eCommerce market in Ukraine

Ukraine is the 47th largest market for eCommerce with a predicted revenue of US$4,614.1 million by 2024, placing it ahead of Hungary. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 9.6%, resulting in a projected market volume of US$6,647.8 million by 2028. With an expected increase of 12.8% in 2024, the Ukrainian eCommerce market contributed to the worldwide growth rate of 7.4% in 2024. Like in Ukraine, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the Ukrainian eCommerce market. Hobby & Leisure is the largest market and accounts for 26.0% of the Ukrainian eCommerce revenue. It is followed by Electronics with 20.8%, Fashion with 17.0%, Furniture & Homeware with 11.8%, Care Products with 9.4%, DIY with 8.9%, and Grocery with the remaining 6.2%.

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the Ukrainian retail market, the online share is 2.1% and will increase by an average of 1.3% to 2.2% by 2028.

The biggest player in the Ukrainian eCommerce market is rozetka.com.ua. The store had a revenue of US$1,334.0 million in 2023. Store rankings include every store that generates revenue in Ukraine. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in Ukraine was considered.

The Ukrainian eCommerce market in 2023 in terms of offered payment methods is fragmented and dominated by a few providers with Cash on delivery (Cash on delivery) covering the largest share with 91.5% of all online stores checked. Other offered payment methods in the Ukrainian eCommerce market in 2023 are VISA (Cards) with 70.8%, Mastercard (Cards) with 70.8%, and Bank transfer/cash in advance (Bank transfer) with 55.7%. With 27.4% Privat24 (E-wallets) has already a significantly smaller coverage compared to Cash on delivery (Cash on delivery).

Despite Nova Poshta's dominant position with 89.1% of online stores opting for its services, the Ukrainian eCommerce market in 2023 remains diverse and competitive. Several other shipping service providers, including Ukrposhta, Meest Express, Own delivery service, and In Time Express, hold smaller but significant shares, contributing to a dynamic and fragmented market.