukrainian legal entity.
Price comparison can also be found at market places
HTTPS://PRIVATMARKET.UAHTTP://PROM.UA
9. Social networks in Ukraine
Nowadays the most active social network in Ukraine is www.vk.com, which has been losing its leading position to Facebook since 2015. This
social network is mostly used by young people (up to age of 24) and it's used mostly for an entertainment. However, it has been losing its
dominance due to political situation.
Facebook is the most popular
among office based
professionals.
active users
(at least one post per month)
The number of Facebook users in Ukraine
The number of Facebook users increased by 1.2
million in 2015, which were lost to Vkontacte.
5 050 000
5,7 mln
active users
(at least one post per month)1,2 mln
Women Man
41,7%58,3%
Women Men
41,7%58,3%
18-24
years old
up to 18
years old
26,5 %
38,7 %
29,5 %
4,9 %
25-34
years old
34-44
years old
18-24
years old
до 18
years old
0,1 %
9,5 %
41%
30,1%
25-34
years old
34-44
years old
Facebook is better for advertising campaigns.
YouTube, advertising videos, which are popular among users, reach a high
conversion. Big online shops start to develop their own YouTube channel actively,
particularly with video review of products. Rozetka has the most successful
channel – over 750 000 buyers. There are more than 130 million views.
Age groups of
users:
Age groups of
users:
HTTPS://WWW.FACEBOOK.COM HTTPS://VK.COM
10. Features of Ukrainian consumer
59%
15%
26%
of customers expect the order
confirmation by the phone
of customers would like tto get he order
confirmation by phone however they do
not consider it to be a necessity
of customers do not require the
order confirmation by phone at all
The order confirmation by phone:
Ukrainian consumer expects the order confirmation. Once the order is
successfully placed and processed, the customer expects the phone call by
operator of online shop to get the confirmation of received order. This tendency
begins to decrease and confirmation by SMS increases its popularity (Cost of 1
SMS – 0.27 UAH). The order confirmation by email is not effective and it
increases the number of undelivered orders. All big online shops sent
confirmation SMS after receiving the order and also once the order was
dispatched together with tracking number.
of consumers compare the prices on price comparisons
websites and the price of product is one of the main factors
of decision making process.
of consumers search for other customers’ feedback. Mostly
they search directly on price comparison websites or on
special pages (for example www.otzyvua.net or
www.irecommend.ru). Feedback by other customers
displayed on website of online shop has significant impact
on decision making (the favourite service of
www.safeonlinereputation.ru)
Ukrainian consumer tends to be loyal. If your client was satisfied with
shopping experience, you get the high probability that he will not be
looking for another e-shop for the next order. Quality of customer
service has significant role. Online shop Rozetka is a good example,
which doesn’t belong to the cheapest retail platforms; however their
customer can access wide range of detailed products descriptions, online
tutorials and other customers’ feedback. The price is not the main factor
determining the decision by customer to proceed.
Ukrainian consumer is significantly influenced by recommendations by
his friends.
E-mail is the best form of communication between the customer and
online shop. Ukrainian customer doesn't mind high frequency of emails
from e shops as long as newsletters contain information beneficial to him
(such as special offers or discount promotions). Ukrainian consumer may
decide to purchase thanks to small, but interesting gift for his shopping.
Free delivery is the most successful and motivational promotion.
65%
75%
11. 61,8% 38,2%
00:0023:0022:0021:0020:0019:0018:0017:0016:0015:0014:0013:0012:0011:0010:0009:0008:0007:0006:0005:0004:0003:0002:0001:00
Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday
The most popular days and time for shopping
Online shopping during the day
The ratio of consumers
based on gender –
purchases via PC
Online shopping during the week via
mobile/smart devices
Online shopping during the week via
PC
The ratio of consumers based
on gender –purchases via
mobile/smart devices
Women Men
50,3%49,7%
HTTPS://WAYFORPAY.COM
12. Search engines in Ukraine
The market in Ukraine is divided between two main search engines – Google and Yandex (www.yandex.ua). Currently Google dominates with almost 70%
share of total online searches. Except two main search engines some people also use www.meta.ua , www.mail.ru , www.ukr.net , however the share of
those search engines is not significant. Yandex certainly should be considered in promotional planning consideration.
Usually Yandex has significantly higher price per
click than Google.
Yandex has its own
system for analytics –
www.metrika.yandex.ua
Yandex enables targeting
of each advertisement.
Therefore your
advertising campaign can
be focused on Kiev
oblast’ and specific
advert on Kiev only.
Yandex enables to
add URL to every
advert.
38,4% 34,5% 32,9% 52,8% 59,7% 65,7%
Share of search engines:
2013 2014 2015 2013 2014 2015
HTTPS://WWW.GOOGLE.COM.UAHTTPS://WWW.YANDEX.UA
13. Market of online advertising in Ukraine
1,16%
42,3%
31,6%
8,4%
9,7%
Banners
Nonstandard
forms of
advertising
In-stream video
In-page
video
Sponsorship
Online advertising market shares in Ukraine: Banner advertising:
24%
76%
8%
Standard
banners
Rich Media
Average CTR
2,97%
Average CTR
Rich Media
14. The affiliated networks in Ukraine
There are several affiliated networks in Ukraine, the most popular is www.salesdoubler.ua ,
which offers the larger number of participants/partners. Several main e-commerce players
cooperate with affiliating site Salesdoubler as it offers reliable customer support. Payment
is made based on the account at the beginning of next month. The account includes paid
orders only (delivered purchases or payment in advance). The percentage of charge varies
from 8 to20% of fully processed orders, the part is kept by the network and the rest is paid
to partners. The customer has a choice of a wide range of options to attract traffic, can
choose those he takes and those he doesn’t. There are mostly emailing, banner
advertising, social networks and also popular underclick. Some affiliated networks offer
AdWords and YandexDirekt.
There are other affiliated sites except this network, for example: www.sellaction.net ,
www.primelead.com.ua, www.admitad.com
Partnership sites in Ukraine usually require an agreement with Ukrainian legal entity,
payments from abroad are difficult to arrange.
HTTP://WWW.PRIMELEAD.COM.UAHTTPS://SELLACTION.NET
HTTPS://WWW.SALESDOUBLER.COM.UA
HTTPS://WWW.ADMITAD.COM/RU/
15. Online purchases made by Ukrainians at e-shops based abroad
19,8%
21,9%
28,1%
34,4%
once a month
several times a month
quarterly
The age of respondents:
up to
19
5,8%
19-25
37,2%
26-35
30,7%
36-45
17,5%
45+
8,8%
Gender of respondents:ЧThe frequency of online purchases made abroad:
semi-annually
Women Men
41,6%58,4%
16. Online purchases made by Ukrainians in e-shops based abroad
The type of products purchased by Ukrainians in online stores based abroad:
Clothes
Perfumes/beauty products
Food
Electronics
Shoes
Goods for children
Sporting goods
Home textiles
Household goods
Children shoes
Toys
75,7%
37,9%
8,7%
31,1%
41,7%
24,3%
14,6%
10,7%
12,6%
21,4%
15,5%
The popularity of online shopping abroad amongst Ukrainian customers is
growing rapidly. Gradually, the necessity of using middleman services is
decreasing and consumers are confident enough to make purchase abroad
by themselves. The most popular payment method is to pay either by
payment/credit card or by PayPal. The most frequent obstacles include: a
lack of information about foreign e-shops, the fact that the majority of
foreign online stores do not offer delivery of goods directly to Ukraine,
some payment gateways are blocked for payments by Ukrainian payment
cards. One the most popular methods of shopping from abroad is MyMest
(www.mymeest.com) provided by Meest Group. Most often Ukrainians
use MyMeest to purchase from Germany, the USA or China. Motivating
factor for Ukrainian buyers is the ability to pay in the national currency or,
at least, an accurate calculation of the price in the national currency by
the online store (different banks, card issuers have different rates, the
customer never knows the exact amount that the bank will deduct in
UAH).
HTTPS://MYMEEST.COM
17. Online purchases made by Ukrainians in e-shops based abroad
What deters the customer from shopping at online shop based abroad: Payment methods:
Distrust of online payment
Impossibility to
pay by card
Lack of information on
where to find online shop
It is too long to wait for a
delivery
No fears, regular online
shopping
Language barrier
Other reasons
Fear that e-shop will
not send a product
Inconvenient
delivery method
16,1%
11,7%
24,1%
37,2%
10,2%
24,1%
24,6%
5,8%
30,7%
47,4 % Payment by card
24,7 % PayPal
27,4 % C.O.D. (cash on delivery)
20 % Via middleman
5,3 % Through acquaintances who
live abroad
18. Helpful and tested marketing tools in Ukraine
ВImplementation and automation of customer feedback directly at the online store:
www.safeonlinereputation.ru. The module is available in Czech, Russian and Ukrainian.
Convenient interface is very easy to use. Practical experience of the implementation of this
module increases direct sales. Payments are possible in Czech Republic.
Sending SMS (order confirmation, information on delivery status, promotions):
www.turbosms.ua. Service is checked and reliable for sending SMS. Basic charge for 1 SMS
within Ukraine is 0.27 UAH (0.01 EUR). It offers a full API. There is an opportunity to pay by credit
card from abroad.
Promotional mailings: www.esputnik.com. Competitive charges (for example the database of 50000
contacts, unlimited sending for the price of 3600 UAH per month- approx. 129 EUR ). There is a high
percentage of delivery of letters, convenient interface and excellent technical support. Based on own
experiences, it is fair to say that it is the best service provider in Ukraine in terms of the delivery of
letters.
Analysis of competitors' pricing policies: www.competera.net. There is the best service for the
comprehensive monitoring of price policy, promotions and discounts of competing online stores. The tool
is used not only in Ukraine but all over the world, for any kind of goods or services.
Chat module for implementing at the online store - www.siteheart.com. It is proved that Ukrainians use
the chat as a communication channel with an online store, and the presence of the chat module in the
online store increases direct sales. Siteheart chat module is provided by PrivatBank and is completely free,
while offering additional features.
HTTPS://WWW.SITEHEART.COM
HTTP://ESPUTNIK.COM
HTTPS://TURBOSMS.UA
HTTP://WWW.SAFEONLINEREPUTATION.RU
HTTP://ESPUTNIK.COM
19. PrivatBank - the bank for e-commerce
Ukrainian bank Privatbank is the leader in providing the
best services for e-commerce. Thanks to its Lithuanian
bank subsidiary it offers to foreign online shops an
acquiring in UAH.
basic rate for
international
acquiring
number of branches
number of ATMs and self service
payment terminals
Views of payment websites
Transport companies Meest Express and
Nova Poshta join postal terminal delivery
service
number of postal
service terminals
number of issued cards
2,7%
16 311 000
4164
19 778
>1000
> 450000 per day
Services for e-commerce:
Payment gateway LiqPay (option to pay by card, through
LiqPay account, transfer from internet banking Privat24,
invoicing)
Marketplace and price search engine
PrivatMarket (www.privatmarket.ua)
Sale of online gift vouchers on website
for Internet banking by Privat24
P2P loans for start-ups (https://
kub.pb.ua) - Ukrainian Kickstarter.
Magic Checkout – special offers of promotional discounts for clients of
Privatbank on the page of online payment confirmation for processed
transaction. Wide range of targeting and high conversion ((online shop
Next has achieved more than 8000 orders in 14 days of advertising
campaign).
HTTPS://WWW.LIQPAY.COM
HTTPS://PRIVATMARKET.UA
HTTPS://KUB.PB.UA
HTTPS://WWW.PRIVAT24.UA
20. Solution for acquiring in UAH
The solution suitable for acquiring in UAH is
available via Latvian bank Privatbank LV –
subsidiary of Ukrainian bank Privatebank.
At the present time it is the ideal solution to
eliminate the risk of exchange rate change.
Ukrainian consumer pays for the goods at online
shop displayed price in UAH and the retailer
receives the payment in EUR as per current
exchange rate.
Very fast payment transfers to the
account.
Possibility to update exchanges
rates very quickly online with
assistance of XML.
The interface allows full or partial refund
- the ideal solution of returns for
customers.
In the case of delivery of the order to
post terminal of PrivatBank, it is
possible to transfer payment for goods
at terminal to the account in Privatbank
LV.
The application is divided in two parts:
- Opening an account in EUR in a
Latvian bank PrivatBank LV
- Integration of payment gateways in
the online store
HTTPS://PRIVATBANK.UA
21. Sales in Ukraine via Ukrainian marketplace and online stores
Big Ukrainian online stores look for an opportunity to expand the assortment using cross-border drop shipping. For Czech
retailers this is the perfect opportunity to begin retail in Ukraine without big investments into the marketing.
Ukrainian online shop integrates your products into their product range and offers them to their customers.
The seller provides Ukrainian online store with photos of goods, description (either seller or Ukrainian e-shop translate
descriptions), information on availability of goods in stock and other options (variants, product code, price) with the help of
XML file.
Ukrainian online store processes the orders and sends to the seller data on orders (product code, version, quantity, e-mail
address of the customer, the customer's mobile phone, delivery address, possible notes). Orders are sent either manually or
through the API
Czech seller sends the goods directly to the Ukrainian customers and get from them payment by card or C.O.D. from Ukraine.
Czech seller pays agreed fee to Ukrainian online store at the beginning of next month (usually 8-15 percent of the amount of
paid orders).
Online stores that are interested in
products from Czech Republic HTTP://EVO.COMPANYHTTPS://F.UAHTTP://ALLO.UAHTTP://ROZETKA.COM.UA
22. Contacts:
Jan Růžička
Specialist in Ukrainian e-commerce
Meest Group Partner in the Czech Republic and Slovakia
info@bohemiaconsult.com
+380952830999
Skype: bohemiaconsult
www.bohemiaconsult.com
www.bohemiaconsult.cz
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
HTTPS://WWW.FACEBOOK.COM/JAN.RUZICKA.14
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