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Tuesday, 23 October 2012 - EBay seeks partner to tackle Russian delivery issues |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Investing Simplified Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Nader Mousavizadeh Lucy P. 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Related Topics Tech » Media » Visitors chat next to the Ebay logo at the CeBIT computer fair in Hanover March 2, 2011. Credit: Reuters/Tobias Schwarz By Maria Kiselyova MOSCOW | Tue Oct 23, 2012 10:43am EDT MOSCOW (Reuters) - EBay Inc expects its Russian business to skyrocket if it can overcome logistical hurdles and is seeking a local partner to help it do so, its country head told Reuters. EBay launched a Russian-language site in 2010 and has hired former Google Inc manager Vladimir Dolgov to lead its operations in the world's biggest country, in a move which it said reflected the increasing importance of the Russian market. Russia, where eBay's main focus is on fashion and technology products, is one of its priority markets, constrained mainly by distribution bottlenecks in a country stretching some 9,000 kilometers from the Baltic coast near Kaliningrad to the Pacific. "Imagine if tomorrow we could improve logistics," Dolgov said. "We could then throw away all our plans because everything will soar, so that all our most optimistic predictions will seem like baby talk." The auction site said in a presentation its number of active Russian customers had risen 82 percent this year, though it gave no net number. It claims customers from Russia buy on eBay at a rate of once every three seconds, implying 28,000 deals a day. With Russia's online retail market growing over 25 percent annually and some 25 million new users expected to come online within the next three years, eBay cannot afford to ignore Russia, Dolgov said in an interview. SLOW DELIVERY But as it tries to reach out to more Russian consumers, eBay faces a lack of domestic delivery services who can cover for the state postal monopoly, notorious for slow delivery. Delivering goods from the United States can take four to eight weeks and there is no way to track orders once they clear Russian customs. "We will be looking for a partner who will make it possible to deliver everything quite fast within Russia, and this will of course serve as a major catalyst of our growth," said Dolgov, also a former CEO of Russia's top online retailer Ozon. Russia last year became Europe's largest internet market but has yet to reach saturation as so far only around 60 percent of its 140 million population has access to the Internet. According to research by East-West Digital News, Russia's e-commerce market was worth $11 billion last year. Cross-border trade is expected to rise 43 percent this year to $1 billion, with the U.S. being the main country involved. "All analysts forecast sustained growth (in Russia) over the next four to five years. If you look at the West, there haven't been such figures for a long time," said Dolgov. So far the only employee of eBay's Russian office, Dolgov says he can hire as many people as needed to support the company's growth. "Nobody is limiting us. There is a certain figure in the budget but it is rather a question how to reach to it." (Additional reporting by Anastasia Teterevleva and Natalia Ishchenko; Writing by Maria Kiselyova; Editing by Douglas Busvine) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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