E-commerce in Armenia

E-commerce

Internet access

As of December 2017, there were 2.9 million people in Armenia, out of which 2.1 million were internet users, making the penetration rate 72.5%. Internet is ubiquitous in Armenia's capital Yerevan with many cafes, universities and schools providing free wi-fi access. In contrast, many villages have only one or two mobile broadband services. Approximately 60% of rural towns are covered by fixed-line broadband. 3G services are available to almost 100% of the population, covering 90% of the country. In general, online content is widely accessible to internet users. However, during times of civil unrest, the government has been known to restrict access to social networks and other websites. Nevertheless, internet freedom remained largely uninhibited in the past year, and the country's internet is considered 'free', according to FreedomHouse. As of September 2018, the most popular search engines in the country by market share were Google (91.69%), YANDEX RU (4.61%), Mail.ru (1.66%), Yahoo! (1.06%), bing (0.81%) and DuckDuckGo (0.09%). As for browsers, the most popular ones were Chrome (61.89%), K-Meleon (16.33%), Safari (7.04%), Firefox (6.41%), Opera (2.08%) and Samsung Internet (1.36%).

E-commerce market

E-commerce is developing in Armenia due to the expanded use of the internet, credit cards and online banking. According to the last available data, in 2015 the IT market volume reached US$ 345 million comprising 61% of ICT industry's total. However inconsistent and inequitable application of customs duties is still an impediment to this development. E-commerce has not yet penetrated deeply into the country. Online purchased items were food products, followed by jewellery and accessories, souvenirs, clothing, and household appliances. Many people continue to prefer cash payments, and in many locations postal services are not robust enough. One of the leading supermarket chains in the country has recently launched their e-commerce website, and other companies are following the trend. Other policies have been adopted, such as taking advantage of the HayPost arrangements for international delivery, and customs' personal consumption duty waiver. Online banking is becoming increasingly popular and Armenians are becoming accustomed to these types of financial services, which may help further develop e-commerce. In B2B e-commerce, the top sectors in Armenia are the ICT and finance & banking, which have well-developed infrastructure and content for business users and provide quality services. Some examples of popular e-commerce startups are iPhone.am, Salesboom.am, Menu.am, Biglemon.am, Nout.am. Armenian consumers also use Amazon, Aliexpress, Ebay and other international websites for purchasing household appliances, books, mobile phones and computers, clothes and footwear, goods for children and perfumes, as these online products tend to be less expensive. According to the Central Bank of Armenia's Statistics Department, the total volume of overseas e-commerce in Armenia was approximately US$ 8.1 million between 2017 Q2 and 2018 Q1.