Sistema company Ozon, a leading multi-category online retailer in Russia, has reported that its GMV (Gross Merchandise Value after returns) is up by 93%, reaching RUB 80.5 bln in 2019.
Last year Ozon delivered 32.3 mln orders of over 144 mln items, marking a twofold increase year-on-year. This acceleration in growth was driven by increases in the frequency of customer orders and check dynamics, fueled by both product range expansion and the launch of tailored services.
Notably, 6.2 mln or 20% of all deliveries in 2019 were ordered by Ozon Premium subscribers. On average, these users spend three to four times more per transaction than non-subscribers, and often purchase a wide range of goods in a single order. Ozon.Card holders are also highly loyal, typically making four or more orders per month.
Ozon’s 2019 data suggests that Russians are increasingly shopping online, and are combining a number of different goods – from books and electronics to food – in their orders. Ozon has responded to this shift in online shopping habits by expanding the range and tripling the number of SKUs (Stock Keeping Units) to 5 mln by the end of 2019. Over 70% of these SKUs were provided by the 6,500 companies who sell their products on Ozon. At the end of 2019, a further 15,000 sellers were going through the onboarding process.
Ozon has also significantly invested in the development of logistics facilities, including warehouses and last-mile infrastructure. In 2019 Ozon drastically increased its fulfillment center capacity by twofold to 200,000 sqm.
Recognizing the value of pickup points in delivering growth in regions where e-commerce penetration is low (typically around 2-3% vs 6% on average throughout Russia), Ozon has expanded its pickup point network, including own and third-party pickup points and parcel lockers, by threefold, to 16,651 locations*.
Ozon now has the largest pickup parcel locker network in Russia, with 6,897 automated pickup locations* accounting for 23% of all deliveries. To support the network’s continued growth, in late 2019 Ozon launched a logistics marketplace focused on growing the partner pickup point network, installing parcel lockers and promoting partner deliveries.
Ozon believes that the future of e-commerce in Russia lies with multi-category platforms connecting millions of customers and sellers throughout the country. In 2020, the company aims to maintain its growth trajectory and continue its transformation into a full-fledged online platform that brings the benefits of e-commerce closer to those who live in smaller towns where product selection and affordability are limited.
To achieve this, Ozon will continue to develop its logistics infrastructure and financial products, as well as expand its product assortment. As the company’s client base includes both customers and partners (primarily SMEs) throughout the country, developing accessible tools, including Ozon’s marketplace, advertising platform, and analytics capabilities, is a key priority for the year ahead.
*As of January 2020