Market Trends of Albania E-Commerce Industry
This section covers the major market trends shaping the Albania E-Commerce Market according to our research experts:
Fashion and Consumer Electronics to boom in the country
- Albania benefits from some free trade agreements that enable unobstructed access to regional markets, including agreements with the EU. With a skilled and experienced workforce, Albania has been able to meet the high-quality standards of Europe, becoming one of the top 10 leather and shoe exports to Italy and successfully expanding its market share to other European countries
- . Based on market potential and following international market trends, launching e-commerce is considered one of the most profitable strategies to strengthen and expand its competitiveness and reach the global market.
- In Albania, e-commerce is in the developing stages. Its introduction and implementation by driving this industry will provide enterprises with superior visibility tools and business solutions. Also, it generates sales, increases exports, ensures sustainability, and improves employment opportunities.
- Consumer electronics retailers have made great strides in Albania over the last few years. The development consisted of implementing the physical location and chain concept. Current leading players in this industry present established physical channels. The in-store approach remains the most important sales channel and holds the largest market share in development. Considering competition with overseas online shops, retailers also thought it appropriate to invest in online shops, especially during the Covid-19 crisis.
- Today, all major consumer electronics retailers in the country have online stores that can move customers from physical stores to online stores and vice versa. All of these operations need to take into account technological evolution. As long as retailers provide a clear technical path, customers will find it easier to switch between online and physical stores.
Understand The Key Trends Shaping This Market
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Digital connectivity and Online payments on rise in the country
- Broad and relatively affordable access to essential internet services exists in many Albanian cities. However, Albania currently faces a few digital connectivity challenges, such as broadband coverage remains a problem for many rural communities. Private and public sector solutions need to be combined with closing these connectivity gaps. This leads to high effective costs for companies that require high-speed connections.
- E-commerce has the potential to provide Albanian companies with access to new markets, lower overhead costs, and the opportunity to expand at lower costs. Some of the things that are already embracing the online world are the tourism sector and business process outsourcing. Many Albanian hotels use eTourism to attract guests through online booking sites.
- According to the World Bank in April 2022, there was a strong recovery in Albania due to political stimulus and the resurgence of travel, construction, and mining activities. Private investment, consumption, and public spending drove growth. Further, the World Bank and other partners are working together to help the government address these challenges and implement the country's long-term vision. This leverages the digital market in the country.
- Financial inclusion and the use of digital financial services are essential for expanding e-commerce. E-commerce in markets where digital financial services are underdeveloped must rely on cash for delivery, increasing the risks and costs of e-commerce. Despite moderate financial inclusion in some countries such as Albania in the Europe region, increased connectivity and digitalization have accelerated e-commerce growth in recent years.
- Moreover, according to a survey conducted by a German news, there are about 1.40 million social media users in Albania, and the number is constantly growing. The winner here is Facebook. Advertising via this platform got about 1 million people regarding ad reach. The next place belongs to Instagram with 870 thousand users and Twitter has the lowest spread, with 91,000 users.
- Increase people`s confidence in the e-commerce business through industry codes of conduct, certifications, awareness campaigns, consumer protection frameworks, online dispute resolution mechanisms, and simplified e-commerce parcel return services. This will create a business environment suitable for the digital economy. Increasing accessibility to high-speed internet. While much of Albania is connected through a fiberoptic cable, the internet remains expensive and slow. It is expanding access to online payments. This includes providing all citizens with a simple payment account, debit card, and transparent fees. All these factors help the country to leverage the e-commerce market in the future.
