Globalization, increased use of smartphones, improved access to the internet, and the spread of social media has succeeded in bringing up the e-commerce and online shopping market.
Internet users are growing in Iraq. That means e-commerce and the online shopping market will be growing.
3 Problems in The Development of The E-commerce Industry in Iraq
Based on market research Iraq, there is some problem that causes the development of the e-commerce industry will be restrained.
1. Payment Method
Payment via credit card is the common online shopping payment method. The problem is that credit card possession is low. There are also people who are concerned about the safety and the security of the online or e-payment method.
2. Shipping Cost and Delivery Time
Many Iraqis are complaining about the high cost of shipping. The slow delivery time can cause impatience that resulted in hesitation when trying to do online shopping again.
3. Poor Quality
Some online shop advertises its product with much exaggeration. Some create a fake picture of their product. Many people experience trauma because the real quality of the product does not match the products advertised.
Most Purchased Product in Iraq’s Ecommerce
In Iraq, cosmetics are the most purchased products online. Most women also buy beauty and personal products online. After cosmetics and beauty products, electronics and fashion items are products that many Iraqi bought online.
Social media is the most influential media in providing online shopping advertisements. Price is the main reason many Iraqis try online shopping. They can find the same product at a better price in an online shop.
Other factors that influence people to do online shopping is product variety, availability, and discreet purchase.
Market research Iraq shows that young Iraqi tend to choose online shopping because of its convenience, time-saving, and some of them are more comfortable browsing from the computer than browsing in a store.
The online payment method, especially the credit card issue, is still the challenge for online shopping in Iraq.
Market Research Iraq Need to Assess Risk for Foreign Investment
Comparing to Gulf’s Country, Iraq is still lagging behind in the use of the internet as a business and trade medium. Oil and gas are still Iraq’s main income.
There is a possibility that Iraq will slowly change its economic focus to the agriculture sector. Iraq can’t only rely on oil and need to diversify their economy.
Market research Iraq needs to be conducted with many analysis variables. Economic, social, politics, technology, and environment are the research variable that needs to be analyzed. The war against the U.S and coalition change the demographic.
The researcher needs to analysis about the change that might happen after ISIS’s existence in the region. They also need to analyze the security and threat risk for foreign investment.