Describes what a company needs to know to take advantage of e-commerce in the local market and covers prominent B2B websites.
- General Overview – Prior to the COVID-19 outbreak, many public and private entities in Fiji had begun transitioning to digital processes and activities and phasing out manual and paper-based activities. The immediate reach into global markets that Fiji and other Pacific Islands countries now enjoy accessing, can be attributed to the use of eCommerce platforms. With stringent social distancing measures and lockdowns, many businesses were forced to strengthen their online approach to sales and marketing. Many businesses in Fiji are now thriving through online sales as the economy slowly recovers. Fiji had the 88th highest internet penetration in the world in 2020 at 61.7%, higher than any other Pacific Island country. eCommerce generated 77.0% of all digital revenues in Fiji in 2020 valued at $41.7m. The total FinTech transaction value is forecast to grow by 19.5% from 2020 to 2025.
- Legal & Regulatory – Online businesses operating in Fiji need to be registered with the Fiji Revenue & Customs Authority for tax purposes. Any online businesses with an annual gross turnover or sales exceeding $45,920 (FJ$100,000), is required to register for VAT (Value Added Tax). In this case, the business becomes a collecting agent for the Government and is required to charge VAT on all sales made and file VAT returns as well as make VAT payments.
- Consumer Behavior – Paying by cash is the most common payment method. Mobile money has only recently become a widely used payment method for buying/ selling of goods and money transfer.