Russian and Ukrainian e-commerce sales plummeted by 53% and 96% respectively

On Wednesday, FreightWaves CEO Craig Fuller said that as the situation between Russia and Ukraine deteriorates, a second Cold War may be coming. The battle in the field of e-commerce has already begun, and the supply chain system will be severely affected .

According to data from Signifyd, on February 24, the day Russia entered Ukraine, Russian e-commerce sales increased by 7% compared to the beginning of the month. But the next day, its e-commerce sales plummeted by 43%, and then fell by 53%. At the same time, e-commerce sales in Ukraine have fallen by as much as 96% since February 1.

Fluctuations in Ukraine’s e-commerce sales in February

Mark Delaney, vice president of supply chain service provider FourKites , said that the situation between Russia and Ukraine is developing rapidly , and the number of goods entering Russia is currently declining significantly . Companies such as Maersk and MSC have suspended their operations in Russia , and Russia's total shipments have fallen by 17% compared to February 16 .

In fact, before the outbreak of the Russian-Ukrainian war , the e-commerce supply chain system was already under tremendous pressure due to the increased demand for products during the epidemic . The outbreak of the Russian-Ukrainian war will inevitably increase the prices of oil , natural gas and some other commodities , and will further put pressure on the global supply chain system .

It is reported that nearly a quarter of the world's grain is produced in Ukraine . The outbreak of the Russian-Ukrainian war will directly affect consumers' daily diets, and the price of commodities such as bread will rise. At the same time, the price of minerals mined in the two regions will also rise, such as nickel, which is essential for the production of batteries . However, electronic retailers will not bear these costs , and they will eventually be charged to consumers.

However, these rising costs will not be reflected in the form of shipping costs. Users of e-commerce platforms, including Amazon , have become accustomed to free shipping services . At this time, sellers usually increase product prices . Even if the Russian-Ukrainian war ends soon, it may take several months for the prices of these goods to return to normal.

While e -commerce is sticky, the longer the conflict between Russia and Ukraine lasts, the more headwinds e-commerce faces from inflation and price increases , and the more volatile demand will become. Every week this continues has an unimaginable impact from a supply chain perspective .

Cross-border e-commerce market

Russia

Ukraine