Hermes Germany and Itella team up to provide Russia e-commerce solution

Private sector parcel carrier Hermes has teamed up with Finland’s state-owned postal operator Itella to provide a “complete” cross-border e-commerce solution into Russia. The strategic cooperation between Itella and Hermes Fulfillment will aim to provide e-commerce merchants in Western Europe with an easier way to access the Russian market.

The company said research suggested Russian online retail is growing at 25% year-on-year, and that sales of USD 16.5bn seen in 2013 will rise to USD 50-70bn by 2020.

Online retailers have only a 2% share of the overall retail market in Russia, the firms said, suggesting there was good growth potential in the market despite the current economic difficulties related to the Ukrainian situation.

The firms said about 30m Russians are already shopping on the Internet, about a quarter of the population.

Dieter Urbanke, the Hermes Fulfillment chief executive, said: “In Itella we have found a reliable partner who is familiar with the specifics of the Russian market and has the know-how. The services of both companies complement each other perfectly.”

The partnership with Itella will see Hermes Fulfillment providing the international e-commerce service for merchants from Germany. The company can provide online website development capabilities, payment systems and returns management for retailers aiming to access the Russian market.

Nikolai Voinov, general director of Itella Russia, said his company was focussed on the challenges of shipping into Russia, which require a special approach because of the complex legislation and large distances involved.

“Our goal is to help European companies that want to expand their market position in Russia,” he said. “Together with Hermes Fulfillment, we offer them a complete package, including all fulfillment services and last mile logistics.”