Why Local Online Stores Struggle to Gain a Foothold in Georgia’s E-Commerce Market

Georgia’s e-commerce market has been growing steadily, driven by increased internet access, widespread use of digital payments, and evolving consumer habits. However, despite this growth, international platforms continue to dominate, while local initiatives struggle to attract and retain a significant customer base. This raises a key question: why do local platforms fail to establish a strong competitive presence in a market with rising demand?

Over the past few years, online shopping has gained traction in Georgia. According to Galt & Taggart, e-commerce accounted for approximately 10% of retail sales in 2023, but the majority of this growth has gone to foreign platforms. The most commonly purchased categories include electronics, clothing, and cosmetics. Notably, most purchases are made via mobile devices, underscoring the importance of optimized mobile interfaces and user experience.

Global players such as AliExpress, Temu, and Amazon hold significant advantages — not only through pricing, but also in product variety, faster delivery times, and reliable user interfaces. AliExpress has improved delivery times in Georgia and simplified its return policies. Temu, with an aggressive social media campaign, has quickly captured tens of thousands of Georgian users.

Local platforms, in contrast, face several structural challenges: limited product ranges, inconsistent logistics, weak UI/UX design, and occasional failures in payment systems. Delivery delays and broken checkout processes quickly erode trust — often permanently.

Still, there have been local attempts to build digital marketplaces, for example, multi-category platforms. Other brands have launched their own e-shops, but their reach remains niche.

One of the key barriers is consumer trust. Many Georgian shoppers still perceive foreign platforms as more reliable — even when price or service quality may favor a local option. This perception remains one of the toughest challenges for domestic e-commerce growth.