E-commerce Business Models in Ethiopian Market: Challenges and Scope

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Javed Shaikh, et al.


Rapid expansion of information technology and the internet from the last two decades have resulted in making, online economic activities such as Electronic commerce (E-commerce) a general occurrence in the world today. These activities are simplifying the process of business transactions. E-commerce is a process that helps to maintain or improve current business practices. In another way, E-commerce is the change between traditional shopping to internet-based virtual shopping. It is a kind of modernization that is drastically changing the way of doing business and purchase. E-commerce performance shows incredible business growth in developing countries. If adopted fully with all its features, E-commerce can play a major role in the development and economic growth of Ethiopia also. Initially, Ethiopia was lagging in using and implementing these technologies, but nowadays, it is working to introduce E-commerce by designing legal and technological framework as well as infrastructures. Rapidly increasing internet users in Ethiopia is an advantage to grow the online business model. There are many business sectors, including travel, clothing, and electronics, etc. where E-commerce can help in different ways. This study is carried out to explain the present status and facilitators of Internet-based commercial business in Ethiopia. It also presents the current trends of E-commerce in Ethiopia and the challenges that are faced in developing the E-commerce business model in the Ethiopian market with future scope. The various challenges which are highlighted are the Delivery Challenges, Payment challenges, After-sales Service challenge, and challenge of Consumer’s Behavior in adopting these kinds of businesses.

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