Uzbekistan - ECommerceUzbekistan - ECommerce
The number of Internet service providers has grown in Uzbekistan, but penetration remains relatively low. Basic Internet service is adequate and Uzbekistan has extensive fiber optic networks. The number of Internet users exceeds 13 million people. Increased Internet service delivery by mobile phone operators contributes to the potential for eCommerce, and there are approximately 25 million cell phone users in the country now.
- B2B/B2C eCommerce sales channels: Some companies host eCommerce sites (such as www.olx.uz), and many individual Uzbek companies maintain an Internet presence. More sophisticated websites are beginning to appear. The Law on Electronic Commerce was adopted in 2004 and further amended in 2015. After some liberalization in the financial and banking sectors, domestic eCommerce is gaining momentum as domestic trading platforms develop. However, cross-border eCommerce is still hampered by customs regulations, and the fact that billing systems of major international eCommerce platforms have not extended to Uzbekistan.
- Online (B2B/B2C) purchasing trends: Improvement of mobile payment services facilitates the development of domestic eCommerce. Smart phones can now be linked to Uzbek bankcards for purchases. This method of payment for both the seller and the buyer is more convenient than a physical bankcard. The most popular online purchases are health and beauty products, electronics, clothing, construction services, food delivery, car parts, and travel services. Uzbekistan Airways and Uzbekistan Railways have launched online ticket sales for passengers. Uzbekistan’s eCommerce market is not as developed as in the U.S., but it also is not saturated and is open to new products and ideas.
- Leading digital marketing technologies: Digital marketing is new to Uzbekistan. In general, foreign firms use social media for advertising purposes. Facebook and Telegram are widely used for B2B and B2C sales. Mobile eCommerce applications are used for both advertising and information purposes as well as payment. In general, health and beauty products are predominantly sold through social media.
- Entering the market via ecommerce sales channels: China, Turkey and the United States are the most popular foreign countries for cross-border online purchases. Shopping online is becoming more common. Customs regulations and poor integration with international billing systems are barriers that slow down or prevent cross border eCommerce sales. Please also refer to the Intellectual Property Rights section under the Investment Climate Statement.