Logecom E-commerce Logistic across Russia (English version)

Delivery of overseas
online purchases to
Russia

Market overview
Retail Sales in 2012 Online sales growth forecast 2015
$14,9B ; 2%
$670B; 98%
Morgan Stanley Research forecasts Russian
online market to grow by 35% CAGR by 2015
and to reach $36 bln., which will account for
~4.5% of total retail sales.
By 2020 online market will reach $72 bln., or 7% of total retail sales.
Goods with online sales growing faster than market:
Furniture and decorations
Goods for children
Sports and recreation goods
Designer items
Household appliances
Foods
Shoes and clothes
Tickets, package tours
Offline sales Online sales
International online sales in Russia ~ $14,9B
Or 2% of total retail sales - $670B
2009
2010
2011
2012е
2013е
2014е
2015е
2016е
2017е
2018е
2019е
2020е
www. logecom.ru mail@logecom.ru 123610, Moscow, Krasnopresnenskaya nab., 12

Market overview
Online sales in Russia in 2012 Commercial parcels sent from abroad to Russia (thousands
of parcels), 2012
$12 000; 80%
$2 933; 20%
USA
Foreign internet
stores
Russian internet
stores
Online sales in Russia reached ~$12 bln.
Cross-border online sales share ~$2,9 млрд
4 200; 13%
3 000; 9%
2 000; 6%
1 600; 5%
13 000; 40%
8 800; 27 %China
S.Korea
Japan
Israel
GB
Total quantity
Mean price
USA, China
~ 32,6 mln. parcels
~ $80-90
~ more than 67%
Cross-border online sales will grow by at least
30%-35% per year.
By 2015 cross-border online sales may reach 75
mln. parcels per year.

Number of online payments users:
Key reasons of cross-border internet sales growth in Russia
Wide selection of goods in overseas internet stores.
Relatively low goods prices.
Prices of the same item in an overseas store and in a, let’s say,
neighboring store, may differ by 30% .
High quality of goods featured in overseas online stores
targeted at local markets.
Emerging and development of new logistics and service
solutions, facilitating decrease of international delivery transit
times and simplifying the process of purchasing in foreign online
stores
Growth of various types of electronic
payments. Number of online payments
users may reach 21-22 mln. people by end
of 2013, in 2015 – will exceed 30 mln.
people

Key reasons of cross-border internet sales growth in Russia
Continuous growth of active internet users share
(primarily in peripheral Russia).
By 2014 monthly audience growth may reach 80
mln. people
spring
spring
spring spring spring spring spring
spring spring spring
spring
fall winter winter

Logecom – who are we?
Consolidation center in Furstenwalde, Germany
Parcels consolidation and road transportation to Moscow
Bonded warehouse services
Handling imports and exports, including transit.
NCTS (New Computerised Transit-Systems) shipment waybills Т-1 /
Т-2.
Filling TIR carnet.

Own bonded warehouse located in Butovo, Moscow
6 500 m2 area - Warehouse «A»
(rack storage up to 8.5 m/ floor storage)
4 500 m2 area - Warehouse «B+»
(rack storage up to 8.5 m/ floor storage)
6 000 m2 area - Warehouse «B»
(rack storage up to 5 m/ floor storage)
Logecom - №1
Logecom is the first and only company in the
market to set its main task as:
Develop and provide comprehensive
service of cross-border online purchases
delivery to Russia (and CIS)“ “
Founding of company
Company was founded in 2013
Experienced team of professionals
Operations are managed by a team of professionals working
together for 12 years
Express-cargo customs clearance offices in
Moscow
Sheremetyevo, Domodedovo airports, Butovo district
Customs clearance
Order picking
Sorting
Palletizing
Labeling
Transportation
CrossDocking
Services

Own forwarding unit and own trucks fleet
Logecom operates its own forwarding
unit and own truck fleet to arrange
delivery to end consignee (in Moscow
and Moscow Region).
Logecom holds the following licenses to provide
express-delivery service:
Certificate of inclusion into customs
representatives registry
Certificate of inclusion into bonded
warehouse owners registry
Certificate of inclusion into customs
carriers registry
Reliable partners
Logecom works with reliable partners
to arrange delivery to end consignee in
other cities of Russia and CIS.

* Transit time is calculated starting from parcel arrival in
Moscow and till parcel is handed over to consignee
Moscow and Moscow Region
2-5 days
Destinations map and transit time

Logecom logistics solution
Logecom offers several kinds of services to ensure fast and
high-quality delivery.
We can take the burden of delivery from the Store till the end Buyer or
provide last mile services in Russia.
Scenario No. 1.
In this scenario Logecom provides last mile services: accepting
and clearing individual parcels on the Russian territory and
delivering to buyer with real time parcel status updates.
Parcel
movement
Functions
Document
flow
Foreign internet store
- Accepting order
- Local delivery
Service agent Customs
- Accepting parcels
- Attaching sticker with bar codes
- Parcels consolidation
- Dispatch of cargo
- Value Added Services
- Receiving payment
- Issuing invoice
- Issuing MAWB
- Issuing cargo manifest
- Issuing consolidated invoice
- Transmitting parcel data and
document set via API to Logecom
- Customs clearance
- Accepting cargo
- Parcels deconsolidation
- Providing parcel status
- Delivery to Buyer’s door
- Checking received parcel data
- Issuing Registry for customs clearance of parcels
valued up to EUR 200
- Issuing Passenger Customs Declaration for
customs clearance of parcels valued over EUR 200
- Issuing delivery waybill
- Providing signed delivery waybill
Buyer

Logecom logistics solution
Scenario No. 2.
In this scenario Logecom provides first mile and last mile
services: accepting and clearing individual parcels on the Russian
territory and delivering to buyer with real time parcel status
updates.
Parcel
movement
Functions
Document
flow
Foreign internet store
- Accepting order
- Local delivery
Customs
- Accepting parcels
- Attaching sticker with bar codes
- Parcels consolidation
- Dispatch of cargo
- Value Added Services
- Receiving payment
- Issuing invoice
- Issuing MAWB
- Issuing cargo manifest
- Issuing consolidated invoice
- Preparing set of documents for
customs clearance
- Customs clearance
- Accepting cargo
- Parcels deconsolidation
- Updating parcel status
- Last mile
- Checking received parcel data
- Issuing Registry for customs clearance of parcels
valued up to EUR 200
- Issuing Passenger Customs Declaration for
customs clearance of parcels valued over EUR 200
- Issuing delivery waybill
- Providing signed delivery waybill
Buyer
Logecom offers several kinds of services to ensure fast and
high-quality delivery.
We can take the burden of delivery from the Store till the end Buyer or
provide last mile services in Russia.

Our key advantages
Main factors Existing solutions Logecom solution
1
2
3
4
5
6
Safety guarantee without additional
insurance
Responsibility for delayed delivery
Parcel status tracking
Customs clearance
Hidden costs in Russia charged from
Buyer
Parcel size limitations
USD 100 -150
NO
Do not reflect reality
Only up to the Russian border
Do not provide proof of delivery
Clerance time is from 4 days up to 2
weeks
Require physical presence of Buyer at
customs office for clearing parcels
valued over EUR 200
Broker services in Russia, extra fees for
delivery in Russia, etc.
YES
USD 200 for each parcel lost by
Logecom’s fault
YES. We are ready to pay Buyer for
every day of delivery delay.
Information is updated every 2 hours
Till parcel hand over to Buyer
POD with Buyer’s signature is provided
1 day
Physical presence of Buyer is not
required for parcels valued up to EUR
1000 and over
No hidden costs besides customs
duties , taxes, and fees for cargo
valued over EUR 1000
NO

Extra schticks
Services for buyers:
Toll-free call-center number 8-800-333-31-93 available 24/7
2 calls, 1st – one day before delivery, 2nd – on the day of delivery
Text message notification about upcoming delivery
Additional insurance for 100% of goods value:
Insurance premium is 3% of goods value.
Personal account:
Buyer can register a personal account at Logecom’s web site www.logecom.ru
Registered users have a possibility to:
- track goods status in real time
- change certain delivery details, such as type of delivery, delivery address, delivery time
- give comments and information on delivery and upload necessary documents
- ask questions and get answers
- leave complaints which are forwarded straight to the company’s Management
Free storage time of parcel at Logecom’s warehouse – 14 days
Return of parcels

Duty-free import limitations
When shipped via international mail goods for personal use, sent within a calendar month to one
consignee being a person located on the customs territory of the customs union, with customs
value not exceeding equivalent of EUR 1000 and total weight not exceeding 31 kilograms are
exempt from customs payments.
When aforementioned limits are exceeded customs duties, taxes are paid at flat rate of 30% of
goods customs value, but not less than EUR 4 per kilogram of weight for the part exceeding value
limit of EUR 100 and (or) weight limit of 31 kilograms.
DOCUMENTS REQUIRED FOR CUSTOMS CLEARANCE:
up to 200 €
200-1000 €
Copy of store invoice
Buyer’s passport details
Copy of store invoice
Payment confirmation
Copy of a signed broker agreement or Carrier’s public offer accepted by Buyer

List of goods not accepted for transportation
• Information on paper, audiovisual, and other media, prohibited
for imports into customs territory of customs union, exports from
customs territory of customs union, and transit through customs
territory of customs union;
• any bank notes, securities, and papers with security features;
• originals of personal identification documents (passport, military
ticket, birth certificate, etc.), military and civilian weapons, its
basic parts and ammunition, prohibited for imports to customs
territory of customs union, exports from customs territory of
customs union, and transit through customs territory of customs
union;
• signal, pneumatic, gas weapons, ammunition, cold steel
weapons (including throwing), electric shockers and spark
dischargers;
• explosive substances;
• hazardous waste prohibited for imports and (or) restricted for
crossing customs border during imports and (or) exports;
• special technical devices designed for clandestine information
gathering which are restricted for imports into customs territory
of the customs union and for exports from the customs territory
of the customs union;
• poisonous substances which are not precursors of drugs or
psychotropic substances and which are restricted for customs
border crossing;
• mercury barometers, thermometers, etc.;
• some types of accumulators, power supplies, batteries;
• internal combustion engines;
• magnetized materials and items containing such materials;
• compressed or liquid gas containers;
• matches and lighters (including refill containers);
• items and substances which may cause threat to personnel,
pollute or damage other packages by their essence or packaging;
• glass, crystal and porcelain items without special packaging;
• drugs, psychotropic substances and precursors of such
substances, including those in the pharmaceuticals form;
• caustic, flammable substances, corrosive household liquids,
bleaching powders, and other hazardous substances, materials,
items and products;
• human organs and (or) tissues, blood and its components
restricted for crossing customs border during imports and (or)
exports;
• all kinds of tobacco-containing items and smoking mixtures;
• alcohol products, ethyl alcohol and beer when imported and (or)
exported by persons under 18 years of age;
• perfumes, colognes and other alcohol-containing perfume and
cosmetic products packed in a spray-type container;
• radioactive materials;
• precious metals, precious and semi-precious stones and items
containing such stones;
• natural animal skins and furs;
• ozone depleting substances prohibited for imports into customs
territory of the customs union;
• live animals and plants;
• plant protection agents prohibited for imports into customs
territory of the customs union, which are subject to annexes A
and B of the Stockholm convention on persistent organic
pollutants signed in Stockholm on 22 May 2001;
• equipment for extracting (catching) water biological resources
prohibited for imports into customs territory of the customs
union;
• hazardous cargo or substances which are subject to prohibitions
or restrictions by IATA (International Air Transport Association),
ICAO (International Civil Aviation Organisation), ADR (The
European Agreement concerning the International Carriage of
Dangerous Goods by Road), state authorities or other authorized
entities;
• other contents which may not be securely or legally shipped in
Carrier’s opinion, or which have damaged or inappropriate
packaging.

Contacts
Thank you!“
“
Our contact details:
Email: info@logecom.ru
Tel: 8-800-333-31-93

Logecom E-commerce Logistic across Russia (English version)

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Logecom E-commerce Logistic across Russia (English version)