To cope with the peak season, Wildberries increases investment

With the 11.11 Singles' Day and Black Friday approaching, local e-commerce platforms in Russia have also stepped up their investments to prepare for the peak season.

Taking Wildberries as an example, this year's investment in this period is expected to increase 5.3 times compared with last year, including subsidies for small and medium-sized sellers to increase sales during the peak season, involving an amount of about 8 billion rubles. Wildberries expects that the number of partner brand delivery points will further increase due to the launch of this subsidy plan.

At the same time, in order to cope with the increase in peak season orders, Wildberries has also strengthened its logistics capabilities, expanded warehouse space by approximately 350,000 square meters, and launched a new warehouse sales model that can optimize logistics costs.

The Wildberries press department also stated, "According to Wildberries' sales results last year, the number of orders hit a record high - about 2.5 million per day (currently the online retailer handles an average of 2.3 million orders per day). Due to the significant increase in investment and the strengthening of logistics infrastructure, we expect to achieve equally successful results this year."

In addition to Wildberries, AliExpress Russia has also increased its investment. According to a news report from AliExpress Russia, it is expected to allocate 3.5 billion rubles to support small businesses. The funds will be used for product promotion and discount subsidies for Russian sellers. The company will bear the logistics costs of local sellers and will deliver goods for them for free on November 11. These support measures will become the main innovation of AliExpress Double 11 sales in the history of the Russian platform.

E-commerce in Russia is at a stage of development. According to local AKIT data, by the end of 2021, the transaction volume of Russia's online trading market is expected to increase from 3.221 trillion rubles in 2020 to 3.478 trillion rubles. However, because 2020 is the outbreak period of local e-commerce transactions, the year-on-year growth will slow down. In 2020, the Russian e-commerce market grew by 58.5%. By the end of 2021, the market growth may slow down to 8%.

Sellers in the Russian market should also pay attention to important promotional nodes, conduct market research in advance, and adjust their strategic layout in a timely manner.

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