The Real Impact of Russia’s Invasion on Online Sales

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There has been a huge shake up with the online marketplace and real impact of Russia’s Invasion. There are long reaching consequences and opportunities for online businesses if you know where to look.

Companies across the United States have noticed a direct correlation between their online sales and the ongoing crisis in Ukraine

Companies across the United States have noticed a direct correlation between their online sales and the ongoing crisis in Ukraine. After Russia annexed Crimea just over three years ago, sanctions were placed on Russia by President Obama. Some of these included a ban on selling certain products to Russian individuals and companies. But, with the recent introduction of bitcoin, American companies have found an effective way to circumvent those regulations.

The Ukraine is crucial for Putin’s political future because it is his only leverage against NATO forces and European powers who back Ukraine’s mission for independence from Moscow. If he surrenders control over the Ukraine, he will lose all influence in Eastern Europe, effectively removing his last buffer against Western interests. He would then be left with one option—to negotiate with Europe or surrender completely in order to avoid annihilation at Western hands.

American companies are trying to find ways to retain their customers impacted by the increase of Russian sanctions

You may be wondering how American companies can retain their customers, given the political changes and instability in Russia. While this is certainly a valid concern, it hasn’t stopped some enterprising American businesses from adapting to the changing landscape. For example, an American company that does business with Russia has started marketing its products to customers in Ukraine. This is only one of many ways that companies are trying to adapt to this new political situation.

Many of these companies have made significant investments in Russia and Ukraine over the past few years. So, they’re not going to let those go without a fight. The impact of Russia’s invasion has caused them to find creative ways of doing business with Russian customers. Especially since sanctions are making online sales difficult for them.

Major retailers in the U.S., are making sure they can still reach their Russian customers without violating the sanctions

Sanctions target the handful of Russian oligarchs who are close to Putin and exercise influence over the Kremlin. The U.S., in an attempt to strike at these figures and isolate the regime, has placed sanctions on their businesses, which include some of Russia’s largest companies. This has had an unintended effect on large American retailers that depend on Russian tourists who spend billions abroad each year, according to Reuters. Now these companies are wondering how they can get around this new obstacle in order to keep making money from their Russian customers.

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Some American companies, including Best Buy and Macy’s, have stopped accepting Rubles as a form of payment in Russia through their online retailers. By stopping this avenue of commerce from existing, they hope to avoid incurring the wrath of federal regulators. However, there is concern about whether or not this will work with many Russians now feeling unable to purchase goods from these websites using credit cards issued by banks currently under sanction by the U.S.

Losing customers, especially if they account for a large portion of sales, can be detrimental to a company’s bottom line

Here are some ways losing customers can negatively affect a company:

  • They lose money. Customers are the lifeblood of any business, so when they go, so do their dollars and cents. Losing customers, especially if they account for a large portion of sales, can be detrimental to a company’s bottom line. For example, Best Buy reported that its sales in Russia had dropped significantly as a result of the country’s economic struggles. How much money did Best Buy lose because Russians stopped shopping with them? $500 million. That’s enough to make anyone sick to their stomachs (and ears).
  • They damage their brand reputation. When people stop buying products from a certain brand or store or restaurant, it can impact how other people perceive the business and lead others to not buy from them either. This is especially true for online businesses because there are so many different options for customers on the internet that making a bad impression on one person could mean losing dozens more—or hundreds more!

The political uncertainty between Russia and British is impacting both governments as well as civilians and businesses, as some Russians are choosing to buy from British companies rather than American ones

The sanctions, tensions and political instability between the U.S. and Russian governments have created an aura of uncertainty. Especially surrounding U.S.-based companies. The impact of Russia’s invasion has Russian government officials, civilians and businesses to buy from British companies rather than those in the United States.

Moreover, Russia’s marketing niche is based on a limited budget. Many Russian companies are choosing to engage in purchasing activities with British suppliers. This does not require financial transactions to take place in dollars.

The solution for these companies may be finding other ways to bring in sales through social media and advertising campaigns

With the amount of security breaches such as the Yahoo and Target attacks, consumers are no longer immune to hackers. They must become more cautious about where they enter their personal information. Therefore, making it harder for businesses that rely on web purchases to increase sales. However, there is a way for these companies to adapt to this new challenge and continue bringing in sales.

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The solution for these companies may be finding other ways to bring in sales through social media and advertising campaigns. With nearly 70 percent of all adults using Facebook, online retailers can take advantage of this platform. This is done by advertising their products with users that have similar interests. This may help them do more than just inform customers about their different items, but also build relationships with them. While not all marketing strategies will be successful, some initiatives could lead to an increase in revenue when executed correctly. By effectively targeting the right audience through social media platforms like Facebook or Twitter.

Online shoppers are affected by political instability, so retailers have to find ways to adapt

Another impact of Russia’s invasion is that when the world is in a state of political instability, online shoppers tend to take a back seat. The number of online shoppers has increased since last year and so have their sales. Online sales are up by 50% compared to where they were last year. Retailers have found ways to attract people to their websites. Mostly by offering deals that are not always available in stores.

Consistency with online marketing to weather the recent turmoil

There is still an opportunity to grow an online business even with the consequences of global instability. Capitalism is still alive and well online and in free countries. The time has never been better to start a new business from home, or online. There are so many reasons to engage with the online marketplace to reach customers across the globe. Hopefully a byproduct of the strife in Eastern Europe will end in peace. There will be healing, rebuilding and a strong emerging economy for NATO countries, and their allies.

ASM

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