Russian e-commerce giant Ozon's orders surged 180% in the second quarter

On August 17, Russian e-commerce giant Ozon released its second-quarter financial report.

According to the financial report, the number of Ozon orders increased from 14.6 million orders in the second quarter of 2020 to 40.9 million orders, a year-on-year increase of 180%. Sales, including services, increased to 89 billion rubles, a year-on-year increase of 94% from 45.8 billion rubles in the second quarter of last year. Among them, the online market share accounted for 62.1% of the total sales, higher than 47.4% in the same period last year. The overall revenue data performed very well.

Ozon believes that the substantial growth in orders in the second quarter is due to the increase in order frequency. As of June 30, the number of active customers on the Ozon platform increased by 80% year-on-year to 18.4 million. The annual order frequency of buyers in Q2 2021 was 6.6, an increase of 40% over the same period last year, and the characteristics of the customer base improved.

In addition, the rapid expansion of last-mile logistics is also an important reason for Ozon's rapid sales growth. As of June 30, Ozon has more than 15,000 offline pickup locations and a fulfillment footprint of 268,000 square meters, which can provide more convenient and fast services to Ozon customers in multiple regions . In the second quarter of 2021, Ozon's logistics business was able to handle and deliver packages with an on-time delivery rate of 98%.

The number of sellers on the Ozon platform has also grown significantly, with nearly 50,000 sellers currently on the Ozon platform . It is worth noting that more than 60% of new seller registrations in the second quarter of 2021 were generated outside of Moscow. Ozon said it will continue to develop new ways to support the development of Ozon merchants on the Ozon market, including new fulfillment and delivery models that enable sellers to quickly and reliably deliver goods to customers, as well as professional market intelligence and business analysis tools, advertising solutions and financial services.

Based on recent revenue performance and current prospects, Ozon has raised the company's turnover target for the year. By the end of 2021, Ozon's turnover is expected to increase by 110% compared to the full year of 2020. Ozon added that its average annual growth rate over the past two years is 136%. In addition, Ozon reiterated its capital expenditure plan for the full year of 2021 of 20 billion rubles to 25 billion rubles.

Compared with Russia's own e-commerce market, Ozon's growth rate is obviously faster. It is expected that by 2026, Ozon will occupy one-third of Russia's e-commerce market. At present, Russia's e-commerce is in a stage of rapid development. Sellers with relevant needs may wish to do more research and seize market opportunities in accordance with the actual situation.

Financial Report

Ozon