The data garnered by QIWI and LeRee (a LeEco holding subsidiary) from the big sales at the official online store LeMall.ru on 11 and 25 November 2016 (“Singles Day” and “Black Friday”, respectively) demonstrates that the Russians prefer paying on delivery to paying online at checkout.
The percentage of Russian buyers who chose to pay on delivery at LeMall.ru was 45% on the Singles Day, rising to 76% in the next big sale “Black Friday”. In December 2016, 78% of online orders were paid on delivery.
Given LeRee’s sales pattern where the main products are smartphones Le 2 and Le Max2, the average checks are virtually identical, but QIWI’s data on the European e-commerce market indicates that the average check tends to go up about 60-70% if pay on delivery is available. According to LeRee, the availability of this option from QIWI helps to increase sales (conversion rate and the number of orders) by more than 30%.
Typically for e-commerce, the two capitals, Moscow and St. Petersburg, stand out from other regions, with 42% of orders being paid on delivery. Among other areas in Russia where the new option is popular are the Krasnodar Territory, Rostov Region, Sverdlovsk Region, Republic of Tatarstan, Nizhny Novgorod Region, Chelyabinsk Region, Samara Region, Novosibirsk Region, Perm Region and Republic of Bashkortostan.
Just as a reminder, Pay on Delivery went online at LeMall.ru on 11 November 2016. Buyers can pay for smartphones and accessories ordered at LeMall.ru directly to the courier in cash or by card. This unique service for cross-border e-commerce was made possible through LeEco’s cooperation with QIWI and logistics company SPSR.
Today, LeRee is the only online store in the Russian segment of cross-border e-commerce where QIWI is offering pay on delivery, but in 2017 QIWI plans to offer it to other foreign online stores and marketplaces where QIWI is available as a method of payment.