OZON.RU is the largest e-commerce company on the Russian speaking Internet, selling millions of products per year. Current product range consists of over 450,000 units available from OZON.RU's warehouses. 2008 Turnover: >$100 million, staff: 730. Investors in OZON.RU are Baring Vostok Capital Partner (Yandex), Index Ventures (Skype, last.fm, MySQL a.o.), Holtbrinck Ventures (Bol.com), Cisco.
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
OZON.ru Annual Report 2008 (published April 2009)
1.
2. Dear partners and friends,
2008 was a year of success ery system which was in
for OZON.ru! In April, we troduced in September in
celebrated our 10th anni Moscow and Saint Peters
versary; in June, we started burg: orders placed before
building our new warehouse 3:00 MT PM, are delivered
in Tver; in December, de the next day upon the cus
spite the difficult economic tomer’s request.
environment, we estab
lished a set of new records Furthermore, we have mas
for 2008 – total turnover of sively spread our network of
12,3 mln. USD, 2500 orders regional delivery agents, and
delivered by couriers in Mos now cover over 20 regional
cow and Saint Petersburg cities. All our agents deliver
per day, one of the Moscow parcels, process cashonde
collection points distributed livery payments and accept
800 orders per day. returns.
The 55% growth in total As you will see in the follow
Our reaction to the economic
ing pages, OZON.ru is in
$102,4 mln company sales downturn was fast and deci
excellent shape and stands
is excellent and proves that sive: between October and
ready to increase its market
our strategy of broad assort November we implemented
share in 2009. Each of its
ment and low prices is cor important cost and cashsav
operating companies is fo
rect. ing measures which enabled
cused on a specific area of
us to strengthen our cash
In 2008, we processed and the ecommerce valuechain,
position, almost completely
delivered 1,268,724 or- with a strong and dedicated
eliminated inventory risk, and
ders to our customers, in- team at its head.
moved further toward building
cluding 2,937,915 books. our new warehouse in Tver.
We expect 2009 to mark an
acceleration of the penetra
We consolidated our position In Spring 2009, we start
ed OZON-TRAVEL to give tion of ecommerce in Rus
in new product categories
sia, and OZON.ru will lead
(Home and Decor, Cosme OZON.ru a footfold in the
this trend.
tics, Sports and Leisure) which fast growing travel business
show extremely high growth in Russia. It gives our clients
Best regards
and large potential. an opportunity to book and
Bernard Lukey,
buy a wide assortment of
CEO
The other important achie travel products, including op
OZON.ru Internetshop
vement is the fast deliv tions for individualized tours.
1
3. OZON.ru turnover in 2008 Much attention is paid to the de development, information and awarded (among other awards)
velopment of operational and feedback schemes existing in with many national prizes award
is $ 102,400,000 logistic systems, information society. ed for industry excellence, such
technology, customer services During its eleven year history, as the “Russian Commerce Ol
and goods delivery departments. OZON.ru has always been a pi ympus” award, and “Best logis
OZON.ru applies the most mo oneer and innovator of the Rus tic operator in Russia” diplomas
OZON.ru Total Turnover, USD, mln
dern system in Russia to register, sian ecommerce market. of honor.
process, and dispatch orders. It OZON.ru puts into practice all According to Runet research
110
the newest technical and intel agency ROMIR, OZON.ru is
100 lectual innovations, which make considered to be one of the most
102,4
the Internet shopping process popular national Internetshops.
90
through OZON.ru convenient OZON.ru is a member of In
80
and attractive. ternational Club of State Hermi
70 Being one of the largest В2С tage Friends, and sponsors serial
66,1
projects in Russian ecommerce, publications of popular scientific
60
and providing the widest as books “Hermitage Halls and
50
sortment of cultural goods in Buildings”.
40 the Russian language, we con
sider that our mission is to pro
34,3
30
supplies its customers with unique vide our compatriots no matter
20
webservices and a convenient where they are on the planet
19,5
10 search system. Earth with access to our prod
12,8
OZON.ru offers its clients the ucts so that they can maintain
5,96
3,5
0
highest and the most modern lev links with their heritage and na
2002 2003 2004 2005 2006 2007 2008
el of services at all stages of the tional culture.
order process. OZON.ru’s shop OZON.ru always observes pro
OZON.ru is the largest Russian the already compounded elec tal Partners», which made a supports 18 methods of pay tection of consumers’ acts and
Internetshop offering books, tronic bibliographical catalogue $4,800,000 investment. This ment and 14 delivery options. copyright laws.
movies, music, electronic equip and through the Internetshop gave OZON.ru a unique oppor The partners of OZON.ru are
OZON.ru Public Recognition
ment, photo devices, mobile one might purchase books being tunity to develop and improve its the most wellknown providers
phones, software and multimedia discussed. chosen business model. of electronic payment systems, OZON.ru is an innovative lead
games and a lot of other goods. At first OZON.ru founders aimed All the directions of the project banks and financial institutions, er in the ecommerce service OZON.ru is one of the founders
at creating an effective and sca began to develop rapidly when including the Russian mail, TNT industry. OZON.ru’s activity in and active members of the Inter
OZON.ru history is a story of lable business: on the one hand, its operational base was moved and CPCR post services; all ex developing and introducing e net and Business Association cre
success and development. The In building a logistic and operation from Saint Petersburg to Moscow. ports are processed by the Rus commerce standards; delivery of ated in 2007 by Russian leading
ternetshop was opened in 1998 al structure providing order regis The existing assortment of books sian International Post. premium quality services and in Internetcompanies in order to
and became one of the first tration, processing and delivery, and music discs was widened. Eleven years of hard and creative novative technologies has been develop educational programs,
prominent ecommerce projects and on the other hand offering Video discs, computer games work carried out by OZON.ru’s staff highly appraised by the profes coordinate organizational ef
in the В2С segment. Initially, it the newest and the most conve and software were added; a sec and the trust of millions of our sional community. OZON.ru was forts establishing legislation for
was started by a group of enthu nient webservices, which would tion of old and antiquary books customers, has made OZON.ru the whole Internet businesscom
siastic fantasy and fiction lovers make Internet shopping simple appeared later. In the middle of the most well recognized and munity. OZON.ru is an organizer
from Saint Petersburg, who cre and accessible for Russian users 2005, website visitors got ac highly regarded Internetshop in and an active participant of the
ated a special Internet resource all over the world. cess to electronic devices, com Russia. annual Internet and Business As
for exchanging opinions about As time passed, the Internetshop puter equipment, photo prod sociation conferences. This year
OZON.ru Mission
favorite literary genres and new constantly needed to update its ucts and mobile phones. Over OZON.ru will take part in the
books. During discussions, par logistics and technical setups, the years, OZON.ru has turned The Internet is more than tech United conference2009, orga
ticipants expressed interest about which required additional in from a cultural goods shop to a nology. It is an absolutely new nized by the Internet and Busi
where they could buy their fa vestments. In December 1999, web supermarket with the wid spirit of life that helps to sat ness Association and Russian
vorite books. So the idea of an OZON.ru became one of the est variety of goods. Today each isfy mankind’s numerous needs. Public Center of Internet Technol
Internetshop was born. The shop first Internet related investment customer is offered more than The Internet has and continutes ogies (ROCIT).
was supposed to be based on projects of «Baring Vostok Capi 450 000 articles to choose from. to radically change systems of
2 3
4. It increases the chance to find a
OZON.ru Audience
rare book without leaving the site.
Our clients buy first and foremost
books, then DVDs, software and
music. We strive to make the serv
ice more convenient and OZON.
New at OZON.ru
the clients’ database. OZON.ru ru a comfortable place for selling
Number of Accepted Orders,
has an active customer base of OZON.ru’s website is a person and buying things.
thousands
over 400,000 users who make at alized dynamic Internet resource
4000
Advertising at OZON.ru
least one order every six months. which has no analogue in the Rus
3500
Most OZON.ru clients (65%) are sian ecommerce industry. OZON.ru is an Internetshop which
3000
over the age of 19, but less than succeeded in transforming its shop
2500
Personalized
35 years old. Men (57%) prevail window into a very popular in
2000 3938
Recommendations
3371
over women. 60% of OZON.ru’s teractive area with high level of
1500
2656
clients list their income as higher In September 2007, each regis credibility. OZON.ru offers places
1000 2175
1555
than average. tered OZON.ru client was given a for advertising banners with refer
500
832
0
Every day OZON.ru’s web site is personal webpage with a number ences to inner website pages (for
2003 2004 2005 2006 2007 2008
visited by over 230,000 unique vis of articles selected on the basis of instance, to a detailed description
itors. Each month OZON.ru’s clients automatic analysis of such client’s The inquiry results show that 85% zine also serves as an informative of the product, or to a catalogue
OZON.ru is the most famous In record on average 7,000,000 ses site behavior. Order history, bas of interviewed customers appre guide to all that OZON.ru offers. branch). It also delivers informa
ternetshop operating in the Rus sions and review over 40,000,000 ket contents, searched items and ciate the recommendations pro tion to all its customers; including
C2C Selling at OZON.ru
sia market. According to IPSOS pages. comments are compared with oth vided by OZON.ru. promotion samples, souvenirs and
quantitative research conducted In order to study customers’ behav er clients’ preferences. Such anal OZON.ru allows its clients not only other advertising articles through
OZON.ru WEB-Site Content
in March 2009, 93% of Russian ior and monitor key webmetrics, yses and comparison form unique to buy products through its web insertion of such information in
Internet users know OZON.ru In OZON.ru partnered with OMNI personalized recommendations. A The website’s greatest advantage site, but also to sell products. C2C parcels with orders. Special con
tent projects such as “Author’s
ternetshop, over 47% of those TURE Inc, the worldwide leader customer may take part in forming is its information and reference project started in December 2007
Week”, and concrete promotion
interviewed constantly buy on in online business optimization. his personal window and adjust section, in particular, bibliogra and is developing rapidly. Now
such as “Product of the Day”
OZON.ru. In 2006, OZON.ru implemented his recommendations system. Each phy, movie and discography, per more than 10,000 clients use this
At the beginning of January “Site Catalyst” web analytics tool, recommendation is given with a sonalities’ basis, and archives of service and every day approxi are effective advertising techniques
2009, the number of registered which allows to evaluate web suggestion to evaluate the articles personal opinions and reviews. mately 100 deals are arranged. used by OZON.ru. All these adver
visitors on OZON.ru’s website marketing campaigns, optimize recommended and the quality of All these elements are interrelat More than half of the products sold tising instruments and techniques
exceeded 2.77 mln. Every month page navigation. the tips. ed and form the reference body are second hand goods which are are specifically selected for every
60,000 new users are added to The efficiency of the recommen of the site. Most of the website’s no longer available at OZON.ru. partner.
dations system is proven by the content might be formed by its us
fact that 30% of cart additions are ers who place new information on
OZON.ru Audience, unique visitors
generated by this engine. personal pages or comments on
forums and take part in different
2008
2007
Instant Tips rating inquests. “Magazine” is a
Interrelations between goods and project of OZON.ru, and a part of
their features, such as author’s the website, where journalists and
name and publishing house; infor observer publish exclusive book
mation about what items are usu reviews, tell about new films and
ally bought together, etc – is used music albums; writers, actors, di
to define instant tips. The informa rectors and musicians write about
tion received is used to form such life and creation. Here a visitor to
marketing strategies as: “cus the website may find advice about
tomers who bought this item also gifts to give to their loved ones,
bought…”, what customers buy how to choose a computer or a
after viewing this item…”, “Best phone, theater recommendations;
y
y
ch
ril
ay
ne
ly
st
r
r
r
er
sellers of the section …” they may even win a ticket to a
be
be
be
ar
ar
gu
Ju
Ap
mb
ar
Ju
M
nu
ru
em
cto
em
Au
M
ce
b
Ja
concert or performance. Maga
pt
ov
O
Fe
De
Se
N
Source: Omniture.com
4 5
5. OZON.ru is the Runet Main E-Shop In 2008 OZON.ru sold
2 261 508 books
2008 OZON.ru Sales Structure (% from total turnover)
Sport & Cosmetics 1,9%
Toys 1,6%
Soft 4,9%
Antiques 4,8%
Others 0,1%
Average Cost of the Order Value, USD
Music 3,4%
60
OZON.ru: Books, Books, Books OZON.ru Internet shop is the per
Books 34,4%
The largest OZON.ru product manent participant in Moscow In
Movies 13,2%
50
on offer is is “Books” it contains ternational Books Fair.
300 000 titles: 130 000 in Rus
40
Home & Decor 1,8%
sian and 170 000 in foreign lan
$61
30
guages. OZON.ru has a universal
$57
Gifts 1,6%
assortment of: fiction, sciencefic
$41
20
tion; science popular, scientific,
$30
$27
$22
business, education and children’s
10 Electronics 32,2%
literature; manuals, sociopoliti
0
OZON.ru proudly considers itself inaccessible in traditional shops cal, historical and reference edi Over 57 000 music CDs and
2003 2004 2005 2006 2007 2008
one of the largest Russian web are available at OZON.ru. Eve tions; books on arts and books for 30 000 CDs produced by in
shops. Its product assortment in ry item is located on a separate gifts. The assortment foreign lan ternational major music labels
cludes over 450,000 items. page containing images, detailed guage books which include many are offered through OZON.ru’s
“Music” section. The assortment
description, and other necessary European languages is constantly
OZON.ru’s platform has unique information. increasing. In 2008 the quan includes music and vocals per
advantages which include: rich tity of books in foreign languag formed by national and foreign
2009 variety, rapid search, userfriendly OZON.ru effectively takes ad es increased by 55%. Annually composers and singers of differ
OZON Travel
interface and high class service. vantage of the Internet to extend OZON.ru sells over 3,000,000 ent genres and styles. Beginning
highly visual and informative in books which may well place it with 2009, OZON.ru presents
2008 The products on offer are sub formation about its goods and in the top ten of Russian retail more than 6,000 original Warn
Digital Books, Tickets
divided into sections. Items in services. Among the means used bookshops. In 2008, OZON.ru er Music CDs which will be de
these sections are arranged in are high quality photos; “turning introduced a new catalogue sec livered directly from OZON.ru
Gifts, Sports & Leisure
OZON.ru Movies and Audio
the catalogues, which are con over the pages” function; video warehouse. OZON.ru also offers
2007
Beauty Salon, Jewelry,
House Appliances
Catalogues
stantly renewed. Search systems and music samples; reviews and 4,000 limited edition and exclu
which provide effective and rapid customers’ opinions, a system of Over 23.000 national and foreign sive CDs.
movies in the “DVD and Video”
search capabilities, covering a individual tips, crossreferences
2006
Home and Decor
Software and Multimedia at
wide spectrum of characteristics and inner banners. section are on offer. The assort
OZON.ru
ment offered comprises national
“Software and Games” section
and foreign classic movies; mod
2005
Electronics, Mobile Phones,
Photo and Video ern movies, national television seri presents computer games, home
2008 Sales Geography (% from total turnover)
als, author’s and intellectual mov and business computer software,
Abroad 1,5%
ies, children and animated movies, educational programs from na
CIS Countries 0,5%
2003 Russian Regions
documentaries, study and scien tional and foreign producers, also
Toys
24,7%
tificpopular programs. In 2008, videogames and consoles. Cur
the BLURAY video format became rently, the assortment consists of
2001
tion «VIP and Luxury Books», more popular and prices for DVD’s 10,000 items available for cus
Music, Soft, DVD
which resulted in sales of premium and Videos were decreased. Eve tomers. A priority for 2009 will
price books increasing by 97% ry month OZON.ru delivers over be the promotion of business soft
2000
Antique and Rare Goods,
compared to 2007. 135,000 DVD to its customers. ware.
Outofprint Books
Saint Petersburg
Moscow
16,3%
55,3%
1998
OZON.ru Establishment, Books Moscow Region 1,7%
6 7
6. In 2007, sales of electronic devices, OZON.ru in Saint Petersburg
photo and video cameras and mobile Saint Petersburg is the place in Saint Petersburg. The main line river, the Internet shop offers its
where OZON.ru’s first Internet of business in Saint Petersburg is customers a unique possibility to
phones reached $24,800,000 shop started. The fact, that the antiques and the sale of old, rare enrich their collections with the
city has a reputation of the cul and antique books. Collaborating best and rarest books published
Electronics, Photo and Video, tural capital of Russia determined with the best booksellers and anti all over the world at all times.
2008 Electronics Sales, items
Mobile Phones and Household the specialization of it’s branch quarians of the town on the Neva
Accessories
Appliances. 11,2% Others
Out-of print and Old Books at OZON.ru
24,7%
Household appliances
6%
In autumn 2005, OZON.ru found OZON.ru’s books catalog in range of the most interesting, use The outofprint and old books
ed three new sections: “Elec- cludes the unique section of out ful and valuable books of different assortment is being formed ac
tronics”, “Mobile Phones” of print and old books. It is rightly genres. It means that a customer cording to the following principle:
Computers
and “Photo and Video” which considered to be the leader in In may find here not only the wide “Second life for the best books
3,7%
cover a wide variety of digital ternet sales of old books, albums, popular books but also the editions published over the last 50 years!”
Computer accessories
electronic equipment, computer collected works, encyclopedias printed with small number of copies. It means that through OZON.ru
Digital cameras
16,8% 4,4%
devices and accessories, photo and entire libraries. Currently, the OZON.ru also provides a unique you can find publications verified
and video cameras, and mobile OZON.ru outofprint and old service to clients who are unable by time and still required by real
phones. books catalogue contains over to or unwilling to search for such connoisseurs.
Mobile phones
Today this category of goods is 30.000 books published over the books in other libraries. All books
33,2%
the most rapidly growing sec last 50 years. on offer in this catalogue section
tion in OZON.ru catalogue – in The main task of this activity is to are in good or well condition with
Catalogue New Sections
2008 the turnover increased present to its customers a wide no page or picture exceptions.
by 76% compared with year
In “Home and Decor” section
2007, and it was 32.2% of total OZON.ru actively penetrates into
OZON.ru sales. new commercial niches, develops the wide range of textile goods,
In 20072008 a new section new territories, and does its best kitchen utensils, decor utilities,
“Household Appliances” was to take into consideration con season goods for house and gar
opened. It offers popular goods sumers’ and Internet site visitors’ den from wellknown Russian and
for the home, kitchen, and music opinions and requests. European producers are on offer.
“Gifts” — one of the most rapid
equipment made by the world After the successful start of “Elec
leading producers. tronics” section, in 20062007 ly developing section at OZON. describes them and makes adjust
OZON.ru offers only premium OZON.ru founded the sections ru, is accessories for ladies and ments before putting the articles
“Home and Decor“, “Gifts”,
quality goods which have all gentlemen, business and VIP sou on sale. In 2008, the turnover of
“Sports & Leisure”, “Beauty
required licenses and certifi venirs, which now total more than this section increased by14.5%
Salon”.
cates. 3,000 items. compared with the year 2007.
At “Sports & Leisure” the In the beginning of 2009 a new
section – “Handmade section”
OZON.ru visitor could find prod
ucts useful in sports, travel jour with batiks, tin soldiers, glasses,
neys, countryside recreation. This ceramics, gems, watercolors,
section now contains 3,500 items. leather goods was introduced.
“Beauty Salon” was started at
Antique Books and Rarities at OZON.ru
OZON.ru in 2007, and contains
more than 2,000 items of 150 The antique section is obviously the assortment of this section con
world leading perfume and cos of great interest for lovers of rare tains over 3,000 unique goods
metics brands. OZON.ru has the things. It offers antique books and The antique books and rarities
stable reputation of the online rare objects – antique graphics, section is operated by the Anti
shop with one of the widest rang ancient luxurious books editions, quary Department, whose per
es of high quality and original ceramics and porcelains, old sonnel determines the assortment
perfume and cosmetic goods. photos and postcards. Currently offered, searches for rare articles,
8 9
7. OZON.ru New Projects OZON.ru New Projects
OZON–TRAVEL – a New Strategic Business Unit Digital Content at OZON.ru
easy and reliable booking platform mats and are significantly cheap
and convenient payment options. er than traditional books. All dig
The project’s potential hinges on ital books offered by OZON.ru
strong technological, marketing and are sold with the copywrite hold
operating experience of OZON.ru ers’ permission.
in the area of ecommerce and ris Today, the assortment of the cat
egory “Digital books” has more
ing demand for uptodate and con
venient tools to purchase tickets and than 2,500 digital books of vari
tourist products. ous genres available for down
OZON-TRAVEL offers a unique loading.
technological solution which can In the fall of 2009, OZON.
be used not only to buy electron ru plans to enter the market of
ic air and railway tickets, book digital musical content. Co
a hotel room or arrange airport operation with world leading
transfer, but also to plan a multi record companies will enable
stay trip at a reasonable price. OZON.ru customers to access
High level of trust and loyalty of more than 1,000,000 tracks of
Electronic tickets, various tourist approaches, immediately after the client base of OZON.ru as domestic and international art
products and business trips for a the completion of booking and well as proven logistical schemes ists.
long time have been one of the payment for the ticket, a customer will facilitate success of this strate In spring of 2008, OZON.ru One memory card can accommo Our mission is to make OZON.ru
main categories of the global receives email containing a route gically important project. started to sell digital content. Dig date hundreds of various digital the largest online resource in Rus
OZON-TRAVEL is an online trav
ecommerce market. Last year receipt. All information about the ital books have become the first books. Usually, digital books are sia selling legal digital musical
around 52% of all airline tickets booking (personal passenger el agency which offers very flex type of content for this new busi available in several popular for content.
sold globally were distributed data, route details and price) is ible online booking tools for both ness direction and can be found
in the “Books” category of the
electronically. stored electronically in each car separate services (tickets, hotel
Online booking systems enable rier’s database. rooms, transfers) and packaged OZON.ru website.
customers to buy railway and air In spring, 2009, OZON.ru tours, providing customers with a Digital books are books in the form
launched OZON-TRAVEL. The
line tickets without queueing up at wide range of best offers from re of computer files. Customers can
the ticket office as well as quick main goal of this project is the de liable tour operators and carriers. make an order and pay for digital
ly and accurately choosing and velopment of a hightech online Its mission is to make every jour media by means of credit card or
changing the planned time, des booking system which will offer ney comfortable and economical other electronic payment methods.
tination, means of transportation customers superior quality service, for its customers. Then, the file is downloaded from
and excursions. Internet booking the webpage to the customer’s
is also very convenient when it is computer, other mobile devices (mo
necessary to make an optimum bile phones, communicators, smart
business trip route taking into ac phones) or special gadgets for read
count personal preferences. ing books in electronic format.
Although, in Russia, this segment Digital books do not compete
of ecommerce has just started to with traditional books but rather
gain popularity, it is clear that it complement them. In many cases,
can have great growth potential it is more convenient to read dig
considering the country’s size and ital books. For instance, on vaca
location. The start of eticket sales tion it is easier to take a special
in Russia has accelerated the device for reading books or use a
process. Through electronic sales regular communicator.
10 11
8. “Borovlevo-2” “O-Courier”:
Number of Completed Orders,
thousands
• Territory – 7. 65 ha • Moscow – up to 4 000 orders per day
1200
• Area – 12.0 thousand • Saint Petersburg – up to 2 000 orders
1000
800
square meters per day
1 296
600
998
OZON.ru Integral Operational and Logistical System O-Courier Company: Rapid and Reliable Delivery
400
729
OZON.ru has a unique modern orders and check their correctness In Moscow and Saint Petersburg,
625
452
200
integral operational and logisti as well as to keep accounts. where the majority of OZON.ru
249
cal system based on its inhouse The main element of the op customers live, OZON.ru has in
0
ITplatform. erational and logistical system tegral logistics and delivery sys
2003 2004 2005 2006 2007 2008
It enables the company to ef of OZON.ru is the warehouse tems which enable it to guarantee
ficiently offload merchandize, “Borovlevo-2”, which is lo two warehouses in Moscow and its customers 24 hour order de
place it on the shelves, assemble cated in Tver. Besides, there are SaintPetersburg. livery from the moment the order
was taken or on the same day by
express delivery service.
In 2008, O-Courier delivered O-Courier offers uptodate high
more than 1,000,000 orders, quality services through order tak
85% of which were received by ing, processing and delivering.
customers of OZON.ru. All de The company assumes the follow
partments within OZON.ru are ing functions:
connected by means of a global • Telephone contact with cus
June, 2008. Laying of the foundation September, 2008. Constructing of the February, 2009. Beginning of inte-
information system which facilitates tomer to arrange the time and
stone. Governor of the Tver region main building. rior decoration works.
immediate information updates terms of delivery;
D. Zelenin and CEO of OZON.ru
and synchronization of activities. • Order delivery to customer
B. Lukey.
Operational and Logistical Complex “Borovlevo-2” One of the main departments, its by courier or at a collection
Opened in 2009, the complex can be sent per year. Around 450 perts are assisting OZON.ru to de warehouse, is operating 24 hours center;
“Borovlevo-2” was constructed people, mostly residents of Tver, fine the optimal logistics concept, a day which makes next day de • Cash collection from client;
O-Courier which is specializing
in the industrial zone nearby Tver. are working at the complex. from merchandise flows operation livery for the majority of customers • Set of necessary documents,
The total area of building exceeds The total investment in the Borolv system and goods registering to in courier services is responsi possible. Key logistical operations including cash receipts, given
12,000 square meters. The mod levo2 project including construc shipping process planning. Their blefor order delivery and order are performed at night, while day to customer;
ern telecommunication and logistics tion of building and purchase of consultants provide OZON.ru collection at points in Moscow, time is used for the customer serv • Receiving and processing of
equipment enables “Borovlevo-2” technological equipment amount with access to the latest knowhow Moscow region, Saint Peters ice and processing of incoming orders returned by customer;
to process up to 7.6 m of inventory ed to $20 mln. Our partners in about efullfilment. burg and its region. There are and outgoing shipments. • Reporting and accounting.
The complex “Borovlevo-2” is
units per year. Besides, up to 4 m designing and technical planning more than 100 couriers deliver
unique items can be accommodat are the leading international com the largest logistical facility for ing daily up to 2,500 orders to
ed on the shelves of the warehouse panies Swisslog (Switzerland) and ecommercerelated business in OZON.ru customers in Moscow
at one time and up to 4.7 m orders DOCdata (Netherlands). Their ex Eastern Europe. and up to 600 orders to those in
Saint Petersburg. The network of
collection points is comprised of
3 own points and more than 40
partner points in Moscow and
the Moscow region and 2 own
points in Saint Petersburg. More
than 2,900 orders per day are
dispatched to customers at the
collection points in Moscow and
Saint Petersburg.
12 13
9. OZON.ru Regional Expansion OZON.ru – more than 700 employees
High level of regional Internet tive advantages OZON.ru re ers. Partner companies provide
penetration in Russia, banking in gional expansion. more than orders delivery but
frastructure and channels of com Traditionally OZON.ru gives its cash collection from custom
munication quality improvements customers the option to choose ers and return orders process
lead to active Internet use both how they would like to pay and ing. Partner companies allow
as a free information source and take delivery. Today, OZON.ru OZON.ru to reduce delivery
as a tool for purchasing goods customers have 18 payment and time and to personify OZON.
and services. It`s increasing the 14 delivery options. OZON.ru’s ru in the eyes of regional cus
OZON.ru’s popularity in Russian primary delivery partners are tomers, thereby increasing their
regions. “Russian Post”, TNT and CPCR. confidence both in OZON.ru
Though ecommerce in Mos Today Russian post services can and ecommerce in general and
OZON.ru is a dynamically de acknowledged and appreciated. OZON.ru Staff
not provide rapid delivery to cus as a reliable and efficient way veloping company with a quali OZON.ru invests in programs that
700
tomers. One of the ecommerce of shopping. fied staff of 740 professionals, increase personnel loyalty, moti
advantage is not only the wide A strategic way to improve the ambitious and committed to busi vation, assistance in adaptation, 600
assortment but also a possibility delivery service in regions is to ness. training and professional selfre
500
to receive an order in time. increase the number of partner Among them those who recently alization.
Using fulfillment and delivery ex companies by providing courier came and introduced new skills, The corporate culture of OZON.ru 400
740
perience in Moscow and Saint order delivery and managing of and those who for many years is based on mutual respect, posi
614
300
Petersburg OZON.ru extends collection centers; to raise quality work with OZON.ru and have tive thinking, partnership be 539
cow, Saint Petersburg and other courier delivery service and of services and to reduce the time unique experience in the ecom tween managers and subordi 200
317
large cities are well established, opens collection points in the re of order delivery. In 2009, it is merce industry. nates. 215
100
Russia’s regional users are mak gions. planned to introduce time stand The results reached by every All the company’s branches, irre 142
ing their first steps toward Inter 22 largest Russian cities with 19 ards for regional order delivery professional as well as the suc spective of their location, follow 0
2003 2004 2005 2006 2007 2008
net usage, including purchasing million inhabitants have courier and obligations to observe them. cess of a project group in effec the same principles of personnel
goods which are not accessible delivery and collection points OZON.ru is an Internet shop that tive realization of their ideas is management.
in local retail shops. A wide va provided by partner companies. gives access to both a wide vari
riety of goods, one price for all Collection points located in the ety of goods and a high quality of
regions and rapid delivery to the down town and fully equipped services to all Russians irrespec
customers are the main competi for the convenience of custom tive of their residency.
14 15
10. OZON.ru Team
Victor Bondarev Kirill Grodinsky Alexey Timonin Elena Orlova
First Deputy CEO Chief Operation Chief Marketing Chief Financial
Officer Officer Officer
Bernard Lukey
Chief Executive Officer
Natalia Alieva Alexander Alekhin Alexey Vaisberg Nikita Dobrynine
Chief Accountant IT Director Purchasing Director Commercial Director
Oksana Chertilina Tatiana Yanina Mikhail Yatkovsky Anna Matveeva
Legal Department HR Director PR Director Director,
Director St. Petersburg Branch
Mikhail Gritsenko Yevgeny Anna Tsygankova
Tikhomirov
General Director, General Director,
OCourier Co General Director, Internet Travel Co
Internet Logistics Co
16