Main Challenges for E-Commerce in Developing Countries
E-commerce can change the economies of developing countries. It could integrate them into the global market, thereby improving and strengthening the economic well-being of those countries. However, the practice of e-commerce in these countries is at an early stage, and there are major challenges that may hinder its growth. I divide them into two main parts:
The lack of online culture
e-commerce is a new concept in developing countries. People often buy and sell face-to-face. They see and touch (physical) what they want, negotiate the best deal, and buy. This is the type of business activity they are familiar with, which is quite different from the online approach. The idea of buying goods that can not be seen and touched by goods and services is not the type of risk they can afford. They are also not convinced that online merchants trust to provide the promised products and services.
Businessmen are also afraid to sell their products through the Internet. Considering the lack of online shopping habits, and because the e-commerce approach is not known, they think it is a high business risk. They are often reluctant to invest online. As a result, this has greatly undermined the growth of e-commerce in these countries.
2. Lack of Trust
Basically, trust is a major problem in the online business environment. As I mentioned earlier, people in developing countries do not have enough confidence in the way they do business online, and one of the main reasons is trust. Since e-commerce is not a practice in these countries, and the business is usually face-to-face, people often raise the question of trust. They have an obligation to think about how they trust people they do not see, and may find them thousands of kilometers away? Moreover, since most developing countries do not have e-commerce policies and laws, they are afraid of where they should go in the event of a dispute. Infrastructure issues
Limited telecommunications infrastructure and high Internet access
E-commerce requires a technical base. One of the main ones is access to the Internet. To run an online service, you need an Internet connection with a stable and high connection speed. However, the Internet connection type in most developing countries is dial-up connection, which is very limited and slow. In addition, owning it is costly. This is another challenge that e-commerce faces in developing countries.
2. Limited access to personal computers
Another major technical facility required for e-commerce is the personal computer. Ownership of computers is expensive in developing countries, as they are usually imported products from developed countries; this is another major challenge for e-commerce growth in these countries.
3. The lack of electronic payment facilities For enabling funds transfers
Banks are another essential facility for conducting e-commerce. In most cases, developing countries lack this major facility. Online businesses in these countries must use their banking facilities overseas if they are to do business online.
4. Imperfect legal system and policy barriers
To do e-commerce, the need for a sound legal system and policy. Without them it is impossible to do business online. However, these countries are usually lacking these major systems, which in turn may make e-commerce difficult.
However, even in developing countries doing online business is difficult, it is impossible. Can be done according to the situation. It may take more effort to succeed. In addition, the industry takes time to harness its potential.
Therefore, to achieve the potential of e-commerce in developing countries, there are a number of institutions whose cooperation can have a huge impact. They are government, professionals, online merchants, banks and customers. If they can work together and work together, they can avoid all of the above obstacles altogether and can benefit from the e-commerce output of their country.