Russia’s Amazon-like Ozon platform opens Shenzhen office to woo Chinese merchants in cross-border e-commerce push

Moscow-based Ozon aims to sign up 100,000 Chinese merchants as Western sanctions curb growth opportunities elsewhere

Shenzhen merchants became known for their many Amazon shops, but a crackdown from the US platform has sent sellers looking for alternatives

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Published: 2:30pm, 22 Nov 2022

Ozon, the e-commerce giant hailed as Russia’s answer to Amazon.com, has opened its first China office in the country’s southern technology hub of Shenzhen with the aim of signing up 100,000 local sellers amid rising demand for Chinese products.

The Moscow-based e-commerce firm announced the new office on Monday, saying the location will help Chinese merchants boost sales on its platform and expand market categories for cross-border trade.

With more than 10,000 Chinese sellers on Ozon, Chinese products accounted for 95 per cent of all orders through Ozon Global, the unit responsible for cross-border sales, the company said in a statement.

“Developing our business in the region will allow us to significantly increase our pool of sellers,” Simon Huang, head of the new Shenzhen office, said in the statement. “Our priority is to remove the barriers for Chinese sellers to enter the Russian marketplace and provide sellers with a high-quality service to grow their business.”

Ozon’s expansion comes as cross-border e-commerce has boomed in China, growing tenfold in the past five years, according to official data. Imports and exports together grew 18.6 per cent last year to 1.92 trillion yuan (US$268 billion), of which exports accounted for more than 70 per cent, customs data showed.

Shenzhen, one of China’s first special economic zones, has long been a major export hub. With the rise of e-commerce, local manufacturers took to selling goods directly through international platforms like Amazon. The city made up about 35 per cent of China’s cross-border e-commerce industry last year, according to the Shenzhen Cross-Border E-commerce Association.

However, a crackdown by Amazon last year, which shut down 3,000 merchant accounts backed by 600 brands, has sent sellers searching for alternative platforms. Russia has remained a reliable trading partner for China, but Chinese merchants have been impacted by rouble volatility and Western sanctions after Russia invaded Ukraine in February.

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