Distance Selling
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Distance Selling

The Ukrainian market of mail order business and e-commerce is young, developing and, most importantly, it has a high potential. New players enter the market every year, and development of their business exceeds all expectations. Rapid development of the market is enhanced by various factors, such as:

  • Convenient geographical position of the country (it is located close to developed European countries) and mentality of its population, which is loyal to mail order companies and e-commerce.
  • Growing number of solvent population, whose demand the companies present at the market are not able to satisfy.
  • Growing penetration of the Internet: by the end of 2010 32% of population was connected to the Internet, which makes up 12.6 million users. In March 2011 the number of Internet users was 32%, and in March of 2012 it reached 42%. By the end of 2012 the penetration of Internet services in Ukraine may grow up to 50% of the adult (over 16) population. The turnover of Internet sales at the Ukrainian market is annually growing by 60-80% at the average, and for certain categories of goods – by 150-200%.
  • Advantageous conditions for e-commerce and mail order business development, particularly the consignment sales scheme (upon shipment of goods up to 300 EURO, the goods are free of customs duties, taxes and VAT).
  • Availability in Ukraine of highly qualified professionals and companies with experience of successfully entering the market of distance selling operators, as well as all instruments required for the fulfillment of tasks on the site.
  • Low competition in comparison to Germany, the USA and other countries.

The most prospective segments of distance selling at the Ukrainian market are as follows:

  • Textile (clothes). This niche is currently represented by such mail order companies as Bonprix, Neckermann, Magnet Blanche Porte, LaRedoute, OTTO franchisors and a number of small e-shops.
  • Home textile and household products: Neckermann, Magnet Blanche Porte, 4Home and e-shops.
  • Cosmetics: Yves Rocher and many small e-shops selling perfume and/or cosmetics.
  • Distance selling of household electronics, kid products, souvenirs and collectables is only performed through e-shops.
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