Every year, even more people switch to online shopping. It is convenient as there is no need to stand in long queues. Moreover, in online shops, prices are oftentimes lower than in shopping malls or traditional stores. Online shopping has become extremely popular during the pandemic. It gave a powerful boost to online retailers as people were able to buy things online only. As a result, demand for online services and shops skyrocketed.

Big fish in e-commerce

Ozon (Ozon Holdings PLC) is Russia's largest multi-category e-commerce platform. It was founded in 1998 by Reksoft, the IT company from Saint Petersburg, and Terra Fantastica, the publishing house to sell videos and books online. In the same year, Reksoft bought out the share of Terra Fantastica and became the sole owner of Ozon.

The company has been constantly expanding its product range. Hence, from a regular bookstore, it turned into a major market player in the e-commerce industry. Nowadays, it sells electronics, children's goods, software products, etc.

Since 2019, Ozon has been developing according to the marketplace business model. The marketplace model of e-commerce means that the retailer provides an online platform where different sellers offer buyers their goods. Apart from small businesses, large retail chains also opened their stores on the Ozon platform. Importantly, the sales of other various shops accounted for about half of Ozon's total turnover.

Currently, around 46 million items across 20 categories are represented on the website. There are about 60,000 active sellers on Ozon Marketplace. Warehouse space across Russia exceeds 770,000 sqm. AFK Sistema and Baring Vostok are the largest shareholders of the company.

Ozon Holdings PLC’s activities include:

  • Cross-border business. The company is actively working on the Ozone Global platform: more than 3,000 sellers from 26 countries (primarily China, Southeast Asia, and Europe) sell their goods on the platform.
  • Logistical services for third-party companies. Logistics services are used by more than a thousand partners, including big international brands.
  • Financial services. Ozon Bank provides infrastructure and payment solutions integrated into the main e-commerce platform. The company is also expanding the opportunities of Ozon.Card with cashback and Ozon.Premium subscription as well as Ozon.Travel, a ticket booking system.
  • Delivery services. Ozon Express has more than 20,000 product categories, including food and electronics.
  • Tech development. In July 2021, Ozon launched a robotics laboratory in Innopolis (Tatarstan) to create solutions for robotization and automation of fulfillment centers and logistics infrastructure.
  • Charity. As part of the Ozon Care charity program, buyers and sellers can make charitable contributions to verified non-profit organizations.

Financial performance

Summing up the financial results of 9 months of 2021, the total turnover of Ozon amounted to 271.4 billion rubles – 123% more than in January-September 2020. Two-thirds of sales were performed in the marketplace. The rest of the income came from services: express delivery, car booking, and others.

Ozon financial indicators for 9 months of 2021:

  • Ozon's gross merchandise value soared by 197% to 131.2 million compared to the same period last year.
  • The number of active customers on Ozon’s platform increased by 87% to 21.3 million people.
  • The adjusted EBITDA loss totaled 25.2 billion rubles.

Ozon's main competitor in Russia is Wildberries with a customer base of 92 million people.

The company attributes the growth of net loss to marketing costs, IT development, and infrastructure investments. Ozon has a wide delivery coverage network. In addition, the company is constantly developing it, including new countries, e.g. Belarus and Kazakhstan. As for the positive operating profit, the company expects it no earlier than in 2024.

Ozon’s shares

In 2020, Ozon held its first public offering on the NASDAQ stock exchange. On the first day, November 24, Ozon priced 33 million shares at $30 each and surged 34% on the first day of trading, closing at $40.18.

On November 24, 2020, Ozon also made a debut on the Moscow Exchange. The share price increased by 24.1% or 2,820 rubles. The highest price was 3,023 rubles (a 33% gain).

According to the official results of the IPO, Ozon placed 33 million ADS at a price of $30 per share.

Throughout time, the stock value has been changing. Currently, the share is worth about $42 on NASDAQ, while on the Moscow Exchange, it is estimated at about 3,056 rubles.

Over the past year, Ozon shares on NASDAQ have been hovering in the range of $39.78 to $68.77.

The share price depends on the following factors:

  • Inclusion in the stock indices.
  • The market situation. The main driver for the development of the company and the e-commerce industry in 2020 was the outbreak of the coronavirus pandemic and lockdown restrictions.
  • Earnings results as well as competitors’ results.
  • The state of the economy and political events in Russia and around the world. For example, in November last year, the stock market advanced thanks to news about the development of a coronavirus vaccine and the easing of concerns about the political crisis in the United States.

Find out the latest news in financial markets in the special analysis section on InstaForex website.

How to earn money on Ozon shares

One of the effective ways to make money on Ozon shares is to profit from their price fluctuations. Contracts for difference come in handy as speculators can trade with leverage and open long and short positions. To start trading CFDs, it is enough to open an account with a broker. For instance, it takes less than three minutes to open a live account with InstaForex. To calculate the income, you can use the InstaForex Traders’ Calculator.

To make your trading even more convenient, install the most popular MT4 platform by InstaForex.

Conclusion

The company is steadily developing its logistics infrastructure, conquering new markets, and expanding its product range. It also attracts new sellers and customers. In 2020, Ozon took 6th place on the Forbes list of the most valuable companies in Russia. According to the results of the first half of 2021, Ozon held 8th place in the ranking of the largest Russian retailers. As for the marketplaces, the company loses leadership only to Wildberries.

If you want to make money on CFD trading with Ozon shares and other trading instruments, go to InstaForex website and open a live account.