While Western Europe maintains e-commerce dominance, Eastern Europe, including Serbia, presents growth opportunities that require concerted digitalisation and infrastructure development efforts to bridge existing disparities
The recently released European E-commerce Report 2023 provides insights into the landscape of B2C e-commerce turnover in Europe. It reveals Western Europe’s sustained dominance, commanding over 67% of the total turnover, while Southern Europe has steadily increased its share to 16%. This dominance is underscored by Western Europe’s leading E-GDP figure at 5.2%. Conversely, Eastern Europe, including Serbia, presents a growing digital economy, offering ample opportunities for e-commerce players to thrive and contribute to E-GDP growth. However, significant disparities persist in internet penetration and online shopping conduct across European countries.
While nations like Iceland, Norway and Switzerland boast near-universal internet access, Serbia lags behind with 84% internet penetration, impacting its online shopping landscape. Nonetheless, ongoing broadband internet infrastructure developments, particularly in less developed regions of Serbia, hold the promise of swift progress. Moreover, upcoming 5G network introduction is poised to further boost communications infrastructure, serving as a catalyst for the country’s digital transition.
Indeed, the evolution of e-commerce is heavily dependent on the readiness of businesses to offer e-services and the readiness of consumers to embrace online shopping, alongside broader digitalisation efforts. Varying metrics across Europe underscore the diversity of economic development and infrastructure investments, emphasising the need for robust procedures.
The telecommunications sector is instrumental in enhancing service quality, introducing innovations and driving economic growth through improved connectivity and communications infrastructure
In an effort to bridge these gaps, particularly in the Western Balkans, the Digital Agenda for the Western Balkans 2021– 2026 aims to align the countries of the region with the EU’s Digital Single Market, thus propelling the region into a digital economy. This initiative promises to yield accelerated economic growth, increased job opportunities and improved service delivery, ultimately shaping both citizens’ purchasing power and the e-commerce landscape.
Digitalisation represents a cornerstone priority in the Western Balkans, with EU support driving economic growth. The Digital Agenda has galvanised efforts across the region, fostering the establishment of e-government portals and enhancing digital literacy among citizens that recognise it as the new standard for future generations. Economic operators stand to benefit from streamlined processes and reduced costs, contributing to overall economic progress.
Underpinning these advancements is a robust telecommunications sector, where both state and private enterprises play vital roles in improving service quality. Their collective efforts introduce innovative solutions that redefine work practices, business operations and entertainment experiences.
In essence, as we circle back to our initial starting point, Eastern Europe emerges as a burgeoning hub of digital innovation, offering fertile ground for the expansion of e-commerce and the elevation of E-GDP figures.