Having spent several years sizing up the Russian market, US auction web site eBay is to roll out a Russian-language version that will enable users to buy and sell goods in rubles. Users will be able to pay using credit cards linked to PayPal accounts when the system becomes operational next month, eBay CEO John Donahoe announced during a visit to Moscow this week as part of a US high-tech delegation.
“Opening a Russian-language site for e-commerce is a step in the direction” of creating ebay.ru, Donahoe told reporters in Moscow on Thursday, a day after holding talks with Kremlin officials. Donahoe said that the value of Russia’s e-commerce market could soon quadruple to $20 billion a year.
The new European platform will focus only on fixed-price goods rather than auctions, as eBay looks to change the format of the company into a more conventional online store. Analysts predicted success for eBay’s move, given the undeveloped state of the e-commerce market in Russia. “eBay has a range of advantages that would help it [take market share],” said Boris Kim, chairman on the Committee on Payment systems of the National Association of E-Commerce.
eBay’s will be competing against an established Russian rival: online auction web site Molotok.ru, which had a total of 30 million users in 2009. Igor Karpachyov, Molotok.ru’s CEO, was sanguine, saying eBay’s entry into the market was an indication of “good prospects” for the sector. “The appearance of a new international player is always useful for the market as it boosts its development,” Karpachyov said.
