Avito entered Yandex Market
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After the bankruptcy of PickPoint, with which Avito worked closely, the online platform had to look for a replacement. Now the company has announced a partnership with Yandex Market, which is ready to use more than 8 thousand of its pick-up points (POIs) to process orders from Avito users. Experts’ opinions on such cooperation are divided. Some believe that it is beneficial for both companies. Others see this as a risk for Yandex Market to “pump up its competitor.”
From October 2023, orders from Avito can be received or sent through 8 thousand Yandex Market pickup points in over 100 cities in Russia, the companies told Kommersant. The service will be available for parcels up to 12 kg and costing up to 15 thousand rubles. In the future, the limit is planned to be increased to 150 thousand rubles. Delivery of Avito orders to pick-up points will be organized by Yandex Delivery, and customers will be able to track their orders through Yandex Go.
To ensure maximum availability of its services, Avito needs to increase its delivery coverage, says Infoline-Analytics CEO Mikhail Burmistrov. The partnership with the large logistics company Yandex Go will allow the online platform to solve this problem, adds Data Insight partner Fedor Virin.
After the bankruptcy of PickPoint, the operator with which Avito closely interacted, the issue of expanding delivery coverage became urgent for the online platform. In 2022, Avito also began opening its own pickup points together with EXMAIL. The company notes that there are now more than 600 pickup points, and a total of 1 thousand such points will open. However, this volume is not enough, experts interviewed by Kommersant believe.
In turn, for Yandex Market, the partnership with Avito will increase the attractiveness of its pickup points for franchisees in terms of additional income, says Mikhail Burmistrov. So far, the Yandex Market pick-up point network lags behind its closest competitors. Thus, according to calculations by Infoline-Analytics, today Wildberries operates about 28 thousand order pick-up points throughout the country, Ozon has 25 thousand pickup points and another 5 thousand parcel terminals, Yandex Market has 10.5 thousand. points and 3 thousand parcel terminals.
According to Ilya Kretov, director of Tinkoff eCommerce, the share of pick-up points where Yandex Market orders can be received and sent, including multi-brand pickup points, is 20% of their total number in Russia. By refusing to cooperate with Avito, Yandex Market would risk losing the fast-growing B2C segment of Avito’s logistics traffic, the expert believes. “However, at the same time, Yandex Market risks shaking up its competitor, especially in light of the latest news about the transformation of the Avito business model (the online platform now intends to attract not only users who sell used goods, but also small wholesale sellers, as marketplaces do .—”Kommersant“),” says Mr. Kretov. However, Mikhail Burmistrov believes that “the synergistic effect will be higher” than the possible risks of competition.
At the same time, a number of large marketplaces are now reducing the number of order pick-up points: for example, in August 2023, according to Tinkoff eCommerce estimates, the share of mono-brand Wildberries pickup points decreased by 23 percentage points (pp) compared to January 2023, to 36 %, at Yandex Market – by 3 p.p., to 6%. For Ozon, on the contrary, this figure increased by 15 percentage points, to 26%. The rest of the volume comes from multi-brand pickup points.
In general, investor interest in pickup point franchises is decreasing, note Franshiza.ru: demand for them increased by only 9% over the eight months of 2023. This was influenced by a decrease of almost a third in demand for opening points under the Wildberries brand, while for Ozon it remained virtually unchanged, and for Yandex Market it increased by 20%. For comparison, says Franshiza.ru expert Anna Rozhdestvenskaya, for the entire 2022 this figure increased by 23% year on year. She notes that this segment is influenced by the widespread availability of networks of pick-up points, as well as negative reviews from those who were unable to develop in this direction.
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