[TechUkraine insights] Ukrainian e-commerce market in 2020

Soul Partners, Baker Tilly in Ukraine and AEQUO Law Firm, with the support of the USAID Competitive Economy Program in Ukraine, presented research on Ukrainian e-commerce market that in 2020 has reached $4 billion

Key findings:

  • The e-commerce market is one of the most dynamic in Ukraine, the market volume grew by 41% in 2020 and reached $4bln, which equals 8.8% of total retail trade.
  • E-commerce in Ukraine has grown up almost three times in recent 5 years and it’s expected to double in the next 5 years.
  • The volume of e-exports in 2020 amounted to $450m, 33% of which were exported to the United States.
  • Electronics and apparel are the largest and most mature e-commerce sectors in Ukraine.
  • Apparel e-commerce has grown with CAGR equal 26% since 2016 and reach $291m in 2020. E-commerce share in apparel retail in 2020 was approximate 6.8%. The average check equals $24-31.
  • The food e-commerce market in 2020 is estimated at $150m and cosmetics e-commerce volume is close to $87m.
  • Medicines and food are relatively new categories in e-commerce with the greatest growth potential.
  • The largest marketplaces in Ukraine are ROZETKA, Prom.ua, Allo, Bigl, Epixentr
  • The most popular monetization model is the sales commission. In 2020, most Ukrainian online customers prefer to use marketplaces for shopping – 63%. The remaining 37% relates to specialized platforms of e-commerce (online stores of household goods, cosmetics, apparel and kid’s toys).

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