Russia’s E-Commerce Booms, Driven by Regional Sales and Cross-Border Demand

Russia’s online retail market grew nearly 40 percent in Q1 2025, fueled by regional expansion and rising exports to China, India, and the EAEU. Domestic platforms now dominate with personalization tools and fintech perks.

Russia’s e-commerce sector reached a turnover of 3.5 trillion rubles (approx. $39 billion) in the first four months of 2025, marking an annual growth of almost 39 percent—the same explosive pace seen in 2024. According to Artem Sokolov, head of the Association of E-Commerce Companies (AKIT), regional markets are the key growth engine, now contributing 76 percent of total turnover.

“In some areas, like the Far East and North Caucasus, growth exceeds 80 percent,” Sokolov told RIA Novosti.

Russian platforms are also making strides internationally. Online exports to China, India, and countries in the Eurasian Economic Union (EAEU) are growing rapidly. Top-performing product categories include household chemicals, building materials, cosmetics, and groceries. AKIT estimates that export revenues could add another 700–800 billion rubles to the sector this year.

AI-driven personalization and simplified buy-now-pay-later services are helping expand the market. However, one major hurdle remains: the ongoing ban on alcohol delivery. AKIT has proposed allowing online wine sales with biometric ID verification, but that would require approval from multiple government agencies.

Overall, 2025 turnover could surpass 12 trillion rubles. And even if sanctions are lifted, Sokolov warns, Western platforms will face stiff competition from well-established and increasingly user-friendly Russian e-commerce players.