e-commerce services

We offer e-commerce services  in RussiaKazakhstan and Belarus. Click on the country to learn more.

SCHNEIDER GROUP providing e-Commerce services in Russia, Kazakhstan and Belarus

e-commerce in Russia

SCHNEIDER GROUP offers an e-commerce all-in-one service for your Online-Shop in Russia and the entire Eurasian Economic Union (EEU). We support you with import, customs clearance and the distribution of your products in the EEU, without the need of registering a company or recruiting staff.

Request information

e-commerce in russia

The Russian e-commerce market is relatively young compared to the European one and is going through a stage of growth. Due to the fact that there is a significant demand for foreign products among Russian consumers, the e-commerce market has great potential for foreign producers and distributors.

Thus, in this brochure we want to examine thoroughly the Russian e-commerce market and dwell on its advantages, opportunities and difficulties. Additionally, you will be able to get acquainted with our service “e-commerce solution”, which will allow you to enter the market without setting up a subsidiary company.

e-commerce market growth in russia
e-commerce Market growth in Russia

Demand of Russian consumers in foreign online-stores

Electronic and household appliances compile the largest share of orders from Russian end-users. Despite the fact that there are local producers in this segment, customers mostly prefer foreign online-stores focusing on quality products.

Clothes and shoes are also popular, and account for 35% of all orders in foreign online-shops. Next by popularity are spare parts for cars,  cosmetics, goods for housekeeping and goods for sports. In contrast to local online-stores, goods from foreign platforms are delivered directly from overseas (crossborder selling).

Compared to the localized distribution on the territory of Russia such direct supplies have a number of  advantages and disadvantages, which are analyzed below.

What do people buy in foreign online shops
What do people buy in foreign online shops

Methods of distribution

Cross-border selling

Almost one third of the total volume of e-commerce in Russia is accounted for by cross-border selling. In addition, goods are ordered in foreign online-stores and supplied to the end-user directly from abroad. For deliveries with a value of less than € 1,000 a distributor overseas doesn’t pay customs duties on the goods  and doesn’t have to obtain certificates of conformity for the products. However, there are some exceptions e.g. for alcoholic beverages and bicycles. A significant reduction of this relatively high allowance to € 150 or even € 22 is currently under discussion.

What is a certificate of conformity
What is a certificate of conformity

At the same time there are definite disadvantages connected with the “cross-border selling”. Delivery time can take up to two months depending on the destination and logistics provider of the company.

Many courier companies don’t provide delivery services to end consumers in Russia. It may happen that this is not known by the employees of the foreign courier service and after picking up the goods in Western Europe, the goods return to the consignor sometime later for unclear reasons. Often a product is “stuck” at customs and additional documents, in Russian, are required, for example a technical description of the product.

Another drawback of cross-border selling is the limited possibilities of payment for end-customers. A client can just choose credit card payments, and the return (for example of defected goods) is rarely possible under certain conditions and a direct contact address or hotline number in the country of the end-customer is not specified. In connection to these shortcomings, the number of potential clients of foreign online-stores in Russia is decreasing noticeably.

On September 1, 2015 amendments to the law № 152- FZ entered into force, under which state and municipal authorities, as well as individual and legal entities, are obliged to store the personal data of Russian nationals only on local servers in Russia. The scope of actions related to data processing applies to all persons present on the territory of Russia and persons acting as a subject of relations that are covered by this legal act.

Therefore, online-shops have to take into account the target audience of their product (especially if they are aimed at Russian customers). This regulation also covers foreign enterprises (including online-shops) if they process the personal data of Russian consumers.

Distributor sales

There is another method – the sale of goods to Russian distributors. One of the largest platforms in Russia is OZON.ru. As a rule, when you use this method of sales there is no need to worry about logistics or customs clearance, which is a great advantage.

These processes are carried out by the distributor on terms of EXW  delivery (EXW or Ex Works means that a buyer/distributor takes the goods directly from the warehouse of the manufacturer or dealer overseas).

Concerns about obtaining certificates of conformity and further coordination are also taken over by the distributor.

Most often, distributors offer products of all counterparties on the same online-platform, which is a drawback for foreign producers and distributors as their goods are sold along with competitor products. Moreover, beneficial conditions may be provided to certain competing companies, for example via priority in the promotion of certain goods while consulting via the distributor’s hotline.

“Gray import” (improper and doubtful customs clearance) is also very popular with Russian distributors. In such an import process, the documents (for example, invoices) for the goods (which will be imported to Russia) are replaced on intermediate warehouses in Russian neighboring countries to lower the customs value in order to reduce the customs duties and save costs.

Thus, for foreign producers there is a risk of failure to prove the actual export of goods in case of inspection and a risk of being accused of tax evasion.

Localization of distribution

In accordance with the abovementioned reasons, many producers and distributors choose to localize their online-trade enterprises.

Thus, they utilize the full potential of the market and benefit from local distribution. In order to enter the Russian e-commerce market, it is necessary for foreign companies to take various aspects into account, including the necessity of obtaining certificates of conformity, compliance with the customs rules and consumer protection regulations, requirements to Russian conditions of transactions and many other legal and tax legal aspects.

Certificates of conformity

It is vital to obtain certificates in advance as their issuance, depending on the type of a document, may take up to 3 months. The type of the certificate depends on the Russian customs tariff number (HS Code) which differs from foreign codes and consists of 10 symbols (while in most countries it consists of 6 – 8 symbols). In contrast to other countries, in Russia an additional distinction between the field of application and the precise percentage composition of the material is often made.

If you want to obtain a certificate of conformation it is necessary to fill out an application and prepare technical documentation for the product (its description, technical details, field of application, etc.) in Russian.

Besides this, in some cases it is necessary to send product samples for lab tests to certifying authorities.

The testing protocol is based on these tests, and serves as proof of adequately conducted lab test, the results of which are required in case of inspection by the customs authorities.

Logistics, transport costs and payment options

Compared to most countries, transportation costs in Russia vary considerably depending on the region. In Moscow they, as a rule, the costs don’t exceed € 4 (if the local warehouse is situated in the Moscow Region) but for deliveries to other regions, the costs can reach up to € 20.

This is why the calculation of transportation costs must be also programmed into the ordering process of online-shops. In order to minimize risks, local onlinestores offer the possibility to pay with cash or bank card through mobile terminals on delivery only in Moscow, St. Petersburg and some other large cities. In other regions you can only pay by credit card (prepayment).

Another standard in the ordering process is the choice of time for delivery (in the morning or in the afternoon or with two-hour intervals). This possibility to select the time also facilitates a successful delivery to the end client (on the “last mile” stage).

Advantages of localization

If you want to use the full potential of this growing Russian market, we can recommend you to opt for your own online shop with a local warehouse and local subsidiary.

First of all, you will be the owner of a “local” online-store that is focused only on your own products.

This will make individual client consultation possible, especially since there are many hotline providers in this sphere in Russia who can provide specially trained staff for your hotline needs.

What is more, this will help to analyze the behavior of your customers and implement an appropriate marketing strategy, hence increasing your client base.

Other benefits include transparent cost structures and transparent import processes, which are carried out in full compliance with local law. Having a local warehouse can significantly decrease delivery times. Besides  this, visitors of the online-shop will be able to pay not only by credit card but also in cash upon receiving their order, or pay through PayPal or Yandex Money.

The abovementioned benefits will positively affect customer behavior and boost sales. At the same time, the presence of the local subsidiary is rather costly (company setup costs, labor costs, etc.). For this reason, such a step for foreign companies is justified if they already have experience of cross-border sales or cooperation with distributors and if they already have a certain level of monthly sales.

Nowadays, there is a less costly option that allows companies to localize distribution through signing a contract with an agent acting on the Russian ecommerce market and test the market with all its benefits, without the establishment of local enterprise.

This solution will let you save on the costs of setting up a company and other such expenditures. The agent  also takes over local management of orders made via the online-shop, their redirection to the local warehouse and transport company and even control over payments.

Based on the agency structure, SCHNEIDER GROUP developed the “e-commerce solution”, which gives clients the opportunity to test the market whilst avoiding the registration of a company. Please see further  details below.

e-commerce in Russia: What we offer

SCHNEIDER GROUP offers an all-in-one e-commerce service for your Online-Shop in Russia and the entire Eurasian Economic Union (EEU). We support you with import, customs clearance and the distribution of your products in the EEU, without the need of registering a company or recruiting staff. Thus, you get an entire and transparent distribution infrastructure, in which SCHNEIDER GROUP manages the orders as well as client payments, and takes care of all logistic processes including delivery to the client.

What’s included?

The “e-commerce Solution” includes the following services:

  • Development of Russian general terms and conditions (for the website) in accordance with Russian legislation
  • Hosting of your Online-Shop on our server
  • Import incl. customs clearance
  • Certification of products
  • Automatic processing of orders and client payments
  • Warehousing and preparation of goods for delivery
  • Delivery to clients and handling of returns
  • Hotline service incl. client consultation
  • Accounting and necessary tax reports
Advantages
  • All-in-one e-commerce package for your Online-Shop in Russia and the EEU
  • Transparent and simple distribution infrastructure
  • Takeover of all technical, organizational and administrative processes
  • One monthly flat rate

 

SCHNEIDER GROUP e-Commerce services in Russia, Kazakhstan, Belarus
Want more than e-commerce?

For the further expansion of your business, we offer one-stop services such as business-setup, tax consulting, expert recruiting and many more.

You have a question? Let us know!

1. How can I benefit from the rise of e-commerce in Russia?

The e-commerce market is still in the relatively early stages of development in Russia, but has been growing at double figure rates in recent years, with year on year growth of 26% from the first half of 2015 to the first half of 2016 (in terms of monetary value). Clothing and electronic & household appliances make up around two thirds of the goods bought in local and foreign online shops by Russian consumers, with many other goods making up the remaining third.

At present, no customs duties are paid and no certification is necessary for goods being sent B2C or P2P with a customs value of less than €1,000 and weighing less than 31kg (per shipment per individual consumer). However, there is currently heavy pressure on the Eurasian Commission to reduce the €1,000 threshold down to €200 by 2019, or, if the Association of Internet Trade Companies (AKIT) get their way, down to the European standard of €22. AKIT are even pushing for the blocking of any foreign online websites which are not paying VAT in Russia in order to promote equality between foreign and local online stores.

Bearing in mind these upcoming changes and the fact that the logistics costs of the goods alone would be over €22 in most cases (the limit refers not to the purchase price but the customs value of the goods), SCHNEIDER GROUP developed a different approach to e-commerce in Russia, offering an all-inclusive solution for foreign companies to set up their online shop in Russia, without the need of registering a company.

Since only a Russian legal entity can act as importer of record, we support our clients with the initial import and customs clearance of the goods via our company, and set up a warehouse in Russia for the foreign exporter whilst fully localizing their online shop to meet Russian standards. We manage all the technical aspects and accounting work in our ERP system, processing orders and client payments. A hotline service is also provided, as is typical in Russia. This takes a step away from the traditional cross boarder approach, and provides many advantages to both the foreign company and the client:

Advantages to the foreign producer Advantages to the customer
Individual Online-Shop for own brand; no goods of competitors Russian speaking hotline service
Fast delivery compared with cross boarder sales Fast delivery compared with cross boarder sales
Better brand perception Higher customer satisfaction rate
individual client consultation via own hotline service
•       Direct contact to customers
•       Generation of an individual marketing strategy
Processing of returns
Control of the final purchase price, and multiple payment options provides a larger client base Fewer lost items
100% compliance with import regulations Multiple payment options

The result is a complete e-commerce solution with full logistics and import handling from a-z (including customs clearance, warehousing and delivery), all technical aspects taken care of (ERP system, accounting, service hotline, order management, payment collection) all in 100% compliance with local legislation without the need to set up a company in Russia.

SCHNEIDER GROUP providing e-Commerce services in Russia, Kazakhstan and Belarus

e-commerce in Kazakhstan

SCHNEIDER GROUP offers an all-in-one service for your Online-Shop in Kazakhstan and the entire Eurasian Economic Union (EEU). We support you with import, customs clearance and the distribution of your products in the EEU, without the need of registering a company or recruiting staff.

Request information

e-commerce in Kazakhstan

SCHNEIDER GROUP offers an all-in-one service for your Online-Shop in RKazakhstanussia and the entire Eurasian Economic Union (EEU). We support you with import, customs clearance and the distribution of your products in the EEU, without the need of registering a company or recruiting staff. Thus, you get an entire and transparent distribution infrastructure, in which SCHNEIDER GROUP manages the orders as well as client payments, and takes care of all logistic processes including delivery to the client.

What’s included?

The “e-commerce Solution” includes the following services:

  • Development of Kazakhstani general terms and conditions (for the website) in accordance with Kazakhstani legislation
  • Hosting of your Online-Shop on our server
  • Import incl. customs clearance
  • Certification of products
  • Automatic processing of orders and client payments
  • Warehousing and preparation of goods for delivery
  • Delivery to clients and handling of returns
  • Hotline service incl. client consultation
  • Accounting and necessary tax reports
Advantages
  • All-in-one package for your Online-Shop in Kazakhstan and the EEU
  • Transparent and simple distribution infrastructure
  • Takeover of all technical, organizational and administrative processes
  • One monthly flat rate
SCHNEIDER GROUP e-Commerce services in Russia, Kazakhstan, Belarus
Want more?

For the further expansion of your business, we offer one-stop services such as business-setup, tax consulting, expert recruiting and many more.

SCHNEIDER GROUP providing e-Commerce services in Russia, Kazakhstan and Belarus

e-commerce in Belarus

SCHNEIDER GROUP offers an all-in-one service for your Online-Shop in Belarus and the entire Eurasian Economic Union (EEU). We support you with import, customs clearance and the distribution of your products in the EEU, without the need of registering a company or recruiting staff.

Request information

e-commerce in Belarus

SCHNEIDER GROUP offers an all-in-one service for your Online-Shop in Belarus and the entire Eurasian Economic Union (EEU). We support you with import, customs clearance and the distribution of your products in the EEU, without the need of registering a company or recruiting staff. Thus, you get an entire and transparent distribution infrastructure, in which SCHNEIDER GROUP manages the orders as well as client payments, and takes care of all logistic processes including delivery to the client.

What’s included?

The “e-commerce Solution” includes the following services:

  • Development of Belarusian general terms and conditions (for the website) in accordance with Belarusian legislation
  • Hosting of your Online-Shop on our server
  • Import incl. customs clearance
  • Certification of products
  • Automatic processing of orders and client payments
  • Warehousing and preparation of goods for delivery
  • Delivery to clients and handling of returns
  • Hotline service incl. client consultation
  • Accounting and necessary tax reports
Advantages
  • All-in-one package for your Online-Shop in Belarus and the EEU
  • Transparent and simple distribution infrastructure
  • Takeover of all technical, organizational and administrative processes
  • One monthly flat rate
SCHNEIDER GROUP e-Commerce services in Russia, Kazakhstan, Belarus
Want more?

For the further expansion of your business, we offer one-stop services such as business-setup, tax consulting, expert recruiting and many more.

X
X
X