Ozon.ru

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OZON.ru
Ozon.ru.svg
Web address ozon.ru
Slogan Online Megamarket No.1
Commercial? Yes
Type of site Online retailing
Registration Required
Available language(s) Russian
Owner Internet Resheniya
Launched 1998
Current status Active

OZON.ru is the largest[1] Russian online retailer. It was established in 1998 by the Russian software house Reksoft. Its main goods are books, electronics, music, and movies.[2] The key shareholders are Baring Vostock, Index Ventures, ru-Net, Rakuten, Intel Capital, Holzbrink and Cisco.

In 2000 Baring Vostok purchased the majority of Ozon shares, investing over $3,000,000 USD in the company.[3]

In 2005 the sales of Ozon were about $19.3 million.[1]

In April 2007, Ozon.ru received an $18 million investment from Holtzbrinck Ventures, Index Ventures and Baring Vostok.[4]

In September 2011, Ozon raised $100 million of which 95% were invested into its four key businesses: the online retailer Ozon.ru, the shipping company O-courier, Ozon.Travel, and the shoe and accessory retailer Sapato.ru which was acquired in February 2012.

In 2012, Ozon had 14.5 million registered users and $250MM of revenue,[5] a daily audience of 750 thousand visitors, 2.2 million SKU's and it employed 1,700 staff.[6] Its revenues might reach $1 billion by 2014 according to Morgan Stanley research.

Ozon's development strategy has rested on addressing two key friction points in Russian e-commerce:

1) Distribution: with 2,100 pick-up points scattered over 130 cities, it can ship goods to 75% of the Russian population, a footprint equivalent to half of that achieved by the largest Russian retailers. The logistics are handled by O-Courier, a company of the Ozon group. O-Courier plans to operate a total of 4,000 pick-up points by 2014. Ozon operates the largest warehouse facility in Eastern Europe, second to Amazon's German warehouse.

2) Payments: 80% of Ozon's sales are paid in cash on delivery of the good whilst credit card makes up only 10% (in the digital product lines, the usage of credit card is larger; for instance in travel 60% of payments are done by credit card).

According to Morgan Stanley research, Ozon is not only the largest e-commerce company in Russia but also the most trusted from consumers both in terms of intention to purchase (25% of Russian online shoppers view Ozon as the favourite place to buy online, three times more than the second, which is no one else than eBay with 8%, and 4x the 3rd, Avito.ru with 6%) as well as in actual purchase (41% of Russian online shoppers have bought something on Ozon in the last year, twice as much as the 2nd, Avito with 21%, and 3rd, Biglion with 16%). The tenure of an average Ozon customer is 4 years vs. only 3 for an average Russian e-commerce company.

References[edit]

  1. ^ a b 2005 data from NAUET
  2. ^ Ozon website
  3. ^ "Ozon" at Baring Vostok website (Russian)
  4. ^ "Ozon.ru Receives USD 18 million in PE Investments". Investment Intelligence s.r.o. Retrieved 2009-07-20. 
  5. ^ Khrennikov, Ilya. (2013-03-28) ‘Amazon of Russia’ Ozon.ru Boosts Sales 55%, Eyes Acquisitions. Bloomberg. Retrieved on 2013-09-19.
  6. ^ pp 7-8