It was recently announced that Russia has introduced stricter customs procedures making it harder for internet users to buy goods from abroad. While these procedures may serve as a disincentive for online retailers to invest in the region, this needn’t be the case.

The Russian market still presents lucrative opportunities for online retailers. While France and Germany are two of the most popular expansion destinations, Russia in fact has the highest number of internet users in Europe. Meanwhile the country’s record of fraudulent online vendor’s has led to an opening in the market for established foreign brands. Online shopping by its very nature requires a high level of trust between the consumer and the vendor, particularly as money is exchanged before goods are received. With this in mind, there is a growing demand from Russian consumers to purchase from reputable foreign online retailers who have built their status around safe and reliable delivery.

In spite of the market benefits on offer, only a handful of foreign online retailers, such as ASOS, have looked to the East to expand their online consumer base. If recent press reports are to be believed, entering the Russian market is beset with problems, but this needn’t be the case as pioneering companies are partnering with distribution experts to break into this lucrative market.

The new customs procedures highlight how important it is to understand the foreign market you are exporting goods to. For many online retailers, engaging with a third party provider that offers market expertise and has strong relationships with both postal operators and in country distribution experts will be the most fail-safe and cost-effective way of managing distribution.

By Beth Chapman, Sales Director at P2P eSolutions Ltd.

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