© OZON.ru 1

Challenges of

E-Commerce Logistics

in Russia

© OZON.ru 2

OZON Delivery in 2016

>800 couriers

• >1700 пунктов выдачи заказов

7,1 mio.

parcels to be

delivered in 2016

December 2015 –

1 parcel delivered

per second

>12 000

parcels delivered

by couriers in

Moscow per day

>150 online-stores

• >6 500 cities and

towns covered with

courier delivery

>2 450 of SPP

>99,6% SLA

© OZON.ru 3

OZON.ru Logistics Infrastructure

Central Federal District

1044 SPP

North Western FD

317 SPP

Volga FD

369 SPP

South FD

151 SPP

Urals Federal District

233 SPP

North Caucasian FD

57 SPP

Siberian FD

242 SPP

Far Eastern Federal District

50 SPP

FC

3

Sorting Hubs

5

SPP Hubs

209

Partners Hubs

181

SPP

2463

© OZON.ru 4

Same day delivery in

Moscow and Tver covering

10% of population

Next day delivery

covering 30% of population

Own courier delivery

covering 94% of population

Federal Express delivery

DHL, Russian Post covering

6% of population in distant

cities

Courier Delivery Geographical Coverage

Москва

Санкт-

Петербург

Тверь

Уфа

Екатеринбург

Тюмень

Пермь

Челябинск

Волгоград

Омск

Новосибирск

Красноярск

Иркутск

Казань

6500 cities/towns with courier delivery in Russia

© OZON.ru 5

Logistics Challenges

• Non developed country logistics

infrastructure + internet + payment

by cards;

• Taxes & legislation complexity;

• Weather conditions & bad traffic in

cities;

• High delivery COSTs (10% vs 4,5%

in Europe)

• Barriers between off-line & on-line;

• Low trust: 60% COD;

• Very high customer expectations –

7 time slots; delivery on weekend

etc;

Moscow

St. Petersburg

Tver

Ufa

Ekaterinburg

Tyumen

Perm

Chelyabinsk Volgograd

Omsk

Novosibirsk

Krasnoyarsk

Irkutsk

Kazan

-1

0

+1 +2 +3 +4 +5 +6

+7

+8

+9

10 time zones

© OZON.ru 6

Russia is the country of big Opportunities

• We plan to open more fulfilment centers to cover 60% of population with next

day delivery;

• Shorter courier delivery time slots;

• Crowdsourcing for First Mile (linehaul) and Last Mile (couriers);

• SPP network growth from 2.600 to 10.000 in 3 years;

• Make return as easy as shopping;

• Quality management: online order status across all the network;

© OZON.ru 7

Thanks