Russian e-commerce giant reports turnover surged 188% in Q2 amid pandemic

Ozon Group, Russia’s leading multi-category e-commerce platform, said today its sales rose to a record high in the second quarter, as more people started shopping online during the pandemic.

Sales or Gross Merchandise Value (GMV) surged 188% year-on-year to RUB 45.8 billion in Q2 of 2020, the company said in a statement. GMV totaled RUB 77.4 billion, a 152% gain vs the same period last year.

GMV is the total value of orders processed through Ozon and revenue from services to buyers and sellers on the platform, excluding Ozon Travel. GMV is inclusive of VAT, net of discounts, returns and cancellations.

Russia’s Sistema conglomerate, trading in London and in Moscow, and Baring Vostok funds are Ozon’s main shareholders.

Ozon’s GMV in the second quarter exceeded that figure for the entire 2018, as the lockdown accelerated Russia’s move e-commerce revolution.

“The pandemic not only brought spontaneous shoppers online, but also contributed to shaping new habits among Russian shoppers, who have grown used to making regular purchases via this channel,’’ said Daniil Fedorov, Chief Financial Officer at Ozon. “Judging by our customers’ behaviour in the second quarter of 2020, people are not going to give up online shopping any time soon.”

Every fourth buyer who made his or her first purchase on Ozon in the spring went on to place a second order in Q2, while every seventh buyer placed two or more orders. Ozon customers also started increasingly going online to buy items they need for everyday use. Every other order placed over the summer by new Ozon shoppers contained FMCG products.

Ozon is transitioning from an e-commerce retailer to an online marketplace. In June, GMV from sales by marketplace sellers exceeded 50% of Ozon’s total GMV for the first time, indicating the marketplace platform is developing successfully. The company’s marketplace partners accounted for more than 85% of its assortment as of June 30, 2020 with more than 13,000 companies and entrepreneurs actively selling their goods on Ozon.

“The market may react positively to the stellar performance of Ozon,’’ Oksana Mustiatsa and Mikhail Terentiev, analysts at Sova Capital brokerage, wrote in a research note. “The number of new buyers who placed an order through Ozon in April was up 84% YoY on the back of the pandemic. The company also noted that the bulk of consumers have continued to shop online even after the easing of lockdowns.’’