In a rapidly evolving global landscape, the digital economy has emerged as a driving force for economic growth and innovation. Iraq, a nation with a rich history and a promising future, is no exception to this transformative wave. This article explores how e-commerce and online payments are playing a pivotal role in shaping Iraq's digital economy and how businesses can become trusted online stores in Iraq.
Understanding the Digital Economy
Iraq, known for its historical significance, has been on a journey of economic resurgence. With the advent of the digital age, the country is now embracing e-commerce and online payments as key drivers of economic growth. The digital economy encompasses all economic activities that leverage digital technologies. It includes online commerce, digital services, and the use of data for innovation and efficiency. In Iraq, this shift towards a digital economy is transforming traditional businesses and creating new opportunities to become a trusted online store in Iraq.
Recent Growth in Iraq's Digital Economy
E-commerce in Iraq
E-commerce Platforms
The growth of e-commerce in Iraq can be attributed to several factors, including improved internet infrastructure, increasing smartphone usage, and a young population eager to adopt new technologies. Additionally, the convenience and accessibility offered by e-commerce platforms are enticing more consumers to shop online. Iraq's e-commerce landscape is witnessing exciting trends, including the rise of social commerce, where purchases are influenced by social media. Moreover, the demand for personalized shopping experiences and eco-friendly products is gaining momentum. A notable trend in Iraqi e-commerce is the rise of social commerce. Consumers are increasingly influenced by products and recommendations they encounter on various social media platforms, this opens the doors for businesses to become trusted online stores in Iraq.
Consumer Behavior
Online Payments
Credit Cards and Debit Cards
In recent years, there has been a noticeable shift towards digital payments, including the increased usage of credit and debit cards. E-commerce platforms are now integrating secure payment gateways to facilitate card transactions, offering a safer and more convenient option to consumers. On the other hand, it is offering opportunities for businesses to become trusted online stores in Iraq.
Digital Wallets
Digital wallets are becoming increasingly popular in Iraq. These secure and convenient payment methods allow users to make transactions online, reducing the reliance on cash. The rise of mobile wallets has also played a significant role in the transition to digital payments. Consumers find mobile wallets user-friendly and efficient for online transactions.
Payment Gateways
Sustainability and Ethical Shopping
A rising trend among consumers globally, including Iraq, is the preference for sustainable and ethically sourced products. E-commerce platforms can capitalize on this by offering eco-friendly products and promoting responsible shopping.
Online Shopping Habits
Product Research and Reviews
Iraqi consumers exhibit a tendency to conduct thorough research before making a purchase. They often rely on product reviews and recommendations from peers or online communities to guide their buying choices.
Price Sensitivity
Price plays a vital role in the purchase decision. Iraqi consumers are generally price-sensitive, and they actively compare prices across different platforms to secure the best deals and discounts.
Trust and Security Concerns
Trust in E-commerce Platforms
Establishing trust in e-commerce platforms is paramount for Iraqi consumers. They value secure transactions, reliable delivery, and good customer service. E-commerce businesses need to build a trustworthy brand image to gain and retain customers and to become trusted online stores in Iraq.
Security of Personal Information
Given the prevalence of cyber threats and online scams, Iraqi consumers are cautious about sharing personal and financial information online. E-commerce platforms must ensure robust security measures to allay these concerns.
E-Commerce and Online Payments in Iraq: Facts, Figures and Latest Statistics
Infographics by GO-Globe Iraq E-Commerce
- In January 2022, Iraq’s total population amounted to 41.67 million, 20.58 million of whom are internet users.
- Iraq’s internet penetration rate stood at 49.4% of the total population at the start of 2022.
- For the Iraqi e-commerce market, revenue was US$5,67 million in 2022.
- Iraq is the 50th largest market for eCommerce with a predicted revenue of US$4,557.2 million by 2023.
- Revenue in Iraq is expected to show a compound annual growth rate (CAGR 2022-2025) of 17.52%, resulting in a projected market volume of USD 9,197 million by 2025.
- In terms of e-commerce users in Iraq, the number is expected to amount to 22.5 million users by 2025.
- There were 33.72 million internet users in Iraq at the start of 2023 when internet penetration stood at 74.9%.
- Iraq was home to 25.53 million social media users in January 2023, equating to 56.7% of the total population.
- Internet users in Iraq increased by 7.3 million (+27.7%) between 2022 and 2023.
- 11.28 million people in Iraq did not use the internet at the start of 2023, suggesting that 25.1% of the population remained offline at the beginning of the year.
- Fixed internet connection speeds in Iraq increased by 1.62 Mbps (+8.2%) during the past 12 months.
- A total of 45.76 million cellular mobile connections were active in Iraq in early 2023, with this figure equivalent to 101.7% of the total population.
- 75.7% of Iraq’s total internet user base (regardless of age) used at least one social media platform in January 2023.
- Meta’s advertising resources indicate that Facebook had 17.95 million users in Iraq in early 2023.
- YouTube had 24.30 million users in Iraq in early 2023.
- Revenue in the E-commerce sector in Iraq is expected to show a compound annual growth rate (CAGR 2023-2027) of 12.8%, resulting in a projected market volume of US$7,371.8 million by 2027.
- With an expected increase of 14.1% in 2023, the Iraqi eCommerce market contributed to a worldwide growth rate of 9.6% in 2023.
- User penetration in Iraq is expected to be 45.4% in 2023 and is expected to hit 47.9% by 2027.
- In the Iraqi retail market, the online share is 5.9% and is expected to increase by an average of 7.6% to 8.0% by 2027.
- The average revenue per user (ARPU) in Iraq, by the end of 2023, is expected to amount to US$222.10.
- Like in Iraq, global e-commerce sales are expected to increase over the next 5 years.
- Five markets are considered within the Iraqi eCommerce market.
- Electronics & Media - 31.8%
- Food & Personal Care - 24.5%
- Fashion - 21.2%
- Furniture & Appliances - 14.1%
- Toys, Hobby & DIY - 8.4%.
Most visited e-commerce companies in Iraq, as of July 2023
Online Platforms in Iraq (Local)
- Dukkan
- Miswag
- OpenSooq.
Growth Trajectory and Government Initiatives
Iraq's e-commerce sector is on a growth trajectory. With more businesses going online and consumers embracing digital shopping, the sector is poised for exponential expansion and numerous opportunities for businesses to become trusted online stores in Iraq. The Iraqi government recognizes the potential of e-commerce in driving economic growth. Initiatives to support and regulate the sector are being developed to create a favourable business environment.
Opportunities for Small Businesses
Challenges for the E-Commerce market
Despite the promise, e-commerce in Iraq faces challenges such as logistics, internet accessibility, and cybersecurity threats. Addressing these issues is essential for sustained growth and to establish as trusted online store in Iraq. Lack of connectivity and infrastructure, including physical and digital infrastructure for supply chains and logistics, is one of the main obstacles to e-commerce in Iraq. In general, there are significant restrictions on service providers, slow and expensive internet connections, and a low level of internet penetration. The telecoms infrastructure required for e-commerce to thrive in Iraq has been destroyed by decades of conflict. Second, there needs to be a concentrated effort to raise digital literacy among Iraqis so that everyone has access to the internet and the know-how to participate in the e-commerce industry. Both the public and private sectors must work together to build safe and secure e-payment systems, creating a conducive environment for credit card use. As of now, consumers prefer to use cash for both financial and technological reasons.
Future of Online Payments in Iraq
The future of online payments in Iraq looks promising. With increasing digital literacy and efforts to improve security measures, more consumers are likely to shift towards online payment methods. E-commerce platforms will continue to innovate and collaborate, offering a diverse range of secure payment options.
How GO-Globe is Pioneering E-Commerce Solutions For Businesses to Become a Trusted Online Store in Iraq
We are proud to play a big part in the making of the digital landscape in Iraq at GO-Globe. Our vision is helping businesses grow with robust and reliable E-Commerce Iraq solutions. Since buying online gradually becomes more important, we will help the business to build a trusted online store in Iraq.
Here is how we achieve this:
By Building Strong Online Stores
We believe every business in Iraq should have the tools to succeed online. That's why we work really hard to design and develop websites that are easy to use and full of helpful features. When we create a website, we focus on making it simple for customers to browse and buy.
Our team ensures all websites created are friendly to mobile devices, faster, and more secure. This is how businesses ensure they provide a great experience in shopping and differentiate themselves as a trusted online store in Iraq. A number one priority includes how safe consumers' information is so they can shop without worry.
By Helping Businesses Reach More Customers
Reaching the target audience is one of the greatest challenges faced by businesses. With our E-Commerce Iraq solutions, we make it easier for businesses to be able to reach out more people. By using smart strategies and tools, businesses are helped in showing their products to the right customers at the right time.
We also work on enhancing the visibility of search engines so businesses will appear higher in search results. This way, many people can find and trust their services. A good online presence is something to become a trusted E-store in Iraq, and we ensure it to our clients.
By Making Payments Simple and Secure
In e-commerce, payments are a big component, and we all know how much importance is associated with the smooth and reliable operations of payments. For GO-Globe, we ensure that all online stores that we construct allow customers in Iraq to use all major payment methods, including cash-on-delivery, credit cards, and local payment options.
We also make sure that every transaction is safe. When payments are secure, there is a greater feeling of safety, and this helps businesses expand into a trusted online store in Iraq.
Training and Support for Businesses
We do not just create a website and leave. Our team trains and supports businesses so they can handle their online stores quite easily and allows them to add on new products, sales tracking, and inquire from customers.
We desire to enable businesses to grow and thrive in the digital arena. We provide direction and ongoing support to assist in becoming leaders in E-Commerce in Iraq.
By Leveraging Boosting Iraq’s Digital Economy
Our work at GO-Globe isn’t just about helping individual businesses. We are proud to be part of a bigger mission to grow Iraq’s digital economy. By helping businesses go online and improve their e-commerce presence, we are creating jobs, encouraging innovation, and boosting the overall economy.
Every trusted online store in Iraq we help build adds to the country’s digital future. We believe that together, we can create a brighter and more connected Iraq.
At GO-Globe, we are committed to bringing change through technology and innovation. If you want to take your business to the next level, we are here to help.
Conclusion
The digital economy's role in Iraq's future is undeniable. With the right strategies, investments, and collaborations, the country can harness the full potential of e-commerce and online payments. E-commerce and online payments are breathing new life into Iraq's economy. Online payments are gradually gaining traction in the e-commerce landscape of Iraq. As security measures improve, and trust in digital transactions is established, consumers will become more comfortable with online payment methods. This digital transformation not only enhances convenience for consumers but also offers immense opportunities for businesses of all sizes to become a trusted online store in Iraq.
Frequently Asked Questions (FAQs)
Q1: Is e-commerce widely adopted in Iraq?
Q2: What are the prevalent payment methods for online transactions in Iraq?
Q3: How can small businesses benefit from e-commerce?
Q4: What are the main challenges faced by e-commerce in Iraq?
Q5: Are there government incentives for e-commerce businesses?
Q6: How can consumers ensure the security of online payments?
Q7: How are credit and debit cards contributing to online payments in Iraq?
Q8: How is the Iraqi government promoting online payments?
Q9: What factors are crucial for e-commerce platforms to gain Iraqi consumers' trust?
A: Trustworthy transactions, reliable delivery, and excellent customer service are paramount to gaining Iraqi consumers' trust.
Q10: What are the upcoming trends in Iraqi consumer behaviour in e-commerce?
A: Upcoming trends include the rise of mobile shopping and a growing preference for sustainable and ethically sourced products.
