Illustrating the booming growth of online cross border sales, BayRu (Bay.ru), an Ilinois-based operator selling goods from the USA to Russian consumers, has been named a 2013 Exporter of the Year award winner by ThinkGlobal Inc., publisher of Commercial News USA, the official export promotion magazine of the U.S. Department of Commerce.
Criteria on which winners were selected include the total number of documented export transactions, the total percentage increase in sales, exports as a percentage of total sales, the company’s commitment to exporting, the company’s commitment to customer service, and the company’s innovation and originality in marketing products or services.
Many Russians make online purchases from international giants eBay and Amazon or from more specialized retailers offering products that are either unavailable or far more expensive on the domestic market. BayRu and like sites offer a Russian language interface and local payment methods to make such purchases easier. They also ensure that parcels are properly prepared to meet customs procedures.
Founded in 2007 by a young Russian immigrant, BayRu was the first mover on this market. According to CEO Aaron Block, the company offers the largest Russian-language browsable online catalog, with over 200 million items. It guarantees delivery and charges to its customers a fee of 9% of the order value for its services.
BayRu’s most popular categories are auto parts, fashion, electronics and collectables.
Among BayRu’s competitors are ebaytoday.ru, which also specializes in delivery to Russia, as well as Shipito, Borderlinx and BongoUS, which operate internationally.
Online cross-border trade may have been close to the level of two billion dollars in 2012, almost doubling in one year, according to EWDN experts. Russian consumers appreciate foreign retailers’ diversified assortment and enjoy virtually tax-free purchases. But frequent slowdowns at customs checkpoints and the lack of efficiency of the Russian postal system have also created serious issues.
- RUSSIAN E-COMMERCE REPORT 2012 – The total volume of Russian online retail reached approximately $13 billion, in 2012, up 25% from the previous year. EWDN has published an in-depth research on Russian e-commerce, including a detailed analysis of cross border sales and market entry issues. To receive free insights or to order the full version, please contact us at [email protected]
