Electronic Commerce is doing business online; it provides numerous benefits to a company eager to initiate the Electronic business. Company can locate customers or suppliers worldwide, at a reasonable cost and fast, company can facilitate innovation and enable unique business models, have direct interaction with the customers globally which helps in improved customer service and relationship, can conduct business operations virtually without interruptions as web sites can be open 24 hours a day every day of the year, improved supply chain management by reducing delays, inventories and cost.
The main objective of this study was to examine the role of E-commerce in Russian market. As case company `Tokmaani Oy` intends to start its business venture in Russia in near future, and moving to the new market requires many strategic skills to distinguish, this study provides a look to the current market position, competitors and market behaviour. The environment for e-business and key obstacles for doing business in Russia were examined and analysed with empirical data collected during the study. To understand the basic needs of this business medium the study is supported by electronic commerce theories, as well the tangible market analysis were conducted by collecting the information mostly from secondary sources.
According to the data collected during the study the Russian online retail market in 2011 worth 10.5billioninwhichphysicalgoodswere 7.8 billion. In year 2010 approximately 07 million people have purchased something online in one month. About 50% Russians with monthly earning 10,000 rubles spend something to buy online, while the group with highest income reaches almost 64%. Inhabitants of 10 big regions have almost 60% of the whole Russian internet users and most number of online customers in Russia. Indicators have forecasted that by 2020 the Russian electronic commerce market could reach 50billion,andinlongerterm100 billion, but fewer than two conditions, increase in the number of internet users and the solution of structural and infrastructural problems, in particular logistics.
In the categories of online sales of physical goods most in demand were books, electronics and smart phones, leisure and food industry products, cosmetics and beauty products, etc. E-commerce is increasing with a speed of almost 25% annually which makes Russia even more sparkling for international companies to start their business ventures. The time is right for the Finland’s very prevalent company `Tokmaani Oy` to initiate the Webstore like they have in Finland (Toknet.fi), in few years it will show on records the best strategic move
