E-commerce Platforms in Iraq: A Comparative Analysis of Market Leaders

Created: May 08, 2024

Updated: May 8, 2024


In recent years, Iraq has witnessed a massive surge in e-commerce change, driven by elements that consist of multiplied internet penetration and converting client behavior. As more Iraqis embrace online shopping, the role of e-exchange systems becomes increasingly crucial. This article delves properly into a comparative evaluation of the main e-commerce structures in Iraq, shedding light on their abilities, offerings, and marketplace dominance.
E-commerce Platforms in Iraq

Infographics by GO-Globe E-commerce Iraq

Comparative Analysis

User Interface and Experience

The interface of an e-trade platform plays a vital function in attracting and retaining customers. Platforms that provide intuitive navigation, responsive layout, and personalised hints will be more likely to result in better patron engagement.

Payment Options and Security

Ensuring regular payment transactions is paramount in e-trade transactions. Customers are trying to find structures that offer an entire lot of price alternatives, along with credit/debit cards, cell wallets, and cash on delivery.

Customer Service and Support

Prompt and effective customer service is critical for resolving queries and addressing problems without delay. E-commerce structures that provide 24/7 customer support via multiple channels, consisting of live chat and a helpline, revel in a competitive aspect.

Features and Services Offered

Each e-commerce platform has specific capabilities and offerings to draw and maintain clients. Here are some of the important services:

Product Variety

E-commerce structures in Iraq provide a variety of merchandise across numerous categories, catering to the diverse tastes and possibilities of clients. Convenient shopping allows customers to browse and purchase products from the comfort of their homes or on the go, eliminating the need to head to physical stores.

Secure Payment Options

E-commerce platforms offer stable charge gateways, permitting users to make transactions with confidence. Payment techniques include credit/debit cards, mobile wallets, and coins on shipping.

Personalized Recommendations

Many structures utilize algorithms to provide customized product recommendations primarily based on clients' surfing and purchase records, improving the buying experience.

Enhanced Delivery Services

E-commerce organizations in Iraq are enhancing their logistics infrastructure to ensure speedy and dependable shipping of orders to clients' doorsteps.

Easy Returns and Refunds

Most systems have flexible return and refund rules, permitting clients to return products within a distinctive duration if they are not satisfied with the product or if the product is defective.

Smartphone Accessibility

With the growing use of smartphones, e-trade systems in Iraq have mobile-friendly internet sites and apps, making them reachable for users to maintain on their cell devices.

Customer Reviews and Ratings

Customers can look at evaluations and scores from other customers to make knowledgeable purchasing selections, contributing to transparency and agreement within the e-change environment.

Pricing Structures

The pricing systems for e-alternate systems in Iran vary depending on several elements. Iraq's e-trade market, led by structures like opensooq.com, amazon.com, and aliexpress.com, suggests a huge increase in capacity, not withstanding challenges, with a projected market quantity of USD 9,197 million by 2025 and 2022. Here's an overview of the everyday practices adopted by e-commerce groups in Iraq:

Subscription-Based Model

Some e-commerce structures in Iraq charge a subscription fee for sellers to list their products on the platform. This subscription price can be monthly or annual and can vary primarily based on the level of provider and skills supplied to sellers.

Transaction Fees

In addition to subscription fees, e-trade systems regularly charge sellers a transaction fee for every finished sale. This rate is mostly a percent of the total transaction value and helps cover the expenses
associated with charge processing and platform upkeep.

Listing Fees

Some structures may also price sellers for each product list or SKU introduced to their inventory. This fee is normally charged upfront and may range primarily based on element along with product class and listing period.

Promotional Fees

E-commerce platforms provide diverse promotional gear and advertising options to help sellers boost their visibility and earnings. Sellers might also need to pay additional costs to avail of these promotional offerings, together with backed product listings or focused advertising campaigns.

Fulfilment Fees

For dealers who prefer to use the platform's fulfillment services, extra prices can also be observed. These charges cover the cost of warehousing, deciding on, packing, and transporting orders on behalf of dealers, supplying them with a hassle-free fulfillment solution.

Value-Added Services

E-trade platforms might also additionally provide charge-added services to sellers, along with pinnacle magnificence customer support, analytics and reporting tools, and stock management software. Sellers may additionally incur additional prices to get right of entry to those offerings, which may be designed to help them grow their companies more successfully.

Commission-Based Model

E-commerce systems in Iraq may additionally operate on a price-based model, wherein they earn a percentage of every sale made via their platform. This rate charge is deducted from the vendor's profits and is usually agreed upon as part of the platform's terms and conditions.

Challenges and Opportunities

Despite the speedy and brief growth of e-commerce in Iraq, the area faces numerous traumatic conditions, together with logistical constraints and infrastructure barriers. However, those demanding conditions present opportunities for innovation and growth. By leveraging technology and fostering collaboration, e-commerce structures can triumph over hurdles and capitalize on the large capabilities of the Iraqi market. Here's a more in-depth look at a number of the key challenges and opportunities in handling e-commerce inside the country:


Logistical Constraint

Iraq faces fantastic logistical hurdles, which include inadequate infrastructure, unreliable transportation networks, and customs delays. These traumatic conditions can affect the well-timed transport of products and increase operational expenses for e-exchange organizations.

Payment Infrastructure

Despite enhancements in recent years, Iraq's price infrastructure remains underdeveloped, with limited access to banking offerings and electronic charge technologies. Cash on shipping remains the dominant price desire, posing protection and overall performance troubles for e-commerce transactions.

Regulatory Environment

The regulatory framework for e-trade in Iraq maintains uncertainty for corporations and investors. Lack of clean policies and enforcement mechanisms can restrict the boom of e-commerce and deter foreign investment.

Security Concerns

Iraq's political instability and safety-demanding situations pose dangers to e-trade operations, which consist of theft, vandalism, and cyber attacks. Ensuring the protection of online transactions and defensive customer information are paramount issues for e-commerce companies operating inside Iraq.


Growing Digital Economy

Despite the challenges, Iraq's virtual monetary gadget is on the rise, driven by increasing smartphone penetration and an extra youthful, tech-savvy population. E-commerce corporations have the possibility to enter this developing market and capitalize on the growing demand for payments.

Untapped Market Potential

Iraq's e-commerce market possesses highly untapped potential, offering vast possibilities for boom and increase. With a population of over 40 million human beings, there may be huge capability to achieve new customers and stress profits via e-commerce channels.

Rise of Mobile Commerce

Iraq's e-commerce market remains untapped, presenting superb possibilities for growth. With a population of over 40 million human beings, there may be significant capability to reach new clients and force sales via e-commerce channels.

Cross-Border Trade

E-commerce offers Iraqi companies the opportunity to have interaction with the flow-border alternate and increase their attainment beyond home markets. By selling across the world, agencies can access a larger customer base and diversify their revenue streams.

Investment and Innovation

As e-commerce profits gain traction in Iraq, there's a developing hobby among buyers and entrepreneurs seeking to capitalize in this burgeoning area. Investment in generation infrastructure, logistics, and digital rate solutions can pressure innovation and accelerate the boom of e-trade in Iraq.

E-commerce Platforms in Iraq

  • Revenue in the e-commerce market is projected to reach US$3.81 billion in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024–2029) of 11.21%, resulting in a projected market volume of US$6.48 billion by 2029.
  • In the e-commerce market, the number of users is expected to amount to 12.4 million by 2029.
  • User penetration will be 21.2% in 2024 and is expected to hit 26.1% by 2029.
  • The average revenue per user (ARPU) is expected to amount to US$389.60.
  • Transaction value is expected to show an annual growth rate (CAGR 2024–2028) of 9.34%, resulting in a projected total amount of US$14.62 billion by 2028.
  • From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$2,255.00bn in 2024).
  • The average transaction value per user in the digital commerce market is expected to amount to US$0.52k in 2024.
  • Transaction value in the digital commerce market is projected to reach US$10.23 billion in 2024.
  • In the digital commerce market, the number of users is expected to amount to 25.42 million by 2028.
  • Recent years have seen an explosion in the e-commerce sector in Iraq.
  • Business & Industrial also has a notable presence, with 72 stores, making up 10.29% of the store count in Iraq.
  • In Iraq, the distribution of stores across different platforms presents a dynamic picture of the market. Woo Commerce, as a leading platform, hosts 503 stores, accounting for 39.54% of the total store count in the region. This is closely followed by Shopify, which supports 318 stores, representing 25% of the region's total.
  • Custom Cart makes a significant contribution with 147 stores, or 11.56% of the total.
  • In January 2022, Iraq’s total population amounted to 41.67 million, 20.58 million of whom are internet users. As a result, Iraq’s internet penetration rate stood at 49.4 percent of the total population at the start of 2022.
  • For the Iraqi e-commerce market, revenue is projected to reach USD 5,667 million in 2022.
  • Revenue is expected to show a compound annual growth rate (CAGR) of 17.52% by 2022–2025, resulting in a projected market volume of USD 9,197 million by 2025. A significant portion of the revenue is forecast to be generated in China.
  •  In terms of e-commerce users in Iraq, the number is expected to amount to 22.5 million by 2025.


The e-commerce panorama in Iraq is characterized by fierce competition and fast innovation. Market leaders keep dominating the market, supplying various capabilities and services to cater to the desires of Iraqi purchasers. By specializing in consumer experience, safety, and product availability, those structures are poised to shape the future of online shopping in Iraq. By addressing key demanding situations and capitalizing on emerging trends, e-trade businesses can unencumber the whole functionality of Iraq's digital financial system and pressure sustainable growth in the following few years.


Q1. Are e-commerce platforms in Iraq accessible to rural areas?

A: Yes, e-commerce platforms are progressively expanding their reach to rural areas via partnerships with carriers and logistics companies.
Q2. How do e-commerce platforms ensure the security of online transactions?
A: E-commerce structures rent encryption generation and stable payment gateways to defend customers' economic statistics and prevent fraud.

Q3. Can Iraqi consumers return products purchased online?

A: Most e-commerce structures in Iraq offer a trouble-loose cross-back policy, allowing customers to move merchandise again within a detailed period for compensation or an alternate.

Q4. Are there any regulations governing e-commerce in Iraq?

A: While there are regulatory frameworks in place to control e-commerce activities in Iraq, the world is particularly nascent, and rules are evolving to keep pace with technological enhancements.

Q5. How are e-commerce platforms adapting to the preferences of Iraqi consumers?

A:E-commerce systems leverage statistics, analytics, and people's remarks to tailor their services and decorate the buying experience for Iraqi purchasers.

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