ROMIR Research: Business on Digital Platforms

12 December 2024

The ROMIR Institute of Humanity has developed an Index of Ease of Doing Business on Digital Trading Platforms, which is essentially a domestic analogue of the international Doing Business study by the World Bank. The index was a response to the current public discussion around the platform economy.

The results of the first study show that, in general, entrepreneurs positively assess the practice of doing business on digital platforms, but note the presence of barriers that prevent them from realizing their full potential.

According to the study, 80.2% of entrepreneurs are satisfied with cooperation with digital platforms. For almost half of them (45.6%), these platforms have become a key sales channel. Less than one fifth of sellers (about 17%) are even hypothetically ready to leave the digital platform for offline retail chains. Entrepreneurs are most satisfied with the level of demand for their goods on digital platforms compared to other sales methods. More than half of entrepreneurs (53.8%) believe that the economic situation has had a positive impact on the company's position. Comparing the format of doing business on the platform and outside it, entrepreneurs predictably give preference to the platform due to the ease of finding and attracting consumers, as well as the effectiveness of interaction.

Most entrepreneurs consider relations with digital platforms to be important for their own business. Thus, 74.4% note an increase in sales volumes over the past year. Entrepreneurs highly appreciate the ease of entering the platforms, information transparency, while many express dissatisfaction with the participation of platforms in the pricing process. The amount of commissions, fees and mandatory payments on the platform is considered by entrepreneurs to be one of the most important factors affecting their business. However, only a quarter of respondents are clearly dissatisfied with the current level of platform commissions, another third consider this issue to be debatable - "satisfied in some ways, not in others."

Separately, the study participants assessed regulatory initiatives that could affect their business. About half of entrepreneurs do not feel the regulatory impact of the state, about 40% consider this effect positive, and only about 12% - negative. At the same time, the regulation of the industry causes mixed feelings in most entrepreneurs: over a third of respondents believe that the state "helps in some ways, hinders in others" their business; and 16% believe that "authorities do not take any action, but their participation is necessary." In terms of regulation, sellers are most satisfied with the solution of the following tasks: priority promotion of Russian goods, provision of information about the seller to the buyer, limiting the frequency of revision of the terms of cooperation with marketplaces. The least understood by entrepreneurs are the restrictions for the self-employed to work with marketplaces, the expansion of product labeling and the lack of introduction of paid returns from buyers back to the seller on certain platforms

The most important factors that have a significant effect on entrepreneurs: the influence of marketplaces on the pricing of the seller's goods, the ban on paid returns of goods, confirmation of certificates and declarations, restrictions for the self-employed when working on platforms.

For owners of pick-up points (PPs), it is important that their activities are not limited to cooperation with only one digital platform, and that they are not prohibited from providing related services (for example, packing orders in gift wrap). The greatest concern is the possibility of recognizing the PPs as a trading facility.

The final value of the index was calculated on a scale from -1 to +1

Read more about the study at the link.

Methodology:

The study was conducted in October-November 2024, among 1,201 entrepreneurs from all federal districts of Russia. The index was calculated based on the assessment of 4 categories of factors: "General economic factors affecting SME business", "SME relations with the platform", "Business on the platform compared to business outside the platform", "Regulatory impact".

Each factor was assessed by the degree of influence (on a scale from 1 - "no influence at all", to 5 - "very strong influence"), as well as the nature of the influence (on a scale from 1 - "not at all satisfied", to 5 - "completely satisfied"). The index value is the sum of the arithmetic mean of the group of factors for four subindices. The final index values ​​were normalized on a scale from -1 to +1.

When calculating the index, general economic factors, regulatory restrictions, relations of entrepreneurs with digital platforms, the success of doing business on the platform and outside it were assessed. The final value of the index was +0.12, which reflects weak positive dynamics, while simultaneously indicating the need to remove existing barriers.

“Currently, digital trading platforms are a significant driver for the development of small and medium-sized businesses. We understand perfectly well that when assessing the ease of doing business, it is necessary to take into account


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