Ozon exceeds 100% growth in Q1, reaches 200% growth in April 2020

Moscow, 10 June 2020 - Ozon, Russia’s largest multi-category online platform, announces its operational results for Q1 and April 2020. Growth exceeded 100% in Q1 2020 and reached 200% in April due to an increase in new customers and repeat orders.

GMV (gross merchandise value) excluding returns at Ozon in Q1 2020 rose 115% to RUB 31.6 billion (with VAT). During the first 3 months of 2020, the Company delivered 13.4 million orders with a total of 51.5 million goods. In April, GMV amounted to RUB 14.9 billion (with VAT), an increase of nearly 200% from the previous year. 

In March, the number of new customers shopping at Ozon doubled from the previous year, and then doubled again in April compared with 2019. In April, 39% of Ozon customers placed two or more orders, taking advantage of Ozon’s convenient delivery channels and high quality of service. The placement of repeat orders encouraged customers to seek out maximum benefits from their online purchases by taking advantage of Ozon’s special offers and services. The number of Ozon Premium subscribers increased by 20,000 users in just 3 weeks of April. Also in April, the Ozon.Card with higher cashback rates became one of the most popular products on Ozon. Card holders place about 4 orders a month, which is considered an excellent indicator even in developed Western countries, where e-commerce penetration is 3-4 times higher than in Russia.

E-grocery and FMCG (fast moving consumer goods) products became one of the fastest-growing categories on the platform, as self-isolation policies encouraged shoppers to buy everyday goods online. Sales in this category rose 170% to RUB 6.1 billion in Q1, and the number of orders jumped 200% to 5.5 million.

Ozon’s development of last-mile infrastructure and the quick onboarding of more than 2,800 delivery agents to the company's logistics platform stimulated sales growth in the Russian regions. In April, growth was particularly noticeable in more remote regions and cities, where e-commerce sometimes offers the only opportunity for shoppers to choose from an unlimited range of goods at reasonable prices. For example, Q1 sales increased 179% in Siberia and the Far East, 250% in Krasnoyarsk, and 673% in the Nenets Autonomous Okrug.

Even in conditions of higher demand, the percentage of parcels delivered on time was 94% and 93% in Q1 and April 2020, respectively. This was made possible by Ozon’s long-term focus on developing its infrastructure and creating a sound technological foundation for efficient logistics management. 

As customers increasingly transition from offline to online shopping, e-retailers must respond with a rapid expansion of their assortment, which Ozon considers the most important factor for growth. Sellers on the Ozon Marketplace already account for some 80% of the site’s assortment. By the end of Q1, approximately 9,000 companies had active sales on the platform, with the number of sellers increasing to 10,500 by mid-May. Amid the coronavirus pandemic, online marketplaces effectively became the only sales channel for many companies, which were no longer able to sell through brick-and-mortar locations. The sales opportunities offered by the marketplace also contributed to the launch of new Ozon partnerships with large retail networks. This spring, Russia’s largest consumer electronics retailer M. Video-Eldorado Group, Decathlon and OTTO Group joined the Ozon Marketplace.

Ozon CEO Alexander Shulgin noted:
“While many people will be happy to return to offline shopping to the extent possible, millions of Russians have developed a new habit – they enjoy buying different types of products online and doing so more often. Our forecast of more than 100% growth this year remains in force. I believe that in addition to the range and the availability of different delivery channels, the most important driver for growth in 2020 will be our quality of service. It became a distinguishing factor during the period of self-isolation, and I believe that many customers will continue to choose shopping online on specific websites based on this particular factor.”