Research of the Ukrainian eCommerce Market

In 2024, eCommerce accounted for 10% of total retail sales, which is half the share seen in Poland. At the same time, the number of online shoppers and the frequency of purchases increased over the past year. Currently, there are approximately 11 million internet shoppers in Ukraine, making an average of 17 online purchases per year, with an average transaction value of 1,300 UAH. Overall, in 2024, Ukrainians spent a total of 239 billion UAH on online goods and services, which is 25% more than in 2023.

In this report, we have visualized trends across seven market niches based on weighted average indicators within each category. The sample includes players with varying revenue levels. We compared data from the second half of 2023 with that of 2024. To accurately assess seasonality and eliminate the impact of inflation, some figures are presented as percentages in USD.

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Total Traffic of the Ukrainian Online Space

According to traffic estimates from Similarweb, over 90% of people in Ukraine use the internet, with 78% accessing it daily. Internet penetration is remarkable, yet not all Ukrainians shop online. This means there is still significant growth potential for online businesses.

In Ukraine, the share of online purchases is three times lower than in the US and the UK—approximately 15-20% compared to 45-50% in certain segments. Despite the growing popularity of online sales channels, Ukraine is still at the early stages of utilizing the internet as a full-fledged sales platform.

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The future looks promising—more people will be shopping online. However, let’s imagine that instead of 100 players in the advertising auction, there are 300. Competition will rise, driving up the cost per click.

The Promodo team works with clients in the U.S. and Europe, where CPC rates are significantly higher than in Ukraine. As eCommerce expands, Ukraine will also move closer to these levels.

Changes in Key eCommerce Metrics

Electronics eCommerce Industry in Ukraine

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Electronics Category: Online Market Insights

• In the second half of 2024, revenue in the electronics category grew by 18% in UAH and 8% in USD. The surge in demand for climate control appliances, portable power stations, and similar products—driven by blackouts and extreme heat early in the period—contributed to this growth. However, the absence of major Back-to-School sales led to a revenue decline at the start of autumn. Black Friday and Christmas sales, however, outperformed the previous year, with revenue increasing by 40% in UAH and 28% in USD.
• Despite this growth, the average order value dropped by 30% in UAH and 35% in USD compared to the same period in 2023, as consumers increasingly opted for more affordable alternatives.
• Interestingly, while traffic in this category showed only a modest 12% increase, purchase frequency jumped by 44%, meaning existing customers made purchases more often. On average, the number of transactions per user increased by 62%.
• Retailers moderately increased their Google Ads budgets during sales periods—by just 5.4% compared to the previous year, yet still saw significant revenue growth. This suggests that stronger engagement strategies with loyal customers via email, apps, and social media played a key role in driving sales.
• Over the year, cost-per-click (CPC) rose by 18% in UAH and 9% in USD. However, auction competition was particularly intense during the first half of 2024. In the last two months of the year, CPC increased by only 4% in UAH, while in USD, it even decreased by 4% compared to the same period in 2023.
• The share of Search campaigns within paid advertising increased by 5% in the second half of 2024 compared to 2023. This trend was particularly evident in the last two months of the year, likely due to Performance Max algorithms grouping similar products under Shopping campaigns, while Search campaigns allowed for a broader product range to appear in relevant queries.

Food & Alcohol eCommerce Industry in Ukraine

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Food & Alcohol Category: Online Market Insights

• Online penetration in this category continues to grow. In the second half of 2024, the average revenue increase was 53% in UAH and 41% in USD. This growth was driven by a significant rise in traffic year-over-year, fueled by higher ad investments and one of the highest inflation rates in the market.
• On average, businesses in this category increased advertising investments by 39% in USD during the second half of the year, with peak ad budgets in November. Despite this surge in spending, CPC rose by only 9% in USD, indicating that the auction in this category is not yet overheated.
• Compared to the same period in 2023, the average order value (AOV) remained largely unchanged. Due to the seasonal nature of this category, AOV grew by only 5% in UAH and declined by 3% in USD. However, in December, AOV increased by 16% in UAH and 6% in USD, likely due to holiday shopping, where consumers added more or higher-value products to their carts.
• While revenue in the category grew by 53% in UAH, traffic increased by only 25%, suggesting that the higher revenue was driven by better conversion rates and increased order frequency.
• In 2023, the alcohol segment experienced rapid growth, but in 2024, the food segment took the lead, while alcohol stabilized. Looking ahead to 2025, online penetration is expected to keep growing, though at a slower pace. To sustain revenue growth in this niche, businesses will need to continue increasing their ad budgets.

Pet Products eCommerce Industry in Ukraine

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Pet Supplies Category: Online Market Insights

• In the second half of 2024, the pet supplies niche reached a plateau in both traffic and revenue. The modest 7% revenue growth in UAH was primarily driven by an increase in sales during the last three months of the year. However, the category experienced a decline in revenue and purchase volume from late June to October 2024.
• Interestingly, the revenue boost at the end of the year was not significantly influenced by ad budget increases, as spending in this category grew only by 4% in UAH.
• Compared to the same period in 2023, traffic declined by 5%, with a notable 12% drop in the last three months of 2024. Despite this, the average order value (AOV) remained stable, increasing by 14% in UAH and 5% in USD throughout the second half of the year.
• During the last three months of 2024, AOV rose by 15%, and this growth was not due to smaller but more expensive baskets. Instead, it was directly linked to a 20% increase in conversion rates, suggesting that engaged shoppers were more likely to complete their purchases.
• Ad budgets for the second half of 2024 saw only minor fluctuations, increasing by 4% in USD. However, the cost-per-click (CPC) surged by 28% in USD, indicating that the auction in this category is already overheated. One possible reason for this CPC spike is the entry of marketplaces into the auction, as they have started aggressively investing in the pet supplies category.

Clothing & Footwear eCommerce Industry in Ukraine

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Clothing & Footwear Category: Online Market Insights

• In the second half of 2024, revenue in this category declined by 4% in UAH and 11% in USD. The summer season was the weakest in terms of revenue, and the seasonality shift moved nearly a month later compared to 2023.November 2024 performed similarly to the previous year, with only a 3% revenue increase in UAH, but in December, revenue surged by 24% compared to 2023.
• The number of purchases grew by 21% in the second half of 2024, yet the average order value (AOV) dropped by 13% in UAH and 18% in USD. As noted in previous reports, Ukrainian consumers are now accustomed to purchasing clothing and footwear online but with a lower AOV.More budget-friendly brands and retailers offering functional alternatives gained a larger market share, driving this trend.
• The total number of users in this category increased by just 4% over the last six months of 2024. We anticipate that in 2025, the AOV will likely stagnate, and traffic growth in the category will be minimal.
• During the second half of 2024, businesses in this category cut their Google Ads budgets by 20% in UAH and 27% in USD. The biggest decline occurred in September, while December saw the smallest drop. Even Black Friday budgets were significantly lower than in 2023, with a 20% decrease in UAH and 27% in USD.
• Despite these budget cuts, the cost-per-click (CPC) increased by 20% in UAH and 11% in USD. This suggests that the auction remains overheated, meaning lower ad budgets don’t necessarily reduce CPCs. Given the rising CPCs and competitive pressures, brands in this category should shift their focus to retention strategies and diversify marketing efforts beyond paid ads. A more comprehensive marketing approach—including email marketing, loyalty programs, and organic social media—will be essential for sustainable growth.

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Pharmacies eCommerce Industry in Ukraine

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Pharmacy Category: Online Market Insights

• The pharmacy sector has become a fully developed eCommerce category with a large share of online purchases. In terms of revenue, the niche grew by 12% in UAH and 3% in USD. Revenue growth was gradual, with the biggest increase compared to 2023 occurring in December.
• Looking at early 2024 trends, it is likely that revenue growth in early 2025 will be minimal. However, when considering offline market data, the decline in profitability is more significant due to the substantial price increase in pharmaceuticals.
• The number of purchases grew by 20% in H2 2024, while the average order value (AOV) increased by 50% in UAH and 39% in USD. Our hypothesis: consumers prefer online orders because they are looking for better deals.
• The conversion rate dropped by 5%, though the decline was less severe than in H1 2024. Throughout the second half of the year, both traffic and purchase volume increased. We assume this was driven by brands actively engaging with their existing customer base.
• In terms of traffic, the sharp growth trend slowed in H2 2024, but still showed a 23% year-over-year increase.

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Jewelry eCommerce Industry in Ukraine

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Jewelry Category: Online Market Insights

• The dynamics in the jewelry sector are very similar to the second half of 2023, but in 2024, revenue from players in the niche grew by 57% in UAH and 44% in USD. The category continues to grow steadily in the online market. Interestingly, the biggest revenue peak occurs mostly during non-holiday periods.
• The number of purchases increased by 32%, with the average order value (AOV) rising by 23% in UAH and 14% in USD.
• Traffic dynamics were mostly similar to the second half of 2023. However, during the holiday period in 2024, order frequency was higher. Despite a lower volume of traffic, revenue grew by 32% in UAH, indicating that even with fewer visitors, consumers were making purchases more frequently. The competition for user attention is intensifying.

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Auto Products eCommerce Market of Ukraine

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Automotive Goods Category: Online Market Insights

• In the automotive goods sector, revenue for the second half of 2024 grew by 9% in UAH, while in USD, it remained unchanged. However, the number of purchases decreased by 10%.
• The average order value (AOV) increased by 16% in UAH and 7% in USD. The conversion rate remained unchanged, but traffic dropped by 8% compared to the same period in 2023.
• Interestingly, in December 2024, traffic to the category was at the same level as 2023, yet revenue grew by 14% in UAH and 4% in USD. This increase is likely related to the higher basket value.
• Players in this niche began increasing their Google Ads budgets from April 2024, compared to 2023, with a weighted average increase of 166% for the second half of the year. This suggests that the category remained stable primarily due to advertising investments. Without such ad spend, the revenue might have seen a decline.

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General Conclusions and Forecasts for the First Half of 2025

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Behavioral Patterns of Ukrainians: Insights for 2025

Ukrainians' behavior is shifting, influenced by general fatigue and irritability, which impact how they act and shop. Due to inflation and the overall uncertainty, Ukrainians are being more cautious with their spending. Previously, people would often choose their favorite brand from a range of options, but now, they are more likely to focus on the price. Certain products, like a new laptop, have shifted from a must-have purchase to a nice-to-have item.

Market Forecast for 2025

Our forecast for 2025 suggests a declining market: the number of buyers will likely decrease, and the gradual weakening of the Hryvnia will continue. Competition will intensify among major players, with large brands aggressively expanding their market share.

Key Strategies for Online Businesses

In such a market, online businesses will need to place greater focus on customer retention, as acquiring new customers will become more expensive. 2025 will not allow the same level of growth as before, relying purely on increased budgets for paid ads. Retailers will need to rethink their strategy for engaging with all channels, especially those that were previously underutilized, such as retention. Our experience shows that retention can account for up to 10% of online sales, whereas many businesses don’t even have a basic trigger-based email chain in place.

Expanding Your Shelf

One important strategy is to expand your product range. This helps to attract new customers more affordably and increases cross-sell opportunities. It doesn’t mean you should add everything to your catalog, but you must understand the connection between how search works online and sales: 1 new product on the shelf → 10 potential customers in Google = 1 sale.

Price vs. Brand

While brand will still play an important role, in the competition with price, price will win in 2025. Companies with strong brands that can timely offer the right price at the right moment will have a competitive edge. Today, Ukrainians want genuine communication with brands, authentic stories, and content that addresses their needs. In 2025, successful brands will be those that show their processes and aren’t afraid to be “imperfect”.

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