More consumers pivoting to electronic purchasing

Trinidad and Tobago is seeing a spike in e-commerce activity, as the society transitions to more electronic and online purchases.

First Atlantic Commerce, the main payment gateway used in the twin-island Caribbean republic experienced an exponential increase in the number of businesses using its platform to facilitate online payments, rising from 300 to 500 firms from May 2020-May 2021.

This was due in part to COVID-19 and the resultant face-to-face restrictions causing more businesses and consumers to pivot online to trade their services and to make purchases.

Trade and Industry Minister Paula Gopee-Scoon said she was heartened to see the level of e-commerce taking place during the COVID-19 pandemic has been increasing.

Speaking during a webinar held by her ministry recently, Gopee-Scoon said: “It is no secret that this COVID-19 pandemic has significantly impacted our way of life and reshaped the economic landscape. Globally, with increased border restrictions, there is a growing trend in consumers buying more locally-made goods and services. This has been facilitated by the emergence of domestic market platforms in many countries giving rise to a new phenomenon known as ‘digital localism'”.

UNCTAD studies confirmed rise in e-commerce in T&T

She said this trend was validated in a series of worldwide studies undertaken by the UN Conference on Trade and Development (UNCTAD), which has shown notable increases in e-commerce activity within countries.

According to the minister, “we are also witnessing this development in T&T. Since the start of the pandemic we have noticed a proliferation of domestic e-commerce activity in almost every sector of the economy. These figures are even higher when we take into account other e-payment providers such as WiPay, e-solutions offered by banks and other online marketplaces and platforms”.

With over 16,000 registered micro, small and medium enterprises in the country, Gopee-Scoon remarked that, “this also underscores the significant number of firms that still have not implemented online payments and a great opportunity for more firms to facilitate this service”.

She made the point that online platforms provide an avenue for these businesses to go online and avoid the logistical challenges and costs that often serve as a deterrent.

According to her, “these platforms provide a digital space for businesses to not only survive but thrive and expand their revenue streams and customer bases….”They are often inexpensive solutions which allow businesses to set up their e-commerce operations, track customers, improve customer experience and expand market reach both locally and internationally”.

With digitisation increasing globally, Gopee-Scoon stated that the Rowley administration has recognised that businesses require an enabling e-commerce eco-system to better participate in the digital economy.

To help achieve these goals, Government has been proactively implementing the National E-commerce Strategy since 2017. She emphasised ExporTT offers a co-financing facility for website development and upgrade in which successful applicants are reimbursed up to 50 per cent of the costs.