E-commerce partially recovers, but pre-crisis buoyancy still far ahead

The Russian Postal Service yesterday reported a 21% average daily increase in the number of online retail purchases in May after a 6% average daily decline observed in April. However, overall online purchasing activity in May has remained below pre-crisis levels, the USRBC reported.

Some online retailers have noted that limited access to European and Chinese online stores due to Covid-19 restrictions has led to a marked increase in demand for domestic goods. While April saw a short-term spike in online demand for basic items such as food, disinfectants and personal protective equipment, the last few weeks have seen a broad-based increase in household items, clothing, and seasonal goods sales.

Some analysts have attributed the recovery in e-commerce to stronger consumer confidence and many online retailers’ rapid adaptation to Covid-19 restrictions. Additionally, many senior citizens have begun to shop online during the pandemic.

The National Association of Online Retailers has noted that the May recovery in sales has mostly benefited large online retailers while many smaller vendors may return to pre-crisis sales volumes no sooner than in the second quarter of 2021.

This story initially appeared in Marchmont Innovation News, Russia’s daily business news website.

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