The state of the e-commerce market in Ukraine

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The most anticipated event of the year took place in Kyiv – the conferenceiForum-2023. Nikita Artemchuk, Director of Product Development at Prom.ua, shared an interesting overview of the Ukrainian e-commerce market. During thereportsNikita spoke about the trends and development prospects of the Ukrainian e-commerce market, and also shared useful statistics for 2022 and incomplete 2023.

In this article, we 1000 cell phone number list hasten to tell you about the most interesting insights from Nikita Artemchuk’s speech.



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The state of the e-commerce market in Ukraine today
Nikita Artemchuk began his speech by citing key e-commerce statistics for 2022:

the audience of Internet users in Ukraine has decreased by 26%;
the number of online shoppers decreased by 23%;
the average online purchase bill increased to UAH 1,190;
The total volume of the e-commerce market in Ukraine amounted to UAH 151 billion (total sales of goods and services via the Internet), which is 17% more than in 2021.
Currently, the share of e-commerce is 11%, and this figure is growing. If the trend continues, Ukraine may reach the level of Sweden, Finland and Canada. But if we compare it with countries where e-commerce is more developed, then in China this share is 46%, in the UK – 36%, in South Korea – 32.3%.

The average online purchase bill in 2023 is UAH 1,172, the percentage increase is +38%. Nikita Artemchuk noted that the figures fluctuate depending on the platform.

How the war and blackouts affected the buyer and the e-commerce market as a whole
Unfortunately, blackouts have become a daily occurrence for the autumn and winter periods of life of Ukrainians. At the same time, Nikita noted several positive trends in consumer behavior.

First of all, Ukrainian platforms are developing faster than foreign ones . As an example, Nikita cites Prom.ua, which is growing faster than the same Aliexpress in terms of brand awareness and recognition. The vast majority of buyers still start shopping with Google. Before ordering something on the marketplace, the consumer turns to the search engine, which directs him in the right direction.

Nikita notes that at present the social position of a business is one of the most important factors for buyers . If you are not a socially responsible business, do not support the state, then you will either not be chosen at all, or chosen less often than competitors.

"It's not enough to just say that you're helping, because that's become the norm for Ukrainian business. If you want to use that as an advantage, you have to really stand out."

Another trend is a decrease in the number of users, but an increase in the frequency of purchases . Now, the same customer accounts for many more purchases. This means that businesses are now competing for a smaller number of more motivated consumers.

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Regarding the e-commerce market as a whole, preferences in categories have changed . At the beginning of the full-scale invasion, things needed by displaced persons were in demand - clothes, toys, goods for the military. In the fall and winter, panic-demand goods appeared - generators and power banks. Now everything has returned to normal: the TOP is dominated by classic categories (clothes, toys, mobile accessories, etc.). However, the closer winter is, the greater the demand for generators and everything that will help survive the blackouts.

Read also : The Future of Digital Marketing and E-Commerce: Andrey Dligach on Forecasts for the Coming Years
Key challenges of e-commerce for user acquisition
As Nikita has already noted, the main difficulties are that the number of users has decreased, and the frequency of purchases has increased. Consequently, the value of the buyer has increased for the business. The speaker also noted that:

Competition in advertising purchases has fully returned . In the first half of 2022, competition was insignificant, but now it has returned to previous volumes with a decrease in the number of users.
Users start shopping with Google . In fact, businesses pay the search engine to direct their audience to the necessary sites.
The number of places for advertising in Google has increased . The traffic that used to come organically now needs to be purchased. In essence, businesses are purchasing yesterday's own organic traffic.
A native mobile app is a must-have . Whereas people used to make purchases on Google via computers, now there are mobile apps. If a user constantly makes purchases via an app, you can no longer reach a person via Google for the same queries that they use in a mobile app.
Nikita also noted the importance of increasing the "stickiness" of buyers: you need to understand where and why people go. In addition, direct channels are also becoming important.

How does Prom.ua attract users?
According to Nikita Artemchuk, the main drivers are: personalization, traffic attraction, delivery, financial solutions and mobile application.

To attract traffic, all available tools are used to reduce the purchase of those who would have come to the platform anyway. When launching advertising campaigns, the main focus is on detailing, payback. In addition, advertising should translate into a mobile application.
Personalization is achieved by segmenting the customer base. The main focus is on users who have multiple orders in the app. In addition, better engagement is facilitated by: a personalized offer feed, promotions, and a single account with saved payment and delivery data.
One of the main barriers to e-commerce growth is the cost of delivery , so Prom.ua is focusing on this issue. Solutions include free pick-up points via Rozetka, establishing a logistics infrastructure and cooperation with partners.
As for financial solutions , we are talking about transaction security, card storage, covering fees for the seller and buyer, reducing fees and reducing transaction costs. In addition, Prom.ua has its own payment method via RozetkaPay.
The mobile application brings the following advantages: the possibility of personal contact with clients through push notifications; the possibility of using new solutions that are not available on the Internet - geolocation, bonuses, loyalty cards, etc.
As we can see, Nikita Artemchuk's speech can provide useful conclusions for your business. We hope that up-to-date information on the state of the e-commerce market in Ukraine will help improve your marketing (and other) efforts.