Central Asia & Caucasus B2C E-Commerce Market 2019: Kazakhstan, Azerbaijan, Georgia

Central Asia and Caucasus See Rapid Growth in B2C E-Commerce over the Course of the Last Year

In the Central Asia and Caucasus region, B2C E-Commerce is still in its early stages. This is exemplified with internet penetration rates below 50% in Tajikistan, Kyrgyz Republic and Turkmenistan. Among more developed markets in the region, access to financial services reaches only over half of the populations of Georgia and Kazakhstan. As internet penetration increases and infrastructure improves in the region, the growth prospects for B2C E-Commerce increase as well.

Kazakhstan holds the region’s largest B2C E-Commerce market
According to the author’s report, Kazakhstan has the best performing B2C E-Commerce market in the Central Asia and Caucasus region. Despite its size in comparison to the rest of the region, there is much room for growth. Private and public investments and helping to continue this growth and the share of B2C E-Commerce in total sales is projected to break three percent by 2021.

Azerbaijani B2C E-Commerce is still in its infancy
B2C E-Commerce is developing rapidly in Azerbaijan. The market size nearly tripled between 2015 and 2017, in regard to the author’s report. Having the highest internet penetration rate in the region, Azerbaijan’s infrastructure is aiding this E-Commerce boom, boasting internet users of over three-quarters of the population.
 
In Georgia, there is a large potential for E-Commerce growth
Georgia had the highest financial institution account ownership rate among selected countries in Central Asia and Caucasus in 2017, which correlates to E-Commerce infrastructure development. Nearly a third of Georgian internet users used the internet to browse for information on services and goods and a lower share bought goods and services online in 2018, finds the author.