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Ukrainian eCommerce 2023: Market Insights & Trends
March 15, 2024
12 min
After the devastating Russian full-scale invasion that unfolded in February 2022, the Ukrainian economy faced unprecedented problems that affected various sectors, which greatly affected the country's financial stability. We've already demonstrated the impact of a full-scale war in Ukraine in our previous articles.
In 2022, eCommerce in Ukraine underwent significant restructuring and adaptation following a rapid decline, and in 2023, it solidified its position in anticipation of a full-scale invasion. Many players successfully navigated this transformation, but not everyone.
In this article, we're delving into the statistics and insights regarding the Ukrainian eCommerce landscape in 2023.
"If in 2022 players across all niches were hesitant to invest advertising budgets at the levels of 2021, last year it became a necessity," says Julia Yatsenko, Head of Research and Strategy at Promodo.
According to EVO, nearly 10 million Ukrainians made online purchases last year. Among them, 1.5 million made their first purchase in 2023. The total value of goods and services sold online amounted to over UAH182 billion.
In 2023, the category of Groceries and Alcohol emerged as the leader in dynamic development in the online sphere. Retailers in this niche finally recognized the potential of the online market. In terms of income in dollars, the growth averaged 65% compared to the indicators of 2021. In hryvnia, the figures are even higher: +85%. It's important to consider that niche retailers actively transitioned to online platforms starting in 2022, and their growth has been gradual.
“The category has gained momentum. We anticipate that the number of players in this niche will continue to increase in 2024. Consequently, the cost per click is expected to rise, considering it was 56% lower than the 2021 figures last year". Julia Yatsenko, Head of Research and Strategy at Promodo
However, the average check in dollars, when compared to 2021, dropped by 10%. This indicates that customers who either entered or transitioned to online shopping are opting for either a more affordable cart or making frequent, smaller purchases.
The Electronics industry surpassed the 2021 figures. In 2023, the income in UAH increased by 17%, while in dollars, it grew by 2%. However, during the "golden season," the niche has not yet reached its previous peak performance.
The growth in this category began in the third quarter. However, in November, during the Black Friday period, the income in dollars was 7% lower than in 2021. It is important to note that last year, one of the significant players significantly reduced their presence in the market.
However, December 2023 performed significantly better. The growth in dollars amounted to 5%, while in hryvnia, it increased by 32%.
"Many retailers did not limit promotional offers to just the last week of November before Black Friday. In other words, the actual sales season extended into December. This once again proves that the Ukrainian consumer is highly responsive to discounts, yet their purchasing power remains intact. The dynamics also indicate that Ukraine has embraced the transition to the European model, where the concentration of holidays in December contributes to the growth in indicators". Julia Yatsenko, Head of Research and Strategy at Promodo
Another niche showing positive dynamics is Pet Care Products. The category experienced significant growth online in 2022 and maintained its growth momentum in 2023. However, consumer baskets remain stable. On one hand, Ukrainians are not experimenting, allowing retailers to rely on the stability of indicators. On the other hand, they are not yet ready to transition to more expensive goods.
"However, advertising budgets have noticeably increased compared to 2021. We observe a growth of 76% in dollars and almost double in hryvnia. The cost per click has also risen by more than 50%. The niche is overheated with players. In 2024, retailers are likely to focus on scaling those product categories that bring in revenue," shares Julia Yatsenko.
The Ukrainian Clothes and Footwear industry has not yet reached the levels of 2021, but it is developing dynamically as adult Ukrainians continue to buy clothing and footwear.
"Although the overall number of consumers in Ukraine has decreased, the online presence of buyers in this category is increasing. Ukrainians are learning to purchase clothing and footwear online. Of course, the restriction of access to offline stores has been a significant stimulus". Julia Yatsenko, Head of Research and Strategy at Promodo
On the other hand, the category of children's goods has been declining year after year, and according to Julia Yatsenko's forecast, it is not expected to grow in the near future. The income of players in this niche decreased by 41% in dollars and by 27% in hryvnia in 2023.
The niche only started to revive in July 2023 but did not reach the levels of 2021, even in hryvnia. According to Yatsenko's assessment, due to forced migration and depopulation, this category is the most pessimistic in the Ukrainian online market.
PR & Marketing Manager at Promodo
I am a former journalist and an ardent follower of the "Cut to the chase" principle.
Together with Promodo's marketing team, I tell about the most interesting things in the world of Ukrainian digital. No stories of successful success – only tips, figures, and working case studies from the leading performance marketing agency. By the way, I talk about our failures as well.
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