E-commerce can change the economy of developing countries. It can integrate them into global markets to improve and strengthen the economic well-being of these countries. However, e-commerce practices in these countries are still in their infancy and there are major challenges that hinder their growth. I divide them into the following two main parts:
Cultural problem
1. Lack of online culture
The e-commerce approach is a new concept in developing countries' society. People usually buy and sell in a face-to-face manner. They see and touch [actually] what they want, negotiate and buy the best deals. This is the type of business activity they are familiar with, which is completely different from the online approach. The idea of buying goods and services that are physically inaccessible and accessible is not the type of risk they can afford. When online merchants trust enough to deliver products and services as promised, they are not confident.
Businesses are also afraid to sell their products through the Internet. Considering the lack of online buying habits in society and the fact that e-commerce is not known, they consider this a high business risk. They are often reluctant to invest in online businesses. Therefore, this has greatly impaired the development of e-commerce in these countries.
2. Lack of trust
Basically, trust is a major issue in the online business environment. As I mentioned earlier, people in developing countries have no confidence in the way they do business online. One of the main reasons is trust. Since e-commerce is not the practice of these countries, and the business is usually carried out on a face-to-face basis, people often ask questions of trust. They have a responsibility to think, how can they believe that they can't see them, or they can find them thousands of miles away? Because, because most developing countries do not have e-commerce policies and laws, they are worried about where to go when a dispute arises.
Infrastructure problem
1. Limited access to telecommunications infrastructure and high cost of the Internet
E-commerce requires a technical foundation. One of them is mainly to access the Internet. To run online business, you need an Internet connection with stable and high connection speed. However, most types of Internet connections in developing countries are dial-up connections, which are very limited and slow. In addition, the cost of owning it is high. This is another challenge for e-commerce in developing countries.
2. Restrict the use of personal computers
Another major technology facility required for e-commerce is the personal computer. Having computers is expensive in developing countries because they are usually imported products from developed countries; this is another major challenge for e-commerce growth in these countries.
3. Lack of electronic payment facilities Ability to transfer funds
The banking industry is another major facility required for e-commerce. In most cases, developing countries lack this major facility. Online merchants in these countries are obliged to use banking facilities overseas if they want to conduct business through the Internet.
4. Legal system and policy barriers are imperfect
To do e-commerce, we need a sound legal system and policy. Without them, it is impossible to conduct business online. However, these countries often lack these major systems, which in turn may make e-commerce difficult.
However, although it is difficult to conduct online business in developing countries, it is not entirely impossible. It can be done according to the specific situation. Although success may require more effort. In addition, the industry needs time to capitalize on its potential.
Therefore, the potential for e-commerce in developing countries can be significantly affected by the cooperation of relevant institutions. They are governments, professionals, online merchants, banks and customers. If they can work and collaborate together, they can completely avoid all of the above barriers and benefit from the output of e-commerce.
Orignal From: The main challenges facing e-commerce in developing countries
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