Underdeveloped e-commerce in Azerbaijan

Azerbaijan occupies one of the worst positions in development of retail e-commerce among the CIS countries, which is clearly seen in the comparative analysis of the volume of e-commerce in Azerbaijan with Belarus, Kazakhstan, Ukraine and Russia.

So according to the State Statistics Committee, in 2013 the volume of retail e-commerce in Azerbaijan amounted to AZN 2.6 million. For comparison, in Belarus, where the same number of population (9.4 million people), and the level of internet penetration is 66%, last year the volume of e-commerce was $ 300 million, which is almost a hundred times more than in Azerbaijan. In Kazakhstan, the figure was $ 600 million, Ukraine - $ 2 billion, Russia - $ 15 billion.

It is noteworthy that, according to official statistics, the level of Internet penetration in Azerbaijan is 70% and on this indicator, Azerbaijan is the absolute leader in the CIS. According to a recent study by the International Telecommunication Union (ITU), Azerbaijan is the leader in the CIS and the number of individual Internet users and the level of broadband internet penetration among individual users.

Azerbaijan specialized online stores began to appear in the early 2000s, including bestshop.az, topshops.az, giftshop.az, parfumshop.az, place.az, yarmarka.az, paxlava.com, and bakushop.net. These trading platforms arranged sale of household appliances, electronic equipment, jewelry, furniture, food, cosmetics, etc. Analysis of local shops Intertot revealed a number of factors hindering the development of electronic commerce in Azerbaijan. There is no constant updating information on the availability, pricing and new arrivals of goods. Underdeveloped is infrastructure delivery, resulting in its high cost. Another problem is the return shipping. Most online stores items are not returnable. In addition, virtual goods trading platforms offered virtually no credit or installments. Given 43% growth rate of consumer credit in 2013, the role of this factor is difficult to overestimate.

According to the president of Azerbaijan Internet Forum Osman Gunduz, today for the development of e-commerce is necessary in the first place interested entrepreneurs themselves, in particular through various tax incentives. Create a specialized company for the delivery of the services of which would enjoy online shopping. On the one hand improve the quality of delivery on the other will make it much more accessible. Another important factor is to increase the penetration of broadband Internet in the regions to reach a wider audience online shopping.

Today, e-commerce in Azerbaijan is regulated by the law "On electronic commerce", which defines the legal framework for the organization and implementation of electronic commerce in the Azerbaijan Republic, the rights and duties, and responsibilities of its members for violation of legislation on electronic commerce.

An example of state e-commerce development in Azerbaijan is the establishment of e-commerce portal www.b2b.az. It serves as a platform for free exit of local business on the market and to find potential buyers. The very first sale through the Internet was recorded in 1995. It was then that the first online store Amazon opened. - 15B -