OR Group, the Russian group previously known as Obuv Rossii, has changed its working relationship with the Russian e-commerce platform Ozon. Since May, the collaboration is based on the fulfilment by seller model, under which goods are sold on Ozon but stored in an OR Group warehouse. Upon receipt, an order is packed and handed over to a Ozon courier or delivered to the nearest pick-up point. Previously, OR Group shipped goods in advance to Ozon warehouses, which handled the orders.
OR Group primarily sells footwear, clothing and accessories under the Westfalika brand. Currently, unsold stock of Westfalika stores in the city of Novosibirsk are automatically displayed on Ozon’s marketplace. During the summer, the stores in other Russian regions, covering more than 330 towns, will be connected to the marketplace.
Online trade is one of OR Group’s priorities. “We are not only developing our own online platforms and mobile application, but also expanding cooperation with partners. The new format of operation with Ozon allows the company to increase the number of orders — in the first two weeks the growth was 20 percent” with consumers focusing on footwear, explains Alexey Chaplygin, head of OR Group online sales.
He notes that thanks to the new collaboration model, OR Group pays lower commissions to Ozon. ”In future, the company plans to start cooperating with other large online retailers using the online storefront model,” Chaplygin explains.
In the first quarter of 2021, OR Group’s online sales grew by 7.4 percent. Digital sales totalled 25.8 percent of the sales achieved by Wesfalika. OR Group plans to increase the share to 30 percent this year.