Google: 10% of all retail sales will be through e-commerce in 2020

The research of Euromonitor for Google indicates that e-commerce will also reach a 10% participation in the market share of retail sales in the country, and says: “This is an amazing opportunity to be part of this new trend.”

The first data of Google Trends show that the interest in buying online is growing exponentially. From 2014 to 2016, the interest in buying online was reduced by 50%. But since July 2016, it has begun to increase steadily.

Google provided data to the commercial site “Let’s Buy” for this research, which are based on searches related to purchases. According to Google Analytics, 63% of online purchases will be made in 2018 through mobile phones. The sale of goods and services in Iran is mainly done by transaction companies that buy in bulk from suppliers in China or other countries and sell them in smaller units to Iranians.

The research report of Euromonitor indicates that the US dollar is the main currency for this trade, while some transactions are done with Rials too. The study pointed out that consumers do not trust e-commerce because of possible problems in delivery or after sales services.

Few online shopping websites have the capacity to deliver goods purchased in Iran. But this is about to change, according to the research of Euromonitor. For example, Uber’s delivery service between Tehran and other cities has acquired very high popularity recently.

The study also predicts that e-commerce will increase due to the entry of high-quality foreign companies into Iran. One of the reasons for this optimism is that companies that are active in e-commerce have lower costs, because they do not have to rent buildings to operate.

On Linkedin, there are pages based on consumer complaints against domestic banks and credit institutions for not providing financial guarantees after the purchase of goods online. Some consumers get their money back after months of struggle.

Some companies such as Digikala and SAHA sell goods only online, bypassing the system completely. Customers can pay for their purchases by debit cards or cash on delivery.

One of the rules that banks must implement to provide financial guarantees is that if a credit institution sees an unusual activity in its account, it has the right to freeze all updated transactions.

Some companies such as Digikala and SAHA do not branch out of the online world, selling their goods only over the Internet. Customers can pay for their purchases by debit cards or cash on delivery. But some other e-commerce websites allow customers to buy goods on credit using a bank account as security.

However, in practice this is not the case. In some cases, if a user finds that he has been cheated by a company or seller, it is very difficult for him to get his money back from the bank.

In December 2016, after over four months of negotiations with banks and credit institutions, “Digikala” was able to resume transactions, with the approval of “Bank Mellat”.

But in another case, the bank did not give its official permission to transfer money. However, after an agreement with their representatives and some other negotiations, they managed to provide financial guarantees for e-commerce transactions.