Distance Selling
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By 2015 80% of internet users will buy online in Ukraine

In three years internet penetration in Ukraine will be 45% . 80% of Internet users will be making purchases on the net. This forecast was voiced by Vadim Pilipenko of Allegro Group in his report submitted to the Trade Mission to Ukraine for remote companies and e-commerce, which took place in Odessa on September 20-21, 2012. This would mean a growth for remote and distance -selling market, since, according to the speaker, this year Internet penetration  is 35% and only half of the users are buying on the net. Vadim Pilipenko characterized 2012 as the period of the market formation and simultaneously predicted the competition increase due to a slowdown in the market in the next three years.

According to him, the necessary market demand exists, as a critical mass of buyers have been  made up. Modern logistics covers 50% of the population and 75% of Internet users and the prospective growth in this segment can only be secured by offering improved service and coverage. As for the payments, according to Vadim Pilipenko, the main limiting factor is the lack of confidence, which the entry of safe payment system is likely to overcome.

The report also  highlights the fact, that more and  more Ukrainians understand the benefits of online shopping: the market has got an experienced buyer, who learned to save money and time through buying in online stores. Therefore, shopping clubs and discount services are gaining momentum in Ukraine. They, as well as online auctions and traditional online shopping, online ticket sales, games, applications and other models of commerce in www have a chance of rapid growth until 2015. Especially if taxation reforms will be there to assist alongside with interest in offline-business, having good players, the quantitative and qualitative growth of the user base, and other economic factors, which are already present in Ukraine, as well as their hopes for a more intense effect. The full report can be found here.

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