Partners of the Center for Evidence-Based Expertise at the Gaidar Institute on the marketplaces and offline shops competition

Lora Nakoryakova stressed that popular thesis about goods on marketplaces always being cheaper than offline is only partially true. The concept of «general price level," like the average temperature in a hospital, has little sense. However, if you answer «head-on», then yes, general price level on marketplaces is lower than offline. Yet not by 2–3 times, as is widely believed, but by 15–19%. Moreover, this delta is not relevant for all product categories, the expert pointed out.

Marketplaces save on renting retail space, logistics and intermediaries, allowing them to cut costs. In addition, competition between sellers in the platforms forces them to offer more favorable prices, Lora Nakoryakova explained.

The expert also noted that majority of sellers are satisfied with cooperating with marketplaces; this is evident from the data of a survey conducted by the Gaidar Institute and the AGENCYTDE. Every tenth entrepreneur started a business owing to the opportunity to sell via marketplaces. Pressure on prices is rare and is more often associated with the sale of stale goods.

«Today it is more appropriate to avoid discussing dumping (since there are no market seizures, for example, in certain product categories), but rather to consider the deterrent effect of restraining dynamic price growth. In the context of expected slowdown in the growth of households' real incomes, this is more a plus than a minus," Lora Nakoryakova concluded.

Ekaterina Papchenkova, commenting on the regulation rules on marketplaces, stressed that authorities should be extremely cautious about the possible social and economic consequences of new restrictions, including the threat of price hikes for consumers. Furthermore, it is important to «avoid overreaching» and introducing stricter rules for platforms than those currently in force for offline commerce. The expert reminded that in traditional retail, for example, there are no restrictions on discounts and marketing campaigns. In other countries, authorities react «ex post facto» to specific violations of platforms, rather than prescribe bans in the legislation.

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