analytics

E-commerce User Base in Georgia: Growth, Trends, and Challenges

The share of e-commerce users in Georgia has been steadily increasing, yet it still lags behind both the EU

E-commerce User Base in Georgia: Growth, Trends, and Challenges

The share of e-commerce users in Georgia has been steadily increasing, yet it still lags behind both the EU and Eastern European averages. As of 2024, 31% of internet users in Georgia have purchased or ordered a product or service online (source: Geostat). It is important to note that this figure does not represent the entire population but only those who use the internet. In comparison, the EU average exceeds 75%, while in Eastern European countries such as Poland (72%) and Romania (59%), the rates are significantly higher than in Georgia.

One of the main drivers of e-commerce growth is the expansion of internet access. The more people regularly use the internet, the larger the potential audience for online shopping. However, this process faces certain limitations in Georgia. A portion of internet users still distrusts online shopping, which hinders the rapid growth of the sector.

User engagement varies across age groups. Among individuals aged 15-29, 48% shop online, making them the most active segment. In the 30-59 age group, the figure stands at 33%, showing an upward trend but still lower than among younger users. In the 60 and older age group, only 11% engage in e-commerce, indicating that digital adoption remains low in this demographic.

Gender differences are also notable. As of 2024, 32% of women have made online purchases, compared to 30% of men. Interestingly, before 2020, men had a higher share, but in recent years, women have become more engaged in online shopping. This shift may be explained by the fact that women are more likely to purchase items such as fashion, cosmetics, and everyday goods, which are increasingly available through online platforms.

One of the primary reasons for Georgia’s lower e-commerce adoption rates is a lack of consumer trust. Surveys show that 48% of users believe that online-ordered products often do not match their descriptions, while 29% avoid online shopping due to concerns over unreliable delivery services.

Payment methods present another significant challenge. In 2023, only 67% of online transactions were completed using cards or digital wallets, with the remaining share conducted through cash-on-delivery. By contrast, this figure reaches 85% in Poland and 78% in the Czech Republic. The relatively low level of financial inclusion in Georgia means that many consumers lack confidence in digital payments, which slows the development of e-commerce.

Logistics also remain a critical obstacle. While delivery within Tbilisi typically takes 1-2 days, orders in regional areas can take up to five days to arrive. Additionally, many customers are required to pay extra for international shipping, further discouraging trust in online transactions.

Georgia’s e-commerce market is still developing, but overcoming these barriers is essential for unlocking its full potential. Improvements in regulatory frameworks, enhanced payment security, and increased consumer awareness will support both domestic market growth and competitiveness with Eastern European countries.