Electronic commerce can change the economies of developing nations. You can integrate them into the global market, which in turn improves and strengthens the economic well-being of these nations. However, the practice of e-commerce in these nations is in its early stages and there are also significant challenges that may slow down its growth. I classify them into two main parts as follows;

cultural issues

1. Lack of online culture

The electronic way of doing business is a new concept for societies in developing nations. People usually buy and sell face to face. They come and touch (physically) what they want, negotiate the best deals and buy. This is the type of trading you are familiar with, which is completely different from how it is done online. The idea of ​​buying goods and services that cannot be physically seen or touched is not the kind of risk they can afford. They are also not sure if online merchants are trustworthy enough to deliver products and services as promised.

Traders are more afraid of selling their products over the Internet. Considering the society’s lack of online shopping habits, and because the electronic way of doing business is not well known, they think it is a high business risk. They are generally not willing to invest in online businesses. Therefore, this is extremely damaging to the growth of e-commerce in these nations.

2. Lack of confidence

Basically, trust is a major issue in the online business environment. As I mentioned earlier, people in developing countries do not trust the way of doing business online, so one of the main reasons is trust. Because e-commerce is not a practice in these countries, and business is generally conducted face-to-face, people often raise trust issues. They are forced to think how can they trust people they cannot see and who can be thousands of kilometers away? Also, because there are no e-commerce policies and laws in most developing countries, they are afraid of where to turn in case of disputes.

infrastructure problems

1. Limited access to Telecommunications infrastructure and high cost of Internet

Electronic commerce requires technological bases. One of the main ones is Internet access. To run an online business, you need an Internet connection with a stable and high connection speed. However, most of the Internet connection type in developing countries is a dial-up connection, which is very limited and slow. Also, the cost of owning it is high. This is another challenge facing e-commerce in developing nations.

2. Limited access to personal computers

Another important technological facility that e-commerce needs is personal computers. Owning computers is expensive in developing nations because they are generally imported from developed nations; which is another great challenge for the growth of electronic commerce in these countries.

3. Lack of electronic payment facilities to allow the transfer of funds

Banking is another important facility required to do e-commerce. And in most cases, developing nations lack this important facility. Online merchants in these countries are required to use offshore banking facilities if they are going to do business over the net.

4. Imperfect legal system and political barriers

To do e-commerce, a perfect legal system and policy is required. Without them it is impossible to do business online. However, these nations generally lack these core systems, which in turn could make e-commerce difficult.

However, while doing business online in developing countries is difficult, it is by no means impossible. It can be done under the circumstances. However, it might take more effort to succeed. Furthermore, the industry needs time to use its potential.

Therefore, realizing the potential of e-commerce in developing nations, there are interested bodies for which your cooperation can make a big difference. They are government, professionals, online merchants, banks, and customers. If they can work together and collaborate, they can completely avoid all the obstacles mentioned above and can benefit their nations with the results of e-commerce.