E-commerce 2020: the total purchases amount for the year in Ukraine increased by 41%

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According to the EVO group of companies(Ukrainian marketplace builder IT company), the total sum of tangible goods  and services purchased by Ukrainians on the Internet in 2020 reached UAH 107 billion (3,8 billion $). This is 41% more than last year. The number of online payments has also increased – by at least 50%. This is proved by a study of the Ukrainian  IT company EVO.

Сovid-19 significantly accelerated the development of e-commerce

A year ago, we predicted an increase in e-commerce in Ukraine in 2020 at 15%, the pandemic has significantly adjusted it. Many new online players have appeared, from mini-factories to coffee houses. Large online and offline stores and marketplaces have mostly increased their bargaining position.

Now almost 9% of all purchases in Ukraine are made online – on marketplaces, in online stores and social networks. The country are a long way off to China, where more than 30% purchases are made online, but still the increase for the year is considerable. For comparison, in 2019 the share of e-commerce in retail in Ukraine was estimated at 7%, and the market grew by 17% per year.

The number of purchases increased, the average bill reduced

During the year, the number of orders on EVO marketplaces – Prom.ua, Bigl.ua, Crafta.ua, Shafa.ua, IZI.ua and Prom.ua websites increased by 42%. The average check reduced by 10%. We relate this to the fact that people started buying online much more often and cheaper goods – clothes, mass consumer goods, food, medical face masks.

The largest increase in 2020 is marked in the Medical supplies category – here medical face masks, sanitizers, pulse oximeters, medical gloves and other stuff are bought by wholesale and retail .

Goods for gardening and horticulture were in much greater demand than last year – everything was bought online: from seeds to mini multi-purpose machines.

Pet products also ranked in the top of the most popular goods  – pet food and accessories, as well as food.

Online payments become commonplace

According to our estimates, the number of online payments for goods and services has increased by more than 50% this year. At marketplaces already about 15% of payments – by card at the time of purchase. At this rate, in a few years, cash postpay for online goods and card payments will lose popularity as less secure and convenient.

According to our estimates, the number of online payments for goods and services has increased by more than 50% this year. At marketplaces already about 15% of payments – by card at the time of purchase. At this rate, in a few years, cash postpay for online goods and card payments will lose popularity as less secure and convenient.

An important factor that restrains the growth of payments now – the transaction price for the seller, which in Ukraine is on average more than 2% of the goods price itself. This is 4 times more than in Europe.

Forecast 2021: growth will continue

EVO experts expect that in 2021 the growth rate of e-commerce will be partially maintained and grow by another third. This will be facilitated by:

  1. The emergence of secure methods of online payment on marketplaces (for example, Prom-payment, payment through Shafa, secure payment on IZI, etc.).
  2. Cheaper delivery (including free delivery promotions from marketplaces with logistics).
  3. Quickness and growth of sellers quality service. Buyers have become more demanding and sellers have adjusted: instant order processing, shipping today, simple return of goods have become commonplace.
  4. The pandemic has pushed traditional offline niches online, including medicines and food. Demand for delivery from shops and restaurants has increased several times. Even after a pandemic, it is unlikely that buyers will abandon these facilities.

Translated by Ilona Veretelnyk

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