Easy entry into the Russian

e-commerce market

Roman Decker

Project Manager, SCHNEIDER GROUP

E-COMMERCE BERLIN EXPO

Agenda

Russian e-commerce market

Localization of distribution via agents

Advantages

2 accounting | ERP | import | legal | tax

Agenda

Russian e-commerce market

Localization of distribution via agents

Advantages

3 accounting | ERP | import | legal | tax

Russian e-commerce market

4 accounting | ERP | import | legal | tax

Growth of the e-commerce market in billion RUR

5 accounting | ERP | import | legal | tax

Russian e-commerce market

Growth of cross-border sales in billion RUR

6 accounting | ERP | import | legal | tax

Russian e-commerce market

Deliveries from foreign online stores to Russia

(in million deliveries)

What do people in Russia buy in foreign online shops?

7 accounting | ERP | import | legal | tax * Source of information – based on AKIT, Data Insight, RAEK, RBC and PayPal surveys

Main interested segments

Cross-border selling - Current Status

Cross-border selling: Goods are purchased at the foreign online-shop

and shipped directly to the consumer in Russia

8 accounting | ERP | import | legal | tax

< 1000 €, max. 31 kg > 1000 €, > 31 kg

One product No Customs payments Import VAT: 18%

Customs duties: depending on HS Code

Several products No Customs payments 30% Customs duties,

but min. 4 € per kg

Cross-border selling - Upcoming Regulations

16 November 2016: The Eurasian Intergovernmental Council gave the following

suggestion to the the Eurasian Economic Commission (EEC) in order to lower

the allowance:

9 accounting | ERP | import | legal | tax

2017 1000 €

2018 500 €

2019 200 €

AKIT (Association of Internet Trade Companies) pushing for the blocking of foreign

online websites which are not paying VAT in Russia

AKIT wants a significant reduction of this relatively high allowance to € 22

(European standard) to promote equality between foreign and local online stores

KUPIVIP, OZON and other big online market places plan to outsource their

warehouses in order to start cross-border sales and avoid customs payments and

certifications costs

High pressure on the Eurasian Commission to speed up the reduction of the

allowance and the minimization of cross-border sales

10 accounting | ERP | import | legal | tax

Cross-border selling - Upcoming Regulations

Agenda

Russian e-commerce market

Localization of distribution via agents

Advantages

11 accounting | ERP | import | legal | tax

12

Order

Order Order

Transport Company Warehouse

Fulfillment Manufacturer

accounting | ERP | import | legal | tax

Russian speaking service hotline Processing of returns

Fast delivery Fewer lost items

Higher customer satisfaction rate and brand perception Multiple payment options

Advantages for Russian consumers compared to Cross-border sales:

Process overview

What should be included?

13 accounting | ERP | import | legal | tax

• ERP (1C System)

• Hosting (FZ-152)

• Hotline

• Accounting

• Warehouse

• Fulfillment

• Delivery (incl. Payment collection)

• Customs clearance

• Logistics handling

• Product certification

• Intellectual property

• Consumer protection

Legal Import

Back-

Office Logistics

Some of our references

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Registration of company, legal address

Import, Product certification

Interim management

Recruiting of personnel

Accounting outsourcing

Tax and legal advice

IT/ERP Implementation

accounting | ERP | import | legal | tax

SG e-commerce solution

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Russia

accounting | ERP | import | legal | tax

SCHNEIDER GROUP offers an ALL-IN-ONE Service for your Online-Shop

Support you with import, customs clearance and the distribution of products, without the

need of registering a company or recruiting staff.

Entire and transparent distribution infrastructure, in which SCHNEIDER GROUP manages

the orders as well as client payments, and takes care of all logistic processes including

delivery to the client.

Result

Complete e-commerce solution

Full logistics and import handling from a-z (including warehousing and delivery)

All technical aspects taken care of (ERP system, accounting, service hotline, order management, payment collection)

In 100% compliance with local legislation

16 accounting | ERP | import | legal | tax

Advantages

17 accounting | ERP | import | legal | tax

Individual Online-Shop for your brand

(No goods of competitors) Individual client consultation

(own hotline service)

Direct contact with clients

(Individual marketing strategies)

Control of the final price

Multiple payment options and fast delivery

(more potential customers)

100% compliant Import

No need for registering a company or recruiting staff

(cost savings)

Ready in only 2 months

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The exclusive right to the content of this presentation including the rights of translation, reproduction, transmittal,

distribution and usage of the presentation and parts of it, in any way, as well as the rights to the company’s logo and

name SCHNEIDER GROUP, in existing and future publications in printed or electronic form, and the ability to confer

rights to a third party belong to SCHNEIDER GROUP.

The reproduction, alteration, transmittal or any distribution or usage of this presentation or parts of it, as well as of

the company’s logo or name SCHNEIDER GROUP in any way, need the written permission of SCHNEIDER

GROUP in advance and shall be accompanied with the link to the SCHNEIDER GROUP website and reference to

the copyright permission. © SCHNEIDER GROUP www.schneider-group.com

18 accounting | ERP | import | legal | tax

Roman Decker

Project Manager

DeckerR@schneider-group.com

www.schneider-group.com

accounting | ERP | import | legal | tax

russia

ukraine

belarus

kazakhstan

germany

poland