Start your new business in Russia

In Russia, there are four major marketplaces operate with a system similar to Amazon:

• Wildberries;
• Ozon;
• Yandex.Market;
• SberMegaMarket.

The simplest way to join them is through a registered Russian company. Registration is open to all sellers and relatively inexpensive, but understanding the details is crucial.

There are two main ways to work with Russian's marketplaces: FBO, where sellers send products to the marketplace's warehouse before customers make their orders, and FBS, where the marketplace handles orders from customers, obtains products from suppliers, and delivers to customers. Products stored in the marketplace's warehouse receive better promotion. Pricing, image quality, and product descriptions also play a role in promotion. Sellers have the option to list products on all platforms simultaneously.

If you're considering wholesale distribution in Russia, there are two effective models to explore:

1. Selling in Bulk: Offer your products at wholesale prices, setting a minimum order value or quantity. While this can be advantageous for securing larger deals, it may not suit all buyers who might hesitate to commit to significant upfront investments.
2. Flexible Wholesale: Alternatively, you can provide your products at wholesale rates without imposing minimum purchase requirements. This allows your partners to fulfill orders as they receive them, catering to varying customer demands.

Combining these approaches can broaden your partnership base and market reach significantly.
To promote your wholesale business, leverage specialized online directories, participate in industry exhibitions, and optimize your visibility on search engines. Additionally, don't underestimate the power of direct outreach to key retailers and sellers, offering them tailored solutions to meet their specific needs.

Moreover, certain wholesalers set recommended retail prices for their goods. This approach ensures that partners have clear guidance on pricing and helps maintain market stability by preventing price undercutting.

In Russia, the service industry is booming, covering both B2C and B2B sectors. From common tasks like deliveries, cleaning services, and phone repairs to specialized services like home renovations and beauty treatments, there's a growing demand for all kinds of services.

To effectively market your services, you'll need the right approach. For services aimed at consumers, platforms like Avito, Youdo, Profi.ru, and Yandex Uslugi are great for reaching potential customers. Additionally, finding the correct office location on the street can also play a significant role in attracting clients.

For B2B services, consider maintaining a social media presence with an engaging corporate blog, running targeted ads on platforms like Yandex.Direct, and reaching out directly to potential partners.

Success in the Russian service market requires understanding its nuances, but with the right strategy, you can tap into its vast potential.

Selling food products in Russia typically requires certification. Different categories of goods have specific requirements, so knowing which products you plan to sell in Russia is essential. Once all certifications are obtained, you can distribute your products through major retail chains such as Auchan, Perekrestok, VkusVill, Magnit, Pyaterochka, etc., or through specialized marketplaces focusing on food delivery, such as Yandex Lavka, SberMarket, Samokat, and others.

In the realm of cafes and restaurants, selecting an optimal location is paramount. Consider high-traffic areas like food courts in shopping centers or trendy food markets in major cities, despite potentially higher rental costs. Alternatively, explore opportunities in emerging residential complexes or business hubs, ideal for establishing coffee shops and quick-service eateries.

For those venturing into ready-to-eat meals with delivery options, platforms such as Yandex Eda present enticing opportunities worth exploring.

If you want to sell your products offline in major Russian retailers, you need to meet the criteria required by each retailer. Each retailer has different requirements, but the main requirements are the same for all: product quality, availability of necessary documents and certificates, ability to supply large volumes of products to different regions, typically with deferred payment terms. You can find out about the conditions and also offer your products at each retailer's website.

Here is a list of the largest Russian retail companies by category:

Food and supermarkets: Auchan (Ашан), Azbuka Vkusa (Азбука вкуса), X5 Group which includes Perekrestok (Перекресток), Pyaterochka (Пятерочка) and Karusel (Карусель), Magnit (Магнит), VkusVill (ВкусВилл), Dixy (Дикси), Fasol (Фасоль), Spar (Спар), Metro Cash and Carry (Метро), Verny (Верный), Da! (Да!);

Home goods: Obi (Оби), Leroy Merlin (Леруа Мерлен), M.Video (М.Видео), Eldorado (Эльдорадо), Petrovich (Петрович), All Instruments (Все инструменты), Stockmann (Стокманн);

Children's goods: Detskiy Mir (Детский мир);

Sports goods: Sportmaster (Спортмастер).

Foreign entrepreneurs choose to run businesses in Russia for several reasons:

1. Vast growth potential: Russia boasts a massive market with tens of millions of consumers, particularly active in major cities. Despite challenges, the Russian market continues to expand year by year.
2. Abundance of resources: Russia is rich in natural resources, including oil, gas, minerals, and timber, attracting entrepreneurs from these sectors. Moreover, the cost of resources within the country, such as fuel, electricity, and natural gas, is relatively low.
3. Strategic location: Positioned at the crossroads of Asia and Europe, Russia serves as a gateway to both continents. This benefits businesses aiming to operate across both regions.
4. Innovation and technology: Russia boasts a well-developed system for training highly skilled professionals and innovators. The country is home to major technological corporations such as Yandex, Sber, 1C, Kaspersky, and more. Most processes can be easily automated, and bureaucratic procedures can be conducted electronically.

Overall, while operating in Russia presents its challenges, foreign entrepreneurs are attracted by the vast opportunities, strategic advantages, and potential for growth that the country offers.

The investment needed to establish a company in Russia can vary widely, depending on the scale and nature of the enterprise. From modest sums for small-scale ventures to substantial capital for larger endeavors, the financial outlay is diverse.

Regarding the cost to set up a company, such as an LLC (OOO), Russia offers a relatively affordable setup. Legally, only a modest sum of 10,000 rubles is required for the statutory capital, coupled with a state fee of 4,000 rubles. Additional expenses, such as legal counsel, securing a legal address, and notarial services, may vary based on individual circumstances. Nonetheless, these expenses are typically manageable and not excessively burdensome.