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Ecommerce

Analysis: Russian online shoppers prefer to pay on delivery

Tuesday 16 May 2017 | 10:01 AM CET

SPSR Express, QIWI and LeRee (a subsidiary of global technology holding company LeEco) have analysed the preferences of Russians when shopping in online stores in Q1 2017.

The findings were that the number of Russian buyers who prefer to pay for orders directly on receipt has grown 1.5 times compared to the end of 2016. This dynamic was demonstrated by the first experiment in Russia on providing the "Payment on delivery" service in a cross-border online store that started on November 11, 2016 on the LeRee - Le.ru online store.

Russians have become more likely to pay for goods when they receive a courier than to make online payment for an order in an online store. Thus, for the period from January to March of 2017, 73% of buyers took advantage of the payment option for delivery with QIWI in Le.ru online store, the remaining 27% chose to prepay the order on the site. For comparison, in November-December 2016, the ratio of buyers choosing between these two payment options was almost equal (49.5% and 50.5% respectively).

In most cases (89%), buyers choose delivery by courier, in other cases - pick-up from customer centers of SPSR Express delivery operator. Also, the share of cash payment in courier delivery is still high: only 12% of buyers choose to pay by card.

The ability to see the goods before payment is an important factor that influences the decision to make a purchase. This is confirmed by the growth of the average order value: in the Q1 of 2017, compared to the Q4 of 2016, it grew by 19% in the regions and by 28% in Moscow. According to LeRee, the availability of payment option on delivery from QIWI helps to increase sales (conversion, orders) by more than 30%.

According to SPSR Express, the residents of Moscow (53.8%), St. Petersburg (17.4%), Yekaterinburg (4.5%), Kazan (3.9%), Rostov-On-Don (3.8%) mostly use the option to pay on delivery. This method is also gaining popularity among buyers from Krasnodar, Nizhny Novgorod, Novosibirsk, Ufa and Chelyabinsk. The conversion of the QIWI check-out page with the payment option for delivery in the Q1 of 2017 exceeded 90%.

The service "Payment on delivery" was introduced on November 11, 2016 on Le.ru and allows buyers to pay for purchases on receiving an order. One can pay for the smartphones and accessories ordered on Le.ru directly to the courier in cash or a plastic card. This service for cross-border online-trade became possible thanks to the cooperation of LeRee with the QIWI payment service and the SPSR express delivery operator.

For more information about QIWI, please check out a detailed profile of this company in our dedicated, industry-specific online company database.

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