E-commerce – modern world’s demand

E-commerce – modern world’s demand

Economy
22 October 2019, 13:49 88
On October 21, the 2nd Baku E-Trade Forum (BEF-2019) was held at the Heydar Aliyev Center within the framework of InnoWeek - Innovation Week. On the first day of the forum, four sessions were held on various aspects of e-commerce, Fins.az reports. The session on "E-Commerce Regulatory Policies in Government and Intergovernmental Approach" discussed national strategies, e-commerce facilitation, the impact of e-government and international cooperation. The topics discussed in the session "New technological trends in e-commerce infrastructure: prospects and threats" included cybersecurity, electronic signature, artificial intelligence, robotics, and blockchain.
 
E-commerce is now widespread. There is no need to spend hours in the store if we can get everything we want online. But what is the situation in this area? What steps should be taken to promote e-commerce?
 
Economist Vugar Bayramov said the development of e-commerce is today's priority issue. "Despite the recent growth of e-commerce, we have not yet fully exploited our potential. Trade is still mainly done through traditional means, although e-commerce has a direct impact on total trade. Therefore, a number of steps are being taken to expand e-commerce. However, experience shows that the steps taken are more administrative. It would be more advisable to carry out stimulating activities for the development of e-commerce. In a number of developed countries, including the US, e-commerce is exempt from value added tax. We have also made this suggestion. E-commerce companies in the US do not pay sales tax, which is considered a stimulating measure. Buyers should also be encouraged to shop online. E-commerce goods are cheaper than the ones in stores. I think tax relief may also be useful for us. This mechanism can stimulate both companies and buyers. In addition, it is very important to ensure security. One of the reasons for the lost interest in e-commerce is security concerns. In some cases, information is shared with third parties, which may reduce citizens’ interest in e-commerce. In addition to encouraging steps, there is also a need to expand activities to ensure security. Only in this case, the identified priorities will be achieved very soon,” he said.
 
President of the Azerbaijan Internet Forum Osman Gunduz said that there is still much to be done in this area. "Although some steps have been made in this direction lately, the overall situation is unsatisfactory. If we compare the indicators of e-commerce with similar indicators of neighboring countries, we can see this clearly. The turnover of Kazakhstan, Belarus, Russia, and other countries amounts to billions of dollars. We also have this potential. But there are serious problems with the realization of these opportunities. Serious reforms are needed in this area. Only in this case can the e-commerce turnover be increased. Entrepreneurs should be involved in this area. For this, there is a need for educational work and favorable conditions. That is, it is important to pay attention to practical issues. E-commerce is very convenient for people in the 21st century. Nowadays everyone prefers to shop online. E-commerce is also more transparent as registrations are made. In this case, it is easier for the relevant authorities to have supervision. E-commerce also attracts a new audience for entrepreneurs. One of the main reasons for poor e-commerce development is the poor quality of the Internet. The Internet must be stable and of high quality for online shopping. The ministry should give priority to this issue,” he said.
 
According to Head of the E-Commerce Community Rashad Mehdiyev, e-commerce has a number of advantages. "First of all, you can save time by shopping online. Nowadays we don't have to shop in stores for hours to buy a product when in a short period of time we can purchase any brand we want online. E-commerce accounts for a large portion of the world's trade turnover. Nobody wants to spend a lot of time shopping. It is no accident that Amazon CEO Jeff Bezos was elected as the richest man of the year. This means that e-stores are used all over the world. Unfortunately, this area has not yet fully developed in Azerbaijan. One of the main reasons is the low prevalence of electronic payments. It is true that in comparison with the last 5 years there is progress. For example, most of the sites 5 years ago did not meet modern standards. But there are already enough professional e-commerce sites in Azerbaijan that meet the required standards. We are far behind when compared to the e-commerce turnover in neighboring countries. Therefore, there is a need for incentive mechanisms in this area. It would be better if there were certain incentives for entrepreneurs, such as tax relief. These measures can affect the development of e-commerce. The development of e-commerce in the post-oil era is an important issue. If government support in this area is further strengthened, it will be possible to achieve effective results in the short term,” he said.
 
Shabnam Mehdizade