E-commerce in Armenia

E-commerce

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.