OZON finds Russian shoppers increasingly choosing contactless delivery for online orders

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Online shoppers in Russia are increasingly choosing contactless door delivery despite a long-standing fear of package loss, according to new data from leading Russian e-commerce player OZON. Moscow is in the lead in terms of the popularity of this service among Russian cities. Russians are also increasingly choosing parcel lockers as another method of contactless delivery.

OZON studied the composition of online orders and customers’ preferred delivery methods and notes the growing popularity of contactless delivery channels. For example, the share of door deliveries among orders on OZON increased by 20% over the past 7 days, while the average number of door deliveries in early March 2020 grew by 60% compared to Q4 2019.

OZON was the first in Russia to launch a door delivery service, with a pilot project in Moscow that was rolled out in July 2019. By September, the Company scaled it to other cities. 

CFO of OZON Daniil Fedorov commented on this development: “In Russia, it is not customary to leave deliveries at the door, the way it is often done in the United States for example. There is a widespread belief that something will inevitably happen to your package – either it will be stolen or damaged. OZON was the first in Russia to experiment with door deliveries, since we’re always aiming to not only improve our quality of service but create new services that anticipate customer needs. We carried out a pilot project in summer 2019 in Moscow, where we offered customers guaranteed 100% compensation if anything happened to their package. Today we offer this service in more than 20 cities across Russia, and we’re pleased to say that half a year since its launch, we have not had a single case of vandalism or theft. Our contactless delivery service is becoming increasingly popular: in March 2020, the average number of contactless door deliveries was up 60% compared to the fourth quarter of 2019.”

According to OZON’s press service, the Company’s delivery agents are also familiar with the requirements and recommendations for viral disease prevention, and the Company carries out regular pre-trip examinations in addition to holding informational briefings.

Internet shoppers are also increasingly using another way to contactlessly receive orders: the share of orders delivered to parcel lockers has increased. At the beginning of March 2020, locker deliveries accounted for every fourth order, compared to the end of last year when they accounted for every fifth or sixth. While receiving an order from a parcel locker involves a visit to a public place, the parcel lockers are usually placed in such a location that a person can combine their visit with a planned trip to work or to a store near their house.

Multi-category online platforms give people the opportunity to reduce their visits to public places, and at the same time to not only limit themselves to shopping. As a result, the number of products in the average OZON customer basket increased to 7-8 in March 2020 compared to 4-5 last year. At the same time, demand for entertainment services has increased, with sales of subscriptions to online games and film streaming services increasing by 211%, board games sales grew 80%. 

Contactless door delivery is available for residents of St. Petersburg, Moscow and Leningrad regions, Nizhny Novgorod, Yekaterinburg, Kazan, Krasnodar, Voronezh, Rostov-on-Don, Sochi, Chelyabinsk, Volgograd, Ufa, Perm, Tyumen, Surgut, Novosibirsk, Lipetsk, Saratov, Samara, Yaroslavl and Tver.