Overview of Russian express delivery market

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Express delivering trends

Express delivery of goods is gaining attention among users of internet websites, one of the reasons is busy life of big cities. In Russia, this market is well developed mainly directions from and to Moscow, St. Petersburg, Ekaterinburg, Novosibirsk, Nizhny Novgorod, etc. The main segment is the online purchase of food, clothes, shoes, flowers and gifts.
Despite the growing market and the competition for delivery, this sphere is not yet sufficiently developed, and takes a large percentage in the budget of medium and small businesses.

In this article, will be analyzed the market of express deliveries in three categories: quantity, operators and tariffs.
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Analysis of the main quantitative indicators

The highest demand for online delivery service is in Moscow, St. Petersburg. In general, 33% of the respondents in the cities of Russia order food online at least once a month. Among them 74% choose the Delivery Club service (which was purchased by mail.ru). Users of online services are much more active, in comparison with those who order food by phone: in the first group, orders are made weekly 35%, and in the second only 13%. The average order check is about 1,500 rubles. Users of services more often than others refuse cash payment to the courier in favor of payment by a bank card online, nevertheless about half of users still prefer to pay the order in cash.

According to the "Post of Russia" published on the site vc.ru, the growth in the delivery of items is observed both in the domestic and foreign markets. In 2017, "Post of Russia" processed 147.5 million international postal items with commodity investments, which is 50% higher than in the first half of 2016. The number of processed domestic shipments increased by 11% and amounted to almost 38 million.

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Analyzing main express delivery operators

According to the above, it can be argued that "Post of Russian" is number one on the Russian market for sending and receiving goods throughout the country. The share of "Post of Russia" accounts for 95% of foreign shipments.
On the market, escrow deliveries in cities are represented by foreign companies. Among them you can note DHL, DPD, Pony Express, EMS mail of Russia, Major Express, etc.

According to J'son & Partners Consulting, in 2013 the largest share of the Russian express delivery market belongs to DHL. Also, a notable player according to this estimate is B3B, Pony Express. The remaining players account for 35% of the market.

Also, there are specializing companies that provide delivery for online stores. Among them are companies like Im-Logistics, Shop logistics, Axiomus, Algorithm and Maxi-Post.

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Analyzing tariffs and payments

The Russian market, according to experts, is still at the development stage, and it will grow. Including, online sales (local and international companies), and regions where they provide their services to medium and small businesses.
According to J'son & Partners Consulting, the number of orders from the Internet delivery in Moscow is about 40 million parcels per year. A low level of consolidation of this segment is noted, since the largest players occupy no more than 5% of the segment.

The most popular way to pay for purchases in Russian online stores is to pay cash: in 2015, 71% of respondents (73% in 2014) paid so. At the same time, more and more buyers choose non-cash ways of calculation: in 2015, when they bought in Russian stores, they already used 69% of the respondents (62% in 2014). At the time of booking (prepayment), the card was paid 54%, at the time of delivery - 34%.

Commission for express delivery is around 30-35% per order.

Such a giant as DHL, for express delivery of a document in Russia, have special event “1 envelope - 1 price”, go for a price of 1600 ruble (about 24 dollars).

Im-logistics offers its services at a rate of 264 (about 3.99 dollars) per 1 kg within a city. If you carry out more than 251 -500 orders per month, then the tariff is 256 rubles per 1 kg within the city, and so on, depending on the order.

Conclusion

I would like to note that despite the competitive market, the prices for providing services are still high, especially considering three main factors: security, delivery on the same day, use of technology.

Currently, Asian and Western countries are already offering new methods of delivering goods on the same day, but for less money. For example, the VOLT, can show the main advantages of using new tools to introduce a business.
First, VOLT Technology use new methods and tools to introduce a business. This is Artificial Intelligence and the technology of blockchain. The prospect of using these tools gives a relatively huge difference. For example, the processing of order receipt and transfer to the courier takes from 7 days to 22 seconds. This is an incredible breakthrough in the delivery area.

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Secondly, this is the price of providing services. In this issue, the main problem as payment for bank services during the online transaction was solved using the crypto currency. Now, ** VOLT Technology** has its coins which can pay for delivery services in a matter of seconds, and most importantly, the percentage for this service is reduced by more than 3.3%. Thus, you solve the problem of paying for bank services.

Thirdly, it is the wages of couriers. This is a fairly large segment in the budget of any medium and small business that provide delivery services. VOLT Technology solved this problem with hired couriers. Using a mobile application, anyone can become a courier at any time. This method can be compared with Uber Taxi. Anyone with a car can become a taxi driver for a short time.

Summarizing, the Russian market providing express delivery services has a huge scale of development, both in the geographical direction and the renewal of technology for providing services.

  • The Russian market is only developing in many cities.
  • The main market is online trading.
  • The main product for delivery is food.
  • New companies introducing their technologies to the Russian market.

Resources used:

  1. Интернет портал Магазин исследований. По адресу: https://marketing.rbc.ru/research/37283/
  2. Новостной сайт Состав. Исследование Mediascope и Delivery Club: кто в России заказывает едуу из ресторанов. По адресу: http://www.sostav.ru/publication/issledovanie-mediascope-i-delivery-club-kto-v-rossii-zakazyvaet-edu-iz-restoranov-29756.html
  3. Новостной сайт VC.RU. Исследование GfK и «Яндекс.Маркета»: спрос на доставку товаров «Почтой России» упал на 28%. По адресу: https://vc.ru/30255-issledovanie-gfk-i-yandeks-marketa-spros-na-dostavku-tovarov-pochtoy-rossii-upal-na-28
  4. Новостной сайт Шополог. Исследование рынка экспресс доставки в России. По адресу: https://www.shopolog.ru/news/issledovanie-rynka-ekspress-dostavki-v-rossii/
  5. Forbes. Глава UberEats в России: «Мы разработали специальные термосумки на температуру до -50». По адресу: http://www.forbes.ru/tehnologii/339773-glava-ubereats-v-rossii-my-razrabotali-specialnye-termosumki-na-temperaturu-do-50
  6. Официальный сайт DHL.
  7. Официальный сайт Im-logistics.
Overview of Russian express delivery market | Ecency