The rise of digital platforms and new realities in commerce
Over the past decade, Russia’s e-commerce market has witnessed explosive growth. Since 2015, online sales have expanded more than tenfold, approaching nearly 9 trillion rubles by 2024. Two platforms — Wildberries and Ozon — dominate the market. Their turnover has set new records in recent years, and these companies have become the country’s largest advertising platforms, rivaling the influence television held decades ago.
Today, it is these platforms that decide which products the customer will see. Ranking algorithms and recommendation systems create personalized selections based on user behavior, reviews, and ratings. As a result, a product’s chances of selling depend directly on its position in search results: items that make it to the top receive maximum attention, while the rest are almost invisible.
The evolution of marketing: from television to digital platforms
Experts distinguish several stages in the development of marketing in Russia. At first, television advertising dominated, then retail chains took over, and the era of internet marketing began. The current stage is defined by the full integration of all promotional functions within marketplaces. Here, information, distribution, and demand generation are combined, with automated advertising management systems playing a key role.
Over 80% of online advertising budgets are distributed through automated auctions. This approach allows for highly precise ad targeting, but at the same time increases sellers’ dependence on platform algorithms. Companies are forced to adapt to the platforms’ requirements in order to maintain visibility and sales.
The impact of platforms on competition and pricing
As marketplaces gain influence, the structure of competition is also changing. Success now depends not only on price and product quality, but also on how effectively a seller engages with platform algorithms. New market entrants find it increasingly difficult to reach top rankings, and the cost of advertising services rises due to auction-based mechanisms.
At the same time, a certain balance is maintained in Russia: competition among the largest platforms prevents any single one from fully dominating. The two market leaders together hold no more than 80%, which sets the Russian market apart from Western ones, where Amazon holds an almost monopolistic position.
Legislation and new rules for business
As platforms grow more influential, government regulation is increasing. In the near future, a new law aimed at protecting sellers’ interests and restricting the market power of marketplaces will come into force. The new regulations are expected to help suppliers defend their positions more effectively in negotiations with platforms.
Experts note that the success of regulation will depend on how flexibly and thoughtfully the new rules are applied. It is important not only to protect sellers but also to maintain the competitiveness of platforms as an effective form of trade organization. Russia already has successful experience in joint standard-setting between the government, platforms, and manufacturers, which helps avoid mistakes in law enforcement.
Omnichannel Sales and Seller Strategy
Modern marketing is becoming increasingly omnichannel. Companies are integrating online and offline sales, but must also comply with the standards set by marketplaces. To succeed on these platforms, sellers need to understand how recommendation systems work, analyze the return on investment in promotion, and experiment with different channels.
Major brands are in no hurry to abandon their own websites and traditional retail. Despite the dominance of marketplaces, alternative sales channels continue to play an important role and help diversify risks.
If you didn’t know, Wildberries and Ozon are the largest marketplaces in Russia, and in recent years they have radically transformed the structure of Russian e-commerce. Wildberries was founded in 2004 by Tatyana Bakalchuk, starting as a small online clothing store. Today, the company leads in both sales volume and user numbers, offering millions of products across a wide range of categories. Ozon, launched in 1998, initially specialized in book sales, but over time has evolved into a comprehensive online shopping platform. Both companies actively invest in logistics, proprietary IT solutions, and advertising services. Their success is largely due to their flexible adaptation to ever-changing market conditions and the ongoing implementation of new technologies. In recent years, Wildberries and Ozon have become not just marketplaces, but powerful tools for brand promotion, with their algorithms determining which products gain the most attention from buyers. Despite fierce competition, both platforms continue to grow and increase their influence, setting new standards for the entire e-commerce market in Russia.
