E-commerce Marketplace As A Way To Expand Into Russian Medical Device Market

In our digital world, e-commerce is now well-ingrained in our lives and is continuing to expand into all the sectors.

More and more manufacturers and distributors choose marketplaces to showcase their products for buyers all around the world. Rather than selling exclusively through dedicated brand websites, the companies try to expand their sales channels and enter various marketplaces, according to Business.com. If you have a million dollar idea, or a startup aiming to expand to the global market, it is worth choosing an e-commerce marketplace platform to start selling your products across the borders.

Russia with its largest population of internet users  in Europe (94.4 million, according to The International Trade Administration) represents a very attractive market for expanding your business as its e-commerce market doubles in size every year with even more prospects to grow thus making it one of the most attractive e-commerce markets in the world, according to statista.com

As 5G mobile internet becomes highly available, customer experience in e-Commerce is to rise onto a new level. Internet speed, combined with low latency, will allow for all-new VR/AR applications which are promising to significantly change the shopping experience. 

As stated by  The International Trade Administration, almost all Russian corporations report using electronic trading platforms.

According to the Data Insight report (E-commerce in Russia 2020), Russia represents the fastest growing market with 91% of the population going online  everyday. 

Cross-border e-Commerce used to be the top trend in Russia’s online retail market until 2018, according to the yStats.com report. It constituted more than one-third of total e-Commerce sales in Russia. 

The global pandemic contributed even more to its further growth. In 2020 the size of the Russian e-commerce market amounted to RUB 2.7 trillion, thus gaining +58%. By 2025, the e-commerce market is expected to grow fourfold and reach RUB 10.9 trillion, according to the Data Insight report (E-commerce in Russia 2020, March 2021).

Russia’s medical supplies and devices market is of special interest as it’s a best prospect industry sector for Russia with its one of the largest medical device markets in Central and Eastern Europe, according to The International Trade Administration. Russian e-commerce healthcare market has already attracted numerous international companies, as Russian public and private healthcare sector relies highly on foreign suppliers despite the efforts of the Russian government to develop a strong and robust medical technology industry, according to The International Trade Administration.  Both public and private medical facilities prefer to buy medical devices from foreign manufacturers if they have the choice and means. 

Although many international companies have already entered Russian medical supplies and devices e-commerce market, the market is far from oversaturation. There is still enough room for smaller foreign businesses to enter. Moreover the experts foresee further growth in medical device imports in Russia in the coming years.

Hospitals, clinics, and individual practices are relying more than ever on ecommerce to procure their medical supplies and this trend is going to remain with us for long in today’s digital world.