E-commerce adoption in Russia: Market- and store-level perspectives

Abstract

E-commerce market development depends on a configuration of factors which can both enable its further development and hinder its adoption by consumers. In particular, emerging markets provide a range of opportunities for e-commerce; however, they are also associated with specific barriers, limiting the potential for fully exploiting these opportunities. With an Internet audience of 93 mln people, the Russian emerging market represents the largest online audience in Europe, allowing it to stimulate substantial e-commerce growth over the last decade. The main objective of this paper is to explore consumer perception of e-commerce adoption factors at two levels — macro-level factors associated with the overall environment, institutional factors and trust; and store-level factors associated with real consumer experiences. This multi-level approach reflects the complexity of consumer thinking about the market — both in terms of the evolving environment, which offers consumers opportunities to make decisions and purchases, and real experience, where product factors influence particular consumer decisions and are weighed by consumers as pros and cons. Our study is based on a survey of 3 387 respondents that represented the consumer perspective. The findings reveal the structure of the driving and limiting factors, highlighting the core role of the trustworthiness and transparency of the e-commerce market players, delivery conditions, and store-related risks.