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Chinese Sellers Flock to Russian Ecommerce Platforms
An increasing number of Chinese ecommerce merchants are turning to Russia’s largest online marketplaces to expand their reach and sidestep western tariffs. Platforms like Ozon Global, which is the international arm of one of Russia’s biggest ecommerce sites, now source 80% of their orders from China. They’ve reported signing up at least 100,000 Chinese sellers, a significant jump from about 10,000 in 2022. Similarly, Wildberries, the largest online platform by sales, has seen a notable influx of Chinese sellers.
These Chinese suppliers are not only creating accounts on international platforms but also setting up local Russian ecommerce shops. This involves opening a Russian bank account, securing local warehouses, and receiving payments in rubles.
Chinese businesses are eager to fill the void left by international companies that exited Russia following the country’s invasion of Ukraine over two years ago. They see Russia as a promising market, especially as western regions like the EU and the US are closing tax loopholes that previously benefited China’s ecommerce sector.
Yarong Wuliu, from the China Association for Small and Medium Commercial Enterprises, notes that investments in the Russian market are growing because of strong China-Russia relations and challenges in the US and European markets.
Official data shows that Chinese ecommerce trade rose by 13% in the first half of this year, reaching a record Rmb1.25tn ($175bn), which accounts for 5.9% of total imports and exports. Ecommerce trade expanded by 15.6% in 2023, making up 5.7% of China’s total goods trade, up from 4.9% the year before.
Henry Gao, a law professor at Singapore Management University, highlighted that China’s established markets, like the US and EU, are reducing their reliance on Chinese products amid sanctions, making Russia a crucial trade partner for China.
A Shenzhen-based ecommerce trader named Wei, who opened a store on Ozon Global two years ago, said the US sanctions on Russia have created market opportunities. He finds Ozon profitable and less competitive compared to other platforms.
Despite some challenges, such as payment processing in renminbi and occasional item bans on Ozon’s cross-border platform, Wei and others have managed to overcome these by opening locally registered stores.
Chinese social media platforms are filled with discussions about the advantages of opening accounts on Ozon’s local stream. Some accounts offer services to help set up Russian bank accounts and local businesses, with costs around Rmb30,000.
Eason Chen, who manages a China-Russia logistics company in Shenzhen, mentioned that demand from ecommerce sellers to establish local stores is surpassing that of traditional trading firms.
Ozon has clarified that overseas sellers make up only 5% of its total product range, and it does not support Chinese sellers importing goods to Russian storefronts. However, all sellers are now receiving timely payments.
Wildberries is exploring the Chinese market through a select number of local manufacturers and sellers to supply products across all its operational countries.
Jen Yang, an ecommerce merchant who previously sold exclusively on Amazon, opened her Ozon stores in 2022 to meet the demand for household goods in Russia. She now earns about Rmb20,000 monthly from her Ozon sales, which make up 30% of her total ecommerce revenue. Although she is still cautious about converting her earnings back into renminbi, she acknowledges the strong demand in the Russian market.
"China is a manufacturing powerhouse, so we can essentially sell anything they need," she remarked.
