Assessment of Current Buyer Behavior in Market

E‐commerce is gaining a foothold as internet penetration increases year-by-year. The COVID-19 pandemic and consequential movement restrictions boosted Georgia’s e-commerce market by more than threefold in 2020.  According to Galt & Taggart’s 2021 research, the most popular categories for Georgian e-commerce was electronics and household appliances and equipment.  Food delivery earned a special niche in Georgia’s digital buying ecosystem as Georgian retailers used food delivery channels to deliver groceries, personal care products, and pharmaceutical products during the pandemic. 

Credit card penetration is also increasing rapidly.  As of June 2023, there were 7.72 million debit cards and 560,000 credit cards issued across Georgia’s population of 3.7 million people.  Cardholders can pay public utilities electronically and purchase goods.  Electronic utilities payment is widespread through a growing network of electronic payment kiosks, particularly in larger cities.  Electronic transactions over the last four years have increased significantly. For example, in June 2023, Georgian residents carried out over 76 million transactions by payment cards worth $2.3 billion, which is respectively 49 percent and 64 percent increase over the previous year. 

There are no major buying holidays for e-commerce specifically, except Black Friday, since most apparel and consumer goods shopping is done from U.S. sources, such as Amazon.com.  Other popular e-commerce sites are Alibaba, Aliexpress, Ebay, etc.  Preferred payment methods include credit/debit card payments or PayPal, the latter being available in Georgia since 2013. 

Georgia is harmonizing the electronic flow of information among key players in the logistics, shipping, and transport industries by launching the Trade Facilitation System (TFS).  The TFS enables traders, customs brokers, freight forwarders, shipping lines, and other players in international trade to submit information through a single entry point. 

Local eCommerce Sales Rules & Regulations

In June 2023, Georgia adopted the Law on e-Commerce as part of the Georgian government’s commitment under its Association Agreement with the EU.  The Law on e-Commerce regulates the rights and obligations of intermediary service providers in the e-Commerce process, as well as protect consumers by making information services more transparent and standardized. 

Georgian companies that are active in e-commerce field set up the Georgia E-Commerce Association in 2020.  The association has identified underdeveloped infrastructure and logistical support as the main obstacle, and is working with association members and other interested companies to address challenges. 

Local eCommerce Business Service Provider Ecosystem

Digital marketing firms are underdeveloped in Georgia, while last mile logistics firms have seen a significant boost under the COVID-19 pandemic and related restrictions in personal movement. Seven commercial banks operating in Georgia have licenses for international payment systems via internet-acquiring sources and they successfully serve merchant outlets (including state services). Their electronic systems work with internationally recognized security technologies such as Verified by Visa and MasterCard Secure Code, which imply three levels of card authentication.  Georgia’s recently established E-Commerce Association is working with international players and donors to promote an in-country event focused on ecommerce.