How China’s Sellers Fueled Russia’s E-Commerce Boom Amid Sanctions

Russia’s E-Commerce Market: A Surprise Boom Amid Crisis

When Western brands exited Russia after the Ukraine conflict, they left behind a $100+ billion retail void. Overnight, supply chains collapsed, prices soared (beef +24%, Coca-Cola +200%), and e-commerce became a lifeline.

China’s “Ant Army” Steps In
Data shows Chinese sellers now supply 90% of Russia’s cross-border online orders. Platforms like Ozon, which hosted 10,000 Chinese merchants in 2022, exploded to 100,000+ by 2024. Their playbook? Affordable goods + agile logistics.

Lightning Growth, Brutal Challenges

• 64% GMV surge: Ozon’s 2024 revenue hit ₽2.875 trillion, outpacing Wildberries.

• Payment nightmares: SWIFT sanctions caused months-long delays, sparking panic among sellers.

• Logistics chaos: Shipping from China takes 25-60 days; returns are costly in Russia’s vast terrain.

The New Rules: Higher Costs, Fewer Shortcuts
Russia slashed its tax-free import threshold (€1,000 → €200) and may add 5-15% VAT on cross-border orders. Some sellers gamble on “local shops” (cost: ~¥30,000 for Russian shell companies), but cash flow risks are steep.

Why It Still Matters
Despite slowdowns, rural areas drive 76% of new orders. As one seller told Caijing: *“Where else can a $100 product sell for $700? It’s high-stakes—but the rewards? Life-changing.”*