10 Key Figures About Ukrainian eCommerce in 2024: Promodo’s Research

In 2023, the Ukrainian online market achieved record results, with players in many categories surpassing their pre-invasion performance. In the first half of 2024, revenue growth continued, though not across all niches and with varying dynamics.

In this report, we visualized the dynamics across six niches based on weighted average indicators for each category. The sample includes players with different turnover levels. We compared the results of the first half of 2023 with those of 2024. To accurately assess seasonality and eliminate the impact of inflation, some data is presented as a percentage in USD.

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The Current State of Ukrainian Business

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As of May 2024, the Ukrainian Business Index stands at 43.7 out of 100. This marks an increase compared to the previous wave of the survey (38.1), setting a new local maximum. However, it remains in the zone of negative expectations.

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Changes in Key Indicators in eCommerce

Graphs were visualized using weighted average indicators in each category. The sample consists of players with different spin levels. The indicators of the first half of 2023 were compared with those of the same period in 2024. Part of the data was displayed as a percentage in USD.

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The State of Ukrainian eCommerce: Electronics Industry

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• The number of users in the consumer electronics industry increased by an average of 14% in the first half of 2024. However, compared to the figures from 2021, it is still down by 5%, indicating that the category still needs to recover to its 2021 levels.
• Due to the increase in the number of buyers, the revenue in this category grew by 7.5% in USD in 2024. Compared to the first half of 2021, the dollar growth is 12.5%, meaning the category has returned to 2021 levels. However, the growth in online sales within this category is not due to an increase in the population but rather the growing importance of online channels in the consumer journey.
• The average dollar check in 2024 returned to 2021 levels, being only 10% higher. However, compared to the unusually high check in 2023, it has decreased by 42%. This spike in 2023 was likely due to many orders for expensive equipment.
• Advertising budgets have increased by almost 40% in dollars, with the most significant jump occurring in the first quarter. The cost per click rose by 33%, indicating a growing monopolization of the paid channel. However, compared to 2021 budgets in dollars, the industry has effectively leveled out.

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2024 Trends in the Ukrainian Groceries and Alcohol Industry

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• The number of purchases in the food and beverages category has doubled. The average check has seen a weighted increase of 20% over the past six months, while the conversion rate has risen by 48% compared to 2023.
• Revenue for players in this category has grown by 120%.
• The number of buyers has increased by 37%. Repeat purchases primarily drive the category's revenue growth, so retailers must focus on retention channels and customer loyalty.
• The average check in this niche has increased by 20%.
• The cost per click has risen by 10% compared to 2023. At the same time, players in this category have nearly doubled their advertising budgets.

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Clothes and Footwear Niche in Ukraine

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• The revenue growth in the apparel industry was minimal, namely 2%.
• The number of purchases in the niche increased by 74% in the first half of the year, but the average check in dollars dropped by 24%. The conversion rate rose by 51%. A large number of Polish players have contributed to driving down the average check. We see that the niche isn't attracting significantly more users, but Ukrainians are increasingly willing to purchase from this category online, although with a smaller average check.
• Traffic has increased by 15%, indicating that demand exists, but the decrease in basket value and individual product prices has limited the impact on revenue growth.
• Players in this niche have increased their advertising budgets by 10% in USD compared to 2023, which has proportionally influenced the rise in traffic.

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Pet Care Industry in Ukraine 

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• In the first half of 2024, the pet care industry saw a 19% revenue increase. Compared to 2021, this represents a growth of 22%.
• The number of purchases in the niche grew by 11%, with the average check increasing by 7.5%. However, the conversion rate dropped by 11.5%.
• Traffic in the category increased by 25% in the first half of the year, but there was a decline from April to June, leading to a slight drop in revenue during this period. The category has been experiencing online growth for three consecutive years.
• Advertising budgets increased by an average of 37%, contributing to the growth in both traffic and revenue. It is likely that to maintain revenue levels in the second half of the year, niche players will continue to increase their advertising budgets, keeping them at 2023 levels or even 20-30% higher.

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The State of the Online Pharmaceutical Market in Ukraine

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• Revenue has decreased by 13% compared to the first half of 2023. The number of purchases also dropped by 5%. Meanwhile, the average check in dollars increased by 17% in the first half of the year.
• The conversion rate declined by 50%. The likely reason is a significant increase in users within the category while the number of purchases dropped. Online penetration in this category continues to grow, but we do not yet see it having a proportional impact on revenue.
• In terms of traffic, the dynamics in the category have changed significantly compared to the first half of 2023. Over the six months of 2024, traffic in the niche increased by an average of 93%.

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Jewelry Products Online Market in Ukraine

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Revenue in the category increased by 78% in dollars. Seasonality remains stable for the niche, with February and March being the peak sales months in the first half of the year.

The number of orders grew by 47% compared to 2023. The average check increased by 114% in USD. Traffic in the category rose by 32%, and the conversion rate increased by 11%.

In 2024, niche players increased their advertising budgets by 70% in dollars. Our hypothesis is that in previous years, retailers did not actively develop their online presence. This year, we see that the investments in advertising are paying off in the form of increased revenue.

The cost per click (CPC) rose by an average of 4% during the first half of the year. We observe a redistribution of players in the niche, with retailers actively growing both organic and branded traffic. This may be what is keeping the CPC from rising more sharply.

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Overall Conclusions Across All Industries

1. Despite inflation and uncontrollable external factors, online business is stabilizing. The most stable niche remains Electronics, while the fastest-growing niches are Food and Alcohol and Pet Care products.
2. The number of online consumers is increasing, but not due to population growth; rather, it is due to the habit of shopping at online stores. In other words, eCommerce's impact on the overall retail volume is growing.
3. Ukrainians are increasingly ordering various products online, but the increase in orders only affects revenue in certain niches (Pet Care Products, Food and Alcohol, Jewelry) due to a decrease in the average check. The pet care products, with its rapid online growth, is currently experiencing the most intense competition. This trend may also impact the Food and Alcohol niche, but it has not yet done so.
4. Attracting consumers, retaining them, and growing profitability is directly dependent on advertising budgets, though the level of impact varies significantly by niche. Media inflation is present in every niche we examined, but it depends on the intensity of competition. In 2024, the cost per click may reach higher levels than in 2021.
5. Performance Max budget allocations in all niches exceed 70% of total spending on paid promotion. Supporting these campaign budgets is crucial for maintaining effectiveness and profitability. Retailers should also focus on developing organic and branded traffic channels to balance media inflation. With the growing online shopping habit, extra attention should be given to customer retention and return channels.

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