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Working paper

Investigating Barriers and Drivers of the E-Commerce Market in Russia

The evolution of e-commerce positively affects the development of business in different areas, especially in developing countries. Also the development of e-commerce assists in creating new business models that are in certain cases results of overcoming existing barriers of the e-commerce market. However, there is little research on e-commerce market development and it hinders our understanding of the e-commerce market potential. The internet audience in Russia is 66.5 million people – the largest online audience in Europe. The main objective of this paper is to analyze the barriers and drivers for e-commerce market development in Russia. It gives an overview of the current Russian internet market development and trends. To identify the obstacles to and opportunities for the Russian e-commerce market, 25 in-depth interviews with representatives of Russian internet businesses were conducted. The empirical research reveals that the most significant barriers for the Russian market are barriers concerning market, infrastructure, and institutional issues.