Losses incurred by Wildberries and sellers due to Ukrainian strikes estimated at US$7-8.5bn

The total losses incurred by Russian online retailer Wildberries and its sellers as a result of Ukrainian drone attacks have been estimated at RUB 600-800 billion (around US$6-8.5 billion).

Source: Meduza, a Latvia-based Russian media outlet

Details: Margarita Yevstigneyeva, head of Russia's Association of Suppliers of Goods for E-Commerce Platforms, said more than 400,000 sellers have been affected by the attacks on Wildberries warehouses, with total losses amounting to RUB 600-700 billion (US$6-7 billion), including lost revenue.

This includes goods valued at RUB 200-300 billion (US$2-3.5 billion). Yevstigneyeva believes many sellers have lost up to 95% of their stock.

It could cost Wildberries between RUB 147 and 223 billion (US$1.7-2.6 billion) to rebuild its warehouses and infrastructure following the Ukrainian drone attacks.

If full demolition, waste removal and land reclamation are required, costs could rise to RUB 169-278.9 billion (US$2-3.3 billion), noted Sergei Semko, lead analyst at the Data Insight research agency.

He estimated potential seller losses on Wildberries at RUB 445-507.8 billion (US$5.2-6 billion).

"Thus, the total possible damage to Wildberries and its sellers can currently be estimated at between RUB 600 and 800 billion (US$6-8.5 billion)," Meduza reported.

Background:

• Megamarket, a Russian online marketplace owned by Sberbank, has changed its terms and conditions for sellers so that it is no longer liable for loss of goods during drone attacks. Wildberries, Ozon and Yandex Market have also amended their terms and conditions.
• Magnit Market has also disclaimed liability for any failure to fulfil obligations during drone strikes and missile attacks.

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