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COOPERATION FOR GROWTH PROJECT
(CFG)
STRENGHTENING E-COMMERCE IN THE
REPUBLIC OF SERBIA
FINAL REPORT
Approved Date: TBD
Contract Number: 72016918C00001
Project Start Date and End Date: January 18, 2018 to January 17, 2022
Implemented by: Cardno Emerging Markets USA, Ltd.
EXECUTIVE SUMMARY
During the project “Strengthening e-commerce in Republic of Serbia” a comprehensive diagnosis of e-
commerce state was performed, in which the following research was conducted:
• Desk research (scientific articles, books, e-commerce studies, development strategies, collection
and analysis of existing statistical data)
• Regulatory framework analysis (Law on Electronic Commerce, Law on Trade, Law on Consumer
Protection etc.)
• 22 In-depth interviews and four workshops with key stakeholders:
• Enterprises engaged in e-commerce in Serbia (mainly MSMEs, has to include enterprises
ran by women)-inputs for survey.
• Government representatives (MTTT, Ministry of Finance, Customs, National Bank of
Serbia, Tax administration etc.)
• Representatives of sectors enabling e-commerce (logistics, online platforms, payment
systems etc.)
• Other stakeholders
• Surveying 1000 individuals who actively use Internet in Serbia (total of 434 e-commerce shoppers):
• Surveying enterprises that are engaged in e-commerce in Serbia (150 enterprises), as well as
businesses without e-commerce (59 enterprises)
• Benchmarking – Best practice analysis
Recommendations related to legal issues were summed in the first part of the executive summary, and
results related to other fundamental segments of functioning and strengthening e-commerce in the second
part.
Analysis of this regulatory framework includes benchmark legal analysis, an analysis of the positive
regulations of our country that directly or indirectly affect e-commerce in the Republic of Serbia, as well
as a detailed analysis of the legal barriers identified in practice that impede the development of e-
commerce. Ultimately, the Final Report includes the analysis of the provisions of the new Trade Act, as
well as, the analysis of the provisions of the Act on amendments and supplements to the E-Trade Act, all
in order to create a positive environment for the promotion of e-commerce.
Based on the benchmark legal analysis, we have come to the conclusion that the surrounding countries
are aware of the legal institutes that have been introduced into our legal system by the new Trade Act,
i.e. the Act on amendments and supplements to the E-Trade Act (as mystery shopper, dropship, trust
mark). On the other hand, we have determined that there are certain legal institutes which should be
implemented in the future, but only after creation of the adequate environment (blockchain, smart
contracts, online dispute resolution platforms).
Regarding the analysis of the positive regulations that we have carried out, it should be related to the
conducted research. Namely, we have come to the conclusion that the biggest barrier to major market
holders (both on the supply-side and the demand-side), and therefore the biggest barrier related to the
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development of e-commerce, is actually the lack of confidence. Precisely, the currently applicable
provisions of the relevant laws are not the reason why e-commerce is not sufficiently developed.
Therefore, the biggest task is to influence the confidence of all participants at the market and create an
environment that will contribute to the development of e-commerce.
Additionally, we have analyzed relevant regulations and e-commerce practice in the EU and other
countries in order to determine the most appropriate mechanisms for legislative barriers overcome.
We have suggested to implement the blockchain technology and smart contracts, but such suggestions
had not been adopted. Namely, we saw the opportunity to promote the introduction of two backbones
of the new digital era – blockchain technology and smart contracts. Blockchain technology offers vast
possibilities for business, government, and consumers. Blockchain can be used in many ways, including,
among others: facilitating trade finance; supply chain management; securities recordkeeping and
governance; healthcare management; insurance recordkeeping; energy distribution; digital identity
solutions; consumer banking; international payments; facilitating institutional custody; and voting. On the
other side, the smart contracts help to realize the many possibilities of distributed ledger technology
(DLT). The certainty of the outcome, automation of performance, and efficiencies in the streamlining of
processes are reasons enough for smart contracts to be fundamental to the uptake of DLT. Anyway, we
have come to the conclusion that these institutes will be introduced in our legal system but only after
creation of the adequate environment.
Ultimately, taking into account the Final Report in its entirety and all the provisions of the new Trade Act
and the Act on amendments and supplements to the E-Trade Act, it is evident that the main problems
have been identified, and that the solutions, which will bring the Republic of Serbia closer to all other EU
countries where e-commerce has a big role in the economy, have been implemented.
In order to show the readiness of countries for e-commerce, the United Nations Conference on Trade
and Development (UNCTAD) developed composite B2C E-commerce Index, based on four indicators:
Internet use, number of secure servers, credit card penetration and postal delivery services (UNCTAD,
2018), and the value of the index is positively correlated to the percentage of the online shoppers. By this
research, Serbia is ranked 41st out of 151 countries.
As reported by the web portal Statista, when it comes to e-commerce revenue, it amounted 289 million
EUR in 2018, and it is predicted that will reach 328 million EUR in 2019. Revenue is expected to show an
annual growth rate of 8.9%, resulting in a market volume of €461m by 2023. The number of Internet users
in Serbia (active paying customers or accounts) was 4 million and it is expected to amount to 4.4 million
by 2023. The average revenue per user in the e-commerce market amounts 72,2 EUR which is 10 times
less than in EU (2018), as shown on the graph below
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Average B2C revenue per Internet user, 2018 and forecast
Source: Statista, October 2018
In the set of conducted primary research, 22 in-depth interviews and four workshops have been very
informative and useful for establishing a diagnosis and formulating recommendations in the action plan.
They also provided an input for formulating a questionnaire dedicated for businesses and internet users.
Suppression of gray economy is the most important for those who already have the developed electronic
trade. For those who don`t trade online, the most important is Guide for e-commerce. Just as important
is additional education of potential customers because their mistrust which has roots in having insufficient
information has been recognized as the main obstacle for further development of e-commerce. E-traders
also don`t run away from self-education, which is certainly commendable, so this activity is also on the
top of stimuli list. Introducing official quality certification for E-trade, state financial subsidies, and
determining clear rules and obligations for courier offices would also create positive changes. What should
be emphasized is that all the proposed measures were finely accepted and received high marks.
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Which of these measures could persuade you to think about starting the online sale?
(Respondents whose companies don`t have online sale, N=58)
Question about importance of certain means of this type of trade makes clear and expected difference
between smaller and bigger e-traders. The bigger the company the more expressed opinion of website
efficiency is. On the other hand, social networks are far more significant for smaller companies and
individual sellers.
Unlike existing e-traders who are not only aware of significance and benefits that new technology brings,
but recognize the progress of their status and business from year to year, those who don`t implement e-
commerce are dominantly uninterested for its development. Stating that they don`t have needs for e-
trade as their main argument would probably be the consequence of imminence the e-trade advantages,
so putting an effort in their education should be a right choice.
Main suggestions of marketers’ research
• Developing a set of measures for suppression of gray economy in E-commerce in Serbia
• Creating the media campaigns with the purpose of introducing (potential) online customers and
additional education for them about advantages that lies in e-commerce in Serbia
• Making an e-commerce guide which will especially help to those who still haven`t started online
way of doing business
• Education of e-traders – It is necessary to give a chance to e-traders to acquire new knowledge
and to implement knowledge they already have
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Making the Guide for e-trade
Technology help (making of websites,corresponding platform etc.)
Financial subsidiaries for e-traders
Business strategy definition help
Additional education and betterinforming of potential customers…
Existence of call centre supported byMinistry where people would be able…
Introducing official quality (reliability)certification for e-trade
Precise law regulations in term ofsuppression of gray economy in e-…
Planning to start up the online trade
Other
Nothing from listed
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• Financial incentives for e-traders
• Help with technology and strategy
• Initiating a call center for e-commerce
• Raising the visibility of e-traders certification
• Defining clear rules for those who supply support activities
• Enclosing e-commerce to the part of business community which does not deal with it, introducing
with the process, education about its significance and advantages
Number of internet users among Serbian citizens increases day by day. This is not surprising given the fact
that smartphones are nowadays almost considered by default and when the barriers for its usage as
financial as technical are almost disappeared.
Research of internet users yielded significant results for improving e-commerce in Serbia. If we have in
mind that more than two fifths (43%) of people bought something via internet in the last 6 months, then
the number of online buyers in our country is not insignificant. Time saving and practical aspects of simple
and efficient comparing of different offers motivate us on first place to shop online. Although social
networks are unmatched by being interested, informing about products and services and their purchase
are mostly done via websites.
What could be the main reasons why you shop online? Is there any other reason? I will read
you some reasons why people shop online. Do you recognize yours among them?
Definitely we buy clothes, shoes and sport equipment the most, often do we also shop technique and
fashion accessories, so according to this we usually visit official retail objects` websites which, when it
comes to online shopping, we trust the most. Although a significant part of online shopping in Serbia is
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Time saving
It`s practical - I can compare differentoffers in short time
Delivery on demanded address
Bigger choice of products and services
Does not require physical effort
Money saving
I could easily obtain products fromabroad which are not available in Serbia
Anonymity
Other
Listed with reminding
Other spontaneouslymentioned
First mentioned
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done via social networks, whether they are trademarks` profiles or individual traders, these sellers are
not considered much reliable.
An average online buyer in Serbia hasn`t had any significant bad experience so far, and although he/she
has some concerns, primarily regarding the delivery of the wrong product and quality of goods, he/she is
ready to set aside a decent amount of money for one online purchase (RSD 10334). He/she admits that
they are not informed enough about their rights when online shopping. What would stimulate him/her to
shop online more often are possibilities of exchanging the product in the nearest trader`s store as well as
positive experience of their close friends and possibility to see the product before the payment is done.
In this segment better online supply and lower delivery costs are also listed.
Factors which could influence more and often online shopping. Scale from 1 to 5, where 1
means it would not influence at all, and 5 means it would influence a lot.
Trust is what the majority of the population who do not buy online lacks. Despite the small number of
those who know for unpleasant experience in this process and although they would be motivated to a
certain point to consider this option with the same factors which would stimulate online buyers to increase
the extent of their shopping, there exist small chances that fears and changing of habits among people who
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Goods could be returned in the trader`s nearest store
Positive experience of close friends
Possibility to see the product before the payment is done,or the possibilitu of returning the reserved funds (paying
by cards)
Better supply
Smaller delivery costs
Precise law regulation about online sellers`/E-traders`obligations
Better internet supply of classical traders (which alreadyhave retail objects)
That you can read a review about the product/tradergiven by other buyers
Wouldn`t inluence at all It wouldn`t inluence mostly Would (not) inluence
It would influence mostly Would influence a lot Doesn`t know/rejects to answer
Average
Figure 1. Factors influencing the higher frequency of e-shopping
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don`t prefer e-commerce could fall apart without additional education. What is very interesting is
that 85% of those who purchased online have no complaints on online shopping.
Main recommendations of internet users research
• Education of customers and potential online customers, as well as promotion programs
designed for them should be focused on the key benefits that e-commerce brings: time saving,
easy comparison of different offers, bigger choice, no physical effort nor costs of getting to
the point of sale.
• Education of customers and promotion should be intensively included in elimination of online
shopping fears, such as: receiving non-adequate products fear, or not to receive the product
at all, reclamation procedure ignorance, general mistrust to e-commerce etc.
• Above mentioned e-commerce benefits and its potential deficiencies, as well as traders` rights
and obligations and customers` rights should be represented to Serbian population in the right
way and through adequate media.
• Technological literacy of people should be intensively improved
• Conducting a set of measures which will secure more qualitative and cheaper delivery
• Creating an online offer of classical and online traders which will be in accordance with the
needs of Serbian customers
During the development of e-commerce diagnosis in the Republic of Serbia, key areas have been identified
that represent barriers to stronger development of electronic marketing channels. The key weaknesses
and dangers that e-commerce in Serbia faces are identified, alongside the good sides of e-commerce
development, as well as the chances that await us in the future. The analysis was performed from the
perspective of demand ie. e-commerce buyers, perspective of supply ie. e-merchants, as well as from the
perspective of e-commerce enablers (logistics, payments, technology platforms, etc.), with a parallel
analysis of legislation. The proposal for measures to strengthen e-commerce was made in accordance with
the outlined framework.
First measure is strengthening e-shopper trust. This includes seven activities. Demographic,
socio-economic and cognitive-behavioral barriers have been identified on the demand side, but most of
them can be summed up in customers' mistrust in e-commerce and their unwillingness to get involved.
Highlighting the benefits of e-commerce, eliminating prejudice against e-commerce and lowering the risk
perception of customers towards this type of trading are the focus of measures to strengthen e-commerce
in Serbia on the demand side.
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Summary of activities for strengthening consumer trust in e-commerce
Activity Responsible bodies Partners Activity
indicator
Verification
source Deadline
1. Development of
the citizens' digital
skills in the area
of online shopping
The Ministry of
Education, Science and
Technological
Development; Ministry
of Trade, Tourism, and
Telecommunications
External
partners 2020.
2. The improvement
of the MTTT e-
commerce
information portal
Ministry of Trade,
Tourism, and
Telecommunications
External
partners
Improved
portal
End of
2019.
3. Media campaign
to promote e-
commerce
(professional TV
shows, short
promotional
videos, guest
appearances by
the e-commerce
experts in the
media, etc.)
Ministry of Trade,
Tourism, and
Telecommunications
RTS and other
external
partners
2019. and
2020.
4. Creating a concise
guide for the e-
commerce
customers
Ministry of Trade,
Tourism, and
Telecommunications
External
partner
(USAID)
Created
guide
End of
2019.
5. Trustmark – new
approach and the
significantly higher
recognition by the
customers and
acceptance by the
traders
Ministry of Trade,
Tourism, and
Telecommunications;
The organization that
will issue the trust mark
External
partners
(Ecommerce
Association or
other relevant
institution)
level of the
confidence
in the trust
mark (%),
survey type
data
End of
2020.
6. Training for
journalists on
electronic
commerce
Ministry of Trade,
Tourism, and
Telecommunications
External
partner
(USAID)
The number
of
journalists
who have
been
educated
2019.
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7. An online dispute
resolution
platform
Ministry of Trade,
Tourism, and
Telecommunications
(Consumer Protection
Sector)
External
partners
Functional
platform
End of
2020.
Second measure is related to strengthening e-traders position on the market of Republic
of Serbia
It includes eight activities. E-commerce business model is one of the most common ones in start-ups.
What is important to understand is that entrepreneurial business endeavours often suffer from serious
organizational omissions and insufficiencies, as well as the lack of expertise in certain areas, mainly
technological business aspects. Large business systems are also not immune to problems related to the
lack of expertise in digital technologies and organizational repercussions originating from partial transition
from the entrepreneurship to corporate phase. Within overcoming e-commerce supply-side barriers, it
is necessary to provide strong support for strengthening e-traders position on the market of Republic of
Serbia.
Summary of activities for strengthening the position of e-traders
Activity Responsible
bodies Partners
Activity
indicator
Verification
source Deadline
1. Creating Ecommerce
Guides (Shorter and
Longer Version) MTTT
External
partner
(USAID)
Created guide June 2020.
2. Setting up a Call
Center for the
support of e-traders
Ecommerce
Association or
other relevant
institution
MTTT Functional
Call center June 2020.
3. Incentives to startups
and existing MMS
businesses in e-
commerce (financial
support, mentoring
support ... analyze
different options)
MTTT External
partners 2020.
4. Tax incentives for
electronic traders MTTT, Ministry
of Finance 2020.
5. A project to support
women's
entrepreneurship in
one district in Serbia
MTTT External
partners
Donation
needed 2020.
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6. E-commerce
development training
courses for the e-
traders
MTTT
External
partners; An
eminent
educational
institution,
Ecommerce
Association or
other relevant
institution
Number of
educated
merchants:
100;
dynamics:
once in week,
a two months
course
2020.
7. Organizing contest for
the e-trader of the
Year
MTTT, E-
Commerce
Association,
Serbian
Chamber of
Commerce or
other relevant
institution
2019. and
2020.
8. Development of
electronic retail at
classic local and
regional offline
retailers in Serbia -
Multi-channel
approach
MTTT External
partners 2020.
Third measure reflects developing and improving logistic flows in e-commerce. Logistic flows
are often crucial for e-commerce success in a certain area. In accordance with this, a set of measures is
suggested, with the goal of creating better logistic environment in Serbia, from the perspective of e-
traders.
Summary of activities for developing and improving logistic flows in e-commerce
Activity Responsible
bodies Partners
Activity
indicator
Verification
source Deadline
1. Setting up 24/7
pickup locations in
big cities
(„paketomati“)
MTTT, City
administration?
External
partners
(postal
service
operators)
End of 2020.
This activity will
take longer,
perhaps the first
phase in 2020.
2. Standardization of
business procedures
of courier services MTTT
External
partners 2020.
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3. Subsidizing part of
the shipping costs
which electronic
merchants have
MTTT 2019. or 2020.
4. Educational
programs for courier
employees MTTT
External
partners 2020.
5. Enabling electronic
payment of customs
duties
Customs
Administration 2020.
6. Acceptance of the
electronic
documentation in
customs procedures
Customs
Administration After 2020.
Fourth measure is aimed at questions regarding improvement financial structure relevant
for e-commerce in Serbia. Financial infrastructure is very important for the development of e-
commerce and its normal functioning. In further text we provide a set of measures for improving financial
infrastructure.
Summary of activities for improving financial structure in e-commerce
Activity Responsible
bodies Partners
Activity
indicator
Verification
source Deadline
1. Promotion of card payments
and electronic banking MTTT, NBS
Banks,
credit card
companies,
etc.
2019. and
2020.
2. Popularization of paying bills
electronically
MTTT, Office
for IT and
eGovernment,
NBS
Banks,
credit card
companies,
etc.
June 2020
3. Introduction of the possibility
that the seller receives
payments from foreign buyers
in a foreign currency
Banks, NBS 2019. and
2020.
4. Increasing the security for the
customer - the possibility that
payments are made only after
the buyer confirms that
MTTT, NBS Banks etc. End of
2020.
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he/she has received adequate
good/service (banks should
enable and offer this service,
and a trader can decide to use
it if he/she has a desire and a
business interest to use it)
5. Encouraging banks to provide
support for starting or
developing an online business MTTT, NBS
Banks, The
association
of Banks
2020.
Fifth measure is dedicated to strengthening the capacities of inspection authorities
responsible for supervision in the area of e-commerce. E-commerce is very sensitive to questions
of security. Therefore, it is very important to ensure adequate behavior of bisuness participants in the
electronic market game. Further text provides a set of measures for strengthening the capacities of
inspection authorities responsible for supervision in the area of e-commerce
Summary of activities for strengthening the capacities of inspection authorities responsible for supervision in the area of e-commerce
Activity Responsible
bodies Partners
Activity
indicator
Verification
source Deadline
1. Revision and modification of
e-commerce checklists,
taking into account the
specifics of e-retail
MTTT
External
partners
(USAID)
End of
2019.
2. Creating a guide, for market
inspection, for the
implementation of regulations
in the field of e-commerce
MTTT
External
partners
(USAID)
June 2020.
3. Educational program on
electronic commerce for the
market inspection MTTT
External
partners
(USAID)
2020.
4. Formation of e-commerce
unit of market inspection MTTT 2020.
Sixth measure is aimed at improving cooperation between the key stakeholders – public
institutions, economy and academic community, with the aim of developing e-commerce in
Republic of Serbia. This measure involves three activities. Cooperation between stakeholders is very
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important for e-commerce development. It is also very important that e-commerce receives an adequate
spot in our educational system.
Summary of activities for improving cooperation between key stakeholders
Activity Responsible
bodies Partners
Activity
indicator
Verification
source Deadline
1. Supporting
international and
national conferences
on electronic
commerce
MTTT
Ecommerce
Association,
Faculties
Continuous
activity
2. Analysis of existing
academic programs
in order to
introduce e-
commerce into study
programs
Universities, The
Ministry of
Education, Science
and Technological
Development
MTTT 2020.
3. Inclusion of e-
commerce in the
university programs
Universities, The
Ministry of
Education, Science
and Technological
Development
MTTT 2020. and
further
When applied, underlined measures should provide synergetical effects on the development of e-
commerce in Serbia, as well as overcoming key barriers.
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TABLE OF CONTENT
INTRODUCTORY METHODOLOGICAL CONSIDERATIONS ....................................................... 22
I RESEARCH PROBLEM .............................................................................................................. 23
II PRIMARY AND SECONDARY RESEARCH DESIGN................................................................ 24
III PROJECT SCOPE ..................................................................................................................... 25
FIRST PART: DIAGNOSIS OF E-COMMERCE DEVELOPMENT IN SERBIA ................................. 28
I ANALYSIS OF PRESENT E-COMMERCE REGULATORY FRAMEWORK IN SERBIA .............. 29
1. BENCHMARK LEGAL ANALYSIS ....................................................................................................... 29
2. ANALYSIS OF THE REGULATORY FRAMEWORK OF THE REPUBLIC OF SERBIA WITH RESPECT
TO ELECTRONIC TRADE ........................................................................................................................... 50
3. RESULTS OF QUANTITATIVE RESEARCH ON THE EXISTENCE OF LEGAL BARRIERS................. 58
4. CREATION OF CAPACITIES FOR CIVIL SERVANTS FROM DIFFERENT MINISTRIES AND OTHER
INSTITUTIONS RESPONSIBLE FOR IMPLEMENTING ACT ON TRADE AND THE ACT ON
ELECTRONIC COMMERCE ....................................................................................................................... 60
5. CONCLUSION ..................................................................................................................................... 61
II LEVEL OF E-COMMERCE ACTIVITY IN SERBIA ..................................................................... 63
III KEY BARRIERS TO E-COMMERCE DEVELOPMENT IN SERBIA (INCLUDING FOREIGN E-
COMMERCE) ................................................................................................................................. 77
1. DEMAND-RELATED E-COMMERCE DEVELOPMENT BARRIERS IN SERBIA ................................ 78
2. SUPPLY-RELATED BARRIERS TO E-COMMERCE DEVELOPMENT IN SERBIA ............................. 87
3. E-COMMERCE-ENABLERS-RELATED E-COMMERCE DEVELOPMENT BARRIERS IN SERBIA .... 93
IV SWOT ANALYSIS OF E-COMMERCE IN SERBIA .................................................................. 98
1. STREANGTHS: ..................................................................................................................................... 99
2. WEAKNESSES: ..................................................................................................................................... 99
3. OPPORTUNITIES: .............................................................................................................................. 100
4. THREATS: .......................................................................................................................................... 101
V BENCHMARK ANALYSIS OF E-COMMERCE ....................................................................... 103
1. E-COMMERCE IN EU ....................................................................................................................... 103
2. CROATIA ........................................................................................................................................... 109
3. ESTONIA ............................................................................................................................................ 122
SECOND PART: ANALYSIS OF THE RESULTS OF E-COMMERCE RESEARCH IN SERBIA ...... 135
I IN-DEPTH INTERVIEW WORKSHOPS – KEY RESULTS ........................................................ 136
1. DEVELOPMENT LEVEL AND MAIN PARTICIPANTS IN THE ELECTRONIC COMMERCE IN
SERBIA ...................................................................................................................................................... 137
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2. MAIN BARRIERS TO DEVELOPMENT OF ELECTRONIC TRADE IN SERBIA ............................... 138
3. STRENGTHENING MEASURES FOR E-COMMERCE IN SERBIA .................................................. 142
II ANALYSIS OF QUANTITATIVE RESEARCH RESULTS.......................................................... 146
1. RESEARCH OF E-COMMERCE BUSINESSES .................................................................................. 146
2. ANALYSIS OF BUSINESS RESEARCH RESULTS ............................................................................. 153
3. INTERNET USERS RESEARCH ......................................................................................................... 180
4. ANALYSIS OF INTERNET USERS RESEARCH RESULTS ................................................................ 186
THIRD PART: ACTION PLAN FOR STRENGTHENING E-COMMERCE IN SERBIA AND
REMOVING EXISTING BARRIERS .............................................................................................. 243
I PROPOSALS FOR STRAIGHTENING E-COMMERCE IN THE REPUBLIC OF SERBIA – THE
LEGAL PERSPECTIVE ................................................................................................................... 244
1. ONLINE DISPUTE RESOLUTION (ODR) MECHANISMS ............................................................... 245
2. BLOCKCHAIN TECHNOLOGY AND SMART CONTRACTS ........................................................... 246
II MEASURE 1. STRENGTHENING CONSUMER TRUST IN E-COMMERCE .......................... 248
1. DEVELOPMENT OF THE DIGITAL SKILLS OF THE RESIDENTS OF SERBIA ................................ 250
2. CREATING E-COMMERCE INFORMATION PORTAL (E-COMMERCE PROMOTIONAL WEBSITES
IN SERBIA, MOBILE APPLICATION, SOCIAL NETWORKS AND RELATED CONTENT) ..................... 252
3. MEDIA CAMPAIGN FOR E-COMMERCE PROMOTION (PROFESSIONAL TV SHOWS, SHORT
PROMOTIONAL VIDEOS, GUEST APPEARANCES BY E-COMMERCE EXPERTS IN THE MEDIA, ETC.)
254
4. CREATING A CONCISE GUIDE FOR THE E-COMMERCE BUYERS .............................................. 255
5. TRUST MARK - A NEW APPROACH AND A SIGNIFICANTLY GREATER CUSTOMER
RECOGNITION, AND ACCEPTANCE BY THE MERCHANTS ................................................................ 257
6. TRAINING OF JOURNALISTS ON THE ELECTRONIC COMMERCE ............................................. 258
7. AN ONLINE DISPUTE RESOLUTION PLATFORM .......................................................................... 258
III MEASURE 2. STRENGTHENING THE POSITION OF ELECTRONIC TRADERS IN THE
MARKET OF THE REPUBLIC OF SERBIA .................................................................................... 260
1. CREATING ECOMMERCE GUIDES (SHORTER AND LONGER VERSIONS) ................................. 261
2. CREATING A CALL CENTER ............................................................................................................. 263
3. INCENTIVES TO STARTUPS AND TO EXISTING MMS E-COMMERCE ENTITIES ...................... 264
4. E-COMMERCE TAX BREAKS ........................................................................................................... 265
5. A PROJECT FOR SUPPORTING WOMEN'S ENTREPRENEURSHIP IN ONE DISTRICT IN SERBIA
265
6. DEVELOPMENTAL TRAINING PROGRAMS FOR ELECTRONIC TRADERS.................................. 267
7. ORGANIZING THE COMPETITION FOR THE E-TRADER OF THE YEAR ..................................... 267
8. DEVELOPMENT OF THE ELECTRONIC RETAIL AT CLASSIC LOCAL AND REGIONAL RETAILERS
IN SERBIA - MULTI-CHANNEL APPROACH ......................................................................................... 268
IV MEASURE 3. DEVELOPMENT AND IMPROVEMENT OF THE LOGISTIC FLOWS IN THE
ELECTRONIC TRADE ................................................................................................................... 270
16
1. SETTING UP 24/7 PICKUP LOCATIONS IN LARGE CITIES (PACKAGE MACHINES) (THIS HAS
TO BE WORKED OUT WITH THE POSTAL SERVICE OPERATORS) .................................................... 271
2. STANDARDIZATION OF BUSINESS PROCEDURES OF COURIER SERVICES ............................. 271
3. SUBSIDIZING PART OF THE SHIPPING COSTS WHICH ELECTRONIC MERCHANTS HAVE .... 272
4. EDUCATIONAL PROGRAMS FOR COURIER EMPLOYEES ........................................................... 272
5. ENABLING ELECTRONIC PAYMENT OF CUSTOMS DUTIES ........................................................ 273
6. ACCEPTANCE OF THE ELECTRONIC DOCUMENTATION IN CUSTOMS PROCEDURES .......... 273
V MEASURE 4. IMPROVEMENT OF FINANCIAL INFRASTRUCTURE IN THE ELECTRONIC
TRADE OF SERBIA ....................................................................................................................... 275
1. PROMOTION OF CARD PAYMENTS AND ELECTRONIC BANKING ........................................... 276
2. POPULARIZATION OF PAYING BILLS ELECTRONICALLY ............................................................ 276
3. INTRODUCTION OF THE POSSIBILITY THAT THE SELLER RECEIVES PAYMENTS FROM
FOREIGN BUYERS IN A FOREIGN CURRENCY ..................................................................................... 276
4. INCREASING THE SECURITY FOR THE CUSTOMER - THE POSSIBILITY THAT PAYMENTS ARE
MADE ONLY AFTER THE BUYER CONFIRMS THAT HE/SHE HAS RECEIVED ADEQUATE
GOOD/SERVICE ....................................................................................................................................... 277
5. ENCOURAGING BANKS TO PROVIDE SUPPORT FOR STARTING OR DEVELOPING AN ONLINE
BUSINESS ................................................................................................................................................. 277
VI MEASURE 5. STRENGTHENING THE CAPACITIES OF INSPECTION AUTHORITIES
RESPONSIBLE FOR SUPERVISION IN THE AREA OF ELECTRONIC COMMERCE ................... 279
1. REVISION AND MODIFICATION OF E-COMMERCE CHECKLISTS, TAKING INTO ACCOUNT
THE SPECIFICS OF E-RETAIL .................................................................................................................. 280
2. CREATING A GUIDE, FOR MARKET INSPECTION, FOR THE IMPLEMENTATION OF
REGULATIONS IN THE FIELD OF E-COMMERCE ................................................................................. 280
3. EDUCATIONAL PROGRAM ON ELECTRONIC COMMERCE FOR THE MARKET INSPECTION . 281
4. FORMATION OF E-COMMERCE UNIT OF MARKET INSPECTION ............................................. 281
VII MEASURE 6. IMPROVEMENT OF COOPERATION BETWEEN THE KEY STAKEHOLDERS -
STATE INSTITUTIONS, ECONOMY AND ACADEMIA, WITH THE AIM OF DEVELOPING E-
COMMERCE IN REPUBLIC OF SERBIA ....................................................................................... 282
1. SUPPORTING INTERNATIONAL AND NATIONAL CONFERENCES ON ELECTRONIC
COMMERCE ............................................................................................................................................. 282
2. ANALYSIS OF EXISTING ACADEMIC PROGRAMS IN ORDER TO INTRODUCE E-COMMERCE
INTO STUDY PROGRAMS ...................................................................................................................... 283
3. INCLUSION OF E-COMMERCE IN THE UNIVERSITY PROGRAMS ............................................. 283
REFERENCES ................................................................................................................................ 284
I INTERNET SOURCES .............................................................................................................. 285
II INTERNET SOURCES ............................................................................................................. 287
APENDIX ...................................................................................................................................... 289
17
I APENDIX A – QUESTIONNAIRE FOR GENERAL POPULATION: ONLINE COMMERCE IN
SERBIA ......................................................................................................................................... 290
II APENDIX B – QUESTIONNAIRE FOR BUSINESS RESEARCH: ONLINE COMMERCE IN
SERBIA ......................................................................................................................................... 319
18
LIST OF TABLES
TABLE 1. PAYMENT TRANSACTIONS OF THE PURCHASE OF GOODS AND SERVICES VIA THE
INTERNET, BY USING PAYMENT CARDS ................................................................................................... 66
TABLE 2. PAYMENT TRANSACTIONS OF THE PURCHASE OF GOODS AND SERVICES VIA THE
INTERNET, BY USING E-MONEY .................................................................................................................... 67
TABLE 3. E-COMMERCE REVENUE BY SEGMENT, 2018 .................................................................................. 71
TABLE 4. SUMMARY OF ACTIVITIES FOR STRENGTHENING CONSUMER TRUST IN E-
COMMERCE ......................................................................................................................................................... 249
TABLE 5. SUMMARY OF ACTIVITIES FOR STRENGTHENING THE POSITION OF E-TRADERS .... 260
TABLE 6. SUMMARY OF ACTIVITIES FOR DEVELOPING AND IMPROVING LOGISTIC FLOWS IN E-
COMMERCE ......................................................................................................................................................... 270
TABLE 7. SUMMARY OF ACTIVITIES FOR IMPROVING FINANCIAL STRUCTURE IN E-COMMERCE
................................................................................................................................................................................. 275
TABLE 8. SUMMARY OF ACTIVITIES FOR STRENGTHENING THE CAPACITIES OF INSPECTION
AUTHORITIES RESPONSIBLE FOR SUPERVISION IN THE AREA OF E-COMMERCE ................. 279
TABLE 9. SUMMARY OF ACTIVITIES FOR IMPROVING COOPERATION BETWEEN KEY
STAKEHOLDERS ................................................................................................................................................ 282
19
LIST OF FIGURES
FIGURE 1 BROADBAND INTERNET CONNECTION IN HOUSEHOLDS .................................................. 64
FIGURE 2 INDIVIDUALS WHO ORDERED GOODS OR SERVICES OVER THE INTERNET FOR
PRIVATE USE IN THE 12 MONTHS PRIOR TO THE SURVEY ................................................................ 65
FIGURE 3. NUMBER OF TIMES A PERSON HAS BOUGHT/ORDERED GOODS OR SERVICES (2015-
2018) .......................................................................................................................................................................... 66
FIGURE 4. PAYMENT TYPES IN PERCENT 2018 AND FORECAST SOURCE: STATISTA, OCTOBER
2018 ........................................................................................................................................................................... 68
FIGURE 5. PREVIOUSLY PURCHASED GOODS BOUGHT ONLINE, BY CATEGORIES ........................ 69
FIGURE 6. ONLINE PURCHASES: MONEY ESTIMATION SOURCE: GEMIUSADHOC STUDY,
OCTOBER 2017 ..................................................................................................................................................... 70
FIGURE 7. B2C E-COMMERCE REVENUE, 2018 AND FORECAST SOURCE: STATISTA, OCTOBER
2018 ........................................................................................................................................................................... 70
FIGURE 8. AVERAGE REVENUE PER USER, 2018 AND FORECAST SOURCE: STATISTA, OCTOBER
2018 ........................................................................................................................................................................... 72
FIGURE 9. BROADBAND INTERNET CONNECTION IN ENTERPRISES IN SERBIA 2009-2018 (% OF
ENTERPRISES) SOURCE: SORS, 2018, PP. 79 ............................................................................................... 72
FIGURE 10. ENTERPRISES WHICH HAVE THEIR OWN WEBISTE SOURCE: SORS, PP. 81 .................. 73
FIGURE 11. ENTERPRISES ORDERING GOODS/SERVICES OVER THE INTERNET ................................. 74
FIGURE 12. PERCENTAGE OF THE TOTAL TURNOVER OVER THE YEARS RESULTING FROM
ORDERS RECEIVED OVER THE INTERNET ................................................................................................. 75
FIGURE 13. MODEL FOR ANALYZING THE LEVEL OF NATIONAL E-COMMERCE USAGE .............. 77
FIGURE 14. NUMBER OF DIGITAL COMMERCE AND MOBILE POS PAYMENT USERS IN SERBIA,
EXCLUDING B2B TRANSACTIONS (2018) ................................................................................................. 78
FIGURE 15. PENETRATION DATA RELATED TO DIGITAL COMMERCE AND POS MOBILE
PAYMENTS, EXCLUDING B2B TRANSACTIONS (2018) ........................................................................ 79
FIGURE 16. DAILY INTERNET USAGE RATE BY AGE GROUPS IN SERBIA (2016) .................................. 82
FIGURE 17. OVERALL SHARE OF INTERNET (TOP LEFT), MOBILE PHONE (BOTTOM RIGHT) AND
COMPUTER (BOTTOM LEFT) USAGE BY AGE GROUP AND GENDER (2018) .............................. 82
FIGURE 18. SHARE OF HOUSEHOLDS OWNING A COMPUTER (TOP GRAPH) AND HAVING AN
INTERNET CONNECTION (BOTTOM GRAPH) DEPENDING ON THE AVERAGE MONTHLY
HOUSEHOLD INCOME ...................................................................................................................................... 84
FIGURE 19. MEANS OF PAYMENT FOR E-COMMERCE TRANSACTIONS IN SERBIA WITH
PROJECTIONS FOR 2019-2023 PERIOD, EXCLUDING B2B TRANSACTIONS (2018) .................. 86
FIGURE 20. TOTAL DIGITAL AD SPENDING IN SERBIA WITH PROJECTIONS ACCORDING TO
THE TYPE OF ADVERTISING, EXCLUDING EMAIL MARKETING AND INFLUENCER
SPONSORSHIPS (2018)........................................................................................................................................ 89
FIGURE 21. MEASURES FOR STIMULATING E-COMMERCE DEVELOPMENT ....................................... 150
FIGURE 22. MEASURES FOR E-COMMERCE IMPLEMENTATION CONSIDERATION ......................... 151
FIGURE 23. E-COMMERCE PRODUCT AND SERVICES OFFER .................................................................. 153
FIGURE 24. POSESSION OF STORES .................................................................................................................... 154
FIGURE 25. REASONS FOR NOT OFFERING E-COMMERCE ...................................................................... 155
FIGURE 26. MEASURES FOR CONSIDERING E-COMMERCE INTRODUCTION .................................. 157
FIGURE 27. PERCEPTION OF E-COMMERCE RELEVANCE IN SERBIA ..................................................... 158
FIGURE 28. SATISFACTION WITH INTERNAL E-COMMERCE ACTIVITIES ........................................... 159
20
FIGURE 29. DURATION OF E-COMMERCE IMPLEMENTATINON ............................................................ 160
FIGURE 30. E-SALES SHARE IN TOTAL SALES .................................................................................................. 161
FIGURE 31. E-SALES SHARE BY TYPE ................................................................................................................... 162
FIGURE 32. SUPPLY SIDE BARRIERS TO E-COMMERCE DEVELOPMENT ............................................... 164
FIGURE 33. BIGGEST SUPPLY SIDE BARRIER TO E-COMMERCE DEVELOPMENT .............................. 166
FIGURE 34. E-COMMERCE ENABLERS BARRIERS TO E-COMMERCE DEVELOPMENT ...................... 168
FIGURE 35. MEASURES FOR FURTHER E-COMMERCE DEVELOPMENT IN SERBIA ............................ 170
FIGURE 36. PERCEPTION OF MEASURES FOR FURTHER E-COMMERCE DEVELOPMENT IN SERBIA
................................................................................................................................................................................. 172
FIGURE 37. REGULATORY BARRIERS WHOSE RESOLUTION WOULD IMPROVE E-COMMERCE IN
SERBIA ................................................................................................................................................................... 173
FIGURE 38. FAMILIARITY WITH BLOCKCHAIN TECHNOLOGY ............................................................. 174
FIGURE 39. LEVEL OF BLOCKCHAIN TECHNOLOGY UNDERSTANDING .......................................... 175
FIGURE 40. FAMILIARITY WITH SMART CONTRACTS ................................................................................ 176
FIGURE 41. COMPARISSON OF E-TRADERS’ SITUATION IN THE LAST THREE YEARS................... 177
FIGURE 42. ANNUAL CORPORATE INCOME .................................................................................................. 178
FIGURE 43. PREDOMINANT BUSINESS ACTIVITY (INDUSTRY) ................................................................ 178
FIGURE 44. DATA ON THE NUMBER OF EMPLOYEES, INTERVIEWEES' POSITION, YEARS OF
EXISTANCE, REGION, SHARE OF WOMEN OWNERSHIP AND PREDOMINANT BUSINESS
ACTIVITY .............................................................................................................................................................. 179
FIGURE 45. QUOTAS CROSSED BY STATISTICAL REGION AND SETTLEMENT TYPE .................... 180
FIGURE 46. QUOTAS CROSSED BY STATISTICAL REGION, GENDER AND AGE .............................. 181
FIGURE 47. MAIN REASONS FOR INTERNET SHOPPING ........................................................................... 183
FIGURE 48. FACTORS INFLUENCING THE HIGHER FREQUENCY OF E-SHOPPING ........................ 184
FIGURE 49. FREQUENCY OF INTERNET USAGE ............................................................................................ 187
FIGURE 50. DEVICES USED FOR INTERNET ACCESS .................................................................................... 189
FIGURE 51. FREQUENCY OF VISITING CERTAIN ONLINE CONTENTS ............................................... 191
FIGURE 52. INTERNET PURCHASE IN THE LAST SIX MONTHS ............................................................... 193
FIGURE 53. FREQUENCY OF PERFORMING CERTAIN ONLINE ACTIVITIES ....................................... 195
FIGURE 54. ONLINE PLACE OF PRODUCT/SERVICE PURCHASE ............................................................. 196
FIGURE 55. WHERE SHOPPERS SEARCH FOR INFORMATION ONLINE ............................................... 197
FIGURE 56. FAMILIARITY WITH BLOCKCHAIN TECHNOLOGY ............................................................. 198
FIGURE 57. LEVEL OF BLOCKCHAIN TECHNOLOGY UNDERSTANDING .......................................... 199
FIGURE 58. FAMILIARITY WITH SMART CONTRACTS ................................................................................ 200
FIGURE 59. ONLINE SHOPPING FREQUENCY ................................................................................................ 201
FIGURE 60. MOST FREQUENT ONLINE PURCHASES ................................................................................... 203
FIGURE 61. WEBSITES MOST COMMONLY USED FOR ONLINE PURCHASES .................................... 205
FIGURE 62. LEVEL OF CONFIDENCE IN DIFFERENT CATEGORIES OF ONLINE SELLERS .............. 207
FIGURE 63. REASONS FOR INTERNET SHOPPING ........................................................................................ 210
FIGURE 64. MAXIMUM AMOUNT PER SINGLE ONLINE PURCHASE WHICH THE CUSTOMERS
ARE WILLING TO PAY .................................................................................................................................... 211
FIGURE 65. WORRIES OR DISLIKINGS OF ONLINE SHOPPERS REGARDING E-COMMERCE ....... 212
FIGURE 66. ASPECTS OF E-COMMERCE WHICH ONLINE SHOPPERS FIND
WORRYING/DISLIKEFUL ................................................................................................................................ 214
FIGURE 67. EXISTANCE OF BAD EXPERIENCE RELATED TO E-COMMERCE ...................................... 215
FIGURE 68. REASONS FOR BAD E-SHOPPING EXPERIENCE ...................................................................... 217
FIGURE 69. INFLUENCE OF CERTAIN FACTORS ON E-SHOPPING FREQUENCY ............................ 220
FIGURE 70. SHOPPER FAMILIARITY WITH COSTUMER RIGHTS IN E-COMMERCE .......................... 222
21
FIGURE 71. REGULATORY BARRIERS WHOSE RESOLUTION WOULD IMPROVE E-COMMERCE223
FIGURE 72. LEVEL OF ONLINE SHOPPING TRUST ........................................................................................ 224
FIGURE 73. CERTAIN ATTRIBUTES OF ONLINE SHOPPERS ...................................................................... 226
FIGURE 74. ONLINE SHOPPING ........................................................................................................................... 227
FIGURE 75. REASONS FOR RARELY/NOT SHOPPING ONLINE ................................................................ 231
FIGURE 76. GIVING UP ON POTENTIAL ONLINE PURCHASE .................................................................. 232
FIGURE 77. EXPERIENCE OF PEOPLE AROUND YOU (FAMILY, COLLEAGUES, FRIENDS) RELATED
TO E-COMMERCE ............................................................................................................................................. 233
FIGURE 78. INFLUENCE OF CERTAIN FACTORS ON BEGINNING TO PURCHASE ONLINE ....... 236
FIGURE 79. LIKELIHOOD OF PURCHASING ONLINE IN THE FUTURE ................................................. 238
FIGURE 80. PERSONALLY SOLD SOMETHING ONLINE .............................................................................. 239
FIGURE 81. INTERVIEWEES’ INCOME ................................................................................................................. 240
FIGURE 82. SETTLEMENT SIZE OF THE INTERVIEWEES............................................................................... 241
FIGURE 83. EMPLOYMENT STATUS OF THE INTERVIEWEES .................................................................... 241
FIGURE 84. DATA ON INTERVIEWEES’ GENDER, AGE, REGION, PROFESSIONAL
QUALIFICATIONS AND HOUSEHOLD SIZE ........................................................................................... 242
22
INTRODUCTORY METHODOLOGICAL
CONSIDERATIONS
23
I RESEARCH PROBLEM
Despite the steady growth of e-commerce in Serbia, significant challenges and problems to higher e-
commerce adoption and usage remain. The state of e-commerce, main shortcomings and biggest barriers
to e-commerce in Serbia, can be evaluated by investigating enterprises, consumers and policy makers and
other stakeholders as well as performing desk research. However, it should point out that there are no
adequate data concerning Serbian e-commerce.
Bearing in mind previously said, the goals of the conducted research were to exam the current level of e-
commerce development in Serbia, what are the key barriers to the development of e-commerce, and how
to overcome those barriers successfully and strengthen e-commerce especially MSMEs and female related
e-commerce.
There are two types of research methodologies that were used: qualitative and quantitative research. For
the purposes of this research, a diverse methodology was used: obtaining data from primary research and
secondary sources, as well as processing them by using statistical methods. In addition, qualitative methods
of data collection and processing were used as well.
Firstly, a detailed desk research was conducted. Already published researches on e-commerce, by
academics, government and non-governmental institutions, as well as the private sector, were carefully
reviewed and used as per need.
Primary research was conducted through both customer survey and companies’ survey. In addition, in-
depth interviews with key stakeholders from various industries, Ministries and state institutions were
conducted in order to get a deeper insight into the problem and the current state of e-commerce in
Serbia. The obtained data from primary sources was processed using the IBM SPSS statistical program, in
order to perform all the necessary analyzes.
One of the selected methods for collecting data from e-commerce customers is survey, and the used
technique was the questionnaire. The questionnaire included relevant questions concerning above
mentioned e-commerce topics. Prior to data collection, the validity of the content of the questionnaire
was tested: a certain number of respondents will be asked to fill in the questionnaire and leave a comment,
or criticize the questionnaire from the angle of ambiguity, clarity, and filling time. The goal of the survey
was to determine their online shopping habits, attitudes and suggestions for e-commerce experience
improvement. There was a part of the questionnaire intended for Internet users who do not buy
electronically in order to identify the main reasons why they are not shopping online (whether it is distrust,
payment problems, rights and consumer protection, etc.). Similar questionnaire were made for the
enterprises to fill out, in order to find out what are the main barriers, what their motivation is, etc.
24
The use of qualitative research, such as in-depth interview is suitable in e-commerce research because the
strength of the qualitative approach is based in an ability to investigate human subject motivation and
actions within a research study.
In in-depth interviews the aim is to obtain a more detailed, rich understanding of the e-commerce topic.
In in-depth interviews the participant’s experience, behavior, feelings, and/or attitudes were probed deeply
to identify underlying concepts that we want to analyze in order to generate a theory surrounding the
research topic. The role of the government is extremely important in the area of legislation and the
creation of positive ambient for e-commerce development i.e. supportive legal and regulatory
environment. In order to successfully implement e-commerce strategy, the state and its financial system
should provide various e-payment systems and mechanisms. This is why it is important to speak with the
representatives of commercial banks and National Bank of Serbia; the representatives of the Ministry of
Trade, Tourism and Telecommunications about e-commerce state, other Government representatives;
Customs, Tax administration; Serbian Chamber of Commerce, Postal service etc. In addition, other
stakeholders were interviewed as well.
II PRIMARY AND SECONDARY RESEARCH DESIGN
a) Desk research (scientific articles, books, e-commerce studies, development strategies,
collection and analysis of existing statistical data)
b) Regulatory framework analysis (Law on Electronic Commerce, Law on Trade, Law on
Consumer Protection etc.)
c) In-depth interviews and four workshops with key stakeholders:
• Enterprises engaged in e-commerce in Serbia (mainly MSMEs, has to include
enterprises ran by women)-inputs for survey.
• Government representatives (MTTT, Ministry of Finance, Customs, National
Bank of Serbia, Tax administration etc.)
• Representatives of sectors enabling e-commerce (logistics, online platforms,
payment systems etc.)
• Other stakeholders
d) Surveying 1000 individuals who actively use Internet in Serbia (at least 300 e-commerce
shoppers):
25
• Sample determination
• Questionnaire development
• Questionnaire testing
• Conducting research
• Analysis of research results
e) Surveying enterprises that are engaged in e-commerce in Serbia (150 enterprises)
• Sample determination
• Questionnaire development
• Questionnaire testing
• Conducting research
• Analysis of research results
f) Benchmarking – Best practice analysis
III PROJECT SCOPE
a) Diagnostics of e-commerce progress in the Republic of Serbia
• Diagnostics of existing regulatory framework for e-commerce in Serbia
• Level of activity in the area of e-commerce in Serbia
• SWOT analysis of e-commerce in Serbia
• Key stakeholder analysis
- Enterprises engaged in e-commerce in Serbia
- Customers engaged in e-commerce transactions
26
- Government (MTTT, Ministry of Finance, Customs, National Bank of Serbia, Tax
administration etc.)
- E-commerce enablers (logistics companies, financial infrastructure, online
platforms etc.)
• Key barriers to e-commerce development in Serbia (including foreign e-
commerce)
- Regulatory barriers to e-commerce development
- Supply-related barriers to e-commerce development (barriers that enterprises
engaged in e-commerce face)
- Demand-related barriers to e-commerce development
- Barriers related to e-commerce enablers (government bodies, logistics, payment
systems, online platforms etc.)
b) Action plan for improvement of e-commerce in Serbia and removal of existing barriers
• Guidelines for working group regarding goals, results and action plan priorities
• Importance of improvement of MSMEs and female entrepreneurship in the area
of e-commerce
• Suggesting measures and activities for removal of regulatory barriers and
improvement of regulatory framework
• Suggesting measures and activities for removal of supply-related barriers to e-
commerce development
• Suggesting measures and activities for removal of demand-related barriers to e-
commerce development
• Suggesting measures and activities for removal of barriers related to e-commerce
enablers (logistics, payment systems, online platforms etc.)
• Prioritization of measures and activities for strengthening of e-commerce in Serbia
• Development of action plan implementation monitoring system.
27
c) Action plan implementation
• Assisting MTTT in the process of implementation of suggested measures and
activities
• Development of three programs in order to support development of e-commerce
in accordance with good practice of EU, EEA and EFTA, with focus on MSMEs
• Support program for development of female entrepreneurship in the area of e-
commerce.
Organization and implementation of capacity building for public servants from various ministries and
institutions who are responsible for Law on Trade and Law on electronic commerce enforcement.
Planning, implementation and coordination of all activities were established in line with the purpose of the
Project and will be based on the level of seniority and specialization of the key personnel. Every specialized
expert covered the respective fields of activities with their in-depth expertise.
In order to establish a smooth Project implementation, we relied on a number of fundamental principles
based on our experience with similar projects, that we believe contributed to success of the Project:
- No ‘’one-size-fits-all’’ approach. No transfer of the other EU models, but rather the selection
of the most appropriate solutions and best practices to meet the specific needs of the beneficiaries.
- Highly qualified expert team with excellent skills to foster good cooperation within the team.
Periodical meeting will be held, combined with permanent e-mail and telephone communication
in order to coordinate the process of drafting the required deliverables.
- Combining theory and practice. We will introduce theoretical background knowledge where
necessary our focus will be on practical implication of regulatory changes on the existing market
in Serbia.
28
FIRST PART: DIAGNOSIS OF E-COMMERCE
DEVELOPMENT IN SERBIA
29
I ANALYSIS OF PRESENT E-COMMERCE REGULATORY
FRAMEWORK IN SERBIA
This analysis presents a legal comparative analysis (benchmark analysis) of the legislative framework in the
field of electronic commerce at the level of European Union, as well as in two Member States: Estonia and
Croatia and countries of the Western Balkans. Estonia is one of the most digitally developed Member
States of the European Union, while Croatia is a Member State that last acceded to the European Union
(in 2013).
In addition, the present legal regulations of the Republic of Serbia governing e-commerce were analyzed,
as well as regulations that do not directly regulate e-commerce, but which solutions may indirectly affect
the development of e-commerce in Serbia.
The aim of this legal analysis is the detection of the prospective legal barriers that may prevent the further
development of e-commerce in the Republic of Serbia.
1. BENCHMARK LEGAL ANALYSIS
In this part of the text, a legal analysis of comparable legislative solutions in the field of e-commerce is
made. The analysis is made in order to determine the compliance of legislative solutions of the Republic
of Serbia with the legislative solutions of the European Union, ie Member States. The legislative solutions
of two EU Member States are analyzed bellow: Estonia and Croatia.
Estonia is one of the leading Member States of the European Union in the field of digitalization. There are
around 6,000 e-shops in Estonia offering books, publications, tools, household items, software and
hardware, flowers and multimedia products. In Estonia, more than 58% of citizens use the Internet for
shopping. According to data from 2017, 85% of people who use e-commerce purchase goods from sellers
in Estonia, 45% from EU and 41% from other countries. In 2017, e-commerce increased by 37% over the
previous year (total retail sales: 6%). Online sales of goods amounted to EUR 239.4 million (total retail
sales: EUR 6.32 billion). In this regard, the share of online retail in total retail was 3.6% (2017).
Furthermore, statistics show that Estonia ranks 9th in the digital economy index (based on European
Commission data). Estonia was a leader in providing online services in the public sector and so made it
possible for its citizens to improve their digital skills and use of Internet. Estonia also introduced a novelty
of smart lockers (receiving a shipment at a location specified by the consumer, by placing the shipment in
a locker; the consumer receives the unlock code for the locker after ordering). 86% of online shoppers
30
use smart lockers for delivering ordered goods. On the other hand, 46% of online shoppers choose
delivery to be made by courier.1
On the other hand, electronic commerce in Croatia is much less developed than in Estonia. Since Croatia
acceded to the European Union, the level of e-commerce has been constantly increasing. According to
2017 data, approximately 45% of Croatian citizens purchase goods online. About 20% of traders offer
their goods and services online. About 40% of online shoppers purchase only domestic goods, 40%
purchase goods from the other Member States and 40% purchase goods from other countries. Although
Croatia acceded to the EU in 2013, a lot of online traders from the European Union still do not deliver
their goods to Croatia2. However, bearing in mind that Croatia is a country in the region, and that was
the last state to access to the European Union, we have analyzed the Croatian legislative solutions.
1.1. EUROPEAN UNION
At the level of the European Union ( "EU"), e-commerce is primarily regulated by Directive on certain
legal aspects of information society services in the internal market, in particular, e-commerce 2000/31/EC
(the "E-commerce Directive")3. The E-commerce Directive stipulates the minimum standards that each
EU Member State must implement in its legislation, in order to harmonize national laws, facilitate the
effective functioning of the internal market and enable the free movement of information society services
between the Member States.
DEFINITION OF INFORMATION SOCIETY SERVICE AND INFORMATION SOCIETY SERVICE
PROVIDERS
Information society service is defined as a service provided remotely, by electronic equipment at the
request of the service user. As a rule, it is provided for compensation. A service provider is any legal or
natural person that provides information society services.
The E-commerce Directive stipulates an obligation for each EU Member State to ensure by their
regulations that all information society service providers from the other Member States may freely provide
1 HTTPS://WWW.EXPORT.GOV/ARTICLE?ID=ESTONIA-E-COMMERCE 2 HTTPS://WWW.EXPORT.GOV/ARTICLE?ID=CROATIA-ECOMMERCE 3 Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information
society services, in particular electronic commerce, in the Internal Market (HTTPS://EUR-LEX.EUROPA.EU/LEGAL-CONTENT/EN/ALL/?URI=CELEX%3A32000L0031)
31
their services in every Member State. Exceptionally, the E-commerce Directive allows the Member States
to exclude this obligation if the public interest requires that.
As a benchmark for determining whether an information society service provider is from a Member State,
the E-commerce Directive establishes a standard of a business residence. An information society service
provider with a business residence is a provider who performs his business activity in a permanent location
for an indefinite period of time. Business residence is not determined by the location of the technical
resources and equipment for the performing of activity, but by the location from which the service
provider effectively performs its activity.
E-commerce Directive explicitly prohibits the Member States from constraining start-ups of information
society services by requesting prior authorization.
INFORMATION THAT THE INFORMATION SOCIETY SERVICE PROVIDER IS REQUIRED TO MAKE
AVAILABLE
The E-commerce Directive stipulates an obligation for EU Member States to ensure by their regulations
that the information society service provider is obliged to provide users of services and competent
authorities with direct and permanent access to information about a service provider, in particular: (i)
name of the service provider; (ii) business residence of the service provider; (iii) information about the
service provider that allows users of services to easily contact provider, in particular, the e-mail address;
(iv) information on the relevant register of legal entities or other similar register, if the service provider
is registered in such register; (v) information on the competent supervisory authority, if the service
provider performs an activity requiring special autorization; (vi) information on the professional bodies or
similar institutions with which the service provider is registered, information on the title and the Member
State in which it was acquired and information on the applicable professional rules of the Member State
and the manner these rules can be accessed, if the service provider performs an activity which is specifically
regulated; and (vii) the tax identification number, if the service provider is subject to VAT. In addition,
Member States are required to ensure by their regulations that the providers of information society
services are obliged to clearly indicate their prices if they are listed. Prices must include information on
whether they include taxes and shipping costs.
COMMERCIAL MESSAGES
Commercial messages are any form of communication made in order to promote goods, services or
business reputation of a legal or natural person performing the registered activity. It is not considered a
commercial message, if information is provided (i) to enable direct access to legal or natural person
32
performing a registered activity, especially an email address or domain name; and (ii) relating to the goods,
services or business reputation of a legal or natural person performing the registered activity, which were
collected independently and free of charge.
E-commerce Directive stipulates an obligation for the Member States to ensure by their regulations that
commercial messages which, in whole or in part constitute an information society service, must fulfill the
following conditions: (i) the commercial message as such is clearly identifiable; (ii) the information about
the legal or natural person on whose behalf the commercial message is sent is clearly identifiable; (iii)
promotional offers such as discounts, prizes and gifts, can be clearly identified as such and that the
conditions for the realization of benefits from promotional offers are easily accessible and clearly stated,
if they are permitted in the Member State in which the service provider has a business residence; and (iv)
prize competitions or games are clearly identifiable as such and the conditions for participation are easily
accessible and clearly stated, if they are allowed in the Member State in which the service provider has a
business residence. The obligation to submit this information does not apply to contracts concluded by e-
mail or other similar ways.
If EU Member State allows sending of commercial messages via electronic e-mail without the prior consent
of the recipient of the commercial message, the Member State is required to ensure by its regulations that
the recipients of such messages are made aware that it is a commercial message at the time they receive
it. In addition, Member States are required to ensure by their regulations that information society service
providers who send commercial messages by e-mail without the prior consent of the recipient, must
regularly check and comply with the rules regarding the unsubscription of such messages.
If a commercial message, that in whole or in part, constitutes an information society service, is sent by the
information society service provider who performs an activity that is specifically regulated, Member States
are required to ensure by their regulations that such commercial messages must comply with all the rules
and standards of the profession and be in accordance with the codes which have been established at EU
level.
CONCLUSION OF CONTRACTS IN ELECTRONIC FORM
E-commerce Directive stipulates that each EU Member State is required to ensure by its regulations that
a contract concluded in electronic form has a legal effect (except real estate contracts, contracts which
are required to be concluded before the competent authorities, surety agreements and securities
contracts used as pledge, issued by a person acting outside the scope of its core activities), and that all
relevant information regarding the conclusion of the contract is provided to users of information society
services, on (i) the procedure applicable to the conclusion of the contract; (ii) archiving the contract; (iii)
technical solutions which are used for detecting and correcting errors before submitting orders; and (iv)
languages in which the contract may be concluded. In addition, the general terms and conditions applicable
33
to the contract concluded in electronic form must be provided to the user in a manner that allows the
storage and reproduction.
In the event that the service user orders the goods or services online, EU Member States are required to
ensure by their regulations, that the information society service provider is obliged to confirm online such
an order without delay. It will be considered that the order or order confirmation is received at the
moment when such messages can be accessed by the provider or user of the service. Exceptionally, if the
user of the service is not a consumer, this obligation of the information society service provider may be
excluded by contract. The obligation to confirm receipt of an order does not apply to contracts concluded
by e-mail or other similar ways.
RESPONSIBILITY OF INFORMATION SOCIETY SERVICE PROVIDERS
If the information society service is consisted of transmitting data or providing access to such data through
a communication network, Member States must ensure by their regulations that the information society
service provider is not responsible for the transmitted data, if the service provider (i) did not initiate the
transmission; (ii) did not select the data or documents being transmitted; (iii) did not select or modified
the content of the transmitted data. Data transmission, ie access to data involves automatic, immediate
and temporary storage of data, under the condition that the data is stored solely for the purpose of
transmission, only as long as it is reasonably necessary for further transmission.
If the information society service consists of the transmission of data provided by the service users through
a communication network, Member States must ensure by their regulations that the information society
service provider is not responsible for the automatic, immediate and temporary storage of such data done
solely for the purpose of efficient further transmission to service users at their request, if service provider
(i) does not change such information; (ii) respects the conditions for the access to such data; (iii) follows
the rules for updating data in the usual manner, in accordance with the rules of the profession; (iv) does
not interfere with the use of technology in a permissible manner, which is usual and in accordance with
the rules of the profession, for the purpose of obtaining information on the use of such data; and (v)
remove or disable access to the stored data, immediately after finding out that such data has been removed
from the transmission through the network or that the access to them is denied, as well as when the
court or other competent authority ordered their removal or denial of access.
If the information society service consists of the permanent storage of data provided by the service users,
Member States are required to ensure by their regulations that the information society service provider
is not responsible for the storage of data at the request of the service users, if the information society
service provider: (i) has no knowledge of illegality activity or data, and if it is unaware of the facts or
circumstances on the basis of which the illegality of the activity or data could be determined, with respect
to claims for damages; and (ii) immediately after finding out for the illegality of an activity or data, remove
or disable such data. The responsibility of the information society service provider cannot be excluded if
34
the action of the service user is under the competences or control of the information society service
provider.
Member States cannot stipulate by their regulations the obligation of the information society service
provider to control the data transmitted or stored, nor the obligation to determine the occurrence of
illegality activities while providing information society services related to data transmission, temporary or
permanent storage. On the other hand, Member States may stipulate by their regulations the obligation
of the information society service provider to notify competent authorities about any illegal activities or
data provided by the service users. Also, Member States may stipulate the obligation of the information
society service providers to provide the competent authorities, at their request, with all the information
on the basis of which the identity of the service users, with which the data storage agreement has been
concluded, can be ascertained.
E-commerce Directive encourages EU Member States to support the development of „codes of conduct“
covering all aspects of e-commerce, as well as the obligation for Member States to ensure the effective
cooperation of their competent national authorities with the competent authorities of EU and the other
Member States.
DISPUTE RESOLUTION
In addition, the E-Commerce Directive stipulates an obligation for the Member States to provide by their
regulations the possibility of initiating proceedings related to the activities of information society service
providers, as well as to ensure effective measures (including provisional measures) which would prevent
possible misconduct and to ensure protection of the interests of all parties. In addition, the E-Commerce
Directive stipulates an obligation for the Member States to provide by their regulations the possibility of
resolving any disputes arising between providers and users of information society services in extrajudicial
manner, including extrajudicial dispute resolution online. Also Member States should encourage
extrajudicial dispute resolution bodies to work in a manner that ensures effective litigation, especially in
consumer disputes.
Also, bearing in mind that more and more individuals, as consumers, purchase goods online, Directive
2013/11 / EU on alternative consumer dispute resolution and amending Regulation (EC) No 2006/2004
and Directive 2009/22 / EC4 stipulates for an obligation for the Member States to enable consumers to
resolve disputes with information society service providers online, through online dispute resolution
platforms.
4 Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (HTTPS://EUR-LEX.EUROPA.EU/LEGAL-CONTENT/EN/TXT/?URI=CELEX%3A32013L0011)
35
The European Commission, in accordance with Regulation (EU) No 1093/2010, 524/2013 on online
consumer dispute resolution and amending Regulation (EC) No. 2006/2004 and Directive 2009/22 / EC
("ODR Regulation") established an online dispute resolution platform (ODR)5 between consumers and
information society service providers, who concluded contracts online. In addition, the ODR Regulation
stipulates for an obligation for each Member State to establish its own national online platform for
resolving disputes arising from contracts concluded online between providers and users of information
society services.
TRUSTMARK
As a further measure to remove barriers to cross-border e-commerce, Regulation (EU) No 910/2014 on
electronic identification and trust services for electronic transactions in the internal market (E-
Trustmark Regulation)6 was adopted and repealed Directive 19993/93 / EC. This regulation stipulates
that each EU Member State is required to ensure basic requirements for bodies issuing Trustmark to e-
traders. In addition, the competent authorities of each Member State are required to ensure that all bodies
issuing such Trustmark fulfill the conditions stipulated by E-Trustmark Regulation. Member States are also
required to make a list of reliable Trustmark issuers.
1.2. ESTONIA
The provisions of the E-commerce Directive have been fully implemented in the legislative framework of
Estonia by Act on Information Society Service Providers (Infoühiskonna teenuse seadus).7
DEFINITION OF INFORMATION SOCIETY SERVICE AND INFORMATION SOCIETY SERVICE
PROVIDERS
5 HTTPS://EC.EUROPA.EU/CONSUMERS/ODR/MAIN/INDEX.CFM?EVENT=MAIN.HOME2.SHOW&LNG=EN 6 Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC (HTTPS://EUR-LEX.EUROPA.EU/LEGAL-CONTENT/EN/TXT/?URI=URISERV:OJ.L_.2014.257.01.0073.01.ENG) 7 Information Society Services Act (HTTPS://WWW.RIIGITEATAJA.EE/EN/ELI/504112013008/CONSOLIDE)
36
Act on Information Society Service Providers stipulates that its provisions apply to providers of
information society services that have a business residence in Estonia, while providers of information
society services that have a business residence in the other Member States may freely provide their
services to persons in Estonia. This right may be excluded if the public interest requires that, only in clearly
defined examples.
Act on Information Society Service Providers defines an information society service as a service provided
in the form of economic activity or activity on the basis of which economic benefit is obtained, at the
request of the service user, without the need for the parties to be present in the same place at the same
time. Information society service includes the processing, storage or transmission of data online for the
purposes of digital processing and storage of data. The information society service must be fully provided,
delivered and received online. Services provided by fax, telephone, television or radio are not considered
to be information society services.
INFORMATION THAT THE INFORMATION SOCIETY SERVICE PROVIDER IS REQUIRED TO MAKE
AVAILABLE
In accordance with the Estonian Act on Information Society Service Providers the information society
service provider is obliged to provide service users with direct and permanent access to following
information (i) the name of the service provider, the registration number and the name of the competent
registry with which the service provider is registered, the address and other contact information, including
the e-mail address; (ii) the registration number of the authorization or license and information on the
competent supervisory authority, if the service provider performs an activity that requires a special
authorization; and (iii), information on whether the prices include taxes and shipping costs, if prices are
indicated. If the service provider performs an activity which is specifically regulated, it shall also make
available information on the professional bodies or similar institutions with which the service provider is
registered, information on the title and the Member State in which it was acquired and information on the
applicable rules of the profession of the Member State and manner in which those rules can be accessed.
COMMERCIAL MESSAGES
While sending commercial messages, information society service providers are required to ensure that
the commercial message fulfills the following conditions, in a clear and unambiguous manner: (i) the
commercial message as such is clearly identifiable; (ii) the information on the person on whose behalf the
commercial message is sent is clearly identifiable; (iii) promotional offers such as discounts, prizes, and
gifts, as well as offers related to sweepstakes and games, can be clearly identified as such and (iv) the terms
37
of the commercial message benefit are readily available and clearly stated. There are not considered
commercial messages (i) messages containing data that allow direct access to data on the legal or natural
person performing the registered activity, especially e-mail address or domain name; (ii) information
regarding a person's goods, services or business reputation.
CONCLUSION OF CONTRACT IN ELECTRONIC FORM
The conclusion of contracts in electronic form in Estonia is regulated by Act on Contracts and Torts.
(Võlaõigusseadus).8 The Estonian Act on Contracts and Torts stipulates that a trader who concludes a
contract in electronic form is obliged to provide to the other contracting party adequate and efficient
access to the technical solutions which are used for detecting and correcting errors before submitting
orders. Before sending such orders, the trader is obliged to inform the other party about (i) steps that
need to be taken in the process of concluding the contract; (ii) whether the trader will keep the contract
after the conclusion and whether the contract will be made available to the other contracting party; (iii)
technical resources by which errors can be identified and corrected; (iv) languages in which the contract
may be concluded; (v) rules under which the information society service provider acts and the manner in
which such rules can be accessed. General terms of business must be delivered to the other contracting
party, in a manner that allows their storage and playback.
The trader is obliged to immediately confirm the receipt of orders made online.
A contract concluded by e-mail or another similar way is not considered as a contract concluded in
electronic form.
RESPONSIBILITY OF INFORMATION SOCIETY SERVICE PROVIDER
If the information society service is consisted of transmitting data or providing access to such data,
provided by the service users through a public communications network, the information society service
provider is not responsible for transmitting such data if: (i) did not initiate the transfer; (ii) did not select
the data or documents being transferred; and (iii) did not select or modify the content of the transmitted
data. Data transfer, ie access to data involves automatic, immediate and temporary storage of data,
provided that the information is stored solely for the purpose of transmission and only as long as it is
reasonably necessary for further transmission.
8 Law of Obligations Act (HTTPS://WWW.RIIGITEATAJA.EE/EN/ELI/EE/RIIGIKOGU/ACT/507032019001/CONSOLIDE)
38
If the information society service consists of the transmission of data provided by the service users through
a communication network, the information society service provider is not responsible for the automatic,
immediate and temporary storage of such data done solely for the purpose of efficient further transmission
of such data to service users at their request, if (i) does not change such data; (ii) respect the conditions
for access to such data; (iii) follows the rules for updating data in the usual manner in accordance with the
rules of the profession; (iv) does not interfere with the use of technology in a permissible manner, which
is usual and in accordance with the rules of the profession, for the purpose of obtaining information on
the use of such data; and (v) remove or disable access to the stored data, immediately after finding out
that such data has been removed from the transmission through the network or that the access to them
is denied, as well as when the court or other competent authority ordered their removal or denial of
access.
If the information society service consists of the permanent storage of data provided by the service users,
the information society service provider is not responsible for such storage of data, if the information
society service provider: (i) has no knowledge of illegal activity or data, and if it is unaware of the facts or
circumstances on the basis of which the illegality of the activity or data could be determined, with respect
to claims for damages; and (ii) immediately after finding out for the illegality of an activity or data, remove
or disable such data. The responsibility of the information society service provider cannot be excluded if
the service user is the subsidiary of the information society service provider.
While providing services related to the transmission, temporary or permanent storage of data, the
information society service provider is not obliged to constantly monitor the circumstances that might
indicate the illegality of the actions of the service users.
SUPERVISION
The implementation of the Act on Information Society Service Providers is supervised by the Technical
Supervisory Authority. (Tehnilise Järelevalve Amet). Providers of information society services are obliged to
immediately inform the supervisory authority of the illegal actions of service users and the illegal content
of the data they transmit, as well as to provide supervisory authority with all the necessary information
for identification of the service provider with whom service provider has a data storage agreement. The
information society service provider is obliged to provide the competent prosecutor with all information
necessary for initiating misdemeanor and criminal proceedings against the service user.
39
Providers of information society services are obliged, on the basis of a court or administrative act, to
provide the required information to the competent authorities, necessary for detecting criminal offenses
or protecting the rights of third parties.
DISPUTE RESOLUTION
Although the Act on Information Society Service Providers does not explicitly provide for the possibility
of litigation against the providers of information society services, it can be assumed that such a possibility
exists in accordance with the legal system of Estonia.
In addition, the Estonian Consumer Protection Act (Tarbijakaitseseadus) 9 provides for the possibility of
extrajudicial settlement of disputes, if the contract with the consumer is concluded in electronic form. In
addition, information society service providers are required to inform consumers, with whom they
conclude contracts in electronic form, about their right to settle any dispute extrajudicial, through
electronic dispute resolution platforms. Consumers from Estonia can initiate an online dispute resolution
process through the ODR platform and before the Technical Supervisory Authority, before which Estonia
has established its national online dispute resolution platform.
TRUSTMARK
Estonian Act on Electronic Identification and Trustmarks for electronic transactions (E-identimise ja e-
tehingute usaldusteenuste seadus)10 stipulate that persons issuing trust mark must fulfill all the requirements
of the E-Trustmark Regulation for electronic transactions. In addition, the Technical Supervisory Authority
is obliged to make and regularly update a list of reliable Trustmark issuers.
1.3. CROATIA
9 Consumer Protection Act (HTTPS://WWW.RIIGITEATAJA.EE/EN/ELI/521012014011/CONSOLIDE) 10 Electronic Identification and Trust Services for Electronic Transactions Act (HTTPS://WWW.RIIGITEATAJA.EE/EN/ELI/527102016001/CONSOLIDE)
40
The provisions of the E-commerce Directive are fully implemented in the legislative framework of the
Republic of Croatia by Act on Electronic Commerce11. The Act on Electronic Commerce stipulates only
the minimum conditions from the E-commerce Directive, without significantly tightening the conditions
for the business activities of information society service providers.
DEFINITION OF INFORMATION SOCIETY SERVICE AND INFORMATION SOCIETY SERVICE
PROVIDERS
Act on Electronic Commerce stipulates that its provisions apply to providers of information society
services that have a business residence in Croatia, while providers of information society services that
have a business residence in the other Member States may freely provide their services to persons in
Croatia. This right may be excluded only if the public interest requires that, in clearly defined examples.
Act on Electronic Commerce explicitly stipulates that the provision of information society services is free
and that persons providing information society services do not have to obtain prior authorization to
perform such activities. In addition, the legal entity that is registered for the services of the information
society in the competent registry of business entities of the Republic of Croatian must have a registered
business under the name - information society services. If the activity performed by the information society
provider is specifically regulated, the information society service provider is obliged to comply with the
rules of the profession, and the information related to that must be accessible to users of information
society services. The general terms of business of an information society service provider must not be
discriminatory and must be in accordance with the public interest.
Act on Electronic Commerce defines an information society service as a service that is provided online,
at the personal request of the service user, for compensation. In particular, it consists of the sale of goods
online, the provision of data on the Internet, online advertising, electronic searches, as well as the
possibility of searching data and services transmitted by the electronic network, mediation in network
access and storage of customer information.
INFORMATION THAT THE INFORMATION SOCIETY SERVICE PROVIDER IS REQUIRED TO MAKE
AVAILABLE
The information society service provider is obliged to make the following information available to service
users, in a manner that provides immediate and permanent access to that information: (i) the name of the
11 Zakon o elekroničnoj trgovini („Narodne novine“ 173/03, 67/08, 36/09, 130/11, 30/14, 32/2019)
41
service provider; (ii) the business residence of a service provider; (iii) information about the service
provider that allows the service provider to be easily contacted by the users, especially the e-mail address;
(iv) information on the relevant register of companies or other similar register, if the service provider is
registered in such register; (v) information on the competent supervisory authority, if the service provider
performs an activity requiring special authorization; (vi) information on the professional bodies or similar
institutions with which the service provider is registered, information on the title and the Member State
in which it was acquired and information on the applicable professional rules of the Member State and
the manner in which these rules can be accessed, if the service provider performs an activity which is
specifically regulated; and (vii) the tax identification number, if the service provider is subject to VAT. In
addition, providers of information society services must clearly indicate their prices, if they are listed.
Prices must include information on whether they include taxes and shipping costs
COMMERCIAL MESSAGES
While sending commercial messages, which in whole or in part constitute a service of the information
society, information society service providers are required to ensure that the commercial message fulfills
the following conditions, in a clear and unambiguous manner: (i) the commercial message as such is clearly
identifiable; (ii) the information on the person on whose behalf the commercial message is sent is clearly
identifiable; (iii) promotional offers such as discounts, rewards and gifts can be clearly identified as such
and (iv) the terms of the commercial message benefit are easily accessible and clearly stated.
Act on Electronic Commerce prohibits the sending (undesired i.e. unsolicited) commercial messages
without the prior consent of the receiver of such a message.
CONCLUSION OF CONTRACT IN ELECTRONIC FORM
The conclusion of contracts in electronic form is allowed and they have legal effect, in accordance with
the Act on Electronic Commerce. The offer and the acceptance of the offer on the basis of which the
contract is concluded in electronic form must be submitted online. Also, the Act on Electronic Commerce
stipulates that its provisions do not apply to the following contracts: (i) property contracts, premarital or
marital contracts and other contracts regulated by Croatian law governing family relations (Family Act);
(ii) contracts related to the property disposal, which require the approval of the competent authority for
social work; (iii) contracts related to the property disposal in a lifetime, lifetime maintenance contracts
and other inheritance contracts, renunciation of heirship, contract on assignment of heirship, as well as
other issues regulated by the law governing inheritance relations (Act on Inheritance); (iv) gift contracts;
(v) real estate contracts, except the lease agreement; (vi) other contracts that are required to be
42
concluded in notarized form; (vii) surety agreements, if the surety acts outside the scope of his
predominant activity. In addition, the Act on Electronic Commerce stipulates that the provisions of the
Act on Contracts and Torts and other laws governing contractual relations will be applied to contracts
concluded in electronic form unless otherwise stipulated.
In case the validity of the contract requires the signature of the contracting parties, such contract may be
signed by electronic signature, in accordance with the act governing electronic signature. (Electronic
Signature Act).
Prior to the conclusion of the contract in electronic form, the information society service provider shall
make available to the service user in a clear and unambiguous manner the following information on (i)
steps that need to be taken in the process of concluding the contract; (ii) the content of the contract; (iii)
the general terms of business applicable to the contract; (iv) languages in which the contract may be
concluded; (v) rules under which the information society service provider acts and the manner in which
such rules can be accessed. The information society service provider is obliged, before concluding the
contract, to provide the service user with the technical solutions which are used for detecting and
correcting errors before submitting orders. The obligation to provide this information does not apply to
contracts concluded by e-mail or in other similar ways. General terms of business must be delivered to
the other contracting party, in a manner that allows their storage and playback.
In accordance with the Act on Electronic Commerce, the information society service provider is obliged
to confirm the receipt of an electronic message containing the offer or acceptance of the offer for the
conclusion of the contract without delay, online, by special electronic message. Exceptionally, if the user
of the service is not a consumer, this obligation of the information society service provider may be
excluded by contract. The obligation to confirm receipt of an order does not apply to contracts concluded
by email or in other similar ways.
The contract in electronic form shall be considered concluded at the moment when the bidder receives
a message confirming the receipt of the offer and accepting the offer. The offer and the acceptance of the
offer shall be deemed to have been received at the moment when the recipient can access them.
RESPONSIBILITY OF INFORMATION SOCIETY SERVICE PROVIDERS
The Act on Electronic Commerce stipulates that the provider of the information society service
transmitting the electronic message is not responsible for the content of the electronic message provided
by the user of the service and its sending, if: (i) did not initiate the transmission; (ii) did not select the data
or documents being transmitted; (iii) did not select or modify the content of the transmitted data ; and
(iv) did not choose the recipient of the message. Data transmission and access to data mean that the
information is stored solely for the purpose of transmission and only as long as it is reasonably necessary
for further transmission.
43
The information society service provider is not responsible for the automatic, immediate and temporary
storage of data for the purpose of efficient further transmission of such data to other service users at
their request, under the condition that service provider (i) does not change such data; (ii) respect the
conditions for access to such data; (iii) follows the rules for updating data; (iv) uses technology to store
data in a permissible manner; and (v) remove or disable access to the stored data, immediately after finding
out that such data has been removed from the transmission through the network or that the access to
them is denied, as well as when the court or other competent authority ordered their removal or denial
of access.
If the information society service consists of the transmission of data provided by the service users, the
information society service provider is not responsible for the automatic, immediate and temporary
storage of such data done solely for the purpose of efficient further transmission of such data to service
users at their request, if (i) does not change such data; (ii) respect the conditions for access to such data;
(iii) follows the rules for updating data; (iv) does not interfere with the use of technology in a permissible
manner; and (v) remove or disable access to the stored data, immediately after finding out that such data
has been removed from the transmission through the network or that the access to them is denied, as
well as when the court or other competent authority ordered their removal or denial of access.
If the information society service consists of the permanent storage of data provided by the service users,
the information society service provider is not responsible for the storage of data, if the information
society service provider: (i) has no knowledge of illegal activity or data, and if he did not know or could
not have been aware of the court proceedings regarding compensation for damages resulting from the
illegal conduct of the service user or the illegal content of the data, nor was he or could be aware of the
facts and circumstances that would have made the illegal act apparent; and (ii) immediately upon finding
out of the illegality of an activity or data, such data is removed or disabled. The responsibility of the
information society service provider cannot be excluded if the information society service user is a related
party to the information society service provider.
The Act on Electronic Commerce stipulates that an information society service provider that enables
third parties to access certain data is not responsible for such data if (i) did not know or could not have
been aware of the illegality of an activity of the service users or the illegal content of such data; and (ii)
immediately upon finding out of the illegality of an activity or data, such data is removed or disabled.
SUPERVISION
Supervision of the implementation of the Act on Electronic Commerce is in the competencies of the
market inspection. Providers of information society services are obliged to immediately inform the market
44
inspectorate of the existence of a reasonable suspicion that, by using its services, users take illegal actions
and provide data with illegal content.
Providers of information society services are obliged, on the basis of a court or administrative act, to
provide the required information to the competent authorities, necessary for detecting criminal offenses
or protecting the rights of third parties.
DISPUTE RESOLUTION
The Act on Electronic Commerce guarantees court protection to all persons in the event that information
society service providers violate their right. Any person who believes that the provider of information
society services violated his rights may submit a request to the competent court for an interim measure:
(i) prohibition of activity or actions that may lead to a violation of rights or a continuation of a violation
already committed; (ii) removing or disabling data access. Also, information society service providers and
service users may settle any dispute extrajudicial.
In addition, Act on Alternative Consumer Dispute Resolution 12 provides for the possibility for Croatian
consumers to settle all possible disputes arising from their relationship with information society service
providers online, either before the ODR or before the European Consumer Center of the Republic of
Croatia.
TRUSTMARK
The E-Trustmark Regulation has been implemented in Croatian legislation by the Act of Enforcement of
Regulation (EU) no. 910/2014 on electronic identification and trust services for electronic transactions in
the internal market and repealing Directive 1999/93 / EC 13. In this sense, this Act stipulates the conditions
that the issuers of the Trustmark must fulfill, as well as the obligation of the competent state authority to
make and regularly update the list of reliable Trustmark issuers
12 Zakon o alternativnom rješavanju potrošačkih sporova (“Narodne novine”, br. 121/2016, 32/2019) 13 Zakon o sprovedbi Uredbe (EU) br. 910/2014 Europskog parlamenta i Vijeća od 23. srpnja 2014. o elektroničkoj identifikaciji i uslugama povjerenja za elektroničke transakcije na unutarnjem tržištu i stavljanju izvan snage Direktive 1999/93/EZ (“Narodne novine”, br. 62/2017)
45
1.4. SERBIA
As can be concluded from the above, Croatia and Estonia, as the Member States whose legislative
frameworks have been analyzed, have implemented the minimum requirements stipulated by the E-
commerce Directive in their legislation and their Acts contain the provisions provided by the E-commerce
Directive. In this regard, after the adoption of the Draft Act on Amendments to the Act on Electronic
Commerce, published on the website of the Ministry of Trade, Tourism and Telecommunications 14 the
provisions of the E-commerce Directive will be almost completely implemented in the Serbian legislative
framework, and the legislative framework of the Republic of Serbia in this area will be arranged in a similar
manner to that done in Estonia and Croatia.
DEFINITION OF INFORMATION SOCIETY SERVICE AND INFORMATION SOCIETY SERVICE
PROVIDERS
The Draft Act on Amendments to the Act on Electronic Commerce stipulates that its provisions apply to
providers of information society service that have a business residence in the Republic of Serbia. The
application of the provisions relating to the freedom of providers of information society services with a
business residence in the EU Member States has been postponed until the date of Serbia's accession to
the EU.
The Draft Act on Amendments to the Act on Electronic Commerce defines information society service
as a service which is provided remotely, by electronic equipment for processing and storing of data, at the
personal request of service users, as a rule for a compensation. In particular, information society service
presents internet commerce, data provision, and online advertising, electronic search engines, as well as
facilitating the search for data and services transmitted through the electronic network, providing access
to the network, or storing data for service users.
INFORMATION THAT THE INFORMATION SOCIETY SERVICE PROVIDER IS REQUIRED TO MAKE
AVAILABLE
The service provider is obliged to provide the users of the services and the competent state administration
authorities, with the following information in a form and in a manner that is immediately and permanently
14HTTP://MTT.GOV.RS/VESTI/JAVNA-RASPRAVA-O-NACRTU-ZAKONA-O-IZMENAMA-I-DOPUNAMA-ZAKONA-O-ELEKTRONSKOJ-TRGOVONI/
46
available: (i) name or surname of the service provider; (ii) business residence of service provider; (iii) other
information about the service provider on the basis of which the service user can communicate with the
provider quickly and without interruption, including e-mail address; (iv) data on entry in the Register of
Business Entities, or other public register; (v) details of the competent authority, if the activity of the
service provider is subject to official supervision; (vi) in respect of specially regulated activities, ie
professions: professional or similar professional association with which the service provider is registered;
the professional name and the country which approved it; instructions on professional rules in the country
where the activity is performing and where they are available; and (vii) tax identification number (PIB), as
well as the number of taxpayers of value added tax, from the certificate of registration for value added
tax issued by the competent tax authority, if the service provider is a payer of value added tax. If the
provider lists prices, they must be clearly and unambiguously indicated and must include information
whether they include shipping costs, taxes or other costs that affect may them.
COMMERCIAL MESSAGES
A commercial message that in whole or in part constitute an information society service, must fulfill the
following conditions: (i) the commercial message as such is clearly identifiable; (ii) the information on the
person on whose behalf the commercial message is sent is clearly identifiable; (iii) any promotional
invitation or bid from a commercial message (including discounts and gifts) must be clearly identified as
such and (iv) the conditions that must be fulfilled for placing an offer from a commercial message must be
readily available and presented in a clear and unambiguous manner.
The sending of a commercial message online is permitted only with the prior consent of the recipient of
that message. In addition, the information society service provider is obliged to regularly check and accept
the unsubscription request made by a person who does not wish to receive such commercial messages.
CONCLUSION OF CONTRACT IN ELECTRONIC FORM
The Draft Act on Amendments to the Act on Electronic Commerce explicitly stipulates that the contract
concluded in electronic form has legal effect and that the offer and the acceptance of the offer must be
submitted online. Also, the draft Act on Amendments to the Act on Electronic Commerce stipulates that
the provisions relating to the validity of contracts concluded in electronic form do not apply to contracts
for which is prohibited to be concluded in electronic form by a special act, to contracts for which is
required to be concluded in the form of verification of signatures or notary public documents by a special
act, as well as surety agreements and securities contracts used as collateral, issued by persons acting
outside the scope of their occupation, business or profession.
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Prior to the conclusion of the contract in electronic form, the information society service provider shall
make available to the service user in a clear and unambiguous manner the following information on (i) the
procedure of concluding the contract; (ii) contractual provisions; (iii) general terms of business, if they are
an integral part of the contract; (iv) languages in which the contract may be concluded; (v) codes of conduct
under which information society service providers acts and how those codes can be accessed online. The
information society service provider is obliged, prior to concluding the contract, to provide the service
user with the technical solutions of identifying and correcting incorrect data input in a message, before
transmitting or sending it
The information society service provider is obliged to ensure that the text of the contract and the
provisions of the general terms of business, which are an integral part of the contracts concluded in
electronic form, are accessible to the users of the services in a manner that enables them to be stored,
reused and reproduced.
The information society service provider is obliged to confirm online without delay, by special electronic
message, the receipt of an electronic message containing the offer or acceptance of the offer for the
conclusion of the contract. The offer and the acceptance of the offer shall be considered to have been
received at the moment when the recipient can access them. The contract in electronic form shall be
considered concluded at the moment when the bidder receives a message confirming the receipt of the
offer and accepting the offer.
RESPONSIBILITY OF INFORMATION SOCIETY PROVIDER
The provider of an information society transmitting an electronic message is not responsible for the
content of the electronic message provided by the service user and its initiation, if: (i) did not initiate the
transfer; (ii) did not select the data or documents being transferred; (iii) did not select or modify the
content of the transmitted data ; and (iv) did not select the recipient of the message. Such transmission
of messages and the provision of access to messages must be published in such a manner that allows the
automatic, intermediate and temporary storage of the transmitted messages and the information
contained therein. Messages must be only temporarily stored for the period of time necessary for further
transmission.
An information society service provider transmitting data provided by a service user through a
communication network, is not responsible for automatic, intermediary and temporary storage which only
serves to more effectively form the transmission of data requested by other service users, if: (i) does not
change such data; (ii) respect the conditions for access to such data; (iii) follows the rules for updating
data; (iv) operates in accordance with a permitted application of technology for data collection; and (v)
remove or disable access to the stored data, immediately after finding out that such data has been removed
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from the transmission through the network or that the access to them is denied, as well as when the
court or other competent authority ordered their removal or denial of access.
An information society service provider storing data provided by service users, at the request of service
users, is not responsible for the content of the stored data, if: (i) did not know or could know about the
illegal activity of the service user or the content of the data; and (ii) immediately upon finding out of the
illegality of an activity or data, such information is removed or disabled. The responsibility of the
information society service provider for the stored data cannot be excluded if the service user is a person
depending in any way on the service provider (related companies within the meaning of the law governing
companies).
An information society service provider providing electronic access to data from another service provider
is not responsible for that data if: (i) did not know or could not know about the illegality of activity of the
service users or about the content of the data; and (ii) immediately after finding out that it is an illegal act
or data, remove or disable access to the data.
While providing information society services, the information society service provider shall not be obliged
to review the stored, transferred or information that is made available, or to examine circumstances that
would indicate illegal action by users of the services.
SUPERVISION
Supervision of the implementation of the Act on Electronic Commerce is in the competence of the market
inspection. The information society service provider must inform the market inspectorate if reasonably
suspects that: (i) using its service, the service user performs illegal activities; (ii) the user of his service has
provided illegal information.
DISPUTE RESOLUTION
The legislative framework of the Republic of Serbia provides for the possibility to all persons whose rights
have been violated by the information society service providers to protect their rights in court. The Act
on Mediation in Dispute Resolution provides for the possibility of extrajudicial dispute resolution.
On the other hand, the Serbian legislative framework does not yet provide for the settlement of disputes
online, and there is no platform to enable consumers to resolve disputes online. Bearing in mind that this
type of dispute resolution is more efficient, faster and cheaper, it would be desirable to provide for the
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establishment of such an extrajudicial dispute settlement mechanism by the relevant regulations of the
Republic of Serbia.
TRUSTMARK
The draft Act on Trade15 in Article 31 establishes a Trustmark. In accordance with the Draft Act on Trade,
a Trustmark can be issued by a legal entity that does not trade in goods or services, as well as by a state
authority. In that sense, it can be expected that once the Draft Act on Trade is adopted, a certain legal
entity or state authority will issue a Trustmark to the traders who provide their services online. However,
the Draft Act does not stipulate the obligation of the competent authority to make and regularly update
the list of reliable issuers of Trustmark. It would be desirable to provide for such an obligation, so that
consumers may have confidence in the issued Trustmark.
15 https://www.paragraf.rs/dnevne-vesti/050219/050219-vest16.html
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2. ANALYSIS OF THE REGULATORY FRAMEWORK OF THE REPUBLIC OF
SERBIA WITH RESPECT TO ELECTRONIC TRADE
2.1. CONSUMER PROTECTION ACT ("OFFICIAL GAZETTE OF RS", NO.
62/2014, 6/2016 - ACT AND 44/2018 - ACT)
Act on Consumer Protection regulates the issue of consumer protection when shopping online. First of
all, the Consumer Protection Act defines the obligations of the sellers and the rights of the buyers in case
of establishing a contractual relationship out of business premises.
Among the obligations of the seller is the obligation of pre-contractual notification to the consumer, which
notice contains specific elements (address at which the seller operates, the sale price, which includes the
total costs, conditions, time and procedure for exercising the right to cancel the contract, the existence
of his contractual relationship with the postal operator through whom the consumer may, in the event of
a malpractice complaint, send the goods at the trader's expense, etc.). Also, the Act on Consumer
Protection stipulates that the seller is obliged to inform the buyer, before concluding the long-term
contract, about other stated information. In this way, the legislator protects the consumer in any case,
taking into account the fact that the consumer does not come into direct contact with the goods subject
to the contractual relationship with the seller in the distance contract.
Further, the Act on Consumer Protection defines a special consumer right called the right to cancel a
contract. This right of the Consumer, that is, the obligation of the seller, is present exclusively in electronic
commerce (in ordinary trade, the right of withdrawal represents the exclusive right of the seller, so the
seller is legally authorized to recognize it to the consumer or not).
The right to withdraw from the contract authorizes the consumer to terminate the contractual
relationship with the seller for any reason (justified by the legislator, or the seller, or not). More precisely,
the consumer can exercise the aforementioned right to withdraw from the contract, even if the goods
are in all accordance with what the consumer has sought and expected. More specifically, the buyer does
not have to invoke the defectiveness of the goods or other defects in order to exercise this legal right. It
is sufficient only to inform the seller of the cancellation of the contract in a timely and appropriate manner.
In the case that the right of withdrawal is exercised, the seller is obliged to return the money received in
the name of the purchase price to the consumer, together with the cost of delivery. Also, the seller is
required to use the same means of payment that the consumer used in the original transaction when
refunding. By prescribing this obligation of the seller, the legislator wanted to enable the consumer to
return the money in the same way as he paid the purchase price, since the consumer, in choosing the
method of payment of the purchase price, generally chooses the method which he most trusts and should
be provided with a refund using an identical method.
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Further, with regard to the right of withdrawal, the legislator obliges the seller to inform the consumer in
a clear and conspicuous manner about that right, and in the absence of such notice on the seller’s website
or otherwise, this does not mean that the consumer does not have it.
Moreover, the seller is "punished" for such treatment by being obliged to return the full amount of money
received, even if the consumer used the goods inappropriately from the moment of receipt of the goods
until the moment of return. We assume that the intention of the legislator was to "force" sellers to inform
consumers about their legal rights, all with the aim of strengthening confidence in the conclusion of
distance contracts.
By giving this right to the consumer, it is obvious that the consumer enjoys a greater degree of entitlement
than in the case of in-store purchases. Namely, in ordinary trade, the seller is not obliged to concede this
right to the consumer, but he or she may decide whether or not the consumer will be able to exercise
the right of withdrawal. In addition, the legislature did not grant this right to the consumer indefinitely and
in all circumstances. The legislature limited the time to exercise this right (14 days from the date of
establishment of the state of the goods), while on the other hand, it protected the sellers by prescribing
cases in which this right could not be used (deliveries of goods made according to specific consumer
requirements or clearly personalized, delivery of sealed goods that cannot be returned for health or
hygiene reasons, delivery of newspapers, periodicals or magazines, etc.). In addition, the legislator
protected the sellers in such a way that the sellers could reduce the amount of the purchase price received
in the event of return, if the goods were used improperly during that period of time (from the date of
receipt of the goods until the date of return for the termination of the contract). However, for the sake
of reminders, unless the seller has adequately informed the consumer of this right, the consumer will not
bear any costs even in the case of improper use of the goods during that period.
For all of the above, it is obvious that a balance has been struck between consumer rights and seller rights.
Namely, the intention of the legislator was to improve e-commerce and to increase the level of trust in
it, while on the other hand, the seller was encouraged to inform the consumer in the timely and legal
manner that he was entitled to withdraw from the contract within 14 days of the establishment otherwise,
there is no possibility for the seller to invoke his legal authority to reduce the price he is obliged to return
if the consumer has used the goods in an improper manner.
Having in mind the provisions of the Consumer Protection Act that we did not want to quote here, it is
obvious that the Consumer Protection Act encourages e-commerce and gives the consumer a wide range
of rights. Therefore, no more detailed or additional editing is needed, but the goal should be to promote
the laws and rights that consumers have. In this way, consumer confidence in e-commerce will increase
and the process of promoting this type of commerce in the country will be accelerated. More specifically,
we need to promote existing e-commerce trust tools and make consumers aware of them, so that they
do not have to fear whether they will be able to exercise their rights at all.
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2.2. CUSTOMS ACT ("OFFICIAL GAZETTE OF RS", NO. 95/2018)
This Act shall apply to the movement of goods between the customs territory of the Republic of Serbia
and other customs territories. Therefore, it is of the utmost importance when it comes to e-commerce
beyond the borders of our country. It is of the utmost importance when it comes to e-commerce the
borders of our country.
The provisions of the Customs Act that are relevant to e-commerce are those governing the issue of the
incurring of a customs debt, the obligation to pay export duties and the right to remit or recover the
export duty paid.
For electronic commerce that takes place outside the territory of the Republic of Serbia, it is of the utmost
importance when a customs debt is incurred. The customs debt on exportation is incurred by placing of
goods subject to payment of export duties in the export procedure. In this connection, a customs debt
arises when goods which are the subject of a contractual relationship reach the customs territory but
before exporting them to another country.
Furthermore, the question of importance for e-commerce is what happens to the export duty paid if the
goods are returned because they do not comply with the terms of the contract. In this regard, the relevant
law provides that the number of export duties shall be repaid or remitted if the defective goods or the
goods not in conformity with the terms of the contract are returned to the seller. In this regard, it is
obvious that the seller may demand the release or refund of export duties if the goods were not
conforming or that there was a deficiency.
In order for the seller to recover or remit the number of export duties, it is necessary to prove that the
customs debt notice in respect of the goods refused by the importer because, at the time of release, the
goods were defective or did not meet the terms of the contract under which is imported. Such proof
should not have any aggravating elements, as the customs debt notice clearly indicates which goods are
being exported. Moreover, consumers are also protected in the manner prescribed by the legislature for
goods defective to be considered as damaged goods prior to release.
Refund or remission is not granted if:
(a) the goods were placed under a special examination procedure before being
released for free circulation unless it is established that during such examination
the goods could not normally be detected to be defective or not to fulfill the
terms of the contract;
(b) the defects of the goods are taken into account in determining the terms of the
contract, in particular the price, before the goods are placed under a customs
procedure involving the incurrence of a customs debt; or
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(c) the claimant has sold the goods after finding that he has deficiencies or that he
does not fulfill the terms of the contract.
Exceptionally, reimbursement or remission shall be granted on condition that the goods have not been
used, unless the initial use was necessary to identify deficiencies or not to fulfill the terms of the contract
and provided that they were removed from the customs territory of the Republic of Serbia.
The request for reimbursement shall be submitted to the customs authority within one year from the
date of notification of the customs debt.
However, it may well be argued whether a refund or remission is made and when the goods are returned
to the seller based on the use of his right to cancel the contract. Specifically, this question is logically
imposed since the Customs Act exclusively allows the repayment or remission of a customs debt when
returning defective goods. When returning the goods due to the buyer's withdrawal from the contract,
under the Consumer Protection Act, there is no shortage of goods, but the buyer simply, for some
reasons, decided to return the goods. In this connection, the question may be raised as to whether the
seller has the right to recover or discharge the customs debt if the consumer exercises his right to cancel
the contract.
From the only available practice of the Administrative Court (Judgment of the Administrative Court, 21U
12532/2013 of 9.7.2015), it seems that in case of cancellation of the contract, no repayment or discharge
of the customs debt would be made. Namely, the Administrative Court took the following view in the
judgment:
"The conditions for the repayment or cancellation of a customs debt are not fulfilled if the imported goods have
been returned to a foreign supplier because the demand for that type of goods has decreased in the importing
country."
From the practice cited, it is evident that the Administrative Court did not accept the reason for the
return, which was not based on the deficiency of the goods, as relevant and relevant for the recovery or
discharge of the customs debt. More specifically, taking into account the fact that the Administrative Court
took the view that the plaintiff's reason not relating to the lack of goods was not relevant to the recovery
of the customs debt, it follows that the Administrative Court would, in any case, take the identical position.
In this regard, when the reason for returning the goods is not malpractice, it seems that the seller would
not be able to exercise his legal right to recover or discharged the customs debt.
In this way, it is obvious that sellers are damaged because, on the one hand, consumers are privileged to
return the goods without stating any reason within 14 days from the day the country was established on
the goods, while on the other hand, sellers are damaged because in that situation they are not entitled to
repayment or discharge of customs debt. In order to strike a balance and to establish equality between
the contracting parties, we propose to amend the existing provision in such a way that the repayment or
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discharge of the customs debt also applies to the situation when the consumer exercises his right to cancel
a contract defined as such by the Act on Protection Consumers.
2.3. ACT ON ADVERTISING ("OFFICIAL GAZETTE OF RS", NO. 6/2016)
Advertising is the presentation in any form in connection with a business or professional or business
activity, in order to encourage the sale of goods and services. In this regard, the said law prescribes what
the advertiser can advertise and in what way, without suffering the sanction prescribed by law.
What is relevant from the aspect of e-commerce defined by this law is the advertising of sales incentives.
In any case, more detailed details regarding sales incentives and other provisions relevant to e-commerce
are provided in the Commerce Act. It is important to note that the legislator in this law takes into account
the fact that consumers are not misled and are not deceived.
2.4. ACT ON PERSONAL DATA PROTECTION ("OFFICIAL GAZETTE OF RS",
NO. 87/2018)
Pursuant to the provisions of the Act on Personal Data Protection, the controller and the processor are
obliged to process the data if there is a legal basis for this. If it is necessary for an e-commerce company
to process certain personal data (name and surname, address and city for delivery of the shipment), it
follows that there is a legal basis for this (processing is necessary for the execution of the contract
concluded with the data subject or to take action, at the request of the data subject, before concluding
the contract). Namely, the consumer, by deciding to buy something electronically, required the seller (e-
trader) to deliver the ordered goods to him at a certain address. Therefore, in order to fulfill the seller's
obligation to deliver the goods, the consumer had to provide him with certain information. Therefore,
there is a legitimate basis. This ratio exists for other personal data that e-traders process in order to fulfill
their contractual obligations. With respect to the processing of data not required to fulfill contractual
obligations (email addresses of customers to send them offers/promotions), e-traders need to obtain the
consent of customers for such treatment.
Therefore, it is obvious that the legislature requires a legal basis for processing at all times. Moreover, the
legislator requires that the persons whose data are processed have to be aware of it. In addition, e-
marketers are required to use such information solely for specific purposes and not to misuse it,
otherwise, a fine will ensue. Also, e-traders are obliged to delete their personal data after a certain period
of time, thus protecting individuals from keeping their personal data forever. Therefore, it is more than
obvious that e-marketers are obliged to fully adapt their business to the law in question, as otherwise a
high fine will follow.
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Introducing consumers to the new Act on Personal Data Protection and the high penalties that follow
those who process data contrary to legal provisions will increase the security of consumers that no one
will process their personal data without a legitimate basis and for an unlimited period of time. Therefore,
it is necessary to promote the law in question from an online shopping angle, all in order to make
consumers feel safe when leaving their information to sellers.
2.5. ACT ON ELECTRONIC COMMERCE ("OFFICIAL GAZETTE OF RS", NO.
41/2009 AND 95/2013) AND THE ACT ON TRADE ("OFFICIAL GAZETTE OF
RS", NO. 53/2010, 10/2013 AND 44/2018 - ACT)
The E-Commerce Act and the Commerce Act are laws that explicitly regulate an important part of the
issues that are relevant to e-commerce. Of course, we should not neglect the Act on Obligations, which
as such represents the legal basis within which the trade is developed and founded. With respect to the
Act on E-Commerce, it should be borne in mind that although it bears a name that contains the term e-
commerce, the law as such does not regulate in detail and exclusively all aspects of this type of commerce
that occur in practice. Perhaps a more appropriate name for the law would be the law on the provision
of information society services. However, it is enough to start by noting that the same applies to some
other aspects besides e-commerce. In the light of e-commerce, the law in question regulates in detail the
ways and conditions for concluding contracts in electronic form. In this way, the door to e-commerce is
opened as a modern form of commerce. In this way, it can be said that the Act on Obligations is
supplemented from the light of electronic commerce, which speaks in favor of the development of the
economy of our country in the direction in which all European countries and their economy develop.
However, regardless of the fact that the Act on E-Commerce defines the obligations of service providers
regarding notifying users before the conclusion of the contract, it can be concluded that the same law thus
follows the Consumer Protection Act, which also speaks of the obligation of pre-contractual information.
In this way, users and consumers are protected both from the point of view of the implementation of the
Consumer Protection Act and from the angle of the implementation of the Act on Electronic Commerce.
On the other hand, the “pressure” on sellers, ie providers of information society services, to respect both
the provisions of one law and the provisions of another law has been intensified, since each law prescribes
its own sanctions and penalties. Furthermore, the Act on Electronic Commerce cannot be viewed
separately from the Act on Trade, because the Act on Electronic Commerce itself defines in its definitions
of information society service providers relying on the concept of a trader from the Acton Trade, which
indicates that electronic commerce as such is regulated by a wide range of provisions of different laws, all
of which aim to protect the user, that is, the consumer. Therefore, it is obvious that the development of
this form of trade does not lack legal provisions, that is, regulations, but rather lacks awareness of
consumers about their rights, which all the laws mentioned so far speak about. Therefore, the direction
of e-commerce development should be determined in order to promote these laws and make consumers
as such aware of their rights. Of course, to enjoy such a real prerequisite is to do business with dealers
who are registered to carry out their business, which leads to the effect that by promoting consumer
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rights, they draw attention to the need to buy only from registered dealers, which can lead to the effect
of reducing the gray economy.
However, on the other hand, this does not mean that the regulatory environment cannot be
supplemented and thus improved. The impetus for such a thing can be found in the regulation of other
countries, even in the regulation of states in the region. Therefore, our intention was to propose new
solutions to improve e-commerce after benchmarking legislation in EU countries, countries in the region
and other countries that boast a high rate of e-commerce development. In this regard, our key proposals
were reflected in the following:
ONLINE DISPUTE RESOLUTION (ODR) MECHANISMS
Considering the analyzed regulations of other countries and systems, we think that it would be desirable
to introduce the ODR mechanisms in the Serbian regulatory framework. During the analysis of EU practice
that we outlined in the benchmark analysis, we came to the conclusion that consumer and e-commerce,
trusted e-commerce disputes are most commonly resolved through the ODR platform (online dispute
resolution platform).The online dispute resolution platform is a platform provided by the European
Commission, enabling consumers and e-traders in the European Union, Norway, Ireland, and Liechtenstein
to resolve disputes regarding the online purchase of goods and services without court intervention. The
ODR platform is not affiliated with any traders. Consumers can use the platform to submit a complaint
to an approved dispute resolution body. Said Dispute Settlement Body is an impartial organization or
individual that helps consumers and e-traders resolve emerging disputes. This resolution process is known
as an alternative method of dispute resolution, and as such is faster and less expensive than litigation
before a court. The ODR platform can only be used by those dispute resolution bodies that have been
approved by the competent national authorities and which meet quality standards relating to fairness,
transparency, effectiveness, and accessibility.
BLOCKCHAIN TECHNOLOGY AND SMART CONTRACTS
We have proposed the introduction of two institutes that represent the foundations of the new digital
era - blockchain technology and smart contracts.
Blockchain technology offers a wide range of opportunities for business advancement, government
administration, and consumer protection. This would create an opportunity for exceptional economic
growth and cost-effectiveness. The Republic of Serbia should encourage the growth and development of
blockchain technology. The first step to this should be the introduction of blockchain into the domestic
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legal system. So far, there has been no legislative activity in the field of blockchain technology in Serbia, so
we have proposed a definition that should fit into the legislative framework.
Countries around the world are taking advantage of blockchain technology (such as Malta, Estonia, France,
Italy, Scandinavian countries, etc.), enacting laws and creating a regulatory framework that encourages
companies that use blockchain technology to relocate their businesses to those countries. The Republic
of Serbia could be one of those countries, and for that reason, it should consider whether there is an
interest in it.
Smart contracts have evolved significantly in the short term. They enable the further development of
distributed ledger technology (DLT). Security, automation of performance, and efficiency in streamlining
processes are sufficient reasons for smart contracts to be fundamental to DLT takeover. The potential of
smart contracts is one of the main topics discussed and developed in the financial services, natural sciences,
healthcare, technology and telecommunications, transport, energy, infrastructure, mining, and commodity
transport sectors. In the financial services sector, for example, it will not be surprising if smart contracts
are put into use in the areas of clearing and securities, collateral management, financial derivatives,
securities servicing, international payment transactions and more.
We believe that smart contracts are another option for listing the Republic of Serbia among several states
that understand and support the prospect and inevitable future development of contract law. This project
can be a starting point for introducing and presenting the potential of digital technology, and we have
proposed a definition that should be an integral part of the legislative text.
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3. RESULTS OF QUANTITATIVE RESEARCH ON THE EXISTENCE OF
LEGAL BARRIERS
When asked if there was any regulatory barrier that would solve e-commerce in Serbia, no respondent
gave a specific answer, that is, indicating that at this moment there is indeed some regulatory problem due
to which e-commerce cannot be improved. Also, no respondent said that the reason for not buying online
or not selling online is that something is not regulated by law or is not adequately regulated. Moreover,
the reason why e-commerce is not at the level of development in our country as it is in other countries
is citing the mistrust that exists primarily on the customer side. In addition, such distrust is fueled by poor
marketing, which is more prevalent in our country than good marketing, so more attention is paid to a
failed transaction between an unregistered trader and a fraudulent customer than to a transaction between
a registered trader and a satisfied consumer.
Furthermore, the respondents who answered the question in the affirmative cited facts as such regulated
by domestic regulations, only they were insufficiently informed to know that our country offers a wide
range of rights to consumers. Moreover, our citizens are afforded an almost identical spectrum of rights
afforded to consumers in other countries. For example, many consumers do not know that they have the
right to cancel the contract, that they have the right to claim a refund of the price paid and the cost of
delivering the goods, that they can exercise that right even when they are not informed by the trader,
that they can return the goods when it is the same malpractice, or moreover, that they may seek
replacement or repair of defective goods. Therefore, it is necessary to educate consumers and make them
aware that they are protected in e-commerce, perhaps even more than in offline commerce, which should
be a reason to gain more confidence in e-commerce and in this type of business. However, they should
be reminded that they do not enjoy all these rights when they purchase goods through unregistered
entities or most social media marketers, which will also lead to the goal to be achieved - reducing the gray
economy that exists everywhere.
Of the 151 respondents, 14% said there was some legal barrier in the field of e-commerce. Mostly the
answers were in the light of the existence of the informal economy and unregistered entities, but this is
an effect that occurs in some, smaller or larger percentage in every country. Moreover, the transaction
between an unregistered seller and a fraudulent consumer will always get more media attention than a
transaction between a registered seller and a satisfied consumer, which results in a higher level of mistrust
in our country. Therefore, it should be pointed out to consumers that they do not enjoy any rights and
legal powers in the case of buying from unregistered traders, but that in other circumstances (buying from
registered dealers) the consequences cannot be as characterized by "illegal" transactions. Also, one way
to reduce the informal economy, that is, sales by unregistered marketers, is to engage more with market
inspections, especially in relation to sellers who appear on social networks. If consumer policy promotion
and control policy of marketers that mainly sell on social networks were implemented, we could expect
consumer distrust to decrease and the volume of registered e-commerce entities to increase.
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Furthermore, the survey also examined those who have purchased something over the past 6 months.
About 8% answered that there is a legislative barrier which, as such, is the reason why e-commerce is
underdeveloped, more precisely they said that the legal frameworks regarding e-commerce should be
more precise or better. The answers received mainly relate to proposals to introduce stricter legal
controls on online sellers, in the sense that they more clearly state the prices on their websites and
describe their products more accurately. Also, many pointed out that it is necessary for all online traders
to register with the Business Registers Agency for this activity (which indicates that these respondents
purchased from unregistered entities). However, all these answers are related to what is already
prescribed by law, such as the right to cancel the contract, the obligation of the seller to emphasize the
price and the obligation of pre-contractual consumer information, the obligation of the traders to register
with the Business Registers Agency if they wish to deal any business activity permitted by law, etc.
Therefore, it is again concluded that in our country there is a lack of better-informed market participants
and an increase in consumer awareness that they are nevertheless protected when making purchases
online.
Business entities generally cited the following as legal barriers:
That customs costs should be lower, PayPal should be allowed, a law restricting the informal economy
and controlling sales on social networks should be introduced, and its commissions should be reduced.
From the foregoing, it is obvious that there is no legislative problem that needs to be addressed to improve
e-commerce, but the alleged shortcomings mainly relate to the current high costs (affected by the market,
not the regulation) and the gray economy. As such, the gray economy can be solved when consumers are
encouraged not to buy from unregistered retailers, and this is when they come to the realization that any
right that the Consumer Protection Act allows them cannot exercise in the case of illegal trade. Therefore,
it is necessary to promote the regulations in force and to make citizens aware of their rights, but also to
become aware of the fact that they lose all these rights when they buy from unregistered entities.
Citizens generally cited the following as legal barriers:
That consumers need to be informed of their rights and obligations, to be aware of the fact that the
information they leave on the internet is secure, to enable customers to refuse to pay if the product does
not meet their expectations, to enable customers not to pay before the goods arrive at their address, to
better inform the consumers about the products on the sellers' websites, to allow free delivery to the
consumer's address, to specify the number of customs and postage, etc. In this regard, it is obvious that
consumers are not aware of their rights or the legal obligations of sellers. More precisely, it is obvious
that they are not aware of the possibility that they can cancel the contract (when they are obliged to
return the goods, while the sellers are obliged to return the money), that they can pay them by
reimbursement (thus allowing them to pay the goods only after arriving at your home address). On the
other hand, since there is a legal obligation for sellers to highlight the price and all product features in a
precise and unambiguous manner, it is obvious that sellers do not comply with the law in this light (since
buyers complain about such defects), and the reason is that market inspection is not as active and does
not penalize them. Therefore, increased involvement of market inspectors is required to penalize those
sellers who fail to comply with legal obligations and to punish those who trade illegally. When such a policy
60
is put in place, it will create confidence and better market conditions, which are necessary for e-commerce
to evolve as expected.
In terms of blockchain and smart contracts, a large number of respondents have not heard of such
technology or knowledge in a simple way to define the institutes in question. Therefore, it is necessary to
define them in the law, in order to familiarize citizens with new institutes that are developing rapidly in
the world and whose presence is increasing day by day.
4. CREATION OF CAPACITIES FOR CIVIL SERVANTS FROM DIFFERENT
MINISTRIES AND OTHER INSTITUTIONS RESPONSIBLE FOR
IMPLEMENTING ACT ON TRADE AND THE ACT ON ELECTRONIC
COMMERCE
Based on the conducted research, it can be concluded that the main reason why e-commerce is not
developed as in other countries is that there is a high degree of distrust of e-commerce customers and
consumers. The reason for the distrust is that consumers are not even aware of their rights, which leads
to the consequence that they think that they are not protected when shopping online. Sellers, on the
other hand, complain about the growing presence of the informal economy, that is, sales conducted by
unregistered sellers, and the reason for such a shortcoming is that market inspections do not carry out
full control.
Specifically, there is an increasing presence of sales on social networks and this type of sales is most often
conducted by unregistered entities. In order to reduce their number, we believe that more frequent
market inspection activities are required, in such a way that they require such unregistered entities to
register and conduct their business in a lawful manner, otherwise they will be sanctioned. Moreover, we
believe that gray sales will decrease as a result of the introduction of new e-commerce inspectors'
authority, which is reflected in the fact that inspectors will be able to conduct mistery purchases, which
will lead them to find out that dealers engage in such business illegally. In this way, inspectors will be able
to influence a large number of unregistered entities (reducing their number by making them registered),
which in turn will reduce the number of transactions in which consumers are mostly harmed because
unregistered entities do not provide them the scope of the rights conferred upon them by virtue of legal
provisions. Therefore, it is obvious that market inspection activities can lead to a twofold objective: 1)
reducing the number of unregistered e-commerce entities by increasing the number of registered traders,
and 2) increasing the degree of customer confidence in e-commerce, as it will increase the number of
transactions between registered traders and satisfied customers. Consequently, the role of market
inspectors in this field is of great importance and their powers should be promoted in such a way that the
inspectors themselves are made aware of the fact that they can improve the situation in e-commerce
through their activities. In addition, they should be advised that their activities should not be in the light
61
of eliminating unregistered traders from the market, but rather that they are required to register and thus
operate business in accordance with the law.
A way for government authorities, or officials, to become aware of all aspects of e-commerce and
problems that may arise that they can eliminate through their actions, is to organize training for market
inspectors to participate. The subject training should be conducted in such a way as to indicate to market
inspectors problems that arise in practice, especially bearing in mind that market inspectors may not even
be aware of some problems that occur in practice, and what we have learned from the conducted
interviews and research. Therefore, after familiarizing market inspectors with all the circumstances that
buyers face, we can expect them to understand what are the barriers to practice that keep e-commerce
growth from developing at the expected pace. It should also be pointed out to inspectors that their
objective of action should be to influence unregistered dealers to register, as this will only relieve pressure
from inspectors. The way to implement such a policy of action is to use powers such as covert trade. We
are aware of the fact that there are a large number of traders on the social networks who trade illegally,
but these same traders make big profits. Therefore, such a situation should be exploited in such a way as
to show them that they can enjoy the same benefits and if they pursue their activities as a registered entity,
moreover, they will relieve the pressure they feel on the inspector. For all these reasons, we propose to
organize training for inspectors on the basis of which they will be informed about the problems
accompanying this type of trade, and on the other hand, it will be indicated to them that by their actions
they can positively influence the development of e-commerce. Moreover, they should be shown that such
actions can influence the development of healthy competition in the market of the Republic of Serbia,
which can have only positive effects on trade.
5. CONCLUSION
As stated above, the legislative framework of the Republic of Serbia in the field of electronic commerce
will be harmonized with the relevant regulations of the European Union after the adoption of the Draft
Act on Amendments to the Act on Electronic Commerce and the Draft Act on Trade. In this sense, it can
be concluded that, at the moment, they are not legislative barriers that prevent the further development
of e-commerce in Serbia.
Also, it is obvious that the current regulations of the Republic of Serbia that have an impact on e-
commerce are not oriented so as to prevent the development of e-commerce. Moreover, the current
regulations of the Republic of Serbia are such that they keep up with the time and increasing need of
consumers to buy online, while on the other hand, they prescribe as many instruments as possible, which
as such will increase consumer confidence in e-commerce. For this reason, it is necessary to promote and
advertise the applicable regulations in such a way that consumers are shown what rights they have and
what protection they are given. When consumers are familiar with the overall legal framework, we can
expect that confidence in e-commerce will increase and that e-commerce as a form of trade will improve
62
and occupy an important place in the economy of the Republic of Serbia. In this way, we will reduce the
biggest barrier on the demand side.
63
II LEVEL OF E-COMMERCE ACTIVITY IN SERBIA
In order to show the readiness of countries for e-commerce, the United Nations Conference on Trade
and Development (UNCTAD) developed composite B2C E-commerce Index, based on four indicators:
Internet use, number of secure servers, credit card penetration and postal delivery services (UNCTAD,
2018), and the value of the index is positively correlated to the percentage of the online shoppers. By this
research, Serbia is ranked 41st out of 151 countries.
As stated in the Trade Development Strategy by 2020 e-commerce is lagging behind other forms of trade
and it is in the initial stage of the development in the Republic of Serbia (Ministry of Trade, Tourism and
Telecommunications, 2017). E-commerce is becoming more intensive, under the influence of lower prices
of devices, growing availability of the Internet and growing competition among companies. Serbia must
generate and exploit new economic opportunities through the adoption of e-commerce practices in order
to promote economic growth and social development, to enhance business efficiency and productivity and
to enable domestic companies’ easier re-integration to European and world market.
When it comes to e-commerce in Republic of Serbia data, there are no precise data regarding the volume
of e-commerce. Nevertheless, every year since 2006, the Statistical Office of the Republic of Serbia (SORS)
has been conducting a survey on the usage of Information and Communication Technologies (ICT) in
Serbia. In this survey, data are collected from individuals and companies across Serbia on the application
of ICT in enterprises, on the use of computers, Internet usage, characteristics of the information system
in enterprises and electronic business of the company. According to the survey, there is an increase in
ICT usage by individuals/in households and in companies. The sample include 2800 individuals, 2800
households and 1781 enterprises and findings are as follows.
The existence, as well as the quality, of Internet access is the prerequisite for the e-commerce. The survey
shows that the Internet access in the Republic of Serbia has been improved - 72.9% of households have
an Internet connection, which is an increase of 4.9% and 8.2%, when compared to 2017 and 2016,
respectively (SORS, 2018, pp. 14). Internet access has been relatively advanced in Serbia, but the quality
of this approach is still not satisfactory. It is no longer sufficient that there is a high degree of Internet
penetration. What is important is the quality of the Internet connections.
Slow Internet connection greatly limits the successful development of e-commerce, reducing the potential
of the multichannel marketing strategies as well. Broadband Internet connection does not only enable
access to faster Internet connection, but it also changes the whole way in which the Internet is used in a
way that it enables data download at a much greater speed than traditional dial-up connection. In
accordance with that, starting from 2005, one of the most basic indicators of ICT use development in EU
is a proportion of households that possess this type of Internet access. Today, in Serbia, 72.5% of
households has a broadband Internet connection, which represents an increase of 10.6% compared to
2017, and increase of 14.7% compared to 2016 (Figure 1). Presence of this type of Internet connection is
the greatest in Belgrade where 82.1% of the households possess such connection, in Vojvodina with a
64
figure of 70.3%. This figure is the lowest in central Serbia, where only 68.8% of households have this type
of connection (SORS, 2018, pp. 17).
Figure 2 Broadband Internet connection in households
Source: SORS, 2018, pp. 17
The use of modern technology in Serbian trade is not at a satisfactory level. One of the structural problems
in Serbian trade is the inadequate development of all forms of electronic commerce, which is in disharmony
with the relatively high rate of acceptance of computers, mobile phones and the Internet in Serbia. In the
Republic of Serbia, 73.4% of persons have used the Internet in the last three months, 1.2% of respondents
used the Internet more than 3 months ago, and 1.2% more than one year ago (SORS, 2018, pp.23). There
were 24.2% of respondents that had never used the Internet. In the last three months the respondents of
the survey have used the Internet mostly for finding information about goods or services (76.8%), as well
as for participating in social networks such as Facebook and Twitter (70.3%) (SORS, 2018, pp.26).
As regard the period when Internet users have bought/ordered goods or services via the Internet, 30.9%
of users have bought/ordered goods/services in the last three months, 14.6% did it more than three
months ago, and 9.1% more than a year ago. 45.4% of Internet users have never bought/ordered goods
or services over the Internet (SORS, 2018, pp.29).
As it can be seen in the Figure 2 (Eurostat 2018, SORS 2018 pp.29), although e-commerce development
in Serbia, represented by the percentage of individuals shopping online (2018: 45,5%), shows a steady
growth over the previous years, it still significantly lags behind EU average (2018: 60%).
65
Figure 3 Individuals who ordered goods or services over the internet for private use in the 12
months prior to the survey
Source: Eurostat 2018, SORS 2018 pp.29
Number of individuals that shop online is growing on an annual level. In 2018 there have been 1,800,000
individuals who shopped for goods or services online. Since 2014, number of individuals who shop online
has grown at an annual rate of 9.37%.
Most online shopping refers to buying clothes and sport goods (55,5%), as well as household appliances
(22,6%) and electronic equipment (18,3%). During previous years (2013-2018) there was a similar
proportion of types of goods and services ordered over the Internet (in some years a percentage of
household appliances ordered over the internet is bigger than electronic equipment, and during other
years individuals were ordering more electronic equipment than household appliances). In 2012, people
were ordering over the internet books, magazines and newspapers more often than electronic equipment.
In 2011, most of Internet users bought/ordered household goods (29.2%), electronic equipment (23.8%)
and clothes and sports goods (21.2%), which is a shift from 2010, when most users bought / ordered over
the internet books, magazines and newspapers (23.9%), clothing, sports products (19.8%) and household
goods (19%).
In the period of last three months prior the ICT survey (SORS, 2018), 57% of individuals has
bought/ordered goods or services over the Internet, for private purposes 1 or 2 times; 27,2% of individuals
has bought/ordered goods or services over the Internet 3 to 5 times; 10,2% of individuals 6-10 times; and
5,6% of individuals has bought/ordered goods or services over the Internet more than 10 times. Over the
years (during which this question exists in the IST survey), these percentages have not changed
significantly, as seen in Figure 3.
5053 55 57
60
31.8 33.338.3
41.345.5
0
10
20
30
40
50
60
70
2014 2015 2016 2017 2018
%
Years
EU (%)
Serbia (%)
66
Figure 4. Number of times a person has bought/ordered goods or services (2015-2018)
Source: SORS 2018
Over 55% of transactions have value lower than 50 EUR. Having in mind that small parcels, with value of
less than 50 EUR are not a subject of customs, this fact is not surprising, although VAT is still charged on
those transactions as well.
National Bank of Serbia publishes data regarding Payment transactions of funds transfer performed in the
Republic of Serbia by cards and e-money issued in the Republic of Serbia. In 2018 there were 148.648.964
payment transactions of funds transfer using cards and e-money in total, with total value of 262.4 billion
RSD.
National Bank of Serbia also publishes data regarding e-money and card payments (using regular or internet
payment cards) for goods and services online and classifies those payments by currencies. In 2018, the
total number of transactions made by using payment card was 7.333.929, which represents an increase of
166% compared to 2015, when there were 2.757.790 such transactions (Table 1). Data in Table 1 shows
that over 38% of transactions were related to domestic websites (RSD), which represents an improvement
compared to 2015, when the proportion of domestic website related transactions was 26%.
Table 1. Payment transactions of the purchase of goods and services via the internet, by using
payment cards
Currency Total number of transactions Total value of transactions
Year 2018 2015 2018 2015
Card use RSD 2.813.939 740.647 9.267.804.195 3.321.714.917.43
EUR 2.438.872 996.771 114.342.080 55.335.868.51
69.5
21.2
5.1 4.2
55.8
33
4.56.7
57.7
31.6
5.6 5.1
57
27.2
10.25.6
1-2 3-5 6-10 10+
0
10
20
30
40
50
60
70
80
Shopping frequency
%2015
2016
2017
2018
67
USD 1.910.003 927.165 54.256.309 24.982.761.32
GBP 160.755 88.370 9.062.990 4.448.279.11
CHF 10.360 4.837 1.017.933 711.676.99
Total 7,333,929 2,757,790 … …
Source: National Bank of Serbia
The total number of transactions made by using e-money, in 2018, was 331.988 (Table 2).
Table 2. Payment transactions of the purchase of goods and services via the internet, by using e-
money
Year 2018 Currency Total number of transactions Total value of transactions
E-money
use
RSD 33.276 57.797.809
EUR 136.335 2.048.737
USD 160.755 1.444.675
GBP 1,532 56.713
CHF 90 1.717
Total 331.988 …
Source: National Bank of Serbia
According to the web portal Statistista.com16, the most common method of payment via the Internet is
still payment by cash on delivery (32%), followed by bank transfer (30%) and payment cards (15%). It is
anticipated that in 2019, 62% of total e-commerce purchases will be paid by bank transfer and cash on
delivery equaly, and that the payment by cash on delivery will decreasing evenly in the coming years (Figure
4)17.
16 Statista is an online statistic, market research and business intelligence portal. It provides access to data from market and opinion research institutions, as well as from business organizations and government institutions. 17 The Payment Type shows the forecast of e-commerce customers’ payment preferences and refers to the
payment method share of the total gross merchandise volume per year.
68
Figure 5. Payment types in percent 2018 and forecast
Source: Statista, October 2018
In October 2017, an international research and technology company operating on the markets of Europe,
Africa and Asia, called Gemius18, conducted a survey about online shoppers in Serbia. Sample consisted of
1050 individuals out of which 93,7% use internet every day, mostly for searching for and purchasing
products/services from domestic sites. 6 of 10 internet-audience (60,8%) who have shopped online use
Web Stores, while at the same time 4 of 10 of internet audience (39,4%) who shopped on line uses Price
Comparison Websites. Foreign websites are the most popular ones - top five favorite e-commerce
websites within analyzed audience are:
1. aliexpress.com (5th in 2016) – 14,3%
2. kupujemprodajem.com (the same position) – 10,6%
3. ebay.com (6th in 2016) – 9,3 %
4. limundo.com (1st in 2016) – 8,7%
5. amazon.com (8th in 2016) – 5,7%
18 The company offers research on the behavior of Internet users on websites, the socio-demographic profile of
network users and the effectiveness of online advertising campaigns.
30% 30% 31% 32% 35% 37% 37%
15% 15% 16% 16%18% 19% 19%
35% 37% 31% 29% 21% 16% 15%
5%7%
8% 9% 10% 11% 11%
15%14%
14% 15% 16% 17% 17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2018 2019 2020 2021 2022 2023
Bankovni transferi Kartice Plaćanje pouzećem E-novčanik Ostalo
69
Respondents says they like buying online because it is easier to compare all offers, there is convenient
home delivery, there is no need to travel to the store, usually prices are better than in traditional stores
and they can buy any time they want. Although almost third of respondents claim that they never had a
problem while shopping on-line, those who did have a problem say that they encountered following
obstacles: product doesn’t match expectations; misleading information; delivery costs too much; lack of
basic information; problems with warranty, etc.
Most online shopping refers to buying clothes and accessories, technical devices, sports equipment etc.
which coincides with the survey conducted by SORS (Figure 5).
Figure 6. Previously purchased goods bought online, by categories
Source: gemiusAdHoc study, October 2017
59% respondents on an average spend 1001-5000 RSD when shopping online. For 15,3% respondents an
average online “shopping cart” costs in range between 5.001-10.000 RSD, and 12,1% of respondents spend
on their average shopping cart more than 10.000 RSD. For almost half of respondents’ yearly costs for
online shopping are 10.001-50.000RSD. For 29,6% the sum is lower - it’s up to 10.000 RSD, and for 22,4%
the sum is higher – 50.001 RSD and more (Figure 6).
70
Figure 7. Online purchases: money estimation
Source: gemiusAdHoc study, October 2017
According to the same research, five most often used types of payments are: payment in person upon
parcel receivement (still most popular method of paying, however it is decreasing, while at the same time
following payment methods are becoming more and more used); debit/credit cards; online bank account
transfer; online payment service; and by cash at the store. Compared to previous year, proportion of
payment in person upon parcel receivement is decreasing, while the proportion of card and bank transfer
payments is increasing (same finding as Statista).
As reported by the web portal Statista, when it comes to e-commerce revenue, it amounted 289 million
EUR in 2018, and it is predicted that will reach 328 million EUR in 2019. Revenue is expected to show an
annual growth rate of 8.9%, resulting in a market volume of €461m by 2023 (Figure 7).
Figure 8. B2C E-commerce revenue, 2018 and forecast
Source: Statista, October 2018
71
The highest revenue comes from the segment Electronics & Media: €164m in 2018 (Figure 8).
Source: Statista, October 2018
The number of Internet users in Serbia (active paying customers or accounts) was 4 millions and it is
expected to amount to 4.4 millions by 2023. The average revenue per user in the e-commerce market
amounts 72,2 EUR which is 10 times less than in EU (2018), as shown in Figure 8.
Table 3. E-commerce revenue by segment, 2018
72
Figure 9. Average revenue per Internet user, 2018 and forecast
Source: Statista, October 2018
In annual survey on ICT usage conducted by SORS, data are collected not only from individuals, but also
from companies across Serbia about the use of computers, Internet usage, characteristics of the
information system in enterprises and electronic business of the company.
Of the total number of enterprises having an Internet connection, 98.8% have broadband Internet
connection (Figure 9). Therefore, companies in Serbia are able to use all the advantages of the fast Internet,
including faster accessibility to information, downloading of various Internet content, possibility of
communication among employees, possibility of communication with external persons, e-business and
more.
Figure 10. Broadband Internet connection in enterprises in Serbia 2009-2018 (% of enterprises)
Source: SORS, 2018, pp. 79
73
Almost all of the enterprises in Serbia use Internet for business purposes – that proportion is somewhere
between 99.8% and 100%. The result of such proportion is the introduction of obligation to deliver data
to government institution solely through an electronic medium. Apart from that, Internet popularity and
increase in technological literacy are making enterprises realize that online presence is a must.
There has also been an increase, of 2.2% in relation to 2017 and of 1.8% in relation to 2016, in proportion
of enterprises that have their own website. In 2018, 82.6% of enterprises had their own website (SORS,
2018, pp.81; Figure 10). A high percentage of companies that own a website say that companies in Serbia
pay great attention to their visibility on the Internet, in which they find their business opportunity and the
opportunity to advertise on the domestic and foreign markets.19
Figure 11. Enterprises which have their own webiste
Source: SORS, pp. 81
The website is owned by almost all large companies – 94,8%, while the percentage of medium-sized and
small companies that have a website is somewhat smaller, accounting for 90,4% of medium-sized and 80,1
% of small businesses. The greatest number of enterprises do business within following activities:
Information and communication (93,7%), Real estate activities; Professional, scientific and technical
activities (92%); Accommodation and food service activities (92,0%). There are differences depending on
the territory: in Belgrade there are 89.0% of enterprises that have a Website, in Vojvodina 83.2%, and in
Central Serbia 75.0%. Enterprises having a Website provide mostly services like: personalized content in
19 The sample of enterprises consists of 1781 enteprises in Serbia with 10 or more employees. In addition, all sectors are not included in the sample.
7475.2
80.8 80.4
82.6
68
70
72
74
76
78
80
82
84
2014 2015 2016 2017 2018
%
Year
74
the Website for regular/repeated visitors (86.0%); description of goods or services, price list (82.6%);
possibility for visitors to customize or design the products (67.6%).
Social media are growing more available in enterprises for business use, which is backed by the results of
the survey. In Serbia, 39,5% of companies use social networks in their business (Facebook, LinkedIn, XING,
Yammer), 19,9% use multimedia-content sharing sites, such as YouTube, Flickr, Picasso, and 10,3% use
blog/Twitter. The share of enterprises using Wiki-based knowledge-sharing tools is 8%.
In 2017 only 41.9% of enterprises ordered goods/services online, which is a slight increase in relation to
previous years (Figure 11). Large enterprises are the leading ones in ordering goods/services online –
56.7% of them. Only 43.6% of medium and 40.7% of small enterprises ordered goods/services online. In
2017, online orders were taken by only 26.3% of enterprises.
Figure 12. Enterprises ordering goods/services over the Internet
Source: SORS, 2018, pp. 83
When we analyze the structure of enterprises that received orders placed over the Internet, the results
are as follows: 34.3% of large enterprises, 26.3% of medium enterprises and 25.8% of small enterprises
took online orders.
Proportion of online orders sales volume in total sales volume in 2017 was as follows:
• less than 24% (72.5% of enterprises);
• between 24% and 50% (14.2% of enterprises);
39.00%
39.50%
40.00%
40.50%
41.00%
41.50%
42.00%
42.50%
2013 2014 2015 2016 2017
%
Years
75
• between 50% and 75% (7.8% of enterprises);
• more than 75% (5.5% of enterprises).
Proportion of online orders sales volume in total sales volume has not significantly changed over the years,
although there are some variations (Figure 12).
Figure 13. Percentage of the total turnover over the years resulting from orders received over the
Internet
Source: SORS, 2018, str. 83
For developing countries like Serbia, e-commerce, which is currently very modestly developed, can be
noticed as a compelling strategy and a major opportunity for the economic development. All three groups
of factors that limit the development of electronic commerce in the Republic of Serbia must be partially
or completely neutralized. The problem of inadequate infrastructure for the development of e-commerce
needs to be solved, an adequate supply in the electronic commerce must be created, as well as demand
for products and services through this type of trade. The government has its role in eliminating all these
barriers, especially the first group of infrastructure constraints.
63.5
17.213.4
5.9
79.4
7.6 9
4
76
10.8
7.5 5.7
79.6
7.48.3
4.7
72.5
14.2
7.8 5.5
0
10
20
30
40
50
60
70
80
90
0-24 % 25%-50% 51%-75% 75%-100%
Percentige of enterprises
Percentage of the total turnover
2014
2015
2016
2017
2018
76
The new phase in the development of e-commerce in the Republic of Serbia should significantly influence
the volume of turnover that is achieved in the electronic commerce, as well as on the effects that
electronic commerce has on all market participants.
77
III KEY BARRIERS TO E-COMMERCE DEVELOPMENT IN SERBIA
(INCLUDING FOREIGN E-COMMERCE)
E-commerce represents significant, dynamic, ever changing part of modern digital economy. In this sense,
due to the nature and complexity of this research, in accordance with European Commission definition,
e-commerce will be viewed as a purchasing process in which involved parties engage in online electronic
transaction, in which certain activities, such as delivery or payment, can be conducted offline, as well as
online20. Implications of the wider understanding approach are multiple, especially in the domain of
analyzing key national barriers to e-commerce development.
In order to comprehensively analyze national barriers to e-commerce development in Serbia, it is
necessary to understand all the influencing factors. In accordance to the previously stated e-commerce
definition, overall e-commerce presence in Serbia consists of both the national and international
components. This is consequently reflected onto the present barriers. In the first step of analysis, a macro
national point of view will be adopted, classifying e-commerce barriers in Serbia into three groups:
demand-related, supply-related and e-commerce enablers-related. In order to fully understand the
implications of barriers on national e-commerce usage, simultaneous joint effects of e-commerce enablers
and e-commerce benefits / stimuli must be analyzed. For this purpose, a modified version of Hofmann’s
model (Hofmann et al., 2018) was adopted. In this analysis, attention will be turned towards barriers and
benefits of e-commerce.
20 For more details visit https://ec.europa.eu/eurostat/statistics-explained/index.php/glossary:e-commerce
(accessed 6.1.2019.)
Figure 14. Model for analyzing the level of national e-commerce usage
Source: modified from Hofmann et al., 2018
78
1. DEMAND-RELATED E-COMMERCE DEVELOPMENT BARRIERS IN
SERBIA
Customer readiness for e-commerce is one of the key conditions for successful e-commerce development
(Alyoubi, 2015). One of the key psychological factors influencing intention to adopt e-commerce is
perceived usefulness, because, like any other new technology, consumers would start using e-commerce
only if they find it useful and more convenient than its alternatives like shopping in regular stores.
In this section demand-related barriers are seen as barriers encountered by (potential) customers
(individual and institutional) before, during or after the e-commerce process. These barriers affect the
overall availability of online purchasing in Serbia, as well as its potential. These barriers are:
1.1. INFRASTRUCTURAL BARRIERS
Infrastructural barriers are related to the availability of physical and digital capacities which are important
(sometimes necessary) for successfully conducting e-commerce transaction (Akelloh et al., 2017). These
barriers could be significant since they affect both individual and institutional online buyers.
From an individual standpoint, internet access and adequate e-marketplaces are vital in terms of conducting
a successful business transaction. According to the study conducted by Statistical Office of the Republic
of Serbia (further in the text SORS) in 2018 72.1% of households possesses a computer (47.6% of
Source: https://www.statista.com/outlook/243/150/ecommerce/serbia (accessed 7.1.2019.)
Figure 15. Number of digital commerce and mobile POS payment users in Serbia, excluding
B2B transactions (2018)
79
households has a laptop), whereas 93% of households possesses a mobile phone, albeit many of which are
not smartphones. It is evident that approximatively every fourth household in Serbia does not have a
computer. Additionally, when these findings are coupled with an economic context, we can deduce that a
computer still represents a somewhat luxurious commodity, since only 54.86% of households with an
income level below 300 euros possesses one. Additionally, in 2018 around 72.9% of households has an
internet connection, out of which only 72.5 % possesses a faster broadband connection. These are relevant
data because they show that one in four households in Serbia does not have an internet connection,
whereas another one in fourth households only has a slow, outdated internet connection, significantly
reducing the overall e-market size and potential (Statistical Office of the Republic of Serbia, 2018).
Furthermore, in terms of mobile internet availability Serbia ranks badly in terms of territorial 4G network
coverage of just 64%, but maintains a good position in terms of average speed of available 4G network of
30.17 Mbps, although still ranking behind neighboring countries such as Croatia, Hungary and Bulgaria21.
As an outcome, 4 million people performed digital payments within their e-commerce transactions in
Serbia (B2B transactions, bank transfers and POS payment transactions where mobile card readers were
used are excluded), of which 0.3 million customers used mobile POS payments via smartphone apps.
These figures, as well as projections are depicted below (figure 14). Corresponding data related to
penetration rates are depicted in the following graph (figure 15).
When infrastructural barriers to institutional online buyers are observed, situation is significantly different.
According to afore cited SORS study of ICT usage in Serbia in 2018, 99.8% of companies in Serbia have
internet connection, of which 98.8% possesses a faster broadband connection (every third company has
an internet speed higher than 30 Mbps). Additionally, 75.4 % of companies issue portable devices to its
21 For more details visit https://opensignal.com/reports/2017/06/state-of-lte (accessed 7.1.2019.)
Source: https://www.statista.com/outlook/243/150/ecommerce/serbia (accessed 7.1.2019.)
Figure 16. Penetration data related to digital commerce and POS mobile payments,
excluding B2B transactions (2018)
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employees that allow mobile connection to the internet. In terms online presence, 82.6% of enterprises
have a website, of which only 25.1% allow
for online ordering / reserving, while 35.8% provide a link to certain social media (Statistical Office of the
Republic of Serbia, 2018). Low website content interactivity and customer engagement are significant e-
commerce barriers in both B2C and B2B domains.
Until recently it was very complicated to undertake online payments in Serbia. Specialized cards for online
payments did not exist while other services such as PayPal were not present at the market. Even today,
people in Serbia are unable to use PayPal service to its full extent. For example, domestic payments are
possible only in domestic currency while PayPal transactions are only undertaken in foreign currencies. In
addition, high provisional fees and complicated and long-lasting paybacks make e-commerce less attractive.
Quality of postal service, as well as parcel traceability and visibility are vital in lowering infrastructural
barriers and building up consumer trust.
1.2. DEMOGRAPHIC BARRIERS
Generation gaps usually represent the starting point of every analysis related to certain ICT adoption
process. In the context of demographic barriers e-commerce adoption in Serbia age group matter,
especially in terms of affinity and openness towards new technologies, digital trust and e-skills. According
to a research conducted by Statista22 23.7% of all individual online consumers are aged between 25 and
34 years, followed closely by those aged 35-44 years (23.3%) and between 45 and 54 years (22.9%). This
is somewhat expected for the current market situation in Serbia with the average age of the population
of 42.8 years (2018 estimates)23 and a GDP per capita of USD 5,348, leading to a poverty level of almost
25% and a low-middle income rapidly ageing economy24. Online shoppers aged 55-64 years amount to
17%. Lower figure for this age group is expected due to certain aversions towards e-commerce and
modern technologies, as well as digital distrust. Youngest analyzed age group of 18-24 years amounts to
13% of all online shoppers. This low figure can be explained due to a shorter year span of the group itself,
as well as low to no income status commonly related to this age group who, although very skillful in digital
technologies and relatively opened to modern e-commerce, usually depend on their parents’ income, and
have limited purchasing capability. Another significant barrier of age group affiliation is related to the
overall time spent online. Results of daily usage of the internet are shown below (figure 3). These data
22 For more details visit https://opensignal.com/reports/2017/06/state-of-lte (accessed 7.1.2019.) 23 For more details visit https://www.cia.gov/library/publications/the-world-factbook/geos/ri.html (accessed
7.1.2019.) 24 For more details visit https://import-export.societegenerale.fr/en/country/serbia/market-consumer (accessed
7.1.2019.)
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represent guidelines, as well as borders of e-commerce potential in Serbia, especially when coupled with
population paramaters. Estimates for 2018 are25:
▪ 0-14 years: 14.35% (male 523,473 /female 492,339);
▪ 15-24 years: 11.19% (male 408,379 /female 383,385);
▪ 25-54 years: 41.27% (male 1,475,243 /female 1,445,935);
▪ 55-64 years: 14.21% (male 485,849 /female 520,126);
▪ 65 years and over: 18.98% (male 557,307 /female 786,074).
Another relevant point of the analysis of demographic barriers is the gender of online shoppers. Analyzing
the situation on the Serbian market in 2018, we can see that 52.1% of e-commerce users were female26.
Although roughly equal in the share, it is relevant to understand that gender can pose a significant barrier,
especially if the online contents are not personalized in this sense. Digital and social media targeting
strategies must be adapted to the relevant customer group. If a certain product is purchased online by
both men and female, both groups must be targeted equally. On the other hand, products meant for only
one gender group require specific advertising efforts.
By combining age group affiliation and gender, one can derive important conclusions on how to best
understand targeted groups, and avoid barriers related to these parameters. Within SORS study on ICT
usage in Serbia in 2018, data on computer, mobile phone and internet usage were analyzed. These findings
are presented below (figure 16). We can see that the most relevant age group (25-54) behaves quite
differently, depending on the gender. Consequently, barriers to e-commerce adoption can arise from
lower usage of internet and computer technologies by female part of online shopper population.
25 For more details visit https://www.cia.gov/library/publications/the-world-FACTBOOK/GEOS/RI.HTML (accessed
7.1.2019.) 26 For more details visit https://www.statista.com/outlook/243/150/ecommerce/serbia (accessed January 7,
2019.)
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Final component of this class of barriers is related to the educational level of online shoppers. According
to SORS study on ICT usage in Serbia in 2018 among computer users, 59.7% have secondary educational
level, 17.7% lower than secondary educational level, and 22.6% tertiary educational level. According to the
study, 93% of computer users with tertiary educational level, 80.5% of users with secondary educational
Source: https://www.eshopworld.com/blog/serbia-ecommerce-insights/ (accessed 7.1.2019.)
Source: http://publikacije.stat.gov.rs/g2018/pdfe/g201816013.pdf (accessed January 7, 2019)
Figure 17. Daily internet usage rate by age groups in Serbia (2016)
Figure 18. Overall share of Internet (top left), mobile phone (bottom right) and computer (bottom
left) usage by age group and gender (2018)
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level and 41.1% of users with lower than secondary tertiary level used a computer in the last three months
(more than 3,108,000 people use a computer almost every day). Additionally, among internet users, 59.3%
attained secondary educational level, 19.4% of users attained lower than secondary educational level, and
21.3% tertiary educational level. Of those 90.8% of internet users with tertiary educational level, 83% of
users with secondary educational level and 46.9% of users with lower than secondary tertiary level used
internet in the last three months (more than 3,108,000 people use internet almost every day)27. These
data are very important, especially when coupled with the overall educational structure of Serbian
population. According to 2011 Census around 16% of the population have tertiary educational level. One
in two people in Serbia have secondary education, whereas around one third of the entire population have
lower than secondary education. This is important, because the people with tertiary education are the
ones most likely to engage in e-commerce transaction, but they are also the smallest segment within
Serbian educational structure. High share of people with lower than secondary educational level poses a
significant barrier in e-commerce development in Serbia.
1.3. SOCIO-ECONOMIC BARRIERS
Socio-economic barriers in e-commerce have a significant effect on its potential and development (Daviy
and Rebiazina, 2015). Socio-economic population factors, such as income, purchasing power and level of
urbanization are significant in determining the overall potential of e-commerce usage on a national level.
According to the survey performed by SORS in 201828, with one of the lowest average net salaries in
Europe, it takes consumers 75% of their net salaries to afford Minimal basket of consumer goods in Serbia.
That is one of the reasons why people are not keen on risking when buying online and choose to see (and
feel) goods prior to their purchase. Due to that, over time, people did not get a chance to gain trust in e-
commerce.
In terms of the level of urbanization as an e-commerce barrier, data from the SORS survey on ICT usage
in 2018 78.2% of urban household possesses a computer, 78.3% have an internet connection. When non-
urban household are observed, situation is quite different, with only 61.8% having a computer and 63.9%
having an internet connection. Overall level of population urbanization in Serbia in 2017 was 56%29. This
implies that urbanization level poses a significant socio-economic barrier to e-commerce development in
Serbia, due to limited online accessibility of non-urban population.
27 For more details visit http://publikacije.stat.gov.rs/g2018/pdfe/g201816013.pdf (accessed January 7, 2019) 28 For more details visit http://publikacije.stat.gov.rs/g2018/pdf/g20185639.pdf (January 7, 2019) 29 For more detail visit https://data.worldbank.org/indicator/sp.urb.totl.in.zs (accessed January 8, 2019)
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Another significant socio-economic barrier is the income level of the population. SORS survey on ICT
usage in 2018 shows that 87.9% of households with an average monthly income above 600 euros have a
computer. For households with an average income between 300 and 600 euros this figure is 80.6%,
whereas households with income lower than 300 euros have a much lower computer ownership ratio of
just 54.8%. Almost identical figures apply to having an internet connection. These data are shown below
(figure 18). What is interesting for both computer ownership and having an internet connection is that
figures in 2018 for households with an average monthly income above 600 euros are significantly lower
than in the previous year. The study does not offer an explanation for this, therefore a further analysis is
required in order to answer this question. These findings provide a clear image of e-commerce limitations
in Serbia, especially when coupled with national statistics, which provide a figure of approximatively USD
483 for an average monthly net salary amount in Serbia in October of 2018. Furthermore, median value
of this indicator was around USD 380, which means that 50% of all employed people in Serbia earn no
more than USD 380 a month30. Coupled with the fact that unemployment rate in Serbia in the third quartal
of 2018 was 11.3% (25.3% for people aged between 15 and 24) and that the inactivity rate was 44.5%, we
can see that the low income of the majority of Serbian population poses a significant barrier to further e-
commerce development.
30 For more details visit http://www.stat.gov.rs/sr-latn/vesti/20181225-prosecne-zarade-za-oktobar-2018/?s=2403
(accessed 9.1.2018.)
Source: http://publikacije.stat.gov.rs/g2018/pdfe/g201816013.pdf (accessed january 7, 2019)
Figure 19. Share of households owning a computer (top graph) and having an internet connection
(bottom graph) depending on the average monthly household income
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1.4. BEHAVIORAL / COGNITIVE BARRIERS
Behavioral barriers are related to certain patterns and habits exhibited in online shopping behavior which
pose a limitation to e-commerce development, whereas cognitive barriers are related to mental maps of
individuals or organizations which lower the potential of e-commerce development (Kshetri, 2007). Most
of people associate internet with efficiency, which is why they often buy things online that they need in
the near future. Also, the longer the delivery period is the more people fear whether they will get
purchased goods. On the other hand, due to low purchasing power people are not willing to pay extra
for faster delivery.
According to SORS study in 2018 more than 1,800,000 people bought something online in the last three
months. Of all the internet users, 45.4% never bought anything online. Although this figure has drastically
improved over time (in 2014 it was 59.5%), this data still shows that a lot of internet users in Serbia are
reluctant to purchase online, mainly due to a lack of trust. Of the people who actually purchase online,
57% ordered something online only once or twice in the last three months. Frequent online shoppers,
who purchase online more than 10 times in three months amount to only 5.6%. These figures are
significantly different in EU-28, where 15% of online shoppers have 10 or more e-commerce transactions
in three months, whereas more than 40% of online shoppers spend between 100 and 500 euros on online
purchases in three months31. This shows that e-commerce is heavily under utilized in Serbia, and that
people do not have a habit of purchasing regularly online. Usually e-commerce transactions are sporicidal,
and coupled with previous physical contact with the merchandise (showrooming). Mainly, internet is
viewed as an information channel, where certain data on desired products can be gathered, but not as a
means of purchasing and paying (webrooming).
In the last three months, 55.4% people who were involved in e-commerce transactions spent in total less
than 50 euros. Only 0.7% of online shoppers spent in excess of 100 euros in the last three months. These
figures were somewhat expected, since small parcels with a value of less than 50 euros are not subjected
to customs duty, although VAT is still charged. This data goes hand in hand with the low levels of online
purchasing usage intensity and frequency.
Serbian Central bank publishes data regarding card payments (using regular or internet payment cards)
for goods and services online and classifies those payments by currencies. In 2018 the total number of
such transactions was 7.333.929 which represents an increase of 166% compared to 2015, when there
were 2.757.790 such transactions. Data shows that over 38% of transactions were related to domestic
websites, which represents an improvement compared to 2015, when the proportion of domestic website
related transactions was 26%. However, foreign websites are still the most popular ones. Still, these figures
depict a low customer trust in domestic websites. Furthermore, preference towards international e-
31 For more details visit https://ec.europa.eu/eurostat/statistics-explained/index.php/e-
commerce_statistics_for_individuals#most_popular_online_purchases (accessed 10.1.2018.)
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commerce website puts a significant emphasis on barriers related to international online trade, such as
logistics, language and legal discrepancies, as well as additional cultural barriers.
In terms of goods and services ordered online, difference between Serbian and European online shoppers
is quite significant. When goods which are bought online by more than 20% in 2018 (observation period
is one year) of online shoppers are analyzed, in Serbia these are clothes and sport goods (55.5%) and
household goods (22.6%), while electronic equipment comes third (18.3%)32. In EU-28 on the other hand,
these are clothes and sport goods (64%), travel and holiday accommodations (53%), household goods
(46%), tickets for event (38%), books, magazine and newspapers (32%), films and music (26%), electronic
equipment (26%), food or groceries (26%), video games and software (23%) and telecommunication
services (20%)33. Again, the lack of online trust manifests itself as a behavioral barrier in terms of limiting
what can be sold via internet in Serbia.
When it comes to the manner of payments, the lack of online trust of Serbian online shoppers again comes
into play.
32 For more details visit http://publikacije.stat.gov.rs/g2018/pdfe/g201816013.pdf (accessed 10.1.2018) 33 For more details visit https://ec.europa.eu/eurostat/statistics-
explained/index.php?title=file:online_purchases,_eu28,_2018_(%25_of_individuals_who_bought_or_ordered_goods_or_services_over_the_internet_for_private_use_in_the_previous_12_months).png (accessed 10.1.2018.)
Figure 20. Means of payment for e-commerce transactions in Serbia with projections for 2019-2023
period, excluding B2B transactions (2018)
Source: https://www.statista.com/outlook/243/150/ecommerce/serbia (accessed January 7, 2019.)
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According to data provided by Statista, e-commerce transactions in Serbia are paid by cash upon delivery
in 32% of cases in 2018, as is shown in the figure below (figure 19). By comparison, this figure is 9% in
EU-28. On the other hand, use of cards in paying for e-commerce transactions is significantly lower in
Serbia (15%) than in EU-28 (41%), which shows that customers in Serbia are unwilling to provide their
personal data online, especially financial ones. This is a significant behavioral barrier that significantly lowers
e-commerce market potential, especially in terms of developing more complex, cash-free forms.
Finally, use of social media is important online behavioral market characteristic strongly correlated to
online shopping. In 2017 number of social media users in Serbia was 3.58 million people, and this figure is
expected to grow to 3.77 million in 202134. These are relatively low figures. In terms of preferred online
social media, Facebook holds a dominant position in 2018. Majority of population with a social media
presence is focused on Facebook, limiting the overall exposure to different kinds of ads, banners and other
multimedia contents available online, which are related to e-commerce. Especially interesting is the fact
that computers are used in 89% of all online purchases in Serbia in 2018, followed by smartphones (4%).
This is important because the preferred device further limits e-commerce potential, because laptops and
PCs do not possess the level of interactivity as smartphones do. It is interesting to note that when
computers are used as a platform for accessing social media, use of sites like YouTube (6.35%), Twitter
(5.27%) and Pinterest (4.89%) slightly grows, compared to when smartphones are used as a platform, in
which case Facebook is an absolutely dominant app with a share of 92.32%, which further emphasizes
lower digital literacy of Serbian people, as well as obvious unfamiliarity with the online capabilities which
a smartphone or tablet platform possess.
2. SUPPLY-RELATED BARRIERS TO E-COMMERCE DEVELOPMENT IN
SERBIA
In this section supply-related barriers are seen as barriers encountered by sellers (individual and
institutional) before, during or after the e-commerce process. These barriers affect the overall Serbian e-
commerce market size and potential. These barriers are:
2.1. ORGANIZATIONAL BARRIERS
34 For more details visit https://www.eshopworld.com/blog/serbia-ecommerce-insights/ (accessed January 10,
2019)
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Many micro, small and medium enterprises (MSMEs) do not have adequate investment budgets and their
access to funds is limited. According to the USAID study conducted in 2016, banks accounted for total of
90% of external funds for financing. Moreover, according to the same study, only 10-30% of investment
loan applications are approved. Maturity structures of loans tend to be short, as most of the loans issued
are for working capital purposes. Also, financing market in Serbia lacks alternative sources of financing
MSMEs such as equity financing, micro financing, risk capital funds etc., mostly due to almost non-existent
capital market. Lack of adequate managerial skills significantly limits MSMEs e-commerce development.
Lack of human resources with e-commerce experience is and additional problem. Existing educational
system does not provide enough experts that understand digital component of the business. This is slowly
changing.
According to the SORS data, in 2016, only 38.2% of small enterprises had any sort of innovation, while
the figure among medium enterprises is equal to 54.4%. Moreover, MSMEs in Serbia mostly invest in
production innovations. Only 27.3% of Serbian small enterprises in 2016 had organizational/marketing
innovations, while the same figure for medium enterprises is equal to 42.2%. Many of the MSMEs owners
do not have the necessary knowledge and management skills to understand the importance of innovation
in areas other than production processes and mostly focus on day-to-day activities. Most of them are also
not familiar with the shifts in the way of how goods are sold today. Therefore, it is hard for them to
understand the value that e-commerce implementation can bring them. According to 2017 SBA Fact Sheet
availability of information for MSMEs in Serbia is almost 1.5 standard deviations lower that of EU MSMEs.
Additionally, spending on online advertisement is not adapted to identified online shopper behavior.
According to Statista total digital ad spending in Serbia in 2018 amounted to 226 million USD, as shown
below (figure 8). We can see that the majority of expenditures are associated with social media advertising.
Although global trends justify this kind of approach, national situation is a bit different, both in total number
of social media users, as well as low social websites and apps usage, besides Facebook. Companies in
Serbia must adjust digital marketing mix strategy to national market specifics, in order to efficiently and
effectively increase e-commerce potential. Furthermore, digital ad spending is mainly focused on mobile
platforms. According to Statista, 54% of total digital ad spending was invested in smartphone segment,
which is still not justifiable in case of Serbian market, since computers represent the main e-commerce
purchasing tool (figure 20). This kind of approach, with a growing intensity of mobile ad investments
creates a division for online customers between online information gathering via smartphones and online
purchasing via computer, which reduces convenience, thus redusing the willingnes to participate in online
transactions
Lack of past experience - Very few MSMEs in Serbia have utilized e-commerce capabilities and therefore,
other MSMEs do not have any successful examples in their environment that would incentivize them to
invest in e-commerce themselves. This is a significant limiting factor, especially when trying to enter
complex supply chain networks of MNCs operating in Serbia, who often implement certain online e-
procurement platform, such as SAP Ariba or Microsoft Dynamics.
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According to a study by SORS in 2017 companies are twice more likely to be engaged in an online
procurement transaction than in online selling transaction. Within this consideration, large companies are
most proficient in participating in these kinds of transactions, since 56.7% ordered something online, while
34.3% sold something online. Situation is very different for small companies, since only 40.7% ordered
something online, while 25.8% sold something online. In total, 41.9% of enterprises in Serbia purchased
goods or services via internet, while 26.3% received online orders, which led to the fact in 72.5% of cases
online-generated revenue amounted to less than 24% of total company’s revenue35. We can conclude that
online sales usually represent an additional, complementary source of revenue with no crucial impact on
overall business performance.
2.2. MARKET BARRIERS
35 For more details visit http://publikacije.stat.gov.rs/g2018/pdfe/g201816013.pdf (accessed 10.1.2018)
Source: https://www.statista.com/outlook/216/150/digital-advertising/serbia (accessed 11.1.2018.)
Figure 21. Total digital ad spending in Serbia with projections according to the type of advertising,
excluding email marketing and influencer sponsorships (2018)
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Market barriers to e-commerce development in Serbia are related to limitations encumbered by the online
suppliers related to the specific national market characteristics which limit the potential of e-commerce
development.
Companies in Serbia do not have the luxury of being able to sell their products through large platforms,
such as Amazon or Alibaba, that enable low-cost placement of goods, simply because such e-market
platforms do not operate in Serbia, whilst those that do operate in Serbia, such as Booking.com are often
underutilized compared to neighboring countries. Therefore, MSMEs in Serbia have to develop and
maintain their own online stores in order to sell goods online. Investment in development and maintenance
of up-to-date online stores can be quite high compared to other operating investments due to the fact
that the supply of workforce with necessary IT skills is very limited and that their fees are high compared
to those of average workforce. As stated previously, according to the survey conducted by SORS every
forth corporate website in Serbia offers customers an opportunity to purchase online. This kind of market
situation proved as a fertile ground for the development of domestic, specialized e-marketplaces, which
focused on a specific market niche and positioned themselves through channeling of IT expertise and
online centralization of targeted supply and demand, such as polovniautomobile.com and donesi.com.
Unofficial online resellers and black markets are a significant problem for future e-commerce development
in Serbia. There are a lot of profiles on social media, such as Facebook and Instagram, which illegally sell
copies of different widely known brands of goods, such as clothes, perfumes, accessories etc. It accounts
to a significant proportion of overall e-commerce in Serbia, and yet this grey area of national economy
stays outside the official data. People are often unsure whether they are about to purchase something
online from a legal distributor or a black-market reseller, thus often refraining from online buying.
Payment systems in Serbia are characterized by the fact that they impose high transaction fees for
companies when charging their customers, which makes online sales less attractive. This also coincides
with the fact that cash is by far the most widely used method of payment, as previously stated.
2.3. TECHNOLOGICAL (SECURITY AND INFORMATIONAL) BARRIERS
“Knowledge is power” has never been truer than in the case of digital commercial transactions. Companies
now possess enormous amounts of data on their products and customers. Being able to personalize the
offer brought before an individual customer is the source of competitive advantage for many online
retailers and wholesalers. When companies cannot fully utilize the potential of Big Data concept, or fail
to provide necessary digital protection of sensitive customer information, significant barriers to e-
commerce development are created.
MSMEs in Serbia are usually not equipped with advanced analytical tools and are therefore less able to
derive value from online sales. At the same time, it is very costly for MSMEs to buy such software or to
hire developers to create their own. Many of MSMEs in Serbia do not even have any databases about their
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customers, or even if they do, they are not updated on a regular basis. Moreover, awareness of importance
of up-to-date high-quality data is low among Serbian MSMEs, mostly due to the fact that they have not
seen the application of it in practice. It is often very difficult to convince them to even invest in an ERP
system needed for better decision-making. Knowledge about cloud computing services is quite limited,
since only 15.5% of all enterprises in Serbia pay for these services, according to SORS. This is a significant
drawback, since companies are unable to produce coherent and universally accessible databases, nor are
they familiarized with business optimization tools usually offered in a Software-as-a-Service (SaaS) form.
Additionally, situation in Serbia is such that there are no “bright” examples of a successful CRM program,
even among biggest national retail and wholesale companies.
As well as on the demand side, there are many security concerns among the MSMEs regarding the online
payment systems and their level of trust is consequently low, regarding such systems. Additionally, data
encryption is still in its infantile stage when the majority of companies in Serbia are concerned. Operating
systems in many firms are outdated, while software used are often unlicensed or cracked versions which
cannot be updated, reducing their efficiency. Application of modern technologies, such as blockchain use
in data encryption is unknown to Serbian B2B segment, significantly reducing the effectiveness and
efficiency of e-commerce in Serbia, mainly from a technological standpoint.
2.4. ECONOMIC BARRIERS
Economic barriers arise from the compromised soundness and rationale of certain business activities
related to e-commerce transactions.
MSMEs in Serbia mostly offer products with low levels of added value. According to the Chamber of
Commerce and Industry in Serbia, in 2016 Gross value added by MSMEs presented only 18.5% of Gross
sales, which is 3 percent points below average for Serbian industry. On top of that, GDP per person
employed among MSMEs stood at 11.856 EUR in 2016, which is 14% below average and 33% below most
productive large companies. During 2016, MSMEs in Serbia generated 46.7 million EUR foreign trade
deficit, while at the same time large companies generated surplus. Not just that, but deficit generated by
MSMEs rose by 11.8% in comparison with 2015. Also, export to import ratio among MSMEs fell by 1.7.
According to the World Bank’s Connecting to Compete report from 2016 Serbia ranks as 76th out of
160 countries in the area of logistics as measured by LPI Index. Apart from that, as many other industries
in Serbia, logistics industry is very concentrated, meaning that few large companies in the industry cover
most of the market. Such players are more willing to provide their services to large corporations and
hardly want to engage with MSMEs due to their low sales volumes, and even when they do their fees are
too high for MSMEs, making delivery expensive for MSMEs. Moreover, efficiency of traditional postal
services in Serbia is low, making it less attractive for this purpose.
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Another economic barrier to e-commerce development is the fact that in this national stadium of
development, e-commerce transactions are used predominantly for the purchase of relatively standardized
merchandise which can be inspected physically in a store, prior to online purchase. This represent afore
mentioned problem of showrooming, which often lowers the margin of the trader. This, alongside
potential sales cannibalization or ultimately sales loss through webrooming reduce the incentive of Serbian
traders to sell their products online, or even provide complete merchandise details via internet.
2.5. LACK OF OMNICHANNEL APPROACH
Poor application of omnichannel approach (integrated classical and electronic channels-brick and click and
all other channels. Omnichannel approach provide convenience to customers. Existance of classic stores
increase the trust of customers in online business. Most traditional shops are not open 24 hours a day,
seven days a week, 365 days a year. Internet usage makes it possible to extend working hours and increase
the ability to interact and provide services to consumers. Today's consumers have less time due to a fast
lifestyle characterized by modern trends. In addition, consumers have a huge selection of products, which
complicates shopping. If a company is not present in electronic channels, consumers can see it as a
disadvantage compared to the competition. In electronic channels, it is possible to offer a higher degree
of customization to the individual customer, which also affects the profitability. The long-term survival of
a company depends on their ability to use more than one channel, as many competitors apply multi-
channel approach.
Consumers choose channels depending on a number of factors. For example, the rise in fuel prices
encourages consumers to buy more often over the Internet than in stores, which tells sellers that more
attention needs to be paid to the Internet sale. The state's interest is to increase the resilience of its
businessmen to the impact of the crisis, thereby simultaneously increasing their competitiveness in the
regional and global markets. There are no many examples of successful omnichannel strategies in Serbia.
2.6. BLACK MARKET E-COMMERCE
Important barrier is a non-fair competition from the black market. In modern era, the part of the black
market is located on the Internet. 3.2 million people in Serbia are active social network users, thanks to
Facebook, Instagram and YouTube, which are the leading social networks (eShop world, 2018). There are
many profiles on social media, such as Facebook and Instagram, which illegally sell copies of different widely
known brands of goods, such as clothes, perfumes, accessories etc. Many individuals who sell goods on
Facebook and Instagram can avoid paying taxes, and therefore their prices are lower. It totally accounts
to a significant proportion of overall e-commerce in Serbia and yet stays out of the official data.
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By buying from individuals instead of enterprises shoppers lose the rights imposed by Law on Consumer
Protection. Buying from non-registered sellers, and bad shopping experience create a barrier for further
shopping.
The Ministry of Trade, Tourism and Telecommunications seeks to point out all the traps and rights of
consumers on the Internet by informing and educating citizens or consumers.
2.7. LACK OF DATA ANALYTICS
MSMEs in Serbia are usually not equipped with advanced analytical tools and are therefore less able to
derive value from online sales. At the same time, it is very costly for MSMEs to buy such software or to
hire developers to create their own. Many of MSMEs in Serbia do not even have any databases about their
customers, or even if they do, they are not updated on a regular basis. Moreover, awareness of importance
of up-to-date high-quality data is low among Serbian MSMEs, mostly due the fact that they have not seen
the application of it in practice. Integrating your e-commerce engine with ERP system, can reduce the cost
of sales transactions, improve inventory management, generate new revenue, reduce the time between
sales order placement and sales order shipment, etc. The need for companies to integrate their ERP
systems with e-commerce is overlooked because of cost or the business disruption caused by having to
change existing systems, thus it is hard to convince owners to invest in an ERP system needed for better
decision-making.
3. E-COMMERCE-ENABLERS-RELATED E-COMMERCE DEVELOPMENT
BARRIERS IN SERBIA
E-commerce enablers can be viewed in many ways, as mentioned earlier, like certain factors of influence
(Alqahtani et al., 2012). Within this research e-commerce enablers have been viewed as market actors in
Serbia who are not main participators in an e-commerce transaction, but who have significant direct and
indirect effect on the form, development progress and outlook of e-commerce in Serbia. These enablers
are logistics providers, financial institutions, online service providers, professional associations, state-
owned institutional actors, infrastructure providers and software and hardware providers, while
corresponding barriers are specifically related to each e-commerce enabler individually.
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3.1. BARRIERS RELATED TO LOGISTICS PROVIDERS
Serbian market is highly concentrated in terms of companies providing state-wide logistics coverage.
Furthermore, fees and charges are relatively high, especially compared to neighboring countries. Delivery
times vary a lot, damaged shipments occur, and parcel tracking options are rather limited. These are all
significant barriers since companies in Serbia involved in domestic e-commerce transactions have a difficult
choice of whether to internalize operating risk with an in-house logistical solution, or outsource logistical
activities. Few companies in Serbia have financial means of satisfying all logistic business requirements
through internal capacities, therefore common solutions often represent certain forms of trade-offs. Either
way, cost structure of Serbian online sellers is often burdened with high operational costs. Things are
additionally complicated with the introduction of an international factor in e-commerce transaction.
3.2. BARRIERS RELATED TO FINANCIAL INSTITUTIONS
Financial institutions are market actors who provide financial means for companies to invest in the
development of e-commerce business (software and hardware acquisition, distribution capacity
development, etc.), insurance for online ventures, and also represent a financial mediator between
participants of e-commerce transactions. In Serbia, modern payment technologies, such as PayPal or
cryptocurrencies are underutilized, with significant usage restrictions, whereas other means of payment,
such as credit cards are used less compared to developed countries, mainly due to security concerns and
high charges and fees. Furthermore, financial institutions reduce e-commerce potential because they have
high provisions on e-commerce transactions.
Payment systems in Serbia are characterized by the fact that they impose high transaction fees for
companies when charging their customers, which makes online sales less attractive. This also coincides
with the fact that cash is by far the most widely used method of payment. Banca Intesa was the first bank
to introduce e-commerce service in Serbian market, back in 2007 when it enabled the citizens to perform
online shopping. From 2007 to the beginning of 2014 service to e-commerce participants has only been
provided by Banca Intesa, which charged 5% of the transaction for this service. Banca Intesa now holds
the leading position in e-commerce market, offering several payment cards (DinaCard, MasterCard,
Maestro, Visa, and American Express). Serbian citizens performed more than 650,000 online transactions
in 2016 using Banca Intesa e-commerce services, and merchants recorded more than RSD 3.5 billion of
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turnover. Growth in the number of transactions by 66% and turnover by 53% compared to 2015
confirmed Banca Intesa’s leading position in Serbian e-commerce market36. (Milošević, 2017).
It is very important to provide a significant stimulus for the financial infrastructure that supports
commerce. Intensifying of competition in this segment is a key to a decrease of transaction fees that banks
charge and that represent a precondition for e-commerce functioning. Today, these services are also
provided by UniCredit bank, AIK bank, Raiffeisen bank Belgrade and Komercijalna banka.
Given that the preferred method of payment in Serbia is still cash, it is not surprising that only 450-500
Internet stores37 accept payment cards from one of the five domestic banks that offer a service of
acceptance of the payment cards on the Internet, the so-called e-commerce service (Birovljev, 2018).
Trends in e-commerce, mainly based on electronic payment methods, were coming from the rest of the
world to Serbia within five years. Today's projects in electronic payments are not late more than two
years in comparison to the surrounding countries. Innovations in this segment in Serbia are reserved for
several banks that have a vision and means to develop electronic payments. Unfortunately, due to the
necessary initial high investment, there are not enough startup companies in this area. Benefits of the
banking system are a high level of security and security in online payments.
Active participation of the largest banking institutions present on the market in Serbia is ever more evident
in terms of e-commerce development. In this context, it SoGe Bank may be mentioned, which offers
payment service, monthly online store maintenance for customers (RSD 1000), as well as iPAY services,
instant payments, QR codes payments (implementation will begin soon), with certain innovations in the
fintech business. A similar approach is available at Raifeissen Bank, which offers to its clients, but also to
interested parties, an opportunity of using their online retail platform, with accompanying digital, advisory
and analytics services.
3.3. BARRIERS RELATED TO GOVERNMENT INSTITUTIONS
Government institutions, such as customs, National Postal Office, National Bank, Ministry of Trade,
Tourism and Telecommunication, national courts and many SOEs present significant e-commerce
enablers. Their market position, size and legislative status imply that their actions within the scope of e-
commerce have a profound, resonating effect. Therefore, all limitations imposed by these actors, as well
36 Airline tickets have the biggest share in Banca Intesa e-commerce transactions, followed by tickets for culture
events, house appliances and books, clothes and footwear, cosmetic products, and mobile telecommunication services - http://www.diplomacyandcommerce.rs/banca-intesa-confirmed-the-leading-position-in-e-commerce-market-growth-in-the-number-of-transactions-and-turnover-via-e-commerce-service/ 37 Since there is no official Registers of online stores in Serbia, there is a rough estimation that there are up to 3000
Internet stores in our country.
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as their internal inefficiencies represents significant barriers to e-commerce development. Some of the
main barriers are relative inefficiency of national postal service, limited statistical data coverage of e-
commerce transactions and a conservative stance towards new, modern means of payments, low
involvement of the courts of law, especially in disputable low-amount e-commerce transactions and low
implementation of modern e-commerce techniques and approaches within public procurement process,
which are often seen as “rigged” and not transparent enough.
3.4. BARRIERS RELATED TO E-COMMERCE SERVICE PROVIDERS
In a narrow sense of concept definition, e-commerce enablers would be considered all companies which
provide business solutions which enable the conduct of e-commerce. In this sense e-market creators,
outsourcing companies, which provide SaaS solutions, companies which develop personalized e-commerce
systems for companies, or sell software platforms, and consulting companies focused on online business
optimization (including both e-commerce and digital marketing) are considered as the main
representatives of this category. It is important to note that the majority of companies from this segment
are international, and that there are not many companies physically present in Serbia which specialize in
providing e-commerce solutions, therefore, Serbian companies have to make do with already defined
platforms and solutions, which are not optimized for the Serbian market. Furthermore, Serbian companies
are seldomly willing to invest money on a monthly basis for having a subscription to a certain online e-
commerce platform.
3.5. BARRIERS RELATED TO INFRASTRUCTURAL PROVIDERS
Within this category, companies which provide infrastructure necessary for conducting e-commerce
transactions are analyzed, excluding SOEs. These companies provide internet connections, hardware
solutions and other equipment necessary for the conduct of e-commerce. In this category, applying the
broadest definition of e-commerce enablers, providers of modernized distributional capacities can also be
considered. All barriers related to the limitations of their offers and existing solutions are also manifested
as limiting factors of e-commerce development.
In this section a detailed analysis of e-commerce barriers in Serbia was provided, through classification of
limitations depending on the source of the limitation itself. Therefore, demand-related, supply-related and
e-commerce enablers-related categories were constructed. It is necessary to point out that other
considerations are also possible, like analyzing e-commerce barriers depending on the nature of the
transaction (B2B, B2C, B2G, etc.) or depending on the phase of the transaction in which the barriers are
manifested (pre-transactional, transactional and post-transactional barriers). Finally, special care should be
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taken when analyzing e-commerce as a whole, since there are significant differences between two main
aspects of e-commerce, e-procurement and e-sales.
In order to finalize the proposed model, detailed analysis of e-commerce benefits is required. General
positive aspects such as improved customer convenience, improved data analytics, improved data
gathering and database management, potential reduction of operating costs (lower inventory levels, less
personnel, etc.), global reach, increased brand awareness, scalability and marketing optimization and
improvement are well known and documented. What needs to be analyzed are specific benefits of e-
commerce use and development in Serbia, and how it positively effects the main stakeholders.
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IV SWOT ANALYSIS OF E-COMMERCE IN SERBIA
STREANGTHS: • Solid Internet infrastructure (availability of
different types of internet, number of providers, etc.).
• Legislation procedure for new pure-click startups is relatively simple and not expensive;
• Strong corporate internet presence; • Favorable trading agreements with certain
non EU-28 countries, especially Russia; • Cheap electricity.
WEAKNESSES: • Low e-commerce engagement; • Expensive International parcel shipment to EU • Average salary and average household
consumption is one of the lowest in Europe; • Consumer trust is low; • Low education levels of the population and low
computer literacy; • Language barriers, especially when ordering
via international websites; • Customs procedures, for certain products; • Relatively undeveloped logistics; • High transactional costs (provisions of banks).
OPPORTUNITIES: • Omnichannel approach of companies in
Serbia (integrated brick and click); • E-commerce can create certain
international or even global market niches for specific authentic Serbian local products;
• The Government is annually increasing their efforts in supporting the expansion of the growing IT industry;
• E-commerce represents a potent market context for many small national startups;
• Strong social media usage in Serbia can be used for synergetic effects when coupled with e-commerce;
• E-commerce has proven as a useful tool in tackling certain specific local or microlocal market requirements.
THREATS: • Low market attractiveness, especially in terms
of online spending, online product purchasing by category and the number of online shoppers;
• Negativ e-commerce PR • Slow digital e-commerce innovation
introduction; • Safety and privacy issues (personal data
protection); • Low expertise and experience regarding e-
commerce transactions; • One of the oldest population in Europe;
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1. STREANGTHS:
Internet infrastructure is solid in Serbia. According to SORS study of ICT usage in Serbia in 2018, 99.8%
of companies in Serbia have internet connection, of which 98.8% possesses a faster broadband connection
(every third company has an internet speed higher than 30 Mbps).
Opening a new company in Serbia is relatively easy, regardless of nationality. Administrative requirements
are low, as well as required equity. Companies focused on e-commerce are categorized as retailers and
wholesalers, and treated like any other company, with no additional legislative requirements. E-commerce
is available to all interested individuals and companies (with certain exceptions such as online sales of
medicaments, cigarettes, alcohol, etc.).
Serbia is not a member of EU, but has bilateral trading agreement with EU-28, as well as CEFTA and EFTA.
What is important that Serbia also has preferential trading agreements with Russia, Kazakhstan and
Belarus. This means that Serbia has a strong trading mediatory role, especially in relations between EU-
28 and Russia, where trade restrictions exist.
Serbia has the cheapest electricity in Europe at the price of 0.0705 EUR/kWh (with the exception of
Ukraine). This figure is 2-3 times lower than in EU-28 countries38. This represents a significant strength in
e-commerce development, especially in terms of capital-intensive online markets, which require 24h
available complex electronic systems which use a lot of electricity. In short, every company in e-commerce
business, where electricity costs have a high share in operational costs, has a significant international
competitive advantage.
2. WEAKNESSES:
International parcel shipment in Serbia is more expensive than in EU-28 countries. This is a significant
weakness, especially in terms of international e-commerce development in Serbia.
Low average income in Serbia. National statistics provides a figure of approximatively $483 USD for an
average monthly net salary amount in Serbia in October of 2018. Furthermore, median value of this
38 For more details visit https://ec.europa.eu/eurostat/statistics-explained/index.php/electricity_price_statistics
(accessed February 9, 2019)
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indicator was around USD 380, which means that 50% of all employed people in Serbia earn no more than
USD 380 a month39.
Average Serbian online shopper is very risk-aversive and conservative. When products bought are
analyzed, only few categories, such as clothes, household goods and electronic devices have a significant
share. Educational level of potential customers is relatively low. According to SORS study on ICT usage
in Serbia in 2018 among computer users, 59.7% have secondary educational level, 17.7% lower than
secondary educational level, and 22.6% tertiary educational level.
Lack of customer e-commerce experience. Of all the individual internet users, 45.4% never bought
anything online. Frequent online shoppers, who purchase online more than 10 times in three months
amount to only 5.6%. These figures are significantly different in EU-28, where 15% of online shoppers have
10 or more e-commerce transactions in three months, whereas more than 40% of online shoppers spend
between 100 and 500 euros on online purchases in three months40.
One of the main reasons why a significant gap between Serbia and EU-28 in terms of product categories
bought online, especially films, music, games and computer upgrades, exists is because of a strong presence
of online piracy.
Serbian Customs, in some situations, have complex procedures and required administrative paperwork,
which also lowers delivery times.
According to the World Bank’s Connecting to Compete report from 2016 Serbia ranks as 76th out of
160 countries in the area of logistics as measured by LPI Index.
3. OPPORTUNITIES:
Omnichannel approach is great opportunity for many Serbian enterprises. This approach has significant
advantages in terms of customer trust, market expansion and cost reduction among other advantages.
E-commerce represents a low-cost means of attaining additional revenue for many Serbian marketers.
Experience from physical retail can be coupled with online market opportunities, in order to expand brand
recognition and market size.
39 For more details visit http://www.stat.gov.rs/sr-latn/vesti/20181225-prosecne-zarade-za-oktobar-2018/?s=2403
(accessed January 9, 2019) 40 For more details visit https://ec.europa.eu/eurostat/statistics-explained/index.php/e-
commerce_statistics_for_individuals#most_popular_online_purchases (accessed January 10, 2019)
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Serbian Government has proclaimed that Serbia will become the land of IT. In this sense, significant efforts
have been made since to provide required financial and institutional support for the development of this
sector. As e-commerce is heavily dependent on the development and implementation of ICT, this progress
will have positive effects in future development.
E-commerce is often the best way to develop a new business, which is especially important for newly
founded startups in Serbia.
Further smartphone penetration is significant opportunity for e-commerce development.
4. THREATS:
Generation gaps usually represent the starting point of every analysis related to certain ICT adoption
process. In the context of demographic barriers e-commerce adoption in Serbia age group matter,
especially in terms of affinity and openness towards new technologies, digital trust and e-skills.
According to SORS study in 2018 around 1,800,000 people bought something online in the last three
months. Of all the internet users, 45.4% never bought anything online.
The lack of online trust manifests itself as a behavioral barrier in terms of limiting what can be sold via
internet in Serbia. Safety and privacy issues concerning e-commerce are very present in Serbian population.
Lack of innovation is also a problem. Many of the MSMEs owners do not have the necessary knowledge
and management skills to understand the importance of innovation in areas other than production
processes and mostly focus on day-to-day activities. Therefore, it is hard for them to understand the value
that e-commerce implementation can bring them.
Lack of past experience - Very few MSMEs in Serbia have utilized e-commerce capabilities and therefore,
other MSMEs do not have any successful examples in their environment that would incentivize them to
invest in e-commerce themselves.
In general, people in Serbia are uncertain about their rights as online customers and are unaware about
how (and which) law could protect their interest when buying online. In combination with their fear of
buying unknown goods, overall it results in lower levels of online purchases.
Negative e-commerce PR. Emphasized statement can be used to describe online PR, since customers are
more likely to provide reviews of the transactions in which they were involved, while potential customers
are more likely to pay attention to such reviews, since they provide a significant source of information in
relatively immaterial shopping process. Internet frauds exists, but sometimes even bad communication
between customer and seller can lead to an unsatisfied customer receiving something that was not ordered
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nor paid for. Since returns are oftentimes difficult and costly, the customer will lose trust in e-commerce
and probably leave a bad review online. Sellers in Serbia often neglect this, but these negative reviews can
sometimes have an avalanche effect, seriously damaging the market reputation of the seller in the end.
This bad PR image is very difficult to rectify, especially in online context. This kind of behavior presents a
threat both on the micro, as well as macro level of e—commerce development in Serbia.
Serbian citizens are sometimes exposed to fraudulent online behavior and cybercrime. Internet scams
related to travel and online holiday vacation reservations, software purchasing, as well as acquisition of
many products, such as electronic devices or mechanical parts, are present. Court proceedings are rare
in case of low amount online frauds, and when undertaken usually last for a long time and often proceeding
costs outweigh the value of the initial e-commerce transaction. Customers are institutionally advised to
take care what they buy online and where, putting the majority of online purchasing risks on them,
reducing the willingness of people to purchase online. However, these scams are sometimes
overrepresented in media and create bad image for many correct e-commerce marketers.
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V BENCHMARK ANALYSIS OF E-COMMERCE
1. E-COMMERCE IN EU41
According to Ecommerce Europe association (European Ecommerce Report 201742) while developed EU
markets are still leading by number of online customers, Central and East European markets recorded
during 2016 the biggest increase in retail online sales. Romania has achieved the best results in such sense
with an increase of 38%. Slovakia and Estonia had an increase of 35%, and Ukraine made an increase of
31%. Many of these countries are considered to be markets dominated by the use of mobile devices over
computers, when it comes to online shopping, since most consumers in those countries prefer to shop
online using a mobile phone. There is also a trend in these countries that customers could receive their
packages on certain delivery terminals. This method is preferred by 95% of Estonian citizens, probably due
to lower costs (for buyer as well as for seller) and increased chances for impeccable service.
Overall increase of e-commerce continues and small markets enlarge their share in consumers` base.
Central and Easter countries have the best growth rates, whereby many of them (like Romania) have a
significant space for commencing an online abroad trade. Key recommendations for marketing experts
who would like to have the best results are multilingual websites compatible with smartphones. Lucrative
delivery options and payment methods which encourage trust are also trends expressed among retailers,
and which assist developing markets.43
1.1. UNIQUE DIGITAL MARKET STRATEGY
Since the initiation of Unique digital market strategy44 in May 2015, European commission has worked on
removing the online barriers which disable people to fully access the range of all goods and services offered
by EU enterprises. Suppression of unjustified cross-border barriers, online customers protection and
41 HTTPS://EC.EUROPA.EU/DIGITAL-SINGLE-MARKET/EN/NEW-EU-RULES-E-COMMERCE 42 HTTPS://WWW.ECOMMERCE-EUROPE.EU/PRESS-ITEM/EUROPEAN-ECOMMERCE-REPORT-2017-
RELEASED-ECOMMERCE-CONTINUES-PROSPER-EUROPE-MARKETS-GROW-DIFFERENT-SPEEDS/ 43 HTTPS://WWW.CLICKZ.COM/ECOMMERCE-IN-EUROPE-HOW-CENTRAL-AND-EASTERN-COUNTRIES-
ARE-DRIVING-GROWTH/112280/ 44 Unique digital market is part of the EU program `Digital agenda for Europe 2020`, incentives of suggested strategy
Europe 2020 are defined by European Union
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promotion of cross-border online content access are some of the ways in which Unique digital market
strategy could be implemented.
E-commerce is one of the foundations of Unique digital market strategy and EU has undertaken
several steps to facilitate and make online trade more secure for EU consumers. To achieve the full
potential of e-commerce, the EU has made the following steps:
• Revision of Payment services directive and new rules about cross-border package delivery
service which both are already in force
• Making new rules which will stop unjustified geo-blocking, and which came into force on
3. December 2018.
• Revision of consumer protection rules that will come into force in 2020
• Introducing new rules about VAT for online sales of goods and service, and which will
come into force in 2021
1.2. NEW RULES FOR ENDING UNJUSTIFIED GEO-BLOCKING IN EU45
Geographical blocking (geo-blocking) disables customers to use internet in some EU member state for
purposes of buying on foreign websites (which belongs to another country, EU member also). This makes
a big problem for consumers: e.g. in 2015. as many as 63% of web pages checked and prevented customers,
in some of ways, to buy in another country. The rules imposed by EU commission which will come into
force on 3. December 2018. all over EU will end citizenship status and residence discrimination. The rules
ensure that people won`t confront anymore with unjustified barriers such as redirecting to website for
their residence country or necessity to pay with debit or credit cards originating from some certain
country. Online sellers must treat all EU customers in the same way, no matter from which country they
buy. Implementation of regulations against geo-blocking will be conducted on a national level.
Transport services, small enterprises financial services and audio-visual services are not covered by new
geo-blocking rules since sector law regulations deal with these services. EU transport rules already forbid
citizenship status discrimination or discrimination based on air transport, or bus, or ship transport
destination. Special EU regulations that protect customers exist when it comes to consumer credits, or
taking the mortgage or even opening a bank account. Facilitating cross-border access to audio-visual
services is another part of incentives for Unique digital market strategy.
45 HTTPS://EC.EUROPA.EU/DIGITAL-SINGLE-MARKET/EN/NEW-EU-RULES-E-COMMERCE
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1.3. DECREASING THE PRICE OF CROSS-BORDER PACKAGE DELIVERY46
In most of the EU countries cross-border e-commerce increases twice as fast as domestic e-commerce;
four billion packages are ordered online and delivered all across EU every year. there is PostEurope –
trade association with the head office in Brussels which represent 52 public Post office operators in
Europe. PostEurope unites its members and promotes greater cooperation, sustainable growth and
continuous innovations47. Main characteristics of Interconnection program of Post office operators with
the focus on e-commerce (E-commerce Interconnect Program) are: harmonized set of services in the
country of origin and destination; a platform for complete tracking of shipments from place of dispatch to
place of delivery; RFID barcode technology; free solution for the return of goods purchased abroad via
the Internet; harmonized processes across Europe; quickly resolve customer queries by connecting call
centers with as many as 180 post offices worldwide.48
Prices of packages delivery abroad are on average three to five times more expensive than prices of
delivery within a country. High costs of delivery are identified by 62% of companies which would like to
trade online. Since May 2018. new rules on cross-border e-commerce package delivery came into force
guaranteeing price transparency and competition. This will facilitate finding the cheapest method of sending
the delivery from one member to state to another.
Delivery prices restriction does not exist, but now companies have to proclaim their prices, so the
customer could be able to easily compare them. From the next year customers will be able to compare
the delivery prices on the special website page of European commission. National governments will every
year gather information from delivery package companies. When the packages delivery is a subject of
mandatory universal service national regulatory authorities will have to evaluate where the tariffs are
unreasonably high.
1.4. ONLINE CUSTOMER RIGHTS PROTECTION49
The new rules are set to enter into force in January 2020, which will make it easier for national authorities
to protect online consumers. The policy will allow removal of sites or profiles on social networks where
46 HTTPS://EC.EUROPA.EU/DIGITAL-SINGLE-MARKET/EN/NEW-EU-RULES-E-COMMERCE 47 HTTPS://WWW.POSTEUROP.ORG/ABOUTUS 48 HTTPS://DELIVER4EUROPE.EU/FACTS-FIGURES/
49 HTTPS://EC.EUROPA.EU/DIGITAL-SINGLE-MARKET/EN/NEW-EU-RULES-E-COMMERCE
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frauds are identified. It will also be possible to request information from internet service providers or
banks to track the identity of dishonest online traders.
The commission has suggested new rules for digital contracts which are currently under discussion by
Parliament and Council. Suggested rules would make consumer rights clearer when accessing for digital
content or digital services. For example, if the received digital content is not as agreed or as reasonably
expected, consumers would have some contract rights. These rights would be also implemented when a
buyer gives personal data to a trader before paying. In April 2018. Commission also suggested new
agreement which will additionally strengthen consumer rights on internet:
• Internet markets will have to inform buyers if they are buying from traders or a person,
so the buyers are more conscious about their rights if something goes wrong
• When the trader pays for search result buyers will be transparently informed, and online
trade places will have to inform buyers about key parameters configuring results ranking
• When paying for a digital service, buyers will have benefits from some informative rights
with a 14 days deadline to cancel the contract
1.5. NEW VAT RULES50
EU member states are estimated (by European Commission) to lose 5 billion euros in VAT revenue
annually due to exclusion from low-value taxation, and by 2020 that figure would reach 7 billion euros.
More than 75% of all packages have a weight of less than 2 kg and a value of less than 150 euros and come
mainly from China. The European Commission has established an obligation for the Union member states
to abolish the tax exemption for small value shipments (mainly up to € 22) by the end of 2020.
1.6. ECOMMERCE EUROPE, EUROPEAN ASSOCIATION FOR ELECTRONIC
TRADE51
Ecommerce Europe represents a voice of European digital sector trade. With its 20 national associations,
Ecommerce Europe represents more than 75 000 companies which sell goods and services online all over
50 HTTPS://ECOMMERCE.HR/DO-2020-GODINE-KRECE-OPOREZIVANJE-POSILJKI-MALE-VRIJEDNOSTI/
51 HTTPS://WWW.ECOMMERCE-EUROPE.EU/
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the Europe. European traders still confront with difficulties when selling online, especially when it comes
to cross-border sale. They do business on the European level to help law authorities to make a better
legal frame for online traders. Ecommerce Europe currently supports:
Individual, completely coordinated and easily comprehensive rules in several fields. For an example,
Contract law in EU is just minimally coordinated. It would be easier for traders to sell abroad if they could
rely on the same rules for law guaranties and remedies in case of defective products;
Justified and balanced solution for digital economy taxation, which could be accepted on the global level
without creating trade barriers for EU;
Balanced approach, based on clear and transparent principles, in regulating relations between online
platforms and online stores that trade via platforms.
1.7. FUTURE ECOM52
Topic: SME competitiveness
Time frame: From 1st June 2018. until 31st May 2022.
Budget: 1,676,598.00 EUR
Digitalization exploitation in term to increase B2B e-commerce – It is evaluated that in sense of sale B2B
e-commerce in EU will be in 2020. twice as size as B2C, which is also proved by the huge unrealized
potential for SME (small and medium enterprises) in EU. SME inner processes digitalization and automation
is key for managing and keeping the pace with global e-commerce demands with ensuring economical
profit of course.
Future Ecom is targeting policy makers and business support agencies across the EU who need to fully
understand the key barriers for SMEs to leverage and benefit from the internet-driven sales market and
to improve digitalization and automation. This is achieved through the exchange of experiences and good
practices in 8 EU regions at Future Ecom.
The Future Ecom is partly funded by European fund for regional development, and is implemented by
Coventry University Enterprises Ltd. Partners of Future Ecom are: Coventry University Enterprises Ltd.
(Great Britain) as Future Ecom`s coordinator, North Denmark (DK), Business and innovation center
Lippe-Detmond GILDE (DE), Magnesia Chamber (EL), Lithuanian innovation center (LT), NERSANT –
Business association of Santarem region (PT), ELVET-Emilia-Romagna developing agency, Cursor Oy,
Regional development company Kotka-Hamina (FI) and Regional council Kimenlaakso (FI).
52 HTTPS://WWW.INTERREGEUROPE.EU/FUTURE-ECOM/
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The main result will be making of Action plan by regions, based on interregional exchanges. Knowledge
and capacities which will be acquired by partners will enable creation of new incentives and/or business
support programs that will be compared with the best practice. In the end of the project, monitoring of
realized incentives will improve the influence of regional policy instruments dealt by Future Ecom partners.
The final results will be distributed all across EU.
E-business structural funds operational program – Policy instrument that covers implementation of e-
business solutions for small and medium enterprises, including business processes optimization related to
production and/or services and performances optimization (e.g. customer service, logistics e-marketing,
resources management, ordering and so on) through information technology in context of data
transmission networks (e.g. IRC development and implementation, collecting necessary software licenses
and maintaining services outsourcing, etc.). The goal of the instrument is to support small and medium
enterprises to grow on national, regional and international markets and to increase its innovation and
productivity.
1.8. VAT AND E-COMMERCE: NEW DETAILS ABOUT INTERNET
MARKETPLACE RULES (2021)53
On the 11th of December 2018 European Commission has published new proposals with a goal of making
online markets responsible for calculation, charge and payment of VAT on transactions with customers.
The proposal to amend the VAT Directive and the proposal to amend Executive Regulation 282/2011
follow the VAT e-commerce package adopted by EU member states on December 5, 2017, introducing
new VAT obligations for online markets and simplifying VAT harmonization for online business.
From January 2021 electronic interface (e.g. online stores, portals, etc.) will become responsible for
charging VAT even from companies which are not originating from EU but sell products/services to EU
citizens. This will be considered as buying the goods from supplier (B2B supplies) and delivering it to
buyers (B2C deliveries). The companies will have to pay VAT on B2C transactions. This is implementing
when:
• facilitating goods and services sale at a distance with a maximal intrinsic value of 150 euros
which exports from non-EU member state to EU
• facilitating goods delivery to consumers within the EU when the supplier is not founded
in EU. This rule would be implemented no matter of intrinsic value of delivered goods
53 HTTPS://WWW2.DELOITTE.COM/NL/NL/PAGES/TAX/ARTICLES/VAT-AND-E-COMMERCE-NEW-DETAILS-
ON-RULES-FOR-ONLINE-MARKETPLACES-IN-2021.HTML
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Main purpose of new VAT obligations is to ensure that VAT authorities will receive VAT amount in case
that non-EU sellers haven`t followed the rules. The Commission is now introducing provisions that clarify
situations where electronic interfaces are considered to have facilitated sales between users and
represented in details the records they must keep for sale through their interface.
2. CROATIA
E-commerce in increasing since Croatian EU accession in 2013. According to a recent research of Croatian
daily news ``Poslovni Dnevnik``, there were 1.75 million registered online buyers in Croatia in the end of
2017 (population of Croatia is about 4 million). The growth rate in 2017 was 18% with 250 000 new
buyers. In Croatia, 60% percent of internet users shop online, and between 6 and 10 percent of internet
users shop once in a month at least (9% more than year before). Only 6% of internet users have never
bought anything online. It is believed by marketing research agencies that the market value of e-commerce
in Croatia is 446 million dollars, so the trade chains in Croatia generate about 30 million dollars income
annually only by online transactions.54
E-commerce in Croatia is developing more and more due to increased use of internet in business. E-
commerce in Croatia offers in small part products and services which could be advantageous for those
who are included in e-commerce. Buyers who still turn to traditional ways of shopping and with a lack of
trust in online payments as well as mistrust in giving personal data online are the potential barrier in
Croatia. Hence, buyers must be educated about the ways how to protect themselves and what to expect.
Online shopping is vastly promoted in media. Croatia has shown a lot of interests in development of e-
commerce especially by implementing the E-commerce law. Adjustment to EU law frame would be
probably the biggest challenge for Croatian companies that practice e-commerce. In February 2014
Croatian E-commerce law was harmonized with EU Directive 2000/31/EC.
E-commerce development strategy in Croatia for period from 2007 to 2010 exists on the website of
Croatian Ministry of economy. Beside this, Digital agenda for Europe which has to be followed know (since
the Croatia is an EU member) could also be found.
Regulations which arrange e-commerce in Croatia are provisions of Trade law (NN 87/08, 96/08, 116/08,
76/09, 114/11, 68/13, 30/14) and provisions of E-commerce law (NN 173/03, 67/08, 36/09 i 130/11, 30/14),
which is completely in accordance with EU Directive about e-commerce 2000/31/EC. Among other things
to this form of trade are applicable: the provisions of the Consumer protection Law (NN 79/07, 125/07,
79/09, 89/09, 133/09, 78/12 and 56/13), the provisions of the Companies Law, The Law on Protection of
54 HTTPS://WWW.EXPORT.GOV/ARTICLE?ID=CROATIA-ECOMMERCE
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personal data, the Law on Customs, the Law on Value Added Tax, the Law on Postal Services, the Criminal
code Law, the Law on Obligations, etc.55
Croatia implemented ̀ e-Croatia 2020` strategy in 2017. which is a strategic document made with purpose
of improving quality of life of Croatian people by increasing competition in economy and with IT support.
Usage of high-quality public services arranged to be in accordance with present strategies and law frame
of Croatia, as well as with EU directives and sector`s recommendations is also one of the Strategy`s
purposes. By the end of 2020. computer and language skills of 2000 custom workers will be improved,
and the level of their competencies will be increased and some certain eLearning modules are to be
developed. Necessary equipment and IT tools for implementing inspection activities in e-commerce and
e-activity on internet are acquired. (Ministry of public administration of Croatia, 2017.)
The cross-border e-commerce rises as twice as fast as domestic e-commerce in most of EU
countries.56 In 2015, mail arrived from China to Croatia had an increase of 42%, according to Croatian
Post, the Croatian national postal operator and leader in the postal services market in Croatia. That is
the key reason why Croatian Post has joined E-Commerce Interconnection Program (ECIP). The purpose
of ECIP is to conduct completely interconnected network for e-commerce products delivery abroad and,
as a main goal, to provide the same purchase and delivery experience that customers have with foreign e-
traders, as they should expect when buying from domestic e-traders. Croatian customers now buyer
lower prices for delivery services in Europe, Americas, Canada, Australia and New Zealand with quicker
delivery.57 According to Hacom58 even 95% of packages delivered to Croatia are originating from China
(2017). For domestic e-traders this means that EU won`t deal with the Chinese competition which has
subsidized delivery at least for several more years, but with only 5% of packages sent by EU traders within
the Union. Due to a fact that EU traders are discriminated (they have to ensure everything which Chinese
traders do not have and they offer higher level of safety and customer protection), Croatia demanded
form EC to legally regulate the fact if the trader is from EU.
Croatian Ministry of Economy published in 2016 `Guide for doing an e-commerce activity` with purpose
of improving e-commerce in Croatia. How to manage e-commerce activities, what are e-traders`
obligations towards customers and EC (2016) measures for removing e-commerce obstacles are explained
by the Guide. (Ministry of administration of the Republic of Croatia, 2016)
`eCommerce Croatia` association founded in 2015 as an incentive for e-commerce market development
support. `eCommerce Croatia` association has been founded with a purpose of informing, educating,
connecting and providing aid to e-traders and other included in creation, implementation and e-commerce
promotion processes. More than 50 laws have to be taken into consideration when one is about to open
55 HTTPS://WWW.MINGO.HR/PAGE/KATEGORIJA/E-TRGOVINA 56 HTTPS://DELIVER4EUROPE.EU/FACTS-FIGURES/ 57 HTTPS://WWW.CROATIAWEEK.COM/42-MORE-POST-FROM-CHINA-ARRIVING-IN-CROATIA/ 58 HAKOM – Croatian regulatory agency for network activities
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an online store in Croatia (which often fears entrepreneurs). Hence, `eCommerce Croatia` offers free
advice to its members with a support of specialized e-commerce lawyer.59
2.1. LAW SUPPORT FOR E-INVOICE INTRODUCTION
Pilot project for introducing and exchange of e-invoices in B2B segment caused by economy analysis was
initiated and coordinated by Croatian Ministry of Economy in the end of 2012. The project has been
realized in coordination with Tax authorities, Croatian state archive of Ministry of Culture and Croatian
business representatives the project was realized in term to encourage more use of e-invoices in Croatian
entrepreneurs’ business and to achieve more savings and their competitiveness.
The pilot project for introduction and exchange of e-invoices in Croatian entrepreneurs` businesses has
been conducted during the period of 7 months which resulted in creation of document named ̀ Guidelines
for handling electronic account exchange using the EDI system`.
One more connected activity is the e-invoices exchange process between enterprises and public
administration (B2A).60
By introducing e-invoices61 Croatia has put much effort to standardize a significant part of B2B activity. It
is the introduction of e-invoice instruments which significantly increases business efficiency crucial for e-
commerce, an activity which highly demands speed of business. Actually, it is a multi-iteration process of
national implementation of such instrument. The first step was the conceptual introduction into legal
frameworks. This was done through the following laws and regulations:
• Law on e-invoices issuing in public procurements (NN 24/2018)
• Handbook on technical elements, issuing and exchange of e-invoices and supporting
documents in public procurements
• Handbook on sort and level of fees for services of sending and receiving e-invoices for
contracting authorities in public procurement
It is important to note that companies have an obligation to apply for the approval of the introduction of
e-invoices with the competent institutions. The implementation itself is not limited to the instrument itself,
59 HTTPS://ECOMMERCE.HR 60 Further information could be found at HTTPS://EC.EUROPA.EU/INEA/EN/CONNECTING-EUROPE-
FACILITY/CEF-TELECOM/2017-HR-IA-0143 (30.5.2019.) 61 Further information could be found at HTTPS://WWW.MINGO.HR/PAGE/KATEGORIJA/E-RACUN (30.5.2019.)
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but is predicted to be introduced and incorporated into standardized data exchange frameworks, which
would be based on the EDI system.
Another important contribution in this regard is the mandatory application of e-invoices in public
procurement. This is a measure envisaged by the Law on Electronic invoicing in public procurement, which
leads to significant savings in the public procurement process, as well as to increased transparency of
business operations. It is estimated that combining e-invoices with other digital instruments, such as e-
payments, can produce positive effects in the amount of 6% to 13% of the total procurement amount,
which means more than HRK 2.6 billion for Croatia.
2.2. NATIONAL SUPPORT AND FORUMS CONTRIBUTION
In December 2010 EC issued Statement about e-invoices benefits in EU and the Decision for establishing
the European forum for multiple e-invoices. European commission stressed how important e-invoices are
for speeding up the economic growth and increasing competitiveness of the entire European economy.
In accordance with the paragraph of Decision for establishing the European forum for multiple e-invoices
Republic of Croatia as a candidate state for EU accession requested participation in the work of the Forum
with the status of observer country. The observer country status was approved in September 2011. and
Croatian minister of economy named several representatives to contribute in the work of the Forum for
e-invoices. According to: EC`s Decision on establishing European multi-forum for e-invoices (C (2010)
8467), Decisions of Commission for establishing National council for e-commerce (COM (2010) 712 final)
Službeni glasnik br. 96/2010, 78/2011, klasa: 650-01 / 10-02 / 01, number: 5030116-11-3 od 7. July 2011,
87/12, 96/13), article 33 of National council for e-trade and Conclusion
Members of National multi-forum for e-invoices are nominated from external experts by the National
council. President and correspondent of the multi-forum are appointed by the minister of economy.
Forum`s work field is:
Helping European commission (from now EC) in monitoring the development of e-invoices market and
level of implementing e-invoices in the production as well as service sector in all EU member states;
Contribution in exchange of experiences and good practice of EU member states which will facilitate
adoption of solutions for operating form of e-invoices;
Suggesting adequate solutions for other cross-border barriers/topics connected with e-invoices exchange;
Supporting and following activities that lead to implementing of standard data model for e-invoices;
Administrative job of Council done by Ministry of economy;
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2.3. E-COMMERCE PUBLIC PORTAL
On the website of Ministry of economy could be found one special part dedicated solely to e-commerce.62
This web page contains the following:
• E-commerce description – description of what is assumed by e-commerce term, who are
the contributors in e-commerce and what type do exist (e.g. B2B, B2C, B2A, C2A, etc.)
• Advantages of e-commerce – all advantages of e-commerce listed. Global dimension,
group sale via internet, significantly lower doing business costs, 24 hours availability of
doing business, maximum comfort, safety and control of purchase, information about
current prices, promotion and lower prices of some products for buyers/consumers,
possibility of buying the products which could not be found on domestic market, other
buyers` experiences and gray economy suppression are all emphasized in this section.
• 5 advice on how to protect from frauds – All that glitters is not gold (it is suggested to
buyers to buy via reliable websites and to seek for trustmarks), choosing secure payment
(accent is on e-payment advantages), what could be hidden behind (how to identify a fake
website, which information must contain a good website, how to read reviews, etc.), to if
the price is valid (VA included, custom fees included, delivery costs, hidden costs, etc.),
not to correspond with unknown users (spam, identity steal, frauds and so on)
• Relevant laws and regulations list
• E-commerce condition indicators in Croatia – interesting graphical solutions that
represent basic e-commerce indicators: buying/selling via internet, IT sector data, and so
on
• Relevant documents
• Useful links
Instead of being a separate portal this page is subcategory of the website of Ministry of Economy containing
basic information. Beside this, many more important elements, like e-commerce Guide are not
represented on such page.
62 Further information could be found at HTTPS://WWW.MINGO.HR/PAGE/KATEGORIJA/E-TRGOVINA
(30.5.2019.)
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2.4. TENDERS 2018
Many tenders took place in June and July 2018 with a purpose of investing in: software, equipment, design
and development of web pages, development of applications and m-trade solutions (mobile trade) as well
as innovations development:
1) `WWW VOUCHERS FOR SME`63
• When receiving the vouchers micro, small and medium companies are encouraged to
improve their network solutions in representing and sales of their own products and
services. The goal of this call is to contribute to addressing the identified weaknesses of
SME regarding the insufficient and inadequate implementation of e-commerce and m-
commerce solutions for better market positioning.
• Activities that could be accepted to finance within this call imply creating and/or
promotion of one or more areas, and those are: business web pages, e-commerce and m-
trade.
• Suggested projects have to include one or more acceptable cost categories which are:
making a business web page; improving business web pages including adjustment for
mobile phones and tablets; trade and/or websites upgrade by implementing online
payment methods. Parallel with some mandatory cost category/categories suggested
projects are allowed to contain one or more acceptable cost categories such as: domain
optimization service; creating applications and solutions for m-commerce (mobile
coupons and loyalty cards); costs of domain renting, or server/cloud renting in term of
doing business up to one year from the day the service was provided.
• The voucher amount (grant amount) is not allowed to be less than 15 000 HRK or more
than 100 000 HRK
• The call is always open and is valid from 29. June 2020.
• Project implementation is not allowed to start before the voucher is given.
Implementation period could not last more than 12 months from the day the voucher is
given
• Fund: European fund for regional development
63 HTTPS://STRUKTURNIFONDOVI.HR/NATJECAJI/WWW-VAUCERI-ZA-MSP-OVE/
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• Program: OP Competitiveness and cohesion 2014-2020
2) Improving competitiveness and efficiency of SME with ICT (Information and communication
technology)64
• This tender is for companies looking to invest in the creation/development /procurement of ICT
business solutions, designed to optimize jobs/business processes/production; or implementation,
adaptation and integration of business solutions with existing/new ICT system.
• Acceptable costs are: purchase of standard and out-of-the-box software and development of
specific software; software upgrade license; costs of using SaaS (Software as a Service) models /
services; costs of computer and communication equipment; costs for other equipment and devices
required solely for direct project activities; employee education; etc.
• Entrepreneurs can receive grants in the amount of 100,000.00 HRK to 1,000,000.00 HRK. The
funding rate is up to 65% for micro and small businesses and up to 50% for medium-sized
businesses.
• Fund: European fund for regional development
• Program: OP Competitiveness and cohesion 2014-2020
3) Innovation of newly established SME Phase II65
• The goal of this call is to encourage innovations of newly founded SME and to implement it having
the new product or service on the market as a result
• Activities that could be implemented include: adaptation developed product/service to market
demands; preparations for product/service launch – e.g. marketing plan and business and
marketing review, marketing research and innovations testing, market analysis verification,
preparations for next innovation cycle, etc.
• Eligible companies are small and medium enterprises not older than 36 months from the day of
applying the project
• Support amount given to every project will be between 150 000 and 1500000 HRK, and help
intensity is up to 85%
64 HTTPS://STRUKTURNIFONDOVI.HR/NATJECAJI/POZIV-NA-DOSTAVU-PROJEKTNIH-PRIJEDLOGA-
POBOLJSANJE-KONKURENTNOSTI-I-UCINKOVITOSTI-MSP-KROZ-INFORMACIJSKE-I-KOMUNIKACIJSKE-
TEHNOLOGIJE-IKT/ 65 HTTPS://STRUKTURNIFONDOVI.HR/NATJECAJI/INOVACIJE-NOVOOSNOVANIH-MSP-OVE-II-FAZA/
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• Fund: European fund for regional development
• Program: OP Competitiveness and cohesion 2014-2020
2.5. DIGITAL MARKETING WORKSHOP
On 27th of February 2019 Labin city organized one day education about digital marketing. Purpose of
educational workshop was to give delegates an insight in digital marketing in simple and applicable way.
Google Ads, Facebook and Instagram content and Facebook and Instagram advertisement were
emphasized the most during the workshop.66
2.6. `KNOWLEDGE FOR FUTURE` WORKSHOPS (2019)67
In 2019 several workshops in couple of Croatian cities will take place, and on every location will be held
two workshops: How to manage a workshop and How to work with clients from Croatia and worldwide.
The former is for entrepreneurs who want to make their own website or engage experts for such job,
and later is for honorary persons and small businesses entrepreneurs who would like to establish or to
widen their knowledge about work with long distanced clients. Participation is free and limited to up to
20 delegates.
Plus, hosting (the biggest hosting provider in Croatia), Algebra (the biggest and the fastest growing
educational group in Croatia), Step Ri (Scientific-Technological park of University of Rijeka) and Coin
Zadar (mutual work space) are partners which finance these workshops.
2.7. ENTREPRENEURS` IMPULSE
In term to develop and level up competitiveness in SME sector, and to make new work places Croatian
government has implemented since 2012. the Entrepreneurs` impulse project as a stimuli project for SME.
66 HTTP://WWW.LABIN.HR/GRAD-LABIN-POZIVA-NA-EDUKACIJU-O-DIGITALNOM-MARKETINGU 67 HTTPS://ZNANJEZABUDUCNOST.COM/
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Trade and entrepreneurship are stimulated through: grants; easier financing access; creating an
international business dimension; investing in research and development (R&D). A perfect opportunity for
traders to use public funds for creating an online store was the incentive of Ministry for Entrepreneurship
to give an advantage to companies which were supposed to be more competitive on European market by
investing in new technologies and education of employees. The budget for 2014. was 1,26 billion HRK.68
2.8. ICT IMPLEMENTATION FOR IMPROVING BUSINESS PROCESSES69
This grant scheme is designed to support SMEs' investment in information and communication
technologies and to co-finance the analysis of existing business processes and innovations and their
digitalization, including hardware and software costs. The idea of this call for proposals was to provide
grants to micro, small and medium-sized enterprises for digitalization of business, as part of the
implementation of the Operational Program "Regional Competitiveness 2007-2013". The European Union
has donated a total of 24,061,600 HRK through the European Regional Development Fund. The individual
value of the grants ranged from 150,000 to 750,000 HRK. One of the funded activities was the creation
or improvement of online stores.
2.9. CRISS70
Croatian schools have joined the European project in developing digital competencies of students. The
CRISS project was launched as part of the European program for research and innovation, OBZOR 2020,
to test a platform that will enable the acquisition and evaluation of students' digital competences in primary
and secondary schools across Europe.71 The goal of the project is to involve 490 European educational
institutions which will cover 25,400 students and 2,290 teachers during the 2018/2019 school year. The
project involves 15 international partners from the European Union, who are leaders in the fields of new
technologies, digital competences, educational innovations, learning and teaching. The Croatian partners
in the project are the Faculty of Organization and Informatics, University of Zagreb, which plays a key role
in the preparation and implementation of the project, as well as the Croatian Academic and Research
Network (CARNET). Also, 21 primary and secondary schools from Croatia will participate in the project.
Croatian students and teachers will be involved in the project through the Croatian Academic and
68 HTTPS://MARKER.HR/BLOG/WEB-SHOP-ULAGANJE-KROZ-PODUZETNICKI-IMPULS-209/ 69 HTTPS://MARKER.HR/BLOG/IZRADA-WEB-SHOPA-UZ-BESPOVRATNI-DRZAVNI-POTICAJ-217/ 70 HTTP://SPI.EFST.HR/EVOLUCIJA-DIGITALNE-KOMPETITIVNOSTI-DIGITALNA-PISMENOST-U-EU/ 71 HTTPS://WWW.MEDIJSKAPISMENOST.HR/HRVATSKE-SKOLE-U-EUROPSKOM-PROJEKTU-ZA-RAZVOJ-
DIGITALNIH-KOMPETENCIJA-UCENIKA/
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Research Network (CARNET). Teachers will be able to apply the CRISS platform in the teaching activities
of various subjects, thereby developing and accessing digital competences.
2.10. CERTIFIED SHOP® AND EMOTA TRUSTMARKS
CERTIFIED SHOP® is a national trustmark which proves that customers trust to traders.72 The mark
confirms compatibility with national and European secure purchase standards, so then is given also
European mark – EMOTA. CERTIFIED SHOP® confirms that the shop is reliable and safe and that
customers could put full trust in it. Online traders with do business in accordance with strict European
standards, represent good examples and offer high quality of their services are pointed out by this mark.
At the same time that is the same reliability sign in region whose quality is recognized and supported by
the main European organization EMOTA. In that way traders are able to increase abroad credibility and
reach wider range of customers on EU level. Only Shopper`s Mind has the license in Croatia to give
European trustmarks.
2.11. E-COMMERCE GUIDE, EXTENDED EDITION
It is the document which has the purpose to provide e-traders with information about their business
activity.73 The guide contains the following elements:
• Law frame that must be respected during business activities, what is allowed to be sold on
internet
• Advice and pre-start business procedures
• E-traders’ obligations
• Advice for good and efficient business
It is actually a PDF document having some illustrations. The text itself is not too big and contains basic
elements on first place.
72 HTTPS://SMIND.HR/OZNAKA-CERTIFIED-SHOP/ 73 Further information could be found at HTTPS://WWW.MINGO.HR/PUBLIC/TRGOVINA/VDC2_20116.PDF
(30.5.2019.)
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2.12. A GUIDE FOR BUSINESSES THAT TRADE REMOTELY OUTSIDE BUSINESS
PREMISES
It is kind of a shorter version of previous document74, containing first and foremost the next information:
• New rules
• New obligations
• List of advantages
• List of disadvantages
• Special part referring to data security
• Advice and list of content and offer presenting models
The document is also in PDF format and is represented through illustrations which makes it easier for
reading and interpretation. It is the first step in informing interested, but without giving any detailed
proposals or insights.
2.13. E-PUBLICATIONS
This is only a one part of Ministry of Economy`s website containing a set of different documents. One of
them is the Status of internet trade in Croatia and European Union in 2013.75 This represents a short
document with review of important macro information (use of devices, internet usage, B2C internet
buying, e-sale for SME, analytical restructuring of these indicators, comparison with EU-28). The document
is also in PDF with data from 2013. without any updated version. Beside this one more connected
74 Further information could be found at
HTTPS://WWW.MINGO.HR/PUBLIC/DOCUMENTS/VODI%C4%8D%20ZA%20POSLOVNE%20SUBJEKTE%20
KOJI%20TRGOVINU%20OBAVLJAJU%20SREDSTVIMA%20DALJINSKE%20....PDF (30.5.2019.) 75 Further information could be found at
HTTPS://WWW.MINGO.HR/PUBLIC/DOCUMENTS/STANJA%20INTERNETSKE%20TRGOVINE%20U%20RH%
20I%20EU%20U%202013.,%20BRO%C5%A1URA,%20OLISTOPAD%202014..PDF (30.5.2019.)
120
document exists named Digitalization Index in Croatia for 201576, with a quick review of data about
internet usage in Croatia.
2.14. YELLOW CLICK – CROATIAN POST OFFICE ONLINE STORE
Croatian Post Office has established its own official online store77 in term to ensure reliable alternative
for internet trade with standardized delivery and payments solutions for Croatian citizens.
Multichannel sale has been implemented in term to increase customers` safety and trust. Beside online
store, customers have an opportunity to order the product via mobile phone, or in the nearest post office.
Available payment options are:
• Cash – when taking the package
• By card (once or maximum on 12 annuities)
• PayPal
• Pre-invoice
During promo periods the Post offers delivery free of a charge. Categories of products in sale are:
• Actions and useful products
• House
• Tools and garden
• Sport and leisure activities
• Toys and kids
• Office material and products for school
• TV, audio, video
76 Further information could be found at HTTPS://WWW.MINGO.HR/PUBLIC/TRGOVINA/DESI_RH161115.PDF
ZA 2015. (30.5.2019.) 77 Further information could be found at HTTPS://WWW.ZUTIKLIK.HR/ (30.5.2019.)
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• Computers, mobile phones, equipment
• Health and beauty
• EVOTV
Supply is marked by a large number of brands.
2.15. LOGISTICS OPTIMIZATION – CROATIAN POST
Croatian Post (hpekspres) has created special e-PAKET78 service for users who send a large number of
shipments and demand secure and reliable delivery and payment, especially for companies which deal with:
• e-commerce
• TV shop
• Catalogue sale
e-PAKET receives on the seller`s address, and is ordered on the buyer`s address or in some post office.
The service is paid by the buyer. e-PAKET option includes some additional services as insurance, or some
additional documents and so on.
In addition to the e-Package option, Croatian Post has a so-called suitcase (public service provider) located
in the territory of Croatia. It is possible to pick up a shipment at these locations, as is possible in every
post office (it is important to note that there are certain restrictions on shipments that can be received
in this way).
Another innovation in the Croatian Post business is the introduction of e-mail services.79 It is a service by
which users can receive mail in electronic form, as well as securely and protective pay all bills, especially
by using all types of payment cards.
The last element of the offer that can be linked to e-commerce promotion is the Moja Pošta loyalty
program.80 Paying electronically through the Post, receiving or buying within the Post offers collect points,
78 Further information could be found at HTTPS://WWW.POSTA.HR/EPAKET/234 (30.5.2019.) 79 Further information could be found at HTTP://WWW.EPOSTA.HR/ (30.5.2019.) 80 Further information could be found at HTTPS://WWW.MOJAPOSTA.HR/O-PROGRAMU (30.5.2019.)
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which allow you to receive certain products as a gift. It is a great way to stimulate online shopping and
raise customer safety, as well as the overall number of e-transactions.
2.16. SOCIAL NETWORKS STRATEGY
On the YouTube Croatian Ministry of Economy has an official channel81 where have been uploaded
numerous video materials. Advice how to use digital technology (especially for elder), the dangers of
internet, customer protection, SME workshops, as well as streaming of relevant conferences are only
some of the topics that could be found on the YouTube channel. Although it is a well-managed profile it
is not so well connected with other social networks like Facebook or LinkedIn.
Beside the Ministry, European Commission Croatia also has a YouTube channel82 where could be found
pretty interesting videos. The main purpose of the channel is to increase conscience about international
goods trade, develop of e-commerce and cultural integration which all represent macro-oriented
additional contents necessary for e-commerce development, as well as the good example of mixing
materials of several different public institutions.
3. ESTONIA
Estonia ranks 9th in the Digital Economy and Society Index (DESI) for 2017, based on European
Commission data. In terms of public services via the Internet, Estonia is at the top, and when it comes to
digital skills of the population and Internet usage, it is above the EU average. Estonia is ranked 17th in the
EU for connectivity. The European Commission has noted that 4G is widely available in Estonia and that
mobile broadband usage is very high. Basic coverage for fixed broadband has increased, but is still well
below the EU average. With 91% of households having fixed broadband access last year, Estonia ranks
25th among EU countries.83 Residents of Estonia engage in internet activities more than the average EU
81Further information could be found at
HTTPS://WWW.YOUTUBE.COM/CHANNEL/UC3DACHDOXV2VOS5QHXP6SQQ/VIDEOS (30.5.2019.) 82Further information could be found at
HTTPS://WWW.YOUTUBE.COM/CHANNEL/UCJZZ2QC3FE4PMBO1_9SRNYW/VIDEOS (30.5.2019.) 83 HTTPS://WWW.EXPORT.GOV/ARTICLE?ID=ESTONIA-E-COMMERCE
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citizen, and the country ranks sixth in internet usage. Postal or internet retailing accounts for 3.6% of total
retail sales (2017).84
As the world moves from the physical to the digital, various opportunities came into option to increase
prosperity around the world, one of them being the e-residences initiative. Estonia is a pioneer in this
field, with its e-residency85 program, created in 2014. No matter where a person lives, if they have
internet access, they can apply to become an e-resident of Estonia. Like citizens and residents of Estonia,
e-residents receive a government-issued digital ID and have full access to Estonia's public e-services. This
enables them to establish a reliable EU business, with all the tools they need to do business globally. They
can then use their digital identity to manage their business completely online from anywhere in the world
at minimal cost and with almost no problems. The e-resident program offers people from developing
countries access to Estonia's digital infrastructure and legal frameworks to take advantage of e-commerce
opportunities.
The application process is relatively simple and fast. The e-residence comes in the form of a smart card
with a microchip and no photo, and connects to a USB card reader for two-step authentication. An e-
resident ID card, valid for five years, allows its owner to digitally sign, authenticate and encrypt documents.
It also opens access to international payment service providers such as Google and PayPal, as well as
fintech services. Once verified as Estonia's e-residents, users can register the company online, perform e-
banking transactions, access international payment service providers, file taxes online, manage the
company remotely and sign documents and contracts digitally. They also benefit from the EU legal
framework - and more the perception of trust that goes with it.86
This membership provides benefits such as secure digital identity and access to Europe's single digital
market. The program is intended for anyone interested in establishing an international business regardless
of location. Businesses can operate online within a legally and widely trusted EU framework. E-residency
gives some entrepreneurs the chance to mitigate their country's political and infrastructural deficiencies,
as well as to adapt to the global online market. There are numerous different online business, including
the Serbian company Limo4, which used e-residency to accept payments from providers that were not
previously available in Serbia.87
The program offers paperless administration and a simple tax system with 0% corporate tax as long as the
profits are reinvested into the company. Such conditions are very favorable for the development of e-
commerce, especially in the SME sector. E-residency helps people participate in e-commerce by enabling
them to: 1) run a business independently of location, resulting from the establishment, registration and
administration of an Estonian company online; 2) open a bank account in Estonia for the purpose of starting
84 HTTP://E-KAUBANDUSELIIT.EE/ENGLISH-SUMMARY/ 85 HTTPS://E-RESIDENT.GOV.EE/ 86 HTTPS://ETRADEFORALL.ORG/DEVELOPMENT-SOLUTION/E-RESIDENCY-BRINGING-EUROPES-E-
COMMERCE-OPPORTUNITIES-DEVELOPING-COUNTRIES/ 87 HTTPS://WWW.DIPLOMACY.EDU/BLOG/E-RESIDENCY-POTENTIAL-BOOSTING-E-COMMERCE
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the business and gain access to payment services; 3) digitally signing documents and contracts with an e-
signature accepted as a qualified signature in the EU.
The top ten countries with the highest number of applicants for the e-resident program are some
European countries (Finland - 4683 candidates, Ukraine, Germany…), Russia - 3469 candidates, USA,
China and India - 2299 candidates. There are only 205 persons from Serbia who have applied for e-
Resident and 10 persons from Croatia. The main economic activities of e-residents established by the new
companies are business and other management consulting activities, programming activities and non-
specialized wholesale trade.88
Although e-commerce has never been a primary goal of the e-residency program, the program has value
in this regard as well. Overcoming the digital divide and engaging all countries in e-commerce is acting as
a growing trend. The Estonian e-residency program is an example of an innovative way to create a more
inclusive online space.
3.1. STIMULI/DEVELOPMENT OF E-COMMERCE IN ESTONIA
E-commerce is a growing trend in Estonia. However, the results of a 2016 survey conducted by Praksis
show that Estonian companies are not yet able to take advantage of e-marketing opportunities to grow
their companies' export.89 Medium and small internet marketers are losing out to foreign competitors
(especially those from China). European Commission surveys show that Estonia is in the second half of
European countries in terms of e-commerce performance indicators. At least 60% of shoppers in Estonia
are shopping in cross-border online stores and this figure is increasing by one tenth each year. While
people between the ages of 35 and 50 prefer shopping in Estonian and European stores, the younger
generation has no such preference.90
Estonian businesses use a variety of e-solutions and social media to promote their products and services,
but they do not use all the opportunities offered by e-commerce and e-marketing when exporting. Various
delivery solutions, payment systems, regulatory requirements and e-marketing are the topics where
entrepreneurs mostly have a lack of knowledge which all make e-export more difficult to realize.
Aside from the classic support for export growth, it is necessary to increase e-export among Estonian
entrepreneurs. To this end, in 2017, in cooperation with the Chamber of Commerce, the Estonia
88 HTTPS://APP.CYFE.COM/DASHBOARDS/195223/5587FE4E52036102283711615553 89 HTTPS://WWW.KODA.EE/EN/NEWS/E-EXPORT-NEEDS-DEVELOPING 90 HTTPS://WWW.SEB.EE/ENG/NEWS/2019-02-05/WHERE-LIES-GROWTH-POTENTIAL-ESTONIAN-ONLINE-
SHOPS
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Company (EAS) organized training on e-export and product development.91 The focus was on practical
recommendations and helpful advice that apply to e-commerce activities regardless of sector. The
inclusion of speakers with hands-on experience in the training program is very important for
entrepreneurs interested in developing e-export. These people have real experience, which encourages
others to test new solutions and learn from the success and failure of others.
3.2. PUBLIC PORTAL
Public portal e-Estonia has been established with an aim to represent the Estonian way of achieving the
status of one of the most developed digital societies in the World and in such way to inspire other
countries to do the same.92
The website itself is very interactive and has been made very well. Contents are graphically and visually
are pleasant without making an over information problem. The website contains the following:
• E-identity – on the first place is meant as issuing e-documents, e-cards, as well as e-residency
program (HTTPS://E-ESTONIA.COM/SOLUTIONS/E-IDENTITY/)
• Safety – electronic evidence of all law articles, acts, electronic judiciary, electronic police and
blockchain technology could be find on this part of the website
• Healthcare – electronic access to medical databases, issuing electronic prescription and e-
doctor
• E-administration – Estonia has implemented a cloud technology in term to unite IT systems
from all public institutions in one pretty fast and efficient system. Beside this part for e-voting
and e-cabinet also exist (system for public activity organization which dismissed paper use
from public bureaucracy)
• Mobility - part dedicated to autonomous driving, payment for parking by mobile phone and
reservation system at border crossings
• Business and finance – Tax e-payment, electronic banking and electronic business register
• Education – online base of all education institutions, and set of different applications that
improve education quality on all levels
91 HTTPS://WWW.KODA.EE/EN/NEWS/E-EXPORT-NEEDS-DEVELOPING 92 Further information could be found at: HTTPS://E-ESTONIA.COM/
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• Inner operating systems and services – digital cadaster, e-evidence of citizens, as well as x-
road operating system which connects all public services and is such sense increase potential
for national and international public services integration
The website is very transparent with clear classification. Everything is interactive. Every section brings
some content with it like key information, interesting facts and user impressions. Aside from this the
website contains the list of connected websites in B2B context primarily, because an accent is on increasing
digital investment attractiveness of Estonia. This is provided by unique VR part of the site, as well as with
special part dedicated to trade exchange and investment. Additionally, the site has a part for tourists which
levels up touristic attractiveness of Estonia.
Relevant publications of all other previously mentioned elements of the site could be found on the website.
These documents are in PDF format. In the end, next to the part where users could leave their feedback
exist also connection link with social networks (FB and Twitter). Part with braking news and media content
also exists.
3.3. E-RESIDENCY PROGRAM
One of the best e-solutions which made Estonia one of the most developed societies in the World is e-
residency program. It is the program which provides people from developing countries to access Estonian
digital infrastructure and law frames so they can take advantage of e-commerce. The program represents
a transnational digital identity providing anyone and anywhere an opportunity to succeed as an
entrepreneur. Like citizens and residents of Estonia, e-residents receive a government-issued digital ID
and have full access to Estonia's public e-services. This enables them to establish a reliable EU business,
with all the tools they need to do business globally.93
Once verified as Estonia's e-residents, users can register the company online, perform e-banking
transactions, access international payment service providers, file taxes online, manage the company
remotely and sign documents and contracts digitally. They also benefit from the EU legal framework - and
more the perception of trust that goes with it.94
This website (HTTPS://E-RESIDENT.GOV.EE/) contains the following important elements:
• Interactive elements (call to action buttons), and instructions on how to create a profile and
how to start a business displayed through connected pop-up content
93 Further information could be found at: HTTPS://E-RESIDENT.GOV.EE/MARKETPLACE/SERVICE-PROVIDERS/ 94 Za više informcija pogledati: HTTPS://ETRADEFORALL.ORG/DEVELOPMENT-SOLUTION/E-RESIDENCY-
BRINGING-EUROPES-E-COMMERCE-OPPORTUNITIES-DEVELOPING-COUNTRIES/
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• Detail instructions on how to start your own business in Estonia. It is not another classical
Guide, but string of connected steps with instructions for every activity solely (LinkedIn
functions pretty similar when creating the profile)
• List of partners and the most successful companies founded this way
• Examples and stories of people who started up business this way. Those are short life story
descriptions, mini case studies in the part with companies, but the website offers an
opportunity to establish communication with these people (creating positive values through
examples and rising customers security)
• Blog and part with Twitter content and shares, which were transferred to the site
• Possibility to apply for monthly newsletter
• Applying for contribution in monthly webinars
• Frequently asked questions (FAQs) part
• Part with relevant media publications and content
• Links to social networks (FB, Instagram and Twitter). Likewise, they have an official YouTube
channel, but without a link to it on the website
The website has an advanced part about business users with a possibility of opening a VR (virtual) office,
or starting mobile banking, or even establishing the company. Option to identify similar businesses, or to
do an interactive benchmark of different companies founded this way, as well as to identify the main
sources of competitive advantages and contacting owners of those companies could be found in the
section Companies of the website. Estonian government claims that only 18 minutes are needed to
establish the business in this way in Estonia.
3.4. MEDIA PROMOTION ACTIVITIES
Estonia is a leading country in terms of access to online entrepreneurship, accessible to everyone
(regardless of location and residence) through the e-Residency program. Recognizing the enormous
potential of the program, the United Nations Conference on Trade and Development (UNCTAD) and e-
Residency have teamed up to launch a new initiative called e-Trade for All. The initiative aims to help drive
global growth through support to developing countries to encourage their citizens to become involved in
e-commerce and entrepreneurship. The program is supported by Jack Ma, founder and president of
Alibaba Group, which owns China's largest online retailer. Jack Ma highlighted the importance of this
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initiative, pointing out that a large part of the world's population is unable to use the potential of e-
commerce, often just because of the place where they live. People in developing countries, women and
other marginalized groups currently face the greatest challenges in accessing e-commerce. In many
circumstances, the financial and administrative obstacles for starting a business can be too high. This is
why Estonia's e-residency program is crucial to help unleash the world's entrepreneurial potential. This
means that entrepreneurs can apply for a secure digital identity issued by the Estonian government and
then use it to set up and manage a company online with minimal bureaucracy.95 All the mentioned show
that this project goes beyond Estonia's territorial borders by encouraging entrepreneurs to engage in
global trade in 138 countries. Businesses, financial companies, governments and organizations in every part
of the world can integrate into this platform for the benefit of their citizens and clients.
3.5. E-LEGISLATION
Estonia has totally digitalized all legislation procedures. One of the key elements for this was creating the
electronic base of all laws and regulations accessible by every internet user.96
Trade codex (available at HTTPS://WWW.RIIGITEATAJA.EE/EN/ELI/522062017003/CONSOLIDE), as
well as Decision about changes and amendments of Trade codex from 2018 which in one of their parts
regulate e-commerce and e-business could be understood as very important support to e-commerce
development in Estonia. Also, the Estonian government has issued the Digital agenda for Estonia 2020
(available at
HTTPS://WWW.MKM.EE/SITES/DEFAULT/FILES/DIGITALAGENDA2020_FINAL_FINAL.PDF).
One more important in such context is judiciary digitalization. The Estonian government has decided to
create an electronic database of offenses, through which all citizens, as well as companies, can be informed
about all possible legal violations, as well as possible sanctions.97 This way informing of all stakeholders is
centralized. Likewise, an online portal has been created to solve minor disputes and to judge in cases of a
standard nature, or where responsiveness and responsive time are crucial.98
95 Further information could be found at: HTTPS://E-ESTONIA.COM/E-RESIDENCY-JOINS-FORCES-WITH-THE-
UN-TO-EMPOWER-ENTREPRENEURS-IN-THE-DEVELOPING-WORLD/ 96 Further information could be found at: HTTPS://WWW.RIIGITEATAJA.EE/EN/ 97 Further information could be found at: HTTPS://WWW.RIK.EE/EN/INTERNATIONAL/E-FILE 98 Further information could be found at: HTTPS://WWW.RIK.EE/EN/INTERNATIONAL
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3.6. E-ESTONIA BRIEFING CENTER
Part for B2B interaction exist on the public portal e-Estonia enabling business users to apply and to
contribute in meetings with state representatives.99 The goal is to show the whole offer of e-Estonia
program as well as connecting and strengthening strings with private and public partners. Interested
companies could apply for personalized courses (educative programs) which will be designed in
accordance with the company`s needs and desires by representatives of public administration.
In such context e-Estonia portal administrators are completely active and eager to connect Estonian
companies from different branches. Calls for establishing contacts with other companies from e-business
register are on the first place. Beside this very active is also directing of B2B users to a partner ICT cluster
companies100, like digitalestonia.101
3.7. CONTACT CENTER
One part of the public portal is dedicated to users who would like to contact responsible personnel. This
is provided in several ways. All members of administrative team are presented publicly with clearly
indicated specifications and email contacts. User is able to choose which administrator suits him/her the
best and directly contact the administrator. Also, central email address and Call center contact phone are
at users` disposal. All these services are organized and presented in above mentioned Briefing center.
3.8. SOCIAL NETWORKS STRATEGY
Social networks strategy has been developed on two level bases. First level is for B2C users on e-Estonia
portal. In this context there are pages on FB, Twitter and YouTube having the same name. Graphically all
contents are very well created. The contents actually represent multimedia content which describe users
how to use certain parts of the portal. In addition, videos and publications concerning some conferences
or educative programs are also available. Although there is no separated content for e-commerce, some
articles about this topic and connected areas, like internet safety, exist.
99 Further information could be found at: HTTPS://E-ESTONIA.COM/BRIEFING-CENTRE/ 100 Further information could be found at: HTTPS://E-ESTONIA.COM/IT-SECTOR/ 101 Further information could be found at: HTTP://DIGITALESTONIA.COM/
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Following pages are cited:
HTTPS://WWW.YOUTUBE.COM/USER/ESTONIANICT
HTTPS://WWW.FACEBOOK.COM/ESTONIADIGITALSOCIETY/
HTTPS://TWITTER.COM/E_ESTONIA
The second level is for B2B users within e-Residency program. These contents are closely related to giving
advice on how to start a business. Beside tutorials which cover every activity solely, interviews with
owners of companies founded this way are possible and materials for discussion and webinars are available
also. In this context there are pages on FB, Twitter and YouTube having the same name.
Following pages are cited:
HTTPS://WWW.INSTAGRAM.COM/E_RESIDENTS/
HTTPS://TWITTER.COM/E_RESIDENTS
HTTPS://WWW.FACEBOOK.COM/ERESIDENTS/
HTTPS://WWW.YOUTUBE.COM/CHANNEL/UCMB926TR_2IXHIZYUTOSKBG/PLAYLISTS
3.9. KSI BLOCKCHAIN TECHNOLOGY IN PUBLIC ADMINISTRATION
Estonia is one of the few countries which use blockchain technology to encrypt all publicly available data.102
3.10. EDUCATION OF PEOPLE ABOUT USE OF E-SOLUTIONS103
Since the end of 90`s and early 00`s the digital inclusion and e-skills have become one of the main topics
in political programs in Estonia.
102 Further information could be found at: HTTPS://E-ESTONIA.COM/SOLUTIONS/SECURITY-AND-SAFETY/KSI-
BLOCKCHAIN/ 103 Further information could be found at: HTTPS://E-ESTONIA.COM/WP-CONTENT/UPLOADS/FAQ-A4-V02-
DIGITALCOMPETENCES-1.PDF
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Using e-services has shown as very eligible for citizens. Estonian government has put a lot of effort to
educate their citizens about how to use e-services. A lot of attention is given to classes of electronic
literacy. What is of utmost importance when it comes to e-solutions is very good internet connection.
Since the end of 90`s all schools in the country have internet connection. The government has invested a
lot of money to supply schools with internet access, modern tools and digital equipment. Since childhood
robotics, software development and new technologies are included in children education. The national
curriculum also emphasizes development of digital competencies. This represents one of the eight main
competencies with the schools` focus.
Even preschoolers in Estonia learn about software development, robotics and new technologies. Estonia
launched the ProgeTiger program in 2014 to improve technological literacy of teachers and students.
Hence, different courses and trainings have been conducted, including robotics, software development
and even groups for computer hobbies which has shown to be very popular.
The eKool service helps children to get use to e-services. This application covers classes, tasks and
presence on the course. Parents could also access the data. All these measures have led Estonia to many
positive results, and many children who finished the school in 2000. have become businessmen and
businesswomen. The biggest concentration of start-up technologies per capita could be found in Estonia.
Older generations have also been covered by the government`s investing programs. Partnership between
public sector and some nongovernmental organizations including the business community as well is trying
to correct some shortcomings in digital literacy present among some parts of population. People with the
biggest risk of being socially excluded (older people, unemployed, low qualified workers) are especially in
the focus of the partnership. For example, the government launched in 2009. a program for older people
named `Ole kaasas` (Being included). Classes are held in the whole country and the program also acquire
subsidies for purchasing a computer for seniors. During two years period 40 thousand people have been
educated.
One more big political incentive during the late 90`s concerning e-services was Policy of information
society. The Strategy of information society in Estonia in 2013 covered the period from 2007 to
2013. Now the focus was on access to technologies and resources including broadband internet access.
In the upcoming Strategy for information society 2020 (that covers period from 2014 to 2020) focus
will be put on digital literacy and ICT experts supply. The plan is to put an accent on securing ICT skill on
high school level – pupils will be obligated to achieve the basic level of ICT until the end of their school,
and robotics and software development classes must be offered in every region in the country. Beside this
a lot of attention is given to learning for life (in term of developing adults skills), when it comes to university
education developing specific ICT modules (for some certain sector or job), as well as some vocational
education and training; Adjusted measures for entrepreneurs in term to integrate ICT into basic business
processes, by using ICT in marketing (e-channels) etc. The Estonian government launched in 2011. revised
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Competitiveness strategy `Estonia 2020` with broader and more efficient use of ICT in all sectors
of economy and among all population categories.104
Foundation Estonia Company is responsible for share of European structure funds and subsidies in
entrepreneurship sector and for innovation grants. With European structure funds the Foundation
established a support mechanism so the companies could demand specific ICT training for their employees.
Employers used support programs for hiring trainers and to offer training programs to their employees
(2007-2013).
One of the responsibilities for the Ministry of Education is to secure adequate number of ICT experts in
commerce. National research and development strategy is of the utmost importance for the issue
of ICT expert’s education. One part of the strategy is Estonian high education ICT and research-
developing activities of state program 2011-2015 (shortly: ICT program). The program represents
cooperation among all Estonian state Universities, ICT sector and government also in term to increase
quality of ICT education and to strengthen cooperation among all stakeholders in this area.
Numerous incentives have tried to improve image about ICT studies among young in the country:
Estonian association for information and telecommunications (ITL) deals with the incentive All is IT aimed
to promote ICT careers and e-skills. Activities like: web portal, lectures in schools, career advisor, special
events inclusion of young people like IT night or ̀ Back to school` campaign are all included by this program.
Financial support for the program is given by the ERDF. The ITL was also responsible for e-skills national
week in 2012. and 2013.
StartIT is an incentive by Estonian association for information and telecommunications containing a
website that promotes education opportunities in ICT and natural sciences to young Estonians. The
project receives financial support from European regional development fund and includes activities like
lectures, career advisors and events for including young people as IT night is (including trainings for
increasing awareness, team work, audio/video games, etc.). IT Night was held for the third time in March
2013.
SmartLab project was started in 2012 with a purpose to make young people aware and interested in
robotics in general and especially in ICT. Group work for young Estonians aged between 10 and 19 is
offered in the following fields: Computer work, creating of websites, web design and graphics, computer
construction and robotics, smartphones application development, etc.
Estonia has a set of political programs and incentives of interested stakeholders that focus on digital
entrepreneurship. At the end of 2011, the Estonian government started Start-up Estonia – start-up
businesses promotion program in fast-growing areas with big role of ICT. Program brings in Estonia
104 Further information could be found at: HTTP://ESKILLS-
MONITOR2013.EU/FILEADMIN/MONITOR2013/DOCUMENTS/COUNTRY_REPORTS/COUNTRY_REPORT_ES
TONIA.PDF
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mentors, mostly leaders in innovation sectors from all over the World to share their knowledge and best
practice with local entrepreneurs through set of workshops, interactive lectures and networking events.
The first accelerator program in Estonia in games industry has been established in Talin with purpose to
nurture the Estonian role in this sector which indeed high growth. The program also supports student
trips in Silicon Valley and promotes annual international start-up conference Latitude59 in Talin.
3.11. COMPLEX PERSONAL DATA PROTECTION SYSTEM105
There is no unique data repository in Estonia, but all information is distributed among different institutions.
Government organizations can pass on information using a system called X-road, but all operations are
monitored. Any action by a person or official seeking information leaves a mark. At the same time, civil
servants should give reasons for such a request. If they do something unreasonable, the person may
contact the Data Protection Inspectorate, Department of Justice.
3.12. IMPROVING CUSTOMERS RIGHTS
2018: The changes planned by the Directive apply to both general trade and e-commerce, and if the
Directive were adopted, consumer rights in Estonia would be improved. One of the planned changes is
to extend the time that the deficiency of the product is assumed to have been existed during the transfer
of goods from six months to two years.106
At this point, there is a principle which assumes that a sale to the consumer incompatible with the contract
terms and conditions discovered within six months of the goods being transferred to the buyer, unless
such assumption conflicts with the nature of the item or defect. The draft aims to extend the period to
two years.
In the case of a consumer sale the draft seeks to abolish the regulation that the consumer must inform
the seller of the non-compliance of the goods with the contractual terms within two months after having
found out about the non-compliance.
105 HTTPS://MEDIUM.COM/@ANNASAVINA/HOW-ESTONIA-BECAME-THE-MOST-MODERN-DIGITAL-
STATE-IN-THE-WORLD-F777D853AAA6 106 HTTPS://WWW.KODA.EE/EN/NEWS/EUROPEAN-UNION-PLANNING-INCREASE-OBLIGATIONS-
BUSINESS-CONSUMER-SALES
134
Although dealers have until now had a right to decide whether a product should be repaired or replaced,
the new draft law provides that the consumer can choose between repair and replacement unless one of
these options is impossible or illegal, or unreasonably expensive for the seller in relation to the second
option.
The plan for the directive is to enter into force on the twentieth day following its publication in the Official
journal of the European Union, and Estonia should adopt the directive within two years.
3.13. PROMOTION OF ESTONIA AS A CHINESE E-COMMERCE BUSINESS
CENTER107
Ministry of foreign affairs and communications puts a lot of effort to promote Estonia as hub for Chinese
e-commerce companies. Estonia is interested to take an advantage of e-platform in term to increase goods
flow from China to Estonia. Estonian transport and communications companies in e-commerce sector
work together with Chinese partners on inventing a possibility for increasing of online ordered goods
transport across Estonia. It is believed that this cooperation will make a huge contribution to global e-
commerce growth.108
Estonia is interested in taking an advantage of e-platform in order to increase goods flow from China
through Estonia.
In November 2017. Estonia has signed an agreement in sector of e-commerce and ICT with China. Not
only because of Estonian geographical position, but also because of Estonian very quick business start and
because of Estonian pretty low bureaucracy level China is interested to cooperate with Estonia.
107 HTTPS://NEWS.ERR.EE/822310/MINISTRY-KEEN-TO-PROMOTE-ESTONIA-AS-HUB-FOR-CHINESE-E-
COMMERCE-BUSINESSES 108 Further information could be found at: HTTPS://NEWS.ERR.EE/822310/MINISTRY-KEEN-TO-PROMOTE-
ESTONIA-AS-HUB-FOR-CHINESE-E-COMMERCE-BUSINESSES
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SECOND PART: ANALYSIS OF THE RESULTS OF E-
COMMERCE RESEARCH IN SERBIA
136
I IN-DEPTH INTERVIEW WORKSHOPS – KEY RESULTS
The in/depth interviews represent a very important tool for achieving key insights about E-commerce in
Serbia. Through in-depth interviews the research team has gathered more detailed, valuable understanding
of e-commerce topic in Serbia. Experience, behavior, emotions and/or attitudes have been thoroughly
examined during in-depth interviews. The interviews lasted between 45 and 60 minutes and have been
conducted by project managers during the period from 27th February to 21st March 2019, since all
interlocutors were on high level positions at their organizations. Starting from 25th January until 5th of July,
4 workshops with main stakeholders were conducted.
The goal was to conduct 20 interviews containing:
• At least five representatives from e-commerce businesses, following the structure of at
least 3 micro, small or medium businesses, of which at least one should be managed by a
woman.
• Logistics (courier services) – Post office and at least one more company
• Payments – At least two institutions included in electronic payments
• At least one company operating with e-commerce technology
• State representatives – at least five interviews (including Customs administration and
National Bank of Serbia)
• Other stakeholders – up to five interviews
In term to identify the level of e-commerce in Serbia, and to figure out main barriers to its further
development, as well as to collect suggestions about adequate measures that could overcome these
barriers 22 in-depth interviews have been conducted with main stakeholders from the e-commerce sector
in Serbia. Among all respondents were also representatives of:
• Companies which operate through e-commerce, but some of the companies must be
managed by women. Six companies were interviewed in total and at least five of them
were micro, small and medium businesses, and three of them were owned by a woman.
• Subjects which give the support for operating through e-commerce. Interviews with five
representatives of institutions which offer services of financial payments are done. All
main actors in this field were interviewed. Also, representatives of two big courier
services were interviewed as well as one representative of the company which deals with
e-commerce technology.
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• Representatives from the public sector, including National Bank of Serbia and Customs
Administration, were also interviewed – five public institutions in total.
• Beside above mentioned, interviews have been also done with three representatives of
business community who have much influence on e-commerce in Serbia.
According to conducted interviews the whole interviewing plan has been accomplished.
All four planned workshops with key stakeholders were conducted. Two workshops had a general
character where all stakeholders were included and two of them were specially intended for logistics and
institutions which enable e-commerce payments.
Following the most important questions hereinafter are given the main results obtained through
interactive work with main stakeholders.
1. DEVELOPMENT LEVEL AND MAIN PARTICIPANTS IN THE
ELECTRONIC COMMERCE IN SERBIA
1.1. HOW WOULD YOU MARK LEVEL OF ACTIVITY OF E-COMMERCE IN
SERBIA?
Level of activity was generally marked as low, especially in comparison with developed markets. E-
commerce market is certainly still developing and the situation is better than before, but it still does not
have the shape as it should in this moment. Maybe the biggest expansion of the electronic trade has been
seen through orders from foreign web sites (e.g. AliExpress and so on). Although the rapid development
of this market is notable, especially for large retailers and urban areas, there is a great potential for
development in small and medium-sized enterprises, which either do not sell their goods online at all or
do not do the right thing.
Although distinct increase of e-commerce in Serbia in the last couple of years, it is still fall behind Western
European countries and other developed markets. In comparison with these countries level of activity is
low. When it comes to region countries, level of activity of e-commerce in Serbia is lower than in Hungary,
Slovenia and Croatia, but it is higher than in Bosnia and Herzegovina and then in Montenegro.
Total number of businesses operating through e-commerce is not easy to evaluate, however according to
some evaluations e-commerce market in Serbia contains about 300 relevant online stores which represent
a very small market. Perhaps the level of activity is not actually such low due to final turnover which is
done offline – more than 60% of transactions are started online (research about product), but they finish
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with paying in person. However, increased use of payment cards is notable by all population categories
(although fear of using them and ignorance still exist) which is directly connected with increase and
development of e-commerce. Traders have also recognized the significance of e-commerce and have put
their interests for this kind of trade, but they usually need help – actually education about e-commerce so
they could fully implement it.
1.2. WHO ARE THE MAIN PARTICIPANTS IN ELECTRONIC TRADE IN SERBIA?
The main participants in e-commerce in Serbia are recognized by all who are in the e-commerce chain:
• Traders – Techniques retailers on first place (e.g. Tehnomanija, Win, Gigatron); sports
equipment (Sport Vision); babies and children equipment (Aksa, Dexy Co); clothes (Zara,
H&M); Internet portals designed to advertise the sale of used or new items, cars and
products (Kupujem-Prodajem, Limundo); and in service category: air transport companies
(AirSerbia), online betting (Mozart) and mobile operators.
• Buyers
• Courier offices – Almost all examinees have pointed out courier offices, such as:
DExpress, PostExpress (Posta Srbije), City Express, Axs;
• IT companies which provide establishing and maintaining online stores, as well as
companies which provide Online/Internet infrastructure
• Financial institutions – institutions responsible for issuing electronic money, as well as
banks: Intesa bank, Unicredit bank and others.
• Government – market regulator
Still not enough developed awareness of e-commerce advantages and potentials among majority of the
stakeholders is big problem state the interviewed stakeholders.
2. MAIN BARRIERS TO DEVELOPMENT OF ELECTRONIC TRADE IN
SERBIA
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Several questions have been posted to interviewed stakeholders concerning this topic
2.1. WHAT HAS INFLUENCED E-COMMERCE IN SERBIA TO BE
UNDEVELOPED?
Main reasons for limited development of e-commerce in Serbia could be found on both sides – supply side
of market and on the demand side (ignorance and misinformation), and in the e-commerce surrounding
(insufficient technological solutions development and grey economy).
Grey economy (trading with products without paying taxes or customs for it) has influence not only on
sellers, but also on buyers which have a lack of trust in online shopping because in such situation they do
not have a guarantee whether the goods will arrive and what actually will arrive. Aside from mistrust as
the main barrier for online shopping, the buyers are uniformed about security process concerning online
shopping. Online payments (the buyers do not know they have an insurance by paying with cards), data
security, whether the ordered products will be delivered, how to return/change the product in case it
actually does not suit them (reclamation procedure is complicated), in case of having the problems who
is the responsible person for their complaints and how to exercise their own rights are all the topics the
buyers are insecure about. To put a long story short, buyers are uneducated and very insecure about
electronic trade (e-commerce). Additionally, lack of real-time synchronization among large number of
traders, as well as non-transparency, represent factors which influence on low level of online shopping
because they ruin user’s experience. It is a very common case that end users do not understand and do
not know that they can buy certain products online, and if they know then they do not see the benefits
of e-commerce and the whole process seems too complicated to them. The lack of a habit of paying online
and then ordering goods the same way is at the root of the low level of online shopping.
When it comes to traders, although the significance of e-commerce is mainly recognized, ignorance and
misinformation about establishing and managing online stores are representing main barriers. According
to interviewed traders, obtaining of key information is very hard to do – there are rarely the online places
where it could be read, or it is not clear which laws are covering online stores, or traders do not know
who to contact if they would like to export their products or if they have some issues, hence gathering
the information is done ad hoc – by experience from practice.
Insufficient information is represented on both sides of market, on the demand side as well as on the side
of supply. Cheap cash (cash economy) and small awareness of people about payment cards usage are also
representing e-commerce constraints.
Creation of negative image about e-commerce (electronic trade) in public, mostly due to fact that in media
most of the topics about e-commerce are about frauds and negative experience, have also had an impact
on e-commerce underdevelopment. Positive experiences are not promoted enough, but the light is
certainly shed on negative experiences.
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After answering to above mentioned question, the interviewers have concretized what could be the
potential barriers to e-commerce development.
2.2. DO THE LAW BARRIERS EXIST?
Responders generally do not have bigger objections to law frame – regulation is modern, applicable and
good enough. Some major law barriers do not exist, however the law is far from perfect in a way that
some obstacles could easily disappear like: Currency law, Prevention of money laundering and finance of
terrorism law, upcoming changes concerning Post office service law (customer identification). Also,
insufficient bilateral cooperation which exists between Control authorities of different countries, and
decentralized e-commerce engagement done by competent authorities (Market inspection and Tax
authorities for example). Customer protection is weakly regulated and the law is difficult to apply to
individual stakeholders involved.
Are the problems actually demand side barriers: buyers’ mistrust, buyer’s socio-economic status
(income, education…), buyer’s willingness to use technology, impossibility to access fast internet
connection, and so on?
From the aspect of demand, the biggest obstacle to the further and faster development of e-commerce in
Serbia are: lack of customer trust, need for customers, distrust of the purchase itself, as well as payment
of cards. Customers fear that they will not receive the product they have ordered or that it will be
damaged. Potential customers do not know the basic things about card payment (what is a card
transaction, what is the interbank fee, issuer/acceptor, which are card brands, how inadequate goods are
advertised); do not know what a web shop is, what are the payment methods, etc. Low incomes also
affect distrust of online shopping and card usage. There is a fear for data security, especially for older
generations, who in fact use technology less often.
Unreliability of courier offices, courier’s rude attitude, and delivery solely (from 9 to 17 or returning to
seller if not picked up on certain date) also dissuade people from ordering goods online.
Reclamation/returning of previously ordered product occurs to be serious problem for buyers –
reclamation procedure is complicated – the product could not be exchange in any store and money refund
takes more than two weeks.
Lack of call center which would solve problems and give applicable and timely information also has a
negative impact on further e-commerce development.
Are the problems actually supply side barriers: organizational barriers in companies which are
bidders in electronic trade (lack of: cash, qualitative personnel, gained experience, managerial potential),
e-commerce market underdevelopment (e.g. lack of market platforms like Alibaba or Rakuten),
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technological barriers, grey economy in electronic trade, lack of multichannel access (combining electronic
and classic trade etc.)?
Ignorance of traders about online shopping represents maybe the biggest obstacle in implementing and
development of e-commerce in Serbia. In practice is notable that traders do not poses enough knowledge
about this way of trade, they do not know what they actually need for opening the online store, or how
to make a website, how to sell online, what are the reasons for small number of realized purchases etc.
Traders do not realize the real importance of timely information for buyers who need to know information
about when their order will arrive, under which conditions and what is the exact amount of money needed
to buy it.
Traders are mostly uninformed about all the advantages of online trading, and several problems like: how
to make a web shop, what it should contain, who would be able to make that for them, what is the price
of making the one mostly occur when some trader express willingness to open an online store. Problems
also occur among traders who already deal with internet trade, because they usually do not know how to
manage an online shop, or they do not have enough of experience, they are not familiar with the digital
marketing, or simply they are lack of qualitative personnel who would manage their online trade. Traders
have difficulties to approach customers – they haven’t found appropriate channel. Beside this, information
needed for business are hard to obtain, traders do not know where to find this information. Hence, instead
of managing their business they usually spend more time in seeking for relevant laws. Most of the problems
are among medium traders who don’t know what they are (not) allowed to do, according to law, simply
because they are not sure whether some law refers to their company or not, or because traders find the
law unclear. This is actually in collision with the statement that regulation barriers don’t exist. One of the
problems which has been cited by one of the stakeholders was that traders do not put enough effort to
go deeper in law regulation.
Problems are also inside-organization processes (decision makers demand development of electronic
trade and employees afraid of change and run away from unknown). NE RAZUMEM RECENICU (NIJE
KOMPLETNA). Technology solutions (platforms used by traders) also occur as a problem, as well as
integration of online stores into payment systems. Traders don’t connect their ERP system with online
stores and then buyers don’t have an information whether the product is on stock or not (there is no
real-time synchronization), and orders processing is mostly done manually instead of being automated.
Gray economy, which is in expansion, is a big problem – no one knows whose responsibility is for goods
sold by small traders via e-commerce platforms (except MUP – cybercriminal section, no one from market
inspection is trained for illegal e-commerce).
Are the problems actually barriers on the side of participants which improve realization of
e-commerce in Serbia? (Post office, courier offices, Custom administration, providers of financial
services – payments, providers of technological services, ministry responsible for electronic trade, etc.)
The most highlighted barrier to progress, on the side of participants which improve realization of e-
commerce in Serbia, is courier offices. Objections to courier offices concern: unreliability of courier offices
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(it is not fast enough, customer’s time is not respected), courier’s rude attitude (customers usually tend
to make their impression about the whole company by the experience with the courier), difficulties to
employ sufficient number of deliverers, their services` price (courier offices are expensive, Post office is
cheaper, but there are also other deficiencies such as delivery time), bad organization and lack of unified
service and unique approach among all courier offices. Primary problem for courier offices is to find
qualitative couriers. What is the advantage of the Post office is the disadvantage of courier offices and vice
versa, perhaps the Post office and the courier offices are managing to overcome their deficiencies?
Second important barrier looking through the prism of logistics support are customs. Customs electronic
payment does not exist, but due to necessity for forwarders to poses custom payment documents it
would be much easier if it actually exists. The custom worker has his discretionary right to evaluate the
shipping, or to refuse to accept what is written on the delivery. The custom workers also don’t accept
confirmation if the payment is done via m-banking, although the confirmation is valid. Traders and buyers
often find problems with export/import (special problem is return of goods back in Serbia), and the custom
process itself is time and money consuming.
Few examinees have also cited banks as one of the barriers, because they charge high fees for online
purchases and they do not have an appropriate way to approach traders. Also, the banks do not make any
steps towards educating card users about security and safety of payment cards during online shopping.
3. STRENGTHENING MEASURES FOR E-COMMERCE IN SERBIA
3.1. WHICH MEASURES SHOULD BE TAKEN TO IMPROVE THE CONDITION
OF SERBIAN E-COMMERCE?
Education on both sides of market – the supply and the demand side – would be probably selected as the
most important measure for encouraging the e-commerce increase in Serbia. Almost every respondent
has mentioned the education, hence the general observation is that the buyers and the traders are
uninformed and uneducated when we speak about some individual aspects of online trade, but also about
the whole process in general. Benefits from the e-commerce, confirmation that people won’t be deceived,
information that online payments are safe and what are real risks, what are customers`/traders` rights,
importance of the education but communicated in the comprehensive way for customers are all the
aspects of e-commerce that should be explained to people.
Education could be conducted in several ways. On one hand, banks could educate people about security
and safety of card payments and online orders using promotion, media campaign or by informing the card
users (when the card is issued) that they have an online shopping ability with cards and that the transaction
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is safe. One of the options which could be also used is to engage faculties to educate their students about
e-commerce and the payments security through introducing the online payment options at the faculty.
Making the guide for e-commerce, which would contain all the necessary information would significantly
contribute to education and informing of public community about advantages and functioning of e-
commerce. The guide should be dedicated to both the buyers and the traders, and it could be financed by
a Ministry of trade or by some independent organization. There is an opinion that education should be
done by some independent organization that owns a pretty high level of knowledge in e-commerce, but
also in business in general. Participation of all stakeholders is important; however, the government should
not be the main actor of such process, nor the banks because it could make a wrong impression on people
(e.g. only by being in a certain bank could allow people to buy at certain trader).
Beside education, the e-commerce should be promoted through media and all means of communication.
It is necessary to create a positive image about e-commerce in public by using media campaigns (e.g. TV
promotion which would approach to elder generations who are prone to traditional way of shopping)
which will promote positive examples and experiences of other people – in that way reliance level and
motivation of people to shop online and to pay by cards would increase. Except on the buyers’, the positive
effects of promotion could be seen on the trader’s side who do not trade online at the moment, but
would maybe try such option after receiving positive feedback from their colleagues. Positive examples,
such as SoGe Bank, which offers payment service, monthly online store maintenance for customers (RSD
1000), as well as iPAY services, instant payments, QR codes payments (implementation will begin soon),
with certain innovations in the fintech business, as well as Raifeissen Bank, which offers to its clients, but
also to interested parties, an opportunity of using their online retail platform, with accompanying digital,
advisory and analytics services, should be emphasized and pointed out in the media. It is necessary to
show the significance of proactive approach of relevant financial institutions in developing and improving
e-commerce in Serbia, especially in the SME context.
Except education, informing, promotion and subsidies, several more ways to increase e-commerce level
in Serbia are suggested:
• Quality increase of courier offices service and Post office service, standardization of
service
• Bank transactions decrease
• Permanent improvement of user experience in the process of online shopping
• Retailers (which do business mainly on Instagram and by that illegal) perhaps should not
register as d.o.o. – maybe better option for them is to register as an Entrepreneur with
Flat rate taxation (and they are supposed to pay about 200 euros). On that way the buyers
are also protected. Platform owners should also inform themselves about laws concerning
their business
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• Making the guarantees for buyers – to introduce the option in which the funds will be
transferred from the buyers to the sellers’ account only after the buyer receive the
delivery and approve the transaction
• Need for identification should be abolished for small amount payments
• Sublimation of all laws, processes, best practices Education on the supply and demand
sides (personnel, traders, buyers);
• Exempt e-commerce start-ups from paying contributions
• Problem of e-commerce counselor’s inexistence should be solved institutionally –
whether through call center or something else. Mentoring with Start-ups, but also with
the present businesses is very important.
• Existence of call center which will provide people with all necessary information. Someone
should control that call center.
• To make an inter-sector technical group (from different ministries, Tax authorities,
National bank of Serbia…) which people could contact to solve their specific problems
• To make a network agreement of parallel institutions in the same speaking area countries
about data exchange (it already exists on the level of courts, criminal acts, but not for e-
commerce); To centralize competent authorities dealing with e-commerce – Market
inspection and Tax authorities should deal with e-commerce and others should give their
inputs;
• Better struggle against cash economy and gray economy
3.2. WHAT COULD BE DONE BY RELEVANT MINISTRY IN TERM TO IMPROVE
E-COMMERCE CONDITION IN SERBIA
Significant number of respondents have stated that Ministry could not do much. The main role should be
to listen to the market and filter information, but above all to find support for other participants in e-
commerce. Some concrete suggestions are listed below:
• Creating of the inter-sector technical group (which would contain e-commerce market
specialists from different ministries, Tax authorities, National Bank of Serbia…) which
people can contact to solve their specific problems and which will provide adequate
information or track to relevant institutions.
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• Making the Guide for e-commerce buyers and sellers which will provide all elementary
information about e-commerce on one place. Guides should in very simple way explain
what should be done and how. Organizing of educational workshops would also help.
• Making the media campaign which would raise public awareness about electronic trade.
• Establishing a Market place for retailers where they could, like on AliExpress, open their
stores and upload their products. Creation of safer platform (instead of using Limundo
and Kupujem-Prodajem) would contribute in development of electronic trade and it
would have a positive effect on both – retailers who find making their own web-shops
expensive and buyers who would feel more secure.
• Incentives to help traders through direct or indirect subsidies.
• Before coming into force, government should promote the new Post services law, so that
people could introduce with it, otherwise lot of people will give up their online shopping
because of the misuse afraid.
• Creating specialized logistics center would also contribute e-commerce development
• Make an educative workshop for bookkeepers on how to make an online payment entry
(case of PayPal)
• More strict surveillance under local courier offices
• Speeding up custom process would help too
The goal of conducting in-depth interviews is achieved: all inputs were obtained from both the barriers
and strengthening measures for e-commerce in Serbia. Besides, in-depth interviews have served as an
input for finalizing the questionnaire which was used for interviewing Internet users and companies in
Serbia.
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II ANALYSIS OF QUANTITATIVE RESEARCH RESULTS
Comprehensive quantitative researches are conducted for the purposes of this project. They are about
surveying companies and Internet users. Hereinafter is given the analysis of mentioned research.
1. RESEARCH OF E-COMMERCE BUSINESSES
1.1. 1. METHODOLOGY
FIELD OF RESEARCH
Research of the companies which do electronic trade is very important because it should facilitate
identification of the key barriers on the supply side, and to make clear which measures could be useful for
electronic trade participants. The survey should provide reliable information about online traders` stances,
key barriers which they meet in everyday business, and key measures which could facilitate them to
improve their business.
Also, gathered information will show what is the experience of business community in this sphere so far.
CATI (Computer-Assisted Telephone Interviewing) technique of gathering data has been implemented,
which means that experienced interviewers have surveyed representatives of randomly chosen companies
via telephone. The research team would like to express its gratitude to CFG representatives on excellent
cooperation, useful suggestions during the survey creation and great help during the training of
interviewers.
SAMPLE DESCRIPTION
Missing of adequate registers about companies doing e-commerce business, as well as the fact that most
of the traders are not registered or do their business activities on Facebook or Instagram were the
problems during the creation of sample. Having in mind that the population is unknown, our research
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team has found that approximate size of the population is between 1000 and 2000 online traders based
on in-depth interviews and secondary sources. Although this result should not be taken for granted it is
planned to interview 150 online traders, which represents a significant part of the population even in the
case it is made a mistake in the previous evaluation. Due to importance of multichannel trade in the sample
is necessary to be relevant number of traders owning online stores and classical stores.
Research of the companies that practice e-commerce has been conducted on the sample of 150 companies
different by size (up to 9 employees, between 10 and 49 employees, above 50 employees), whose primary
activities are goods trade or services trade. On behalf of the company, the questionnaire was answered
by a person in a managerial position (owner / co-owner, director, e-commerce manager) or one of the
other employees competent in the research topic.
Given the fact that none of the current legal entity registers in Serbia (e.g. APR, PKS, Bisnode etc.) does
contain information whether some legal entity has online store, and hence the official base of online traders
does not exist it is impossible to complete a representative sample by: activity, size and statistical region.
However, research team had put their effort to make regional representation heterogeneous in term to
make the sample more comprehensive and more efficient so companies in it are different in their size and
their business activities (which are determined in advance).
DATA COLLECTION PROCESS
Interviewers and the training method
Prerequisite for successful implementation of any project is detailed training of interviewers who will work
on it. With active participation and great help of client, the research team had organized trainings for one
part of interviewers while other interviewers were educated on additional training modeled on basis of
the first training lead by supervisor. Trainings have included following:
• General training about working methods, quality standards in the process of work, as well
as software usage for data collection
• Introducing with research goals, target groups and other details about project
• Training with questionnaire, analysis of every single question and its potential specifics
After the training has finished every interviewer was obliged to conduct at least 3 surveys before starting
to work on project. During the period of field work the supervisor has been available at any moment for
additional information, no matter if they are just about the questionnaire they occur during the interview.
Team of interviewers was assembled by associates:
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• Of different age and educational background with perennial experience of work with
companies as target groups
• Who are eloquent, kind, convincing and stubborn, with developed communicational skills
and trained to motivate the examinee and keep him active during the whole interview
(these properties are especially expressed when it comes to long list of multiple choices
or when it is expected to give an open answer which should be descriptive as much as
possible).
Database usage and connecting methods
For research purposes data about companies are used from the following sources: APR database, Bisnode
database, database of companies created in previous researches, as well as database created especially for
this purpose (web search – social networks, websites etc.).
Calls usually took place during working days in period between 9:00 and 16:00. Given the specifics of
target group (i.e. individual sellers on social networks) calls took place during working days even after
16:00 and at weekends as well.
Field work control
Validity of the surveys has been logically checked throughout the whole sample, and by re-calling and
checking some key questions from the questionnaire and demographics (e.g. size of the company, business
activity, etc.) covering at least 30% of the sample, randomly chosen.
RESEARCH INSTRUMENT (QUESTIONNAIRE)
The questionnaire was prepared in close cooperation with the client. Hence the CATI software has been
used in the survey, the whole questionnaire was converted into digital form. Research team has thoroughly
checked, multiple times tested and finally approved the electronic version of questionnaire.
ADVANTAGES OF CATI TECHNOLOGY
Prior experience states that advantages of electronic work in comparison with paper work are numerous:
• Less chance of making a mistake by an interviewer and more successful achieving of high-
quality standards (the questionnaire is programmed with logical connections, e.g. the
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interviewer could not continue to the next question without fulfilling all necessary options
in the previous one)
• Distinct instructions for every question are given to interviewers (e.g. to read or not to
read answers, multiple choice possible, one answer only, etc.)
• Avoiding mistakes made by entering answers afterwards
• Ability to automatically rotate the answers in questions where the answers are read (in a
way to avoid monotony of answering)
• Easier monitoring of screen out respondents (the program ensures secure elimination of
respondents who are not eligible for one of the set criteria)
• Better logical control of interviewers` work in term to make report more qualitative
• Better technical control of interviewers` work in term to ensure respondent`s right
answer
• Possibility of tracking the flow of field work (by individual questions or in total) and timely
reacting on potential mistakes
• More efficient monitoring of set quotas during the field work
• Decrease of expanses (e.g. there is no printing of the questionnaire or afterwards entering
in software, nor the control of entered)
• Time saving on: preparation of the project, entering received data, control process of
entered data, as well as on work itself
• Better control of average time per interview
1.2. MAIN RESULTS AND SUGGESTSIONS
General impression of research with companies is that e-commerce is a very important aspect of their
business activity. This refers of course to the companies which have developed online trade and are, as
the findings suggest, quite satisfied. However, aware of fast-moving technology progress nowadays,
temporary satisfaction does not prevent them to think about further development of such trade channel
– on the contrary.
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Representatives of Serbian business community who are surveyed would welcome any incentive focused
on further development of e-commerce in our country. The priorities for legal entities could be found on
the graphs in the bottom of this text. Suppression of gray economy is the most important for those who
already have the developed electronic trade. For those who don`t trade online, the most important is
Guide for e-commerce. Just as important is additional education of potential customers because their
mistrust which has roots in having insufficient information has been recognized as the main obstacle for
further development of e-commerce. E-traders also don`t run away from self-education, which is certainly
commendable, so this activity is also on the top of stimuli list. Introducing official quality certification for
E-trade, state financial subsidies, and determining clear rules and obligations for courier offices would also
create positive changes. What should be emphasized is that all the proposed measures were finely
accepted and received high marks (from 4.2 upwards on the scale from 1 to 5).
Stimuli measures for e-commerce development. Scale is from 1 to 5, where 1 means
insignificantly small, and 5 means pretty high.
(Examinees whose companies have online stores, N=151)
1
1
2
2
1
2
0
1
3
0
1
2
3
3
1
1
3
3
6
3
3
4
7
9
11
10
13
12
8
19
19
21
21
17
26
27
26
26
25
29
76
73
67
68
61
60
58
58
59
49
Gray economy suppression in e-commerce
Additional education and better informing of potentialcustomers through media
Introducing official quality (reliability) certification for E-trade
Financial subsidiaries fo e-traders
Education of e-traders
Determining clear rules and obligations for courier offices,banks and other service providers
Technology help (making of websites, correspondingplatfomr etc.)
Making the Guide for e-trade (business, legal andtechnology guide)
Existance of call centre supported by Ministry wherepeople would be able to find all the necessary information
Business strategy definition help
Insignificantly small Small Not small, not high High Pretty high
Average
Figure 22. Measures for stimulating e-commerce development
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Which of these measures could persuade you to think about starting the online sale?
(Respondents whose companies don`t have online sale, N=58)
With the seriousness of the economy approaching e-commerce, the fact is that it is not really a novelty,
and the majority of the surveyed business population has years of experience in it. Question about
importance of some means of such trade makes clear and expected difference between smaller and bigger
e-traders. The bigger the company the more expressed opinion of website efficiency is. On the other
hand, social networks are far more significant for smaller companies and individual sellers.
Evaluation of certain business aspects in companies with multichannel sale brings us an interesting
conclusion. Namely, no any aspect was marked negatively, so it could be said that the confidence of this
part of business community is on a very high level.
Unlike existing e-traders who are not only aware of significance and benefits that new technology brings,
but recognize the progress of their status and business from year to year, those who don`t implement e-
commerce are dominantly uninterested for its development. Stating that they don`t have needs for e-
trade as their main argument would be probably be the consequence of imminence the e-trade advantages,
so putting an effort in their education should be a right choice.
10
9
7
3
3
3
3
2
12
10
53
Making the Guide for e-trade
Technology help (making of websites,corresponding platform etc.)
Financial subsidiaries for e-traders
Business strategy definition help
Additional education and betterinforming of potential customers…
Existence of call centre supported byMinistry where people would be able…
Introducing official quality (reliability)certification for e-trade
Precise law regulations in term ofsuppression of gray economy in e-…
Planning to start up the online trade
Other
Nothing from listed
Figure 23. Measures for e-commerce implementation consideration
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1.3. MAIN RESULTS AND SUGGESTSIONS
• Developing a set of measures for suppression of gray economy in E-commerce in Serbia
• Creating the media campaigns with the purpose of introducing (potential) online customers and
additional education for them about advantages that lies in e-commerce in Serbia
• Making an e-commerce guide which will especially help to those who still haven`t started online
way of doing business
• Education of e-traders – It is necessary to give a chance to e-traders to acquire new knowledge
and to implement knowledge they already have
• Financial incentives for e-traders
• Help with technology and strategy
• Initiating a call center for e-commerce
• Raising the visibility of e-traders certification
• Defining clear rules for those who supply support activities
• Enclosing e-commerce to the part of business community which does not deal with it, introducing
with the process, education about its significance and advantages
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2. ANALYSIS OF BUSINESS RESEARCH RESULTS
2.1. GENERAL E-COMMERCE PERCEPTION
Graph 1: Does your company offer online/internet sale of its goods and services?
(All examinees, N=209)
Interviewed business people are very aware of significance and advantages of new technologies. Almost
three quarters (72%) has cited that their company has developed online sale. As expected, in comparison
with services sector (53%) such percentage is higher among those which offer goods (77%). One should
have in mind that the research was aimed on subjects which have online sale.
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between 10
and 49
employees
50 and more
employees
Base 209 54 97 166 43 96 56 57
Yes 72 100 100 77 53 75 66 74
No 28 0 0 23 47 25 34 26
Figure 24. E-commerce product and services offer
72
28
Yes No
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
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Graph 2: Does your company poses sale premises?
(All examinees, N=209)
Two thirds of interviewed companies have a developed traditional trade, mainly physical stores. It is not
surprising that this number arise with the size of the company, so then 9 out of 10 representatives of
companies which have 50 or more employees have given affirmative answer to this question.
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between 10
and 49
employees
50 and more
employees
Base 151 54 97 128 23* 72 37 42
Yes 64 0 100 68 43 43 73 93
No 36 100 0 32 57 57 27 7
64
36
Yes No
*Small base for conducting
relevant conclusions
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
Figure 25. Posession of stores
155
Graph 3: Why don`t you offer online/internet sale of your goods or services?
(Examinees whose companies don`t have online sale, N=58)
72
14
5
2
2
2
2
12
We have no need for that
Planning to introduce online sale
Limited capacities of the company(financial capacities, human capacaties
etc.)
General mistrust in e-commerce
Website/online sale platfom creating andmaintaing expanses
Customers` small demand
Developed domestic competition in e-sales
Other
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 26. Reasons for not offering e-commerce
TotalGoods
trade
Services
trade
Up to 9
employee
s
50 and
more
employee
s
Base 58 38 20* 24* 15*
We have no need for that 72 58 100 92 40
Planning to introduce online sale 14 21 0 0 33
Limited capacities of the company (financial capacities, human
capacities etc.)5 8 0 4 13
General mistrust in E-commerce 2 3 0 0 7
Website/online sale platform creating and maintenance
expanses2 3 0 4 0
Customers` small demand 2 3 0 4 0
Developed domestic competition in E-sales 2 3 0 0 0
Other 12 16 5 8 7
0
0
5
21
Between 10
and 49
employees
19*
74
16
0
0
156
Although the majority of firms which do not offer online trade of their products and services claim that
they actually do not have need for that (72%), certain number of companies are planning to introduce this
kind of sale channel in their business activity (14%).
Graph 4: Which of the following measures could convince you to consider starting up an
online sale?
(Examinees whose companies don`t have online stores, N=58)
10
9
7
3
3
3
3
2
12
10
53
Making the Guide for e-trade
Technology help (making of websites,corresponding platform etc.)
Financial subsidiaries to E-traders
Business strategy definition help
Additional education and betterinforming of potential customers
through media
Existence of call centre supported byMinistry where people would be ableto find all the necessary information
Introducing official quality (reliability)certification for E-trade
Precise law regulations in term ofsuppression gray economy in E-
commerce
Planning to start up the online trade
Other
Nothing from listed
157
In accordance with previous question there is a predominance of entrepreneurs who would be pretty
hard to motivate to start online sales (53%). Nonetheless, quarter of them cites that additional education
with guide for E-commerce, technological or financial aid would give them a stimulus for online store
development.
Total Goods
trade
Services
trade
Up to 9
employees
Between
10 and 49
employee
s
50 and
more
employe
es
Base 58 38 20* 24* 19* 15*
Making the Guide for e-trade 10 13 5 8 21 0
Technology help (making of websites, corresponding
platform etc.) 9 13 0 8 11 7
Financial subsidiaries to E-traders 7 8 5 8 5 7
Business strategy definition help 3 0 10 4 5 0
Additional education and better informing of potential
customers 3 5 0 0 5 7
Existence of call center supported by Ministry where
people would be able to find all the necessary
information
3 5 0 0 5 7
Introducing official quality (reliability) certification for
E-trade 3 5 0 0 11 0
Precise law regulations in term of suppression gray
economy in E-commerce 2 0 5 0 5 0
Planning to start up the online trade 12 18 0 0 11 33
Other 10 8 15 8 5 20
Nothing from listed 53 45 70 67 53 33
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 27. Measures for considering e-commerce introduction
158
Graph 5: From the perspective of entrepreneur, how would you mark the significance of E-
commerce in Serbia, in general? Please use the scale from 1 to 5, where 1 means negligibly
small, and 5 means pretty high.
(Examinees whose companies do online sale, N=151)
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between 10
and 49
employees
50 and more
employees
Base 151 54 97 128 23* 72 37 42
Average 3.7 3.8 3.6 3.6 4.0 3.6 3.7 3.7
On the other hand, regardless of the way of sale, or supply type, or company`s size, e-traders mark
significance of e-commerce in Serbia really high (average is 3.7 on scale from 1 to 5). What`s more, 60%
of them consider this way of trade at least important, and about quarter as very important.
4 11 25 36 251
Insignificantly small Small
Not small, not high High
Pretty high Doesn`t know/Rejects to answer
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 28. Perception of e-commerce relevance in Serbia
159
Graph 6: How much are you satisfied with E-commerce activity of your company? Please use
scale from 1 to 5, where 1 means completely unsatisfied, and 5 means completely satisfied.
(Respondents whose companies do E-commerce, N=151)
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between 10
and 49
employees
50 and more
employees
Base 151 54 97 128 23* 72 37 42
Average 3.7 3.8 3.7 3.7 3.7 3.6 3.6 3.9
Average
3.7
2 7 31 38 221
Completely unsatisfied Mostly unsatisfied
Not satisfied, nor unsatisfied Mostly satisfied
Completely satisfied
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 29. Satisfaction with internal e-commerce activities
160
Graph 7: For how long do you have a developed online sale?
(Examinees whose companies have online sale, N=151)
Total
Interne
t sale
only
Multichannel
sale
Goods
trade
Service
s trade
Up to 9
employee
s
Between
10 and
49
employee
s
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Up to a year 15 11 18 16 13 15 5 24
Between 1 and 3 years 34 28 37 34 35 28 49 31
Between 3 and 5 years 19 24 16 20 17 25 8 19
More than 5 years 32 37 29 31 35 32 38 26
The question of the years of existence of e-commerce within a firm reveals us that it is not anything new
for our traders. Namely, half of the interviewed companies have developed these activities more than 3
years ago, and third of them 5 years ago. Actually, those which are included in E-commerce for a 1 year
represent the smallest amount (15%).
15 34 19 321
Up to a year Between 1 and 3 years Between 3 and 5 years More than 5 years
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 30. Duration of e-commerce implementatinon
161
Graph 8: How much is an online sale represented in your firm, in percentages? Please try
to give an approximate evaluation.
(Examinees whose companies have online stores, N=151)
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between 10
and 49
employees
50 and more
employees
Base 151 54 97 128 23* 72 37 42
Less than 1% 3 0 5 4 0 3 3 5
From 1% to
5% 18 2 27 20 9 13 22 24
Between 5%
and 20% 23 4 34 23 26 15 27 33
Between 20%
and 50% 19 6 27 20 17 14 16 31
From 50% to
99% 7 7 7 7 9 10 8 2
100% of
turnover is
realized by
Internet
29 81 0 27 39 46 24 5
Something more than a third of examined firms (36%) stated that the participation of online sale in total
sale is somewhere between 50% and 100%. Truth be told, this result is significantly influenced by retailers
who exclusively sell their products or services online, but on the other hand, the contribution of e-
commerce is not negligible for those with multi-channel sales as well - 34% say that it participates with
20% and more percent in their total sales. An equal number is estimated between 5% and 20%.
3 18 23 19 7 29
0% 20% 40% 60% 80% 100%
1
Less than 1% From 1% to 5%
Between 5% and 20% Between 20% and 50%
From 50% to 99% 100% of turnover is realized by Internet
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 31. E-sales share in total sales
162
Graph 9: Based on your experience so far, how many percentages of the online sale are done
by one of the following ways? Please give us at least approximate evaluation.
(Examinees whose companies have online stores, N=151)
Total
Interne
t sale
only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between 10
and 49
employees
50 and more
employees
Base 151 54 97 128 23* 72 37 42
Social
networks (FB,
Instagram,
etc.)
20 31 14 21 15 30 19 5
Websites 76 66 81 75 76 68 77 87
Smartphone
applications 4 3 5 3 10 2 4 8
According to opinion of business society in Serbia the online sales are the most efficient way of e-
commerce. The bigger the firm the more expressed this opinion is. On the other hand, individual sellers
and smaller firms for which we could assume to contain the largest part of subgroup which deals only with
online sale, far more often in this context stress social networks (30% versus 20% for the whole sample).
20 76 41
Social networks (FB, Instagram, etc.) Websites Smartphone applications
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 32. E-sales share by type
163
2.2. BARRIERS IN BUSINESS
Graph 10: In your opinion, what is the biggest barrier to further development of E-
commerce, looking from the side of supply, namely e-traders` side?
(Examinees whose companies have online sale, N=151)
Although the buyer`s mistrust could not be directly connected with online supply it is certainly the first
on the barriers lists to further development of e-commerce in Serbia. This statement is especially often
among representatives whose companies have 50 or more employees. Also, it is recognized as the one of
two main barriers by half of the examinees. Then it is followed by: weak development of e-commerce
trade in country and the spread gray economy in this field.
35
20
13
9
6
5
2
1
1
9
17
11
19
8
13
9
9
4
5
6
Buyers` mistrust
Weak development of e-commerce in the country
Gray economy in e-commerce
Lack of financial funds
Lack of quality human resources
Lack of prior experience
Too big demands in term of data security
Impossibility of taking pace with fast technologydevelopment
Weak development of multichannel approach(combining of classical and electronic trade)
Other
The biggest barrier
Second biggest barrier
164
The biggest barrier Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employ
ees
Between
10 and 49
employee
s
50 and
more
employe
es
Base 151 54 97 128 23* 72 37 42
Buyers` mistrust 35 31 37 36 30 29 30 50
Weak development of E-commerce in
the country 20 20 20 17 35 22 19 17
Gray economy in E-commerce 13 13 12 13 9 13 14 12
Lack of financial funds 9 7 9 8 13 11 8 5
Lack of quality human resources 6 4 7 5 9 6 8 5
Lack of prior experience 5 6 4 5 4 3 11 2
Too big demands in term of data
security 2 0 3 2 0 1 0 5
Impossibility of taking pace with fast
technology development 1 4 0 2 0 3 0 0
Weak development of multichannel
approach (combining of classical and
electronic trade)
1 2 1 2 0 0 3 2
Other 9 13 6 10 0 13 8 2
Second biggest barrier Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employ
ees
Between
10 and 49
employee
s
50 and
more
employ
ees
Base 151 54 97 128 23* 72 37 42
Gray economy in E-commerce 19 17 21 20 17 13 30 21
Buyers` mistrust 17 17 18 20 4 17 14 21
Lack of quality human resources 13 13 12 12 17 11 14 14
Weak development of E-commerce in
the country 11 11 10 10 13 14 8 7
Lack of prior experience 9 7 10 9 9 6 11 14
Too big demands in term of data
security 9 11 7 6 22 8 3 14
Lack of financial funds 8 11 6 9 0 13 8 0
Weak development of multichannel
approach (combining of classical and
electronic trade)
5 2 6 5 4 6 5 2
Impossibility of taking pace with fast
technology development 4 4 4 3 9 6 3 2
Other 6 7 5 6 4 8 5 2
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 33. Supply side barriers to e-commerce development
165
Graph 11: What would you highlight as the biggest barrier from the demand side, buyers`
side?
(Examinees whose companies have online sale, N=151)
From the demand side, mistrust to electronic trade is far the biggest barrier for its further development
(54% thinks that, and 73% of examinees put it as one of the two main barriers). Then it is followed with
insufficient technological literacy, lack of money and fear of the unknown.
54
16
15
7
3
1
1
1
4
19
20
15
33
1
3
3
5
1
1
Mistrust
Insufficient technological literacy
Lack of money
Fear of the unknown
Some geographical barriers (too expensivedelivery to some parts)
Language barriers
Fear of data misuse (name and surname,address, payment cards.)
Insufficient financial literacy
Socio-demographical indicators such aseducation and income
Infrastructural barriers, as fast internetunavailability
Other
The biggest barrier
Second biggest barrier
166
The biggest barrier Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employ
ees
Between
10 and 49
employee
s
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Mistrust 54 44 59 55 43 44 62 62
Insufficient technological literacy 16 17 15 13 35 21 11 12
Lack of money 15 24 9 14 17 19 14 7
Fear of the unknown 7 6 7 8 0 6 8 7
Language barriers 1 0 2 2 0 0 0 5
Fear of data misuse (name and
surname, address, payment cards.) 1 0 1 1 0 0 0 2
Insufficient financial literacy 1 2 0 0 4 0 0 2
Socio-demographical indicators
such as education and income
Infrastructural barriers, as fast
internet unavailability
Other 4 6 3 5 0 7 3 0
Second biggest barrier Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employ
ees
Between
10 and 49
employee
s
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Fear of the unknown 33 30 35 31 43 33 32 33
Insufficient technological literacy 20 19 21 20 17 17 19 26
Mistrust 19 28 13 19 17 26 19 5
Lack of money 15 15 15 16 13 13 16 19
Fear of data misuse (name and
surname, address, payment cards.) 3 2 3 3 0 3 0 5
Language barriers 3 2 3 2 4 1 5 2
Some geographical barriers (too
expensive delivery to some parts) 1 2 1 2 0 1 3 0
Socio-demographical indicators
such as education and income 1 0 1 1 0 0 0 2
Infrastructural barriers, as fast
internet unavailability 1 0 1 1 0 0 3 0
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 34. Biggest supply side barrier to e-commerce development
167
Graph 12: What do you find as the biggest barrier to other participants` side which
facilitate/provide support for e-commerce`s realization?
(Examinees whose companies have online sale, N=151)
In Serbian business community`s opinion, unreliability of courier offices is the main threat to electronic
trade, looking from perspective of other participants in it or from perspective of others who participate
in its realization (44%). Banking terms took second place (13%) and insufficient governments engagement
in this sector is third (9%).
44
13
9
9
7
4
4
3
3
4
7
13
20
19
11
7
8
4
5
7
Courier offices` unreliability
Banking terms, actually payment systems
Insufficient government`s help
Too much expensive shipment for in the country
Too much expesnive shippment for abroad
Inexistence of clearly defined law frame andregulations
Technological services providers` conditions(making of the websites, platforms)
Custom regulations
Internet infrastructure
OtherThe biggest barrier
Second biggest barrier
168
The biggest barrier Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employee
s
Between 10
and 49
employees
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Courier offices` unreliability 44 39 46 50 9 42 41 50
Banking terms, actually
payment systems 13 11 14 8 43 17 14 7
Insufficient government`s
help 9 11 8 7 22 8 5 14
Too much expensive
shipment for in the country 9 9 8 10 0 8 11 7
Too much expensive
shipment for abroad 7 9 6 9 0 4 14 7
Inexistence of clearly defined
law frame and regulations 4 6 3 3 9 4 5 2
Technological services
providers` conditions (making
of the websites, platforms)
4 7 2 4 4 6 0 5
Customs regulations 3 2 4 4 0 3 5 2
Internet infrastructure 3 4 2 2 4 1 3 5
Other 4 2 5 3 9 7 3 0
The biggest barrier Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employee
s
Between 10
and 49
employees
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Insufficient government`s
help 20 28 15 16 39 26 14 14
Too much expensive
shipment for in the country 19 11 23 22 0 17 27 14
Banking terms, actually
payment systems 13 11 14 13 13 8 14 21
Too much expensive
shipment for abroad 11 15 9 13 4 13 14 7
Technological services
providers` conditions (making
of the websites, platforms)
8 9 7 7 13 6 8 12
Inexistence of clearly defined
law frame and regulations 7 11 5 6 13 8 5 7
Courier offices` unreliability 7 4 8 8 0 7 5 7
Internet infrastructure 5 2 6 4 9 3 0 12
Customs regulations 4 4 4 5 0 1 8 5
Other 7 6 7 6 9 11 5 0
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 35. E-commerce enablers barriers to e-commerce development
169
2.3. MEASURES FOR STIMULATION
Graph 13: In your opinion which measures would improve further development of E-
commerce in Serbia?
(Examinees whose companies have online sale, N=151)
First of all, our entrepreneurs believe that additional education about e-commerce would speed up its
development (24%). Such opinion is very common among representatives of companies which have 50 or
more employees (40%). The second place on the list is taken by more responsible and efficient work of
courier offices (13%), and followed by smaller post fee amounts and better payment system (both aspects
by 11%).
24
13
11
11
9
8
5
4
4
3
2
1
6
13
Education
Better and more efficient work of courier offices
Smaller post fee amounts
Efficient and better payment
Better marketing
Governemnt`s help
Laws
Gray economy regulating
Bank provisions decrease
Online shopping safety
Easier shiping process towards abroad
Introducing of PayPal
Other
Nothing
170
Average Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employee
s
Between 10
and 49
employees
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Precise law regulations in
term of suppression the gray
economy in E-commerce
4.7 4.6 4.7 4.7 4.7 4.6 4.9 4.7
Additional education and
better informing of potential
customers through media
4.6 4.6 4.6 4.7 4.2 4.5 4.8 4.7
Introducing official
quality/reliability certification
for E-sale
4.5 4.4 4.5 4.5 4.0 4.4 4.8 4.4
Financial subsidies for E-
traders 4.5 4.6 4.4 4.5 4.5 4.5 4.5 4.3
Education of E-traders 4.5 4.4 4.5 4.5 4.4 4.4 4.5 4.5
Defining clear rules and
obligations for courier offices,
banks and other services
providers
4.4 4.1 4.6 4.5 4.0 4.2 4.8 4.5
Technology help (making of
websites, corresponding
platform etc.)
4.4 4.4 4.4 4.4 4.3 4.3 4.6 4.4
Making the Guide for e-trade
(technology, law and business
guide)
4.4 4.4 4.4 4.4 4.4 4.3 4.3 4.5
Existence of call center
supported by Ministry where
people would be able to find
all the necessary information
4.3 4.1 4.4 4.3 4.2 4.2 4.4 4.4
Business strategy definition
help 4.2 4.2 4.3 4.2 4.3 4.1 4.3 4.4
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 36. Measures for further e-commerce development in Serbia
171
Graph 14: How much influence would take the following measures for further
development of E-commerce in Serbia? Please use the scale from 1 to 5, where 1 is
insignificantly small, and 5 is pretty high.
(Examinees whose companies have online sale, N=151)
If we look only subgroups of companies, we would be able to see that companies which have between 10
and 49 employees usually stand out by the willingness to more firmly support law regulations (4.9). Quality
certification (4.8) and defining clear rules and regulations for courier offices, banks and other services
providers (4.8 to 4.4 on the whole sample) would also be strongly supported by the companies.
1
1
2
2
1
2
0
1
3
0
1
2
3
3
1
1
3
3
6
3
3
4
7
9
11
10
13
12
8
19
19
21
21
17
26
27
26
26
25
29
76
73
67
68
61
60
58
58
59
49
Precise law regulations in term of suppression the grayeconomy in e-commerce
Additional education and better informing of potentialcustomers through media
Introducing official quality (reliability) certification for e-sale
Financial subsidiaries to e-traders
Education of e-traders
Defining clear rules and obligations for courier offices,banks and other services providers
Technology help (making of websites, correspondingplatform etc.)
Making the Guide for e-trade (technology, law andbusiness guide)
Existence of call centre supported by Ministry wherepeople would be able to find all the necessary…
Business strategy definition help
Insignificantly small Small Not small, not high High Pretty high
Average
172
Average Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employ
ees
Between 10
and 49
employees
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Precise law regulations in term of
suppression the gray economy in
E-commerce
4.7 4.6 4.7 4.7 4.7 4.6 4.9 4.7
Additional education and better
informing of potential customers 4.6 4.6 4.6 4.7 4.2 4.5 4.8 4.7
Introducing official quality
(reliability) certification for E-sale 4.5 4.4 4.5 4.5 4.0 4.4 4.8 4.4
Financial subsidiaries to E-
traders 4.5 4.6 4.4 4.5 4.5 4.5 4.5 4.3
Education of E-traders 4.5 4.4 4.5 4.5 4.4 4.4 4.5 4.5
Defining clear rules and
obligations for courier offices,
banks and other services
providers
4.4 4.1 4.6 4.5 4.0 4.2 4.8 4.5
Technology help (making of
websites, corresponding
platform etc.)
4.4 4.4 4.4 4.4 4.3 4.3 4.6 4.4
Making the Guide for e-trade
(technology, law and business
guide)
4.4 4.4 4.4 4.4 4.4 4.3 4.3 4.5
Existence of call center
supported by Ministry where
people would be able to find all
the necessary information
4.3 4.1 4.4 4.3 4.2 4.2 4.4 4.4
Business strategy definition help 4.2 4.2 4.3 4.2 4.3 4.1 4.3 4.4
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 37. Perception of measures for further e-commerce development in Serbia
173
Graph 15: Is there any regulation barrier which solving would improve E-commerce in
Serbia?
(Examinees whose companies have online sale, N=151)
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between
10 and 49
employees
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Yes 14 22 9 16 4 21 8 7
No 35 26 40 37 26 33 22 50
Not sure 51 52 51 48 70 46 70 43
As expected, half of the examinees are not familiar with the possible law barriers in process of online
trade. Third of them consider the barriers do not exist. Interestingly, that percentage is the biggest among
leaders of the biggest interviewed firms (50%). Number of those who claim that the barriers of such type
could exist is not big enough to be taken into consideration.
14
3551 Yes
No
Not sure
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 38. Regulatory barriers whose resolution would improve e-commerce in Serbia
174
Graph 16: have you ever heard about blockchain technology?
(Examinees whose companies have online sale, N=151)
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between
10 and 49
employees
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Yes 25 35 19 19 57 35 14 17
No 75 65 81 81 43 66 86 83
Only one quarter of the interviewed enterprises is familiar with the term of the blockchain technology.
25
75
Yes No
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 39. Familiarity with blockchain technology
175
Graph 17: Could you explain in a simple way what is blockchain?
(Examinees who have heard for the blockchain technology)
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between
10 and 49
employees
50 and
more
employees
Base 37 19* 18* 24* 13* 25* 5* 7*
Yes 46 47 44 42 54 52 40 29
No 54 53 56 56 46 48 60 71
Something less than half of the few of examinees who have heard about the blockchain technology believe
they could easily explain to others what it means.
4654
Yes No
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 40. Level of blockchain technology understanding
176
Graph 18: Have you ever heard about Smart contract term?
(Examinees whose companies have online sale, N=151)
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between
10 and 49
employees
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Yes 21 20 22 20 26 22 19 21
No 79 80 78 80 74 78 81 79
For 80% of entrepreneurs in Serbia, term Smart contract is something unknown.
21
79
Yes No
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 41. Familiarity with smart contracts
177
Graph 19: Would you say that business activity and status of E-traders in Serbia in
comparison with 3 years ago are…?
(Examinees whose companies have online sale, N=151)
Total Internet
sale only
Multichannel
sale
Goods
trade
Services
trade
Up to 9
employees
Between
10 and 49
employees
50 and
more
employees
Base 151 54 97 128 23* 72 37 42
Worsened 2 4 1 2 0 3 3 0
On the
same level 25 22 26 23 30 28 27 17
Improved 74 74 73 74 70 69 70 83
Although they think that a lot could be improved, significant majority of entrepreneurs think that status
and business activity of e-traders in our country are better than before 3 years (74%). Quarter of them
recognize that barely has something changed and 2% notice worsening.
2
25
74 Worsened
On the same leve
Improved
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 42. Comparisson of e-traders’ situation in the last three years
178
2.4. SAMPLE STRUCTURE
37
17
16
12
9
7
3
1
Clothes and shoes
Technics and technology
Other goods trade (books, furniture, toys, flower stroes etc.)
Other services trade (software selling, information conten,different professional services etc.)
Sport clothes, shoes and equipment
Mostly food products (FMCG)
Selling of flying and other transportation tickets, touristicarangements, event tickets etc.
Betting
Predominant business activity
15
5
5
1
2
5
68
Up to 50,000€
From 50,000 to 100,000€
From 100,000 to 200,000€
From 200,000 to 300,000€
From 300,000 to 500,000€
Over 500,000€
Doesn`t know/rejects to answer
Annual income
Figure 43. Annual corporate income
Figure 44. Predominant business activity (industry)
179
85
15
Predominant business activity
Goods trade
Services trade
26
5
25
44
Interviewees' position
Owner, co-owner
Director
Electronic trademanager
Other employeescompetent for theresearch topic
48
25
28
Number of employees
Up to 9 employees
Between 10 and 49epmloyees
50 and moreemployees
315
7
19
55
Years of existance
Up to one year
Between 1 and 3 years
Between 3 and 5 years
Between 5 and 10 years
More than 10 years
5623
21
Region
Belgrade
Central Serbia
Vojvodina
54
23
24
Share of women ownership
Without women`scontribution
1% - 49%
50% and more
Figure 45. Data on the number of employees, interviewees' position, years of existance, region,
share of women ownership and predominant business activity
180
3. INTERNET USERS RESEARCH
3.1. METODOLOGY
FIELD OF RESEARCH
A research has been created to provide a view on opinions and statements of general population about
online trade in Serbia and its significance and development level at the moment. Also, gathered data will
show what are citizen`s experience in this sphere so far. CATI (Computer-Assisted Telephone
Interviewing) technique of gathering data has been implemented, which means that experienced
interviewers have surveyed representatives of randomly chosen populations via telephone. The research
team would like to express its gratitude to CFG representatives on excellent cooperation, useful
suggestions during the survey creation and great help during the training of interviewers.
SAMPLE DESCRIPTION
Survey about electronic trade with general population has been conducted on sample of 1000 adult
internet users. With an assumption that 70% of population in Serbia use internet the sample will be leveled
at n=1450 so we could get a real picture of internet users.
Chosen sample (n=1450) is a quota sample, nationally representative in terms of: gender, age, settlement
type and statistical region. Quota sample considers setting pre-defined crossed quotas which are created
based on data from an official national Population census from 2011. This way the research sample
represents the status in general population of Serbia in terms of stated demographical indicators. On
following pictures is given the example of crossed nationally representative quota sample.
Region Settlement Needed
(N)
Needed
(col %)
1 Vojvodina 1 Urban 273 18.8%
1 Vojvodina 2 Rural 61 4.2%
2 Belgrade 1 Urban 233 16.1%
2 Belgrade 2 Rural 158 10.9%
3 West Serbia 1 Urban 193 13.3%
3 West Serbia 2 Rural 214 14.8%
4 East Serbia 1 Urban 164 11.3%
4 East Serbia 2 Rural 154 10.6%
Total 1450
Figure 46. Quotas crossed by statistical region and settlement type
181
Region Q3 Q4 Needed
(N)
Needed
(col %)
1 Vojvodina 1.1 Male 1.1 From 1 to 18 0
1 Vojvodina 1.1 Male 2.2 18-24 21 1.4%
1 Vojvodina 1.1 Male 3.3 25-34 34 2.3%
1 Vojvodina 1.1 Male 4.4 35-44 32 2.2%
1 Vojvodina 1.1 Male 5.5 45-54 34 2.3%
1 Vojvodina 1.1 Male 6.6 55-64 35 2.4%
1 Vojvodina 1.1 Male 7.7 65+ 31 2.1%
1 Vojvodina 2.2 Female 1.1 From 1 to 18 0
1 Vojvodina 2.2 Female 2.2 18-24 20 1.4%
1 Vojvodina 2.2 Female 3.3 25-34 32 2.2%
1 Vojvodina 2.2 Female 4.4 35-44 32 2.2%
1 Vojvodina 2.2 Female 5.5 45-54 35 2.4%
1 Vojvodina 2.2 Female 6.6 55-64 38 2.6%
1 Vojvodina 2.2 Female 7.7 65+ 47 3.2%
2 Belgrade 1.1 Male 1.1 From 1 to 18 0
2 Belgrade 1.1 Male 2.2 18-24 16 1.1%
2 Belgrade 1.1 Male 3.3 25-34 31 2.1%
2 Belgrade 1.1 Male 4.4 35-44 28 1.9%
2 Belgrade 1.1 Male 5.5 45-54 25 1.7%
2 Belgrade 1.1 Male 6.6 55-64 28 1.9%
2 Belgrade 1.1 Male 7.7 65+ 27 1.9%
2 Belgrade 2.2 Female 1.1 From 1 to 18 0
2 Belgrade 2.2 Female 2.2 18-24 16 1.1%
2 Belgrade 2.2 Female 3.3 25-34 32 2.2%
2 Belgrade 2.2 Female 4.4 35-44 29 2.0%
2 Belgrade 2.2 Female 5.5 45-54 29 2.0%
2 Belgrade 2.2 Female 6.6 55-64 34 2.3%
2 Belgrade 2.2 Female 7.7 65+ 39 2.7%
Figure 47. Quotas crossed by statistical region, gender and age
DATA GATHERING PROCESS
Interviewers and the training method
Prerequisite for successful implementation of any project is detailed training of interviewers who will work
on it. With active participation and great help of client, the research team had organized trainings for one
182
part of interviewers while other interviewers were educated on additional training modeled on basis of
the first training lead by supervisor. Trainings have included following:
• General training about working methods, quality standards in the process of work, as well
as software usage for data collection
• Introducing with research goals, target groups and other details about project
• Training with questionnaire, analysis of every single question and its potential specifics
After the training had finished every interviewer was obliged to conduct at least 3 surveys before starting
to work on project. During the period of field work the supervisor has been available at any moment for
additional information, no matter if they are just about the questionnaire they occur during the interview.
Team of interviewers was assembled by associates:
• Of different age and educational background with perennial experience of work with
companies as target groups
• Who are eloquent, kind, convincing and stubborn, with developed communicational skills
and trained to motivate the examinee and keep him active during the whole interview
(these properties are especially expressed when it comes to long list of multiple choices
or when there is expected to give an open answer which should be descriptive as much
as possible).
Database usage and connecting methods
Telephone number base containing about 2,5 million numbers (about 20% mobile and 80% house phones)
was used covering the whole territory of Serbia including urban and rural settlements. The program was
set in a way that calling is done uniformly by the contribution of called numbers in the whole sample,
during the whole field task. Calls took place during the whole day (working days from 12:00 to 20:00, and
at weekends from 11:00 to 20:00) with accent on afternoon and evening hours so that employed members
of households could be covered. This way of work ensures high quality output.
Quotas by gender, age, settlement type and region are set in advance, so the interviewers could not
influence on their changes.
Field work control
Validity of the surveys has been logically checked throughout the whole sample, and by re-calling and
checking some key questions from the questionnaire and demographics (e.g. gender, age, etc.) covering at
least 30% of the sample, randomly chosen. In case of some irregularities telephone control percentage will
be increased on 100%.
INSTRUMENT OF RESEARCH (QUESTIONNAIRE)
183
The questionnaire was prepared in close cooperation with the client. Hence the CATI software has been
used in the survey, the whole questionnaire was converted into digital form. Research team has thoroughly
checked, multiply tested and finally approved the electronic version of questionnaire.
3.2. MAIN RESULTS AND SUGGESTSIONS
Number of internet users among Serbian citizens increases day by day. This is not surprising given the fact
that smartphones are nowadays almost considered by default and when the barriers for its usage as
financial as technical are almost disappeared.
If we have in mind that more than two fifths (43%) of people bought something via internet in the last 6
months, then the number of online buyers in our country is not insignificant. Time saving and practical
aspects of simple and efficient comparing of different offers motivate us on first place to shop online.
Although social networks are unmatched by being interested, informing about products and services and
their purchase are mostly done via websites.
What could be the main reasons why you shop online? Is there any other reason? I will read
you some reasons why people shop online. Do you recognize yours among them?
(Examinees who shopped something online in last 6 months, N=434)
84
75
73
65
62
49
41
8
64
45
35
40
28
37
18
1
4
30
19
8
15
6
16
6
Time saving
It`s practical - I can compare differentoffers in short time
Delivery on demanded address
Bigger choice of products and services
Does not require physical effort
Money saving
I could easily obtain products fromabroad which are not available in Serbia
Anonymity
Other
Listed with reminding
Other spontaneouslymentioned
First mentioned
Figure 48. Main reasons for internet shopping
184
Definitely we buy clothes, shoes and sport equipment the most, often do we also shop technique and
fashion accessories, so according to this we usually visit official retail objects` websites which, when it
comes to online shopping, we trust the most. Although a significant part of online shopping in Serbia is
done via social networks, whether they are trademarks` profiles or individual traders, these sellers are
not considered much reliable.
An average online buyer in Serbia hasn`t had any significant bad experience so far, and although he/she
has some concerns, primarily regarding the delivery of the wrong product and quality of goods, he/she is
ready to set aside a decent amount of money for one online purchase (RSD 10334). He/she admits that
they are not informed enough about their rights when online shopping. What would stimulate him/her to
shop online more often are possibilities of exchanging the product in the nearest trader`s store as well as
positive experience of their close friends and possibility to see the product before the payment is done.
In this segment better online supply and lower delivery costs are also listed.
Factors which could influence more and often online shopping. Scale from 1 to 5, where 1
means it would not influence at all, and 5 means it would influence a lot.
(Examinees who bought something via internet in last 6 months, N=434)
1
2
2
2
7
2
2
3
2
1
3
4
3
5
4
3
8
7
10
12
11
15
16
15
21
31
29
33
21
31
32
36
66
59
55
49
58
47
44
41
1
1
1
1
2
Goods could be returned in the trader`s nearest store
Positive experience of close friends
Possibility to see the product before the payment is done,or the possibilitu of returning the reserved funds (paying
by cards)
Better supply
Smaller delivery costs
Precise law regulation about online sellers`/E-traders`obligations
Better internet supply of classical traders (which alreadyhave retail objects)
That you can read a review about the product/tradergiven by other buyers
Wouldn`t inluence at all It wouldn`t inluence mostly Would (not) inluence
It would influence mostly Would influence a lot Doesn`t know/rejects to answer
Average
Figure 49. Factors influencing the higher frequency of e-shopping
185
Although the average buyer generally puts a lot of trust in e-commerce (online shopping), that is the
exactly what is still missing among the majority of our population which doesn`t shop online. Despite the
small number who know for unpleasant experience in this process and although they would be motivated
to a certain point to consider this option with the same factors which would stimulate online buyers to
increase the extent of their shopping, there exist small chances that fears and changing of habits among
people who don`t prefer e-commerce could fall apart without additional education.
3.3. MAIN RECOMMENDATIONS OF THIS RESEARCH
✓ Education of customers and potential online customers, as well as promotion programs
designed for them should be focused on the key benefits that e-commerce brings: time
saving, easy comparison of different offers, bigger choice, no physical effort nor costs of
getting to the point of sale.
✓ Education of customers and promotion should be intensively included in elimination of
online shopping fears, such as: receiving non-adequate products fear, or not to receive
the product at all, reclamation procedure ignorance, general mistrust to e-commerce etc.
✓ Above mentioned e-commerce benefits and its potential deficiencies, as well as traders`
rights and obligations and customers` rights should be represented to Serbian population
in the right way and through adequate media.
✓ Technological literacy of people should be intensively improved
✓ Conducting a set of measures which will secure more qualitative and cheaper delivery
✓ Creating an online offer of classical and online traders which will be in accordance with
the needs of Serbian customers
186
4. ANALYSIS OF INTERNET USERS RESEARCH RESULTS
4.1. INTERNET USERS` HABITS
Graph 21: How often do you use internet?
(All examinees, N=1000)
Significant majority of citizens use internet every day (85%). What is more, there are no respondents who
use internet less than once a week. As expected, younger population use internet more, even though,
among older users percentage of everyday users is also high. Especially active users of internet are those
who are employed with an above average salary (income) (90%).
85 12 3
0% 20% 40% 60% 80% 100%
1
Every day Several times a week Once a week
187
To
tal
Men
Wom
en
18-2
425-3
435-4
445-5
455-6
465+
Belg
rade
Eas
t
Serb
ia
West
Serb
ia
Vojv
odi
na
Urb
anR
ura
lBello
w
Avera
geA
vera
geA
bove
Avera
ge
Base
1000
512
488
139
224
216
210
143
69
249
195
268
287
587
413
309
121
127
Every
day
85
81
90
99
96
91
78
65
66
83
87
83
88
86
84
82
81
90
Severa
l tim
es
a w
eek
12
15
81
37
15
25
26
13
11
14
910
13
15
15
6
Once in a
week
33
20
01
48
74
13
23
23
42
Severa
l tim
es
in a
month
0
10
00
10
10
00
11
01
00
1
Once in a
month
00
00
00
00
00
00
00
00
00
Seld
om
than
these
00
00
00
01
00
00
00
00
01
Figure 50. Frequency of internet usage
Co
nfidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
188
Graph 22: Which devices do you use to get online?
(All examinees, N=1000)
Even 9/10 examinees use their smartphone to go online, which puts this device on the first place of the
list. Beside young and people with an above average income this statement is also present among people
from Belgrade as well from rural settlements. Hence, we could conclude that settlement type is no more
an obstacle for availability of new technologies. Something less than a half of all examinees use internet via
laptop or desktop computers (both make 45%), and 15% via tablet.
90
45
45
15
Smartphone
Laptop/netbook/notebook
Desktop computer
Tablet
189
To
tal
Men
Wom
en
18-2
425-3
435-4
445-5
455-6
465+
Belg
rade
Eas
t
Serb
ia
West
Serb
ia
Vojv
odi
na
Urb
anR
ura
lBello
w
Avera
geA
vera
geA
bove
Avera
ge
Base
1000
512
488
139
224
216
210
143
69
249
195
268
287
587
413
309
121
127
Sm
artp
hone
90
88
92
98
99
96
92
76
55
94
86
91
90
88
93
92
95
92
Lap
top/
netb
ook/
note
book
Desk
top
com
pute
r45
48
42
36
44
44
47
47
59
44
45
50
41
47
43
40
49
46
Tab
let
15
11
19
16
19
18
13
914
18
11
13
18
18
12
13
13
22
Oth
er
00
00
00
00
00
00
00
00
00
48
48
40
42
38
54
34
38
32
55
42
35
45
45
45
54
56
48
Figure 51. Devices used for internet access
Co
nfid
ence
inte
rval
Sign
ifica
ntly
above
the
aver
age
95%
90%
Sig
nifi
cantly
bel
ow
the
aver
age
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
190
Graph 23: How often do you visit these internet contents?
(All respondents, N=1000)
By frequency of use, social networks take the lead far from other online content – three fifths of examinees
visit them every day, and almost 80% once a week. The youngest examinees are totally expected to be
the biggest fans of social media, as some of the older ones, but it was totally unexpected that half the
eldest category (65+) visit social media every day.
62
4
1
1
1
1
0
0
13
14
7
5
5
2
2
1
3
12
10
9
4
3
3
1
2
24
13
21
14
11
8
5
1
12
10
17
10
8
7
6
2
16
22
24
22
22
18
26
18
20
36
22
42
53
61
59
0% 20% 40% 60% 80% 100%
Social Networks (Facebook, Instagram, LinkedIn etc.)
Official websites of other companies (clothes, shoes and sport equipment, baby equipment, cosmetics, fashion
accessories, touristic…)
Trade chains` official websites (hypermarkets,supermarkets, cash&carry etc)
Technique and technology stores` official websites
Specialised sites for online trade (Limundo, Kupindo, AliExpress, Alibaba, Amazon etc)
E-traders` classical websites
Group purchase websites (where you buy vouchersgoods/services), e.g: Grupoman, Kupoman and so on
Specialised websites for finding, purchase or booking anaccomodation (Booking, AirBnb etc)
Every day Several time a week Once a week Several times in a month
Once in a month Seldom than these I don`t visit it at all
% At least once a weeek
191
At
leas
t o
nce
a w
eek
To
tal
Men
Wo
me
n18-2
425-3
435-4
445-5
455-6
465+
Belg
rade
Eas
t
Serb
ia
West
Serb
ia
Vo
jvo
di
na
Urb
anR
ura
lB
ello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Ba
se1
00
05
12
48
81
39
22
42
16
21
01
43
69
24
91
95
26
82
87
58
74
13
30
91
21
12
7
Offic
ial w
ebsi
tes
of o
ther
com
pan
ies
(clo
thes,
sho
es
and s
po
rt e
quip
ment,
bab
y equip
ment,
cosm
eti
cs, fa
shio
n a
ccess
ori
es,
to
uri
stic
…)
29
20
38
52
34
33
23
12
825
35
31
27
31
26
25
22
40
Tra
de c
hai
ns`
offic
ial w
ebsi
tes
(hyp
erm
arkets
,
superm
arkets
, ca
sh&
carr
y etc
)18
13
25
11
19
19
18
24
19
15
22
15
22
22
13
16
23
20
Tech
niq
ue a
nd t
ech
no
logy
sto
res`
offic
ial
websi
tes
15
18
13
13
17
16
17
13
15
14
18
15
16
17
13
14
18
18
Speci
alis
ed s
ites
for
online t
rade (
Lim
undo
,
Kupin
do
, A
li E
xpre
ss, A
libab
a, A
maz
on e
tc)
11
12
10
815
13
910
55
12
14
12
13
911
915
E-t
raders
` cl
assi
cal w
ebsi
tes
66
76
10
64
44
46
59
84
65
9
Gro
up p
urc
has
e w
ebsi
tes
(where
yo
u b
uy
vouch
ers
go
ods/
serv
ices)
, e.g
: G
rupo
man
,
Kupo
man
and s
o o
n
54
78
76
35
37
33
77
25
68
Speci
alis
ed w
ebsi
tes
for
findin
g, p
urc
has
e o
r
bo
okin
g an
acc
om
odat
ion (
Bo
okin
g, A
irB
nb
etc
)
32
45
41
32
13
22
44
12
5283
77
74
78
78
78
75
83
70
52
52
81
81
Soci
al N
etw
ork
s (F
acebo
ok, In
stag
ram
,
Lin
kedIn
etc
.)
78
76
80
99
93
Figure 52. Frequency of visiting certain online contents
Confid
ence
inte
rval
Sign
ifica
ntly
above
the
aver
age
95%
90%
Sig
nifi
cantly
bel
ow
the
aver
age
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
192
Graph 24: Did you BUY anything online in a last 6 months? Please take into account all the
previous mentioned categories. Since that, we are interested whether you did buy online
any kind of goods or services in a last 6 months.
(All examinees, N=1000)
About 4 out of 6 examinees did some online purchase in a last six months. It seems that younger
population, those between 18 and 24 years (58%), and those between 25 and 34 years (52%), as well as
those with better financial situation (55%) put more trust in this type of trade than other citizens do.
4357
Yes No
193
To
tal
Men
Wo
men
18-2
425-3
435-4
445-5
455-6
465+
Belg
rade
Eas
t
Serb
ia
West
Serb
ia
Vo
jvo
din
aU
rban
Rura
lB
ello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Ba
se1
00
05
12
48
81
39
22
42
16
21
01
43
69
24
91
95
26
82
87
58
74
13
30
91
21
12
7
Yes
43
41
46
58
52
47
38
26
29
40
45
48
41
46
40
39
43
55
No
57
59
54
42
48
53
62
74
71
60
55
52
59
54
60
61
57
45
Co
nfid
ence
inte
rval
Sign
ifica
ntly
above
the
aver
age
95%
90%
Sig
nifi
cantly
bel
ow
the
aver
age
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
Figure 53. Internet purchase in the last six months
194
Graph 25: How often do you do the following activities?
(All examinees, N=1000)
No matter how often do people use internet, when it comes to shopping our citizens still prefer classical
way of doing it than online – 80% of examinees states that they do it always or very often. This is especially
typical for older people (55 years and more) and Belgrade citizens. Online search about products which
will be bought in classical way is done much more by Belgrade citizens and those between 25 and 44 and
those with higher salaries than any others. Younger and wealthier examinees search information and buy
the products online more often than others.
Average
2
13
41
61
4
13
18
17
13
41
25
15
39
28
13
5
41
5
2
1
0% 20% 40% 60% 80% 100%
Places where I shop goods and services are theplaces where i look information for them
I only look information about products online, but Ibuy them in a classical way
I look information about products on internet and buythem online as well
Looking the information about products in classicalstores, but I buy them online
Never did I do that Rarely do I do that I do that sometimes Often do I do that I always do that
195
Figure 54. Frequency of performing certain online activities
To
tal
Men
Wom
en18
-24
25-3
435
-44
45-5
455
-64
65+
Belg
rade
East
Serb
ia
Wes
t
Serb
iaV
ojvo
dina
Urb
anR
ural
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e10
0051
248
813
922
421
621
014
369
249
195
268
287
587
413
309
121
127
Plac
es w
here
I sh
op g
oods
and
ser
vice
s ar
e th
e
plac
es w
here
i lo
ok in
form
atio
n fo
r th
em
4.1
4.1
4.2
3.8
4.0
4.1
4.2
4.5
4.4
4.3
4.2
3.8
4.2
4.1
4.1
4.1
4.0
4.2
I onl
y lo
ok in
form
atio
n ab
out
prod
ucts
onl
ine,
but
I buy
the
m in
a c
lass
ical
way
3.
03.
03.
03.
13.
23.
32.
82.
82.
23.
32.
92.
82.
93.
03.
03.
03.
13.
2
I loo
k in
form
atio
n ab
out
prod
ucts
on
inte
rnet
and
buy
them
onl
ine
as w
ell
2.2
2.2
2.2
2.6
2.5
2.3
2.0
1.6
1.6
2.2
2.3
2.2
2.1
2.2
2.1
2.1
2.3
2.5
Look
ing
the
info
rmat
ion
abou
t pr
oduc
ts in
clas
sica
l sto
res,
but
I bu
y th
em o
nlin
e 1.
71.
71.
71.
91.
81.
81.
61.
41.
31.
71.
51.
81.
61.
81.
61.
71.
71.
8
Co
nfid
ence
inte
rval
Sign
ifica
ntly
above
the
aver
age
95%
90%
Sig
nifi
cantly
bel
ow
the
aver
age
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
196
Graph 26: Where online do you buy goods/services?
(Examinees who bought something online in last six months, N=434)
Even four fifth of buyers do online shopping on websites. This way of online shopping is done mostly by:
men (87%), elder population (55+ years) and examinees with an average income (96%). Shopping via
social networks is especially favorite among ladies (60%) and the youngest category (69%). These two
categories make half of the examinees.
81
52
9
Websites
Social networks
Smartphone applications
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for
conducting relevant
conclusions
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 434 212 223 81 117 100 79 37 20* 100 88 128 119 267 167 122 52 70
Websites 81 87 75 78 77 80 83 92 95 85 72 80 85 84 77 73 96 86
Social
networks52 43 60 69 58 48 44 30 29 56 48 56 45 48 56 60 50 39
Smartphone
applications9 11 7 7 7 12 10 9 5 12 6 4 13 12 4 9 6 11
Figure 55. Online place of product/service purchase
197
Graph 27: Where do you look information about goods/services on the internet?
(All examinees, N=1000)
As with shopping, 80% of respondents prefer websites to inform about products and services. Male
population (84%), people between 35 and 44 years old (84%), as well as those with average and above
average incomes are more likely than others to search websites for useful information. Social networks
(47% of the total sample) are again the most attractive among women (53%) and young people (18-24
years old).
79
47
7
4
1
Websites
Social networks
Smartphone applications
I do not inform myself
Other
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 1000 512 488 139 224 216 210 143 69 249 195 258 287 587 413 309 121 127
Websites 79 84 73 76 80 84 77 76 75 79 77 81 77 79 77 75 85 85
Social
networks47 41 53 73 61 45 36 28 27 55 47 45 42 45 50 50 48 45
Smartphone
applications7 7 7 5 8 10 6 7 1 7 10 4 8 8 5 6 4 9
I do not
inform myself4 3 5 0 1 3 7 8 15 2 6 5 5 4 4 5 1 2
Other 1 1 1 1 0 0 1 1 1 0 1 0 1 1 0 1 0 1
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
Figure 56. Where shoppers search for information online
198
Graph 28: Have you ever heard about blockchain technology?
(All examinees, N=1000)
The vast majority of examinees (88%) have never heard about blockchain technology. People with higher
income are better informed about this topic comparing with others (11% to 6% in the sample).
6
88
6
Yes No Not sure
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 1000 512 418 139 224 216 210 143 69 249 195 268 287 587 413 309 121 127
Yes 6 7 4 6 7 6 4 5 7 5 4 5 7 7 4 5 4 11
No 88 85 91 83 87 87 89 95 90 93 93 82 87 86 91 88 89 83
Not sure 6 8 5 11 6 8 7 0 3 2 3 13 6 7 6 7 6 6
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
Figure 57. Familiarity with blockchain technology
199
Graph 29: Could you explain what blockchain is in a simple way?
(Examinees who have heard about blockchain technology, N=57)
Just over a third of the few who know about blockchain think they can easily explain this concept to others
(37%).
37
63
Yes No
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 57 37 20* 8* 16* 13* 9* 7* 5* 14* 8* 15* 21* 42* 15* 16* 5* 14*
Yes 37 45 24 38 42 62 34 0 20 35 37 13 56 44 20 45 43 42
No 63 56 76 62 58 38 66 100 80 65 63 87 44 56 80 56 57 58
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 58. Level of blockchain technology understanding
200
Graph 30: Have you ever heard about Smart contract concept?
(All examinees, N=1000)
Similar to the previous case, most of our citizens did not come across the concept of smart contract
(83%), while every tenth knows about smart contract.
10
83
8
Yes No Not sure
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 1000 512 418 139 224 216 210 143 69 249 195 268 287 587 413 309 121 127
Yes 10 10 9 7 9 11 8 10 14 7 11 10 11 11 7 9 7 14
No 83 80 86 82 81 80 83 89 85 88 87 75 83 81 86 83 80 79
Not sure 8 10 5 11 10 9 8 2 1 5 2 15 6 8 7 8 13 7
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
Figure 59. Familiarity with smart contracts
201
4.2. ONLINE BUYERS – ATTITUDES HABITS, BARRIERS, STIMULI MEASURES
Graph 31: How often do you buy on internet in general?
(Examinees who bought something online in last six months, N=434)
Online buyers usually shop occasionally (62%). A quarter do it rarely, and 14% do it regularly.
24
62
14
Rarely
Sometimes
Always
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 434 212 223 81 117 100 79 37 20* 100 88 128 119 267 167 122 52 70
Rarely 24 22 26 20 20 26 23 40 29 24 25 26 21 22 27 28 17 16
Sometimes 62 61 63 72 63 56 64 53 52 69 57 63 58 63 60 60 69 64
Always 14 17 11 8 17 19 12 6 19 7 18 11 21 15 13 12 14 20
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 60. Online shopping frequency
202
Graph 32: What do you buy the most no matter how frequent do you buy?
(Examinees who bought something online in last six months, N=434)
The "targets" of internet buyers by far are most often clothes, shoes and sports equipment (74%). Women
(85%), aged between 18 and 34 and lower-income people (81%) opt for buying these products online
significantly, more than others. Technique and technology come second (38%), and are significantly more
common among men (54%) and older people (55+). A quarter of respondents also buy various accessories
and fashion accessories online.
74
38
26
19
13
12
12
11
11
9
9
8
2
1
3
Clothes, shoes, sport equipment
Technique and/or technology (audio, video…)
Accessories (jewelry, purses, glasses, smartphoneequipment etc.)
Car, bicycle or motor equipment
Cosmetics, hygiene products
Tickets for: cinemas, theaters, concerts, touristattractions
Books
Furniture
Travel arrangements
Kids/baby equipment
Flight/other transport tickets
In-country or abroad accommodation
Food products
Home care
Other
203
To
tal
Men
Wom
en18
-24
25-3
435
-44
45-5
455
-64
65+
Belg
rade
East
Serb
ia
Wes
t
Serb
iaV
ojvo
dina
Urb
anR
ural
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e 43
421
222
381
117
100
7937
20*
100
8812
811
926
716
712
252
70
Clo
thes
, sho
es, s
port
equ
ipm
ent
7463
8586
8274
6957
3872
7376
7575
7381
7176
Tec
hniq
ue a
nd/o
r te
chno
logy
(au
dio,
vide
o…)
3854
2335
3333
4354
6238
4035
4038
3933
4434
Acc
esso
ries
(je
wel
ry, p
urse
s, g
lass
es,
smar
tpho
ne e
quip
men
t et
c.)
2622
2929
3325
2311
1432
2525
2225
2634
2926
Car
, bic
ycle
or
mot
or e
quip
men
t19
353
1015
2229
2310
199
2123
1820
2325
21
Cos
met
ics,
hyg
iene
pro
duct
s13
620
1116
1316
910
1815
129
1412
154
17
Tic
kets
for:
cin
emas
, the
ater
s, c
once
rts,
tour
ist
attr
actio
ns12
916
1318
1510
00
2515
58
1410
1010
25
Book
s12
815
1313
1410
314
2213
410
147
74
20
Furn
iture
1113
95
717
1421
517
148
912
104
1816
Tra
vel a
rran
gem
ents
1110
1213
817
515
1016
126
1214
77
921
Kid
s/ba
by e
quip
men
t9
512
413
161
80
1014
59
106
810
10
Flig
ht/o
ther
tra
nspo
rt t
icke
ts9
810
911
114
65
1013
58
97
76
17
In-c
ount
ry o
r ab
road
acc
omm
odat
ion
89
810
1013
50
011
133
810
66
517
Food
pro
duct
s2
31
00
51
35
41
12
21
24
4
Hom
e ca
re1
11
00
40
35
41
10
21
10
4
Oth
er3
61
25
53
00
33
44
34
52
6
Figure 61. Most frequent online purchases
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
204
Graph 33: Which websites do you buy most from?
(Examinees who bought something online in last six months, N=434)
This question confirms what we could already conclude - online shopping is used through the website,
and this is usually through the official websites of retail stores (52%). This is followed by Facebook or
Instagram profiles of different stores (39%) which is the most popular popular among women (47%),
young people (up to 34 years) and those with less material status (48%) . Kupujem prodajem, Limundo
and similar specialized domestic websites share third place with individual marketers on social networks
(both aspects 36%). And while men opt for the former (45%), ladies have chosen the latter option
(43%).
52
39
36
36
23
19
12
9
9
Sites of retailers that have their own retail stores
Facebbok or Instagram profile of a boutique or storewhich do business online
Domestic websites specialized in mediating between sellers and buyers (KupujemProdajem, Limundo….)
Individual sellers on Facebook, Instagram etc.
Foreign sites specialized in mediating between sellersand buyers (Ebay, AliExpres, etc.)
Domestic e-reteailers (they don`t have retail objects oryou don`t know about them)
Websites specialised for purchases of services (e.g.finding, booking or purchasing an accommodation, flight
tickets and so on)
Foreign e-traders
Group purchase websites (where you buy vouchersgoods/services), e.g: Grupoman, Kupoman and so on
205
To
tal
Men
Wom
en18
-24
25-3
435
-44
45-5
455
-64
65+
Belg
rade
East
Serb
ia
Wes
t
Serb
iaV
ojvo
dina
Urb
anR
ural
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e 43
421
222
381
117
100
7937
20*
100
8812
811
926
716
712
252
70
Site
s of
ret
aile
rs t
hat
have
the
ir o
wn
reta
il
stor
es52
5351
4750
5159
5567
5351
4759
5351
5445
61
Face
bbok
or
Inst
agra
m p
rofil
e of
a b
outiq
ue
or s
tore
whi
ch d
o bu
sine
ss o
nlin
e39
3147
5148
3927
2024
4545
3138
4136
4837
39
Dom
estic
web
site
s sp
ecia
lized
in m
edia
ting
betw
een
selle
rs a
nd b
uyer
s
(Kup
ujem
Prod
ajem
, Lim
undo
….)
3645
2720
4437
3145
3833
3638
3634
3830
4446
Indi
vidu
al s
elle
rs o
n Fa
cebo
ok, I
nsta
gram
etc
.36
2843
3943
3731
1914
4236
3728
3241
3327
37
Fore
ign
site
s sp
ecia
lized
in m
edia
ting
betw
een
selle
rs a
nd b
uyer
s (E
bay,
AliE
xpre
s, e
tc.)
2325
2024
2226
253
2430
2319
1923
2122
2528
Dom
estic
e-r
etea
ilers
(th
ey d
on`t
hav
e re
tail
obje
cts
or y
ou d
on`t
kno
w a
bout
the
m)
1922
179
2227
1423
2414
2220
2022
1419
1119
Web
site
s sp
ecia
lised
for
purc
hase
s of
ser
vice
s
(e.g
. fin
ding
, boo
king
or
purc
hasi
ng a
n
acco
mm
odat
ion,
flig
ht t
icke
ts a
nd s
o on
)
1211
1414
1318
100
1017
167
1214
109
1324
Fore
ign
e-tr
ader
s9
117
109
105
624
97
812
125
58
8
Gro
up p
urch
ase
web
site
s (w
here
you
buy
vouc
hers
goo
ds/s
ervi
ces)
, e.g
: Gru
pom
an,
Kup
oman
and
so
on
95
128
1113
63
016
102
912
46
817
Figure 62. Websites most commonly used for online purchases
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
206
Graph 34: Regardless of whether you have ever purchased anything from them, please tell
me how much you trust the following categories of online marketers and / or e-marketers?
Please use the scale from 1 to 5, where 1 means: I don`t believe at all, and 5 means: I
completely believe
(Examinees who bought something online in last six months, N=434)
In line with the previous question, our citizens have the highest confidence in the ones most often they
buy, so 81% of respondents consider official retail sites reliable (average 4.1 on a scale of 1 to 5). This
opinion is especially common among people with above average income (4.3). Domestic websites
specializing in seller-buyer mediation (3.5), as well as those for the purchase of accommodation and travel
services, also earn trust (3.6). Other mentioned are especially appreciated by Belgrade citizens and people
between 35 and 44 years old (both subgroups 3.9). On the other hand, although goods are relatively
frequently ordered by them, individual sellers on social networks are the least trusted by online buyers
(3.2).
1
7
8
10
9
5
10
9
13
5
7
6
8
12
10
7
13
13
11
20
25
22
21
33
30
33
25
47
35
46
38
44
35
28
29
38
34
21
13
17
12
10
11
9
9
1
10
2
5
2
6
14
7
1
Websites of retailers that have their own retail stores
Websites specialised for purchases of services (e.g.finding, booking or purchasing an accommodation, flight
tickets and so on)
Domestic websites specialized in mediating between sellers and buyers (KupujemProdajem, Limundo….)
Foreign sites specialized in mediating between sellers andbuyers (Ebay, AliExpres, etc.)
Facebbok or Instagram profile of a boutique or store whichdo business online
Domestic e-reteailers (they don`t have retail objects or youdon`t know about them)
Group purchase websites (where you buy vouchersgoods/services), e.g: Grupoman, Kupoman and so on
Websites of foreign e-reteailers (they don`t have retailobjects or you don`t know about them)
Individual sellers on Facebook, Instagram etc.
Don`t believe at all Mostly don`t belive Not believe, not believe
Mostly believe Completely believe Doesn`t know/rejects to answer
Average
207
To
tal
Men
Wom
en18
-24
25-3
435
-44
45-5
455
-64
65+
Belg
rade
East
Serb
ia
Wes
t
Serb
iaV
ojvo
dina
Urb
anR
ural
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e 43
421
222
381
117
100
7937
20*
100
8812
811
926
716
712
252
70
Web
site
s of
ret
aile
rs t
hat
have
the
ir o
wn
reta
il
stor
es4.
14
4.2
44
4.2
4.1
4.2
44
4.2
44.
14.
14.
14.
13.
84.
3
Web
site
s sp
ecia
lised
for
purc
hase
s of
ser
vice
s
(e.g
. fin
ding
, boo
king
or
purc
hasi
ng a
n
acco
mm
odat
ion,
flig
ht t
icke
ts a
nd s
o on
)
3.6
3.6
3.6
3.5
3.7
3.9
3.6
3.5
33.
93.
43.
63.
63.
73.
53.
63.
63.
8
Dom
estic
web
site
s sp
ecia
lized
in m
edia
ting
betw
een
selle
rs a
nd b
uyer
s
(Kup
ujem
Prod
ajem
, Lim
undo
….)
3.5
3.7
3.4
3.3
3.5
3.7
3.6
3.6
33.
63.
43.
43.
73.
53.
63.
53.
53.
7
Fore
ign
site
s sp
ecia
lized
in m
edia
ting
betw
een
selle
rs a
nd b
uyer
s (E
bay,
AliE
xpre
s, e
tc.)
3.4
3.5
3.4
3.4
3.5
3.7
3.4
33.
23.
73.
23.
33.
63.
53.
43.
43.
73.
5
Face
bbok
or
Inst
agra
m p
rofil
e of
a b
outiq
ue o
r
stor
e w
hich
do
busi
ness
onl
ine
3.4
3.1
3.7
3.5
3.5
3.5
3.4
32.
93.
53.
43.
33.
43.
43.
43.
63.
43.
5
Dom
estic
e-r
etea
ilers
(th
ey d
on`t
hav
e re
tail
obje
cts
or y
ou d
on`t
kno
w a
bout
the
m)
3.4
3.4
3.4
3.1
3.5
3.4
3.4
3.4
3.1
3.5
3.2
3.3
3.4
3.4
3.3
3.4
3.3
3.5
Gro
up p
urch
ase
web
site
s (w
here
you
buy
vouc
hers
goo
ds/s
ervi
ces)
, e.g
: Gru
pom
an,
Kup
oman
and
so
on
3.3
3.3
3.3
3.1
3.4
3.6
3.3
32.
63.
63
3.2
3.4
3.3
3.2
3.3
3.3
3.6
Web
site
s of
fore
ign
e-re
teai
lers
(th
ey d
on`t
have
ret
ail o
bjec
ts o
r yo
u do
n`t
know
abo
ut
them
)
3.2
3.2
3.1
33.
23.
23.
23
3.3
3.4
2.7
3.2
3.3
3.3
33.
13.
13.
3
Indi
vidu
al s
elle
rs o
n Fa
cebo
ok, I
nsta
gram
etc
.3.
23
3.3
3.2
3.2
3.2
3.2
2.9
2.6
3.3
3.1
3.1
3.2
3.1
3.2
3.2
33.
3
Figure 63. Level of confidence in different categories of online sellers
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
208
Graph 35: What is the main reason you do your online shopping? Is there any other
reason? I will read you some of the reasons that people said why they shop online. Do you
agree with some of them?
(Examinees who bought something online in last six months, N=434)
On the first place every third respondent points out that shopping online saves time, and for 84% this is
one of the reasons for online shopping. More often than others, residents of the capital city mention time
savings as a major incentive (45%). The practical side of online commerce, in the sense of comparing
different offers in a short time, took a second place (19% main reason, 75% one reason). Then this is
followed by delivery to the desired address, a wider range of goods and less physical effort.
84
75
73
65
62
49
41
8
64
45
35
40
28
37
18
1
4
30
19
8
15
6
16
6
Time saving
It`s practical - I can compare differentoffers in short time
Delivery on demanded address
Bigger choice of products and services
Does not require physical effort
Money saving
I could easily obtain products fromabroad which are not available in Serbia
Anonymity
Other
Listed with reminding
Other spontaneouslymentioned
First mentioned
209
Mai
n re
ason
sT
otal
Men
Wom
en18
-24
25-3
435
-44
45-5
455
-64
65+
Belg
rade
East
Serb
ia
Wes
t
Serb
iaVo
jvod
ina
Urb
anRu
ral
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e 43
421
222
381
117
100
7937
20*
100
8812
811
926
716
712
252
70
Tim
e sa
ving
3029
3122
3628
2735
3845
2420
3331
2926
2937
It`s
prac
tical
- I c
an c
ompa
re d
iffer
ent o
ffers
in s
hort
tim
e 19
1919
2118
2021
195
2011
2617
2018
2625
15
Del
iver
y on
dem
ande
d ad
dres
s16
1715
1215
2014
2414
1319
258
1814
186
12
Bigg
er c
hoic
e of
pro
duct
s an
d se
rvic
es
1515
1414
1615
1513
145
3015
1210
2211
1717
Doe
s no
t req
uire
phy
sical
effo
rt
87
815
56
68
104
88
106
99
64
Mon
ey s
avin
g 6
66
86
312
05
70
511
74
510
6
I cou
ld e
asily
obt
ain
prod
ucts
from
abr
oad
whi
ch a
re n
ot a
vaila
ble
in S
erbi
a 6
56
85
84
014
69
27
83
58
8
Ano
nym
ity0
00
00
00
00
00
00
00
00
0
Oth
er0
10
10
01
00
00
02
01
10
0
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
210
Oth
er s
pont
aneo
us re
ason
sT
otal
Men
Wom
en18
-24
25-3
435
-44
45-5
455
-64
65+
Belgr
ade
East
Serb
ia
Wes
t
Serb
iaVo
jvodi
naU
rban
Rura
lBe
llow
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e 43
421
222
381
117
100
7937
20*
100
8812
811
926
716
712
252
70
Tim
e sa
ving
6464
6462
6960
6262
8169
6160
6862
6763
5877
It`s
prac
tical
- I c
an c
ompa
re d
iffere
nt o
ffers
in s
hort
tim
e 45
4644
4638
4953
4533
4239
4849
4448
5256
37
Bigg
er c
hoice
of p
rodu
cts
and
serv
ices
4042
3935
4141
4052
3828
4945
3938
4541
4531
Mon
ey s
avin
g 37
4132
3239
3639
3733
3736
4429
3735
4033
37
Deli
very
on
dem
ande
d ad
dres
s 35
3337
3840
2935
3033
3139
3437
3338
3433
32
Doe
s no
t req
uire
phy
sical
effo
rt
2829
2730
1930
3234
2935
3416
3030
2526
3432
I cou
ld e
asily
obt
ain p
rodu
cts
from
abr
oad
whi
ch a
re n
ot a
vaila
ble
in S
erbi
a 18
2115
2020
1719
814
2015
1818
1915
1824
20
Ano
nym
ity1
11
22
01
30
10
31
21
20
2
Oth
er4
44
64
61
30
65
34
53
32
4
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
Main
reas
ons
Tota
lM
enW
omen
18-2
425
-34
35-4
445
-54
55-6
465
+Be
lgrad
eEa
st
Serb
ia
Wes
t
Serb
iaVo
jvodi
naUr
ban
Rura
lBe
llow
Aver
age
Aver
age
Abov
e
Aver
age
Base
43
421
222
381
117
100
7937
20*
100
8812
811
926
716
712
252
70
Tim
e sa
ving
8484
8379
8388
7892
9590
7787
8183
8680
8891
It`s p
ract
ical -
I ca
n co
mpa
re d
iffere
nt o
ffers
in sh
ort t
ime
7576
7573
7676
7976
6280
7276
7374
7874
8180
Deli
very
on
dem
ande
d ad
dres
s73
7076
6679
7571
6671
7878
6474
7373
6877
72
Bigg
er c
hoice
of p
rodu
cts a
nd se
rvice
s 65
6763
6365
7060
6862
5965
7065
6761
6465
63
Doe
s not
requ
ire p
hysic
al eff
ort
6260
6357
5663
6578
6266
7350
6263
6055
5872
Mon
ey sa
ving
4952
4550
4553
5052
3856
4454
4149
4954
4151
I cou
ld e
asily
obt
ain p
rodu
cts f
rom
abr
oad
which
are
not
ava
ilabl
e in
Ser
bia
4142
4044
4348
3627
3354
3439
3845
3540
5648
Anon
ymity
86
1110
109
212
09
99
611
42
714
Oth
er0
00
00
00
00
00
00
00
00
Reas
ons
when r
em
inded
Figure 64. Reasons for internet shopping
211
Graph 36: What is the maximum amount (in RSD) that you are willing to give for a single
online purchase?
(Examinees who bought something online in last six months, N=434)
The average online consumer in Serbia is ready to spend a maximum of around 10.300 dinars for one
online purchase. Half of the respondents would have spent significantly less (up to RSD 6000) and a fifth
even more (over RSD 12,000). The second group is dominated by buyers between 55 and 64 years old.
(15167) and members of the male population (average RSD 12708).
25
25
24
22
4
Up to 3500 RSD
3501-5999 RSD
6000-12000 RSD
Above 12000 RSD
Doesn`t know/rejects to answer
Average
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 434 212 223 81 117 100 79 37 20* 100 88 128 119 267 167 122 52 70
Average 10334 12708 8078 8749 9810 10190 9204 15167 15380 9444 12040 8157 12164 10496 10060 6884 10815 11691
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 65. Maximum amount per single online purchase which the customers are willing to pay
212
Graph 37: Regardless that you already buy online, is there anything that bothers you or you
don`t like about this type of purchase?
(Examinees who bought something online in last six months, N=434)
Two-fifths of online consumers are concerned about some aspect of this type of commerce. Belgrade
citizens are more skeptical than others (57%), and especially in relation to Vojvodina citizens who seem
quite relieved in this respect (75% find no shortcomings or cause for concern when thinking about
online commerce).
42
58
Yes No
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 434 212 223 81 117 100 79 37 20* 100 88 128 119 267 167 122 52 70
Yes 42 39 46 44 37 42 51 41 33 57 47 44 25 42 42 40 43 48
No 58 61 54 56 63 58 49 59 67 43 53 56 75 58 58 60 57 52
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 66. Worries or dislikings of online shoppers regarding e-commerce
213
Graph 38: What bothers you or you don`t like about online shopping?
(Examinees who are bothered with some aspect of online shopping, N=183)
Most of those who are suspicious of online shopping actually fear they will receive a wrong product (43%).
One third is insecure about quality of ordered product (33%), and about information that traders provide
(30%). Other two reasons are above the average in East Serbia (48%, actually 45%).
43
33
30
28
18
18
15
14
11
10
9
6
4
4
4
3
3
2
0
9
Fear of receiving a wrong product
Low quality of product
Incomplete or incorrect information about product/service
Fear of not receiving the product
Insufficient information about responsible authorities in case ofa problem
Mistrust to online shopping
Not clear rules about reclamation or returnig the product
Inreliable delivery/courier office
Custom procedures
Law regulations and customers` rights ignorance
Privacy breach / possible misuse of data
Expensive delivery
A common shortage of goods in stock
Not transparent websites
Provision, taxes and other fees
High prices of the products in supply
Bad supply
Offered payment ways
Language barrier
Other
214
To
tal
Men
Wom
en18-2
425-3
435-4
445-5
455-6
465+
Bel
grad
eEas
t
Serb
ia
Wes
t
Serb
iaV
ojv
odin
aU
rban
Rura
lBel
low
Ave
rage
Ave
rage
Above
Ave
rage
Base
183
82
102
35
43
42
41
15*
7*
57
41
56
29*
113
70
49
22*
34
Fear
of re
ceiv
ing
a w
rong
pro
duct
43
37
48
41
39
53
37
49
43
50
40
43
34
49
34
46
44
50
Low
qual
ity
of pro
duct
33
32
34
44
40
35
24
829
35
48
27
17
29
39
35
33
35
Inco
mple
te o
r in
corr
ect
info
rmat
ion
about
pro
duct
/ser
vice
30
38
24
36
27
27
38
27
020
45
35
21
24
41
41
32
17
Fear
of not
rece
ivin
g th
e pro
duct
28
24
31
27
29
31
26
23
29
32
34
18
30
27
29
28
21
34
Insu
ffic
ient
info
rmat
ion a
bout
resp
onsi
ble
auth
ori
ties
in c
ase
of a
pro
ble
m
18
23
15
14
20
23
24
60
20
12
29
416
22
31
32
14
Mis
trust
to o
nlin
e sh
oppin
g 18
22
15
23
18
16
19
22
012
20
24
17
17
20
26
13
3
Not
clea
r ru
les
about
recl
amat
ion o
r
retu
rnin
g th
e pro
duct
15
10
20
613
22
21
13
14
15
14
19
13
19
10
10
17
17
Unre
liable
del
iver
y/co
uri
er o
ffic
e 14
14
13
627
714
15
14
16
17
14
717
98
22
15
Cust
om
pro
cedure
s 11
18
611
13
913
029
10
210
28
14
76
19
11
Law
reg
ula
tions
and c
ust
om
ers`
rig
hts
ignora
nce
10
15
65
912
15
60
517
12
49
11
14
96
Pri
vacy
bre
ach / p
oss
ible
mis
use
of dat
a9
711
14
11
77
60
12
710
36
14
14
13
3
Expen
sive
del
iver
y 6
67
611
92
00
39
510
411
813
3
A c
om
mon s
hort
age
of go
ods
in s
tock
45
43
72
70
08
70
03
62
93
Not
tran
spar
ent
web
site
s 4
44
04
27
80
55
30
36
45
8
Pro
visi
on, t
axes
and o
ther
fee
s 4
53
57
22
00
22
57
43
64
3
Hig
h p
rice
s of th
e pro
duct
s in
supply
3
43
30
42
16
09
20
03
44
53
Bad
supply
33
43
52
08
14
70
30
34
410
6
Offer
ed p
aym
ent
way
s 2
13
32
02
014
00
210
31
04
3
Oth
er9
710
17
711
20
14
13
82
13
13
210
514
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
Figure 67. Aspects of e-commerce which online shoppers find worrying/dislikeful
215
Graph 39: Have you had any negative experience with online shopping?
(Examinees who bought something online in last six months, N=434)
Despite certain concerns, a significant majority of our citizens have not had a negative online shopping
experience so far (85%). As there are no significant differences between the subgroups of respondents, it
can be said that everyone agrees with this conclusion.
15
85
Yes No
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 434 212 223 81 117 100 79 37 20* 100 88 128 119 267 167 122 52 70
Yes 15 16 15 11 18 18 15 9 24 22 18 13 11 17 13 12 21 20
No 85 84 85 89 82 82 85 91 76 78 82 87 89 83 87 88 79 80
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 68. Existance of bad experience related to e-commerce
216
Graph 40: What was the reason for such experience?
(Respondents who had a negative experience with online purchase, N=67)
Low quality of received product is the reason number one why examinees with negative experience
complain (42%), and on the second place is the delivery of wrong product or not receiving the product at
all (36%). Then, the list is followed by: Waiting too much for ordered goods (21%) and
Insufficient/incomplete information about the product (18%).
42
36
21
18
9
7
7
5
4
3
3
3
0
0
10
Low quality of received product
The product has never been dispatched/Dispatchedwrong product
Waiting too much for ordered goods
Incomplete/insufficient information about product
Custom procedures
No reclamation or returning the goods
Unreliable courier office
The package was delivered during my working hours sono one could pick it up
Trader`s non transparent website
Amount needed to pay
Privacy rules breaking/personal data misuse
Unreliable trader
Language barrier
Offered payment options
Other
217
To
tal
Men
Wom
en18
-24
25-3
435
-44
45-5
455
-64
65+
Belg
rade
East
Serb
ia
Wes
t
Serb
iaV
ojvo
dina
Urb
anR
ural
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e 67
3334
9*21
*18
*12
*3*
5*22
*16
*16
*13
*45
22*
15*
11*
14*
Low
qua
lity
of r
ecei
ved
prod
uct
4245
4041
4852
330
4051
3059
2240
4727
2848
The
prod
uct h
as n
ever
bee
n
disp
atch
ed/D
ispa
tche
d w
rong
pro
duct
36
3141
6529
2724
6360
1374
2446
3147
3427
31
Wai
ting
too
muc
h fo
r or
dere
d go
ods
2124
1824
1910
2635
4017
1324
3227
941
3513
Inco
mpl
ete/
insu
ffici
ent i
nfor
mat
ion
abou
t
prod
uct
1818
1716
1921
240
026
923
715
2412
177
Cus
tom
pro
cedu
res
912
60
516
100
204
06
3111
46
197
No
recl
amat
ion
or r
etur
ning
the
good
s 7
96
09
516
00
90
180
69
60
14
Unr
elia
ble
cour
ier
offic
e 7
103
290
00
3520
016
016
76
79
0
The
pack
age
was
del
iver
ed d
urin
g m
y
wor
king
hou
rs s
o no
one
cou
ld p
ick
it up
5
90
110
08
370
100
60
54
130
9
Trad
er`s
non
tran
spar
ent w
ebsi
te
43
60
55
80
04
012
02
96
07
Am
ount
nee
ded
to p
ay3
60
00
610
00
00
016
50
010
0
Priv
acy
rule
s br
eaki
ng/p
erso
nal d
ata
mis
use
36
00
50
80
09
00
00
90
90
Unr
elia
ble
trad
er
30
60
50
80
00
66
00
813
00
Oth
er
100
2013
1416
00
04
250
1515
013
1714
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
Figure 69. Reasons for bad e-shopping experience
218
Graph 41: Please tell us for each of the following factors to what extent it would affect you
to shop online more? Use a scale from 1 to 5, where 1 means no affect at all, and 5 means
much affect.
(Examinees who bought something online in last six months, N=434)
1
2
2
2
7
2
2
3
2
1
3
4
3
5
4
3
8
7
10
12
11
15
16
15
21
31
29
33
21
31
32
36
66
59
55
49
58
47
44
41
1
1
1
1
2
It is possible to return/exchange the product boughtonline in the trader`s nearest shop
Positive experience of close friends
Possibility to pay only after the buyer see the orderedproduct, or to give back buyer`s reserved funds (for card
payments)
Better supply
Lower delivery costs
Precise law regulation for online sellers/traders
Better online supply of classical traders (which do haveretail stores)
Possibility to read a review about product/trader writtenby other buyers
No affect at all Mostly would not affect Would not, would have an affect
Mostly would affect Much affect Doesn`t know/refuses to answer
4
4
7
3
6
14
14
3
6
4
8
5
7
13
18
16
16
19
21
23
29
31
32
38
39
30
27
23
43
41
35
31
38
28
21
1
1
Existence of a unique trust mark (e trust mark) whichwould be issued by the government to a traders which
suits relevant criteria
Defining clear rules and obligations of courier offices
Shop assistance (e.g. chat)
Additional education and better informing about onlinebuyer`s rights through media campaign
Possibility of afterward picking up of product in courieroffice
Longer working hours for courier offices
Having an option to remain anonymous
No affect at all Mostly would not affect Would not, would have an affect
Mostly would affect Much affect Doesn`t know/refuses to answer
Average
Average
219
Mai
n re
ason
sT
ota
lM
enW
omen
18-2
425
-34
35-4
445
-54
55-6
465
+Be
lgra
deEa
st
Serb
ia
Wes
t
Serb
iaV
ojvo
dina
Urb
anR
ural
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e 43
421
222
381
117
100
7937
20*
100
8812
811
926
716
712
252
70
It is
pos
sibl
e to
ret
urn/
exch
ange
the
prod
uct
boug
ht o
nlin
e in
the
tra
der`
s
near
est
shop
4.5
4.5
4.5
4.6
4.5
4.4
4.4
4.6
4.5
4.7
4.5
4.4
4.4
4.5
4.5
4.4
4.6
4.6
Posi
tive
expe
rien
ce o
f clo
se fr
iend
s 4.
54.
44.
54.
44.
64.
44.
44.
54.
64.
54.
64.
44.
34.
64.
44.
44.
44.
6
Poss
ibili
ty t
o pa
y on
ly a
fter
the
buy
er
see
the
orde
red
prod
uct,
or t
o gi
ve b
ack
buye
r`s
rese
rved
fund
s (f
or c
ard
paym
ents
)
4.3
4.3
4.3
4.3
4.4
4.3
4.3
4.2
4.4
4.5
4.4
4.3
4.2
4.3
4.3
4.3
4.4
4.5
Bett
er s
uppl
y4.
34.
24.
34.
24.
34.
34.
34.
14.
24.
44.
44.
34
4.2
4.3
4.2
4.3
4.5
Low
er d
eliv
ery
cost
s4.
24.
24.
24.
34.
24.
34.
24.
13.
44.
54.
24.
23.
94.
24.
24.
24.
54.
4
Prec
ise
law
reg
ulat
ion
for
onlin
e
selle
rs/t
rade
rs
4.2
4.1
4.2
4.2
4.2
4.2
4.1
4.3
44.
54.
44
44.
24.
14.
14.
24.
5
Bett
er o
nlin
e su
pply
of c
lass
ical
tra
ders
(whi
ch d
o ha
ve r
etai
l sto
res)
4.1
4.1
4.2
4.1
4.1
4.2
4.1
4.1
4.2
4.3
4.2
4.2
3.9
4.1
4.2
4.1
4.2
4.3
Poss
ibili
ty t
o re
ad a
rev
iew
abo
ut
prod
uct/
trad
er w
ritt
en b
y ot
her
buye
rs
4.1
44.
34.
24.
14.
14.
14.
33.
94.
44.
24
3.9
4.2
4.1
4.1
4.2
4.4
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
220
Main
rea
sons
Tot
alM
enW
omen
18-2
425
-34
35-4
445
-54
55-6
465
+Be
lgrad
eEa
st
Serb
ia
Wes
t
Serb
iaVo
jvod
ina
Urb
anRu
ral
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e 43
421
222
381
117
100
7937
20*
100
8812
811
926
716
712
252
70
Exist
ence
of a
uni
que
trus
t mar
k (e
trus
t
mar
k) w
hich
wou
ld b
e iss
ued
by th
e
gove
rnm
ent t
o a
trad
ers
whi
ch s
uits
4.1
4.1
44
44.
14
4.3
4.3
4.4
4.1
3.9
3.9
4.1
4.1
4.1
4.2
4.3
Def
inin
g cl
ear
rule
s an
d ob
ligat
ions
of
cour
ier
offic
es
44
43.
94
44
4.3
3.8
4.3
43.
93.
84
44
4.1
4.1
Shop
ass
istan
ce (e
.g. c
hat)
3.9
3.9
3.9
43.
93.
93.
93.
73.
74
44
3.7
3.9
3.9
3.8
44
Add
ition
al ed
ucat
ion
and
bett
er
info
rmin
g ab
out o
nlin
e bu
yer`
s rig
hts
3.9
3.9
3.9
3.8
3.8
3.9
3.9
4.2
3.8
4.1
4.1
3.8
3.7
43.
83.
93.
94.
1
Poss
ibilit
y of
afte
rwar
d pi
ckin
g up
of
prod
uct i
n co
urie
r of
fice
3.9
3.9
3.9
3.9
3.9
43.
83.
93.
54.
13.
83.
93.
73.
93.
94
4.1
4
Long
er w
orki
ng h
ours
for
cour
ier
offic
es
3.5
3.5
3.5
3.6
3.3
3.7
3.4
3.6
33.
93.
43.
43.
33.
53.
53.
73.
53.
7
Hav
ing
an o
ptio
n to
rem
ain a
nony
mou
s3.
23.
23.
33.
43.
33.
23
3.4
3.3
3.5
33.
33.
23.
33.
13.
33.
43.
3
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
Figure 70. Influence of certain factors on e-shopping frequency
221
Overall, most of the stated factors would contribute in the development and increase of e-commerce in
Serbia. Returning back or exchanging the product in the nearest trader`s shop is of utmost importance
for buyers. About 90% of examinees (in Belgrade even more) see the positive effect of such option, so
that is the reason why it is marked with 4.5 on average (on scale from 1 to 5).
Also, positive experience of our close friends would convince us to shop online more (4.5). Having an
option to pay only after observing the received product would also increase our online shopping habit
(4.3), as well as better supply (4.3). These two factors are stressed the most by people with an above
average income who are actually the most loyal to e-commerce.
Lower delivery costs (4.2) as well as clear law regulation about e-traders` obligations (4.2) would also
have a very positive impact.
222
Graph 42: How much are you familiar with you rights during the online shopping?
(Examinees who bought something online in last six months, N=434)
*Small base for conducting relevant conclusion
Although a majority of examinees consider themselves relatively familiar with their right during online
shopping, average grade of 3.1 shows actually different. This is also confirmed by the opinion of the third
of the examinees who states that their knowledge about online shopping rights is insufficient.
Average
3.7 13 20 22 36 9 11
Not familiar at all Mostly not familiar
Neither, nor familiar Mostly familiar
Very familiar Doesn`t know/rejects to answer
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 434 212 223 81 117 100 79 37 20* 100 88 128 119 267 167 122 52 70
Average 3.1 3.2 3 3.2 3.3 3.1 2.8 2.8 3 3 3.2 3 3.1 3 3.1 3 3.4 3.1
Figure 71. Shopper familiarity with costumer rights in e-commerce
223
Graph 43: Is there any regulatory barrier which should be solved in term to improve e-
commerce in Serbia?
(Examinees who bought something online in last six months, N=434)
As expected, most of the customers are not sure whether there exists some regulatory barrier which
inexistence would improve e-commerce in Serbia (59%). Third of them are that something like this doesn`t
even exist. This percentage is especially high in Belgrade (45%), although they have shown to be pretty
mistrustful in online shopping. Obviously, law regulations are not a cause of that.
On the other hand, 8% of examinees believe that e-commerce law regulations should be more precise
and better. Number of those who cited the concrete suggestions for e-commerce improvement is not
sufficient for statistical analysis. However, received answers are mostly aimed at more strict law control
of e-traders, such as: clearly defined name and description of the product/service, clearly defined price
tag, possibility of returning the product, and even a registration at APR for every e-trader.
8
3359
Yes No Not sure
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 434 212 223 81 117 100 79 37 20* 100 88 128 119 267 167 122 52 70
Yes 8 6 11 4 8 10 10 6 19 10 10 4 10 11 5 6 12 15
No 33 37 30 40 34 28 22 51 38 45 26 31 32 31 37 31 33 28
Not sure 59 58 59 56 59 62 68 44 43 45 64 66 58 59 58 63 55 57
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 72. Regulatory barriers whose resolution would improve e-commerce
224
Graph 44: Overall, how much confidence do you have in buying online? Use a scale from 1
to 5, where 1 means very little and 5 I have complete confidence.
(Examinees who bought something online in last six months, N=434)
Given the fact that almost two thirds of our online buyers (64%) mostly have trust in e-commerce we
could conclude that general trust of our citizens is relatively high. In addition, those who express low level
of trust represent only 6% of our examinees.
1 5 30 54 101
Very little Little Partly Pretty much Complete confidence
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 434 212 223 81 117 100 79 37 20* 100 88 128 119 267 167 122 52 70
Average 3.7 3.7 3.7 3.6 3.6 3.7 3.6 3.6 3.9 3.7 3.6 3.6 3.8 3.7 3.6 3.6 3.7 3.6
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 73. Level of online shopping trust
225
Graph 45: Which of the following statements could describe you the best?
(Examinees who bought something online in last six months, N=434)
Still almost the half of online customers rather do traditional way of shopping (47%). Women are those
who are significantly pointed out from such group (55%). On the other hand, 15% of customers prefer
online shopping, which is especially often in East Serbia (29%) and among men (20%). About two fifths of
examinees do not make any difference between these two ways of shopping (38%).
15
47
38
I rather shop online than in a classical way
I prefer traditional way of shopping more thanonline
Both are the same for me
226
Tot
alM
enW
omen
18-2
425
-34
35-4
445
-54
55-6
465
+Be
lgrad
eEa
st
Serb
ia
Wes
t
Serb
iaVo
jvodi
naU
rban
Rura
lBe
llow
Aver
age
Aver
age
Abov
e
Aver
age
Base
434
212
223
8111
710
079
3720
*10
088
128
119
267
167
122
5270
I rat
her s
hop
onlin
e th
an in
a
class
ical w
ay15
209
1413
1518
1614
829
1015
1219
1223
23
I pre
fer t
radi
tiona
l way
of
shop
ping
mor
e th
an o
nlin
e 47
3955
4751
4348
4943
5137
5444
4452
5346
40
Both
are
the
sam
e fo
r me
3841
3539
3442
3536
4341
3435
4043
2934
3236
Confidence
inte
rval
Sign
ific
antly
above
the a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
Figure 74. Certain attributes of online shoppers
227
4.3. EXAMINEES WHO DO NOT SHOP ONLINE – STATEMENTS, BARRIERS,
STIMULI MEASURES
Graph 46: Have you ever bought anything online?
(Examinees who did not buy anything in last six months, N=566)
About quarter of examinees which we don`t consider as online buyers due to fact they haven`t made any
transaction in last six months had actually done some purchase before. Most of them are young between
25 and 44 years, Belgrade citizens (36%) and wealthier examinees (40%).
26
74
Yes No
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 566 300 265 58 107 115 130 106 49 150 107 141 168 320 246 188 69 58
Yes 26 28 23 33 37 34 19 18 6 36 24 20 22 28 22 26 29 40
No 74 72 77 67 63 66 81 82 94 64 76 80 78 72 78 74 71 60
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
*Small base for conducting
relevant conclusions
Figure 75. Online shopping
228
Graph 47: What is the main reason why you don`t or rarely do online shopping? Is there
any other reason? I will read you other people answers why they don`t shop online. Do you
maybe recognize yourself?
(Examinees who did not buy anything in last six months, N=566)
As the main reason every fifth examinee expresses mistrust or non being interested in online shopping
(18%). However, skepticism about something people are not available to observe, try or check in person
is the absolute number one (71%). This opinion is usual among younger population, between 25 and 34
years. And as expected, being uninterested in online shopping is the most expressed among the eldest
(65+), and in general 62% of examinees claim the same.
Having pleasure with traditional way of shopping takes the third place, and for half of the examinees it is
the main reason why they do not practice online shopping. It was expected that ladies will opt for this
reason the most (52%), but it also makes pleasure to East Serbian citizens (64%). Suspicious about online
products quality (44%) and insufficient information about e-commerce (38%) are following the lead.
71
62
52
44
38
37
37
30
29
29
25
17
11
9
6
5
4
2
44
41
29
28
20
19
16
14
16
13
14
6
3
5
5
2
2
1
18
18
14
10
4
6
3
3
5
3
7
1
2
4
1
I don`t like to buy what I cannot observe, try or check in person
I don`t have such habit, I am not interested
I like to do traditional way of shopping
I don`t trust online shopping in term of quality of product
I don`t have a sufficient knowledge about e-commerce, I`mafraid I will be double crossed
In case of return/exchange the product i would have to wait toolong
I don`t know who to contact in case of a problem
I don`t trust to e-commerce in term of payment
Bad experience of other people - negative newspapers`headlines (received brick instead of laprotp and so on)
I don`t trust online traders
I do not have enough of knowledge about new technologies (internet, computers…)
Personal data misuse scares me (name and surname, address,payment cards, etc.)
I don`t trust courier offices
Expensive
Bad previous experience
Uninteresting offer
Language barrier
Other
Mentioned with reminding
Other spontaneously mentioned
First mentioned
229
Mai
n r
easo
nT
ota
lM
enW
om
en18-2
425-3
435-4
445-5
455-6
465+
Bel
grad
eEas
t
Serb
ia
Wes
t
Serb
iaV
ojv
odin
aU
rban
Rura
lBel
low
Ave
rage
Ave
rage
Above
Ave
rage
Base
566
300
265
58
107
115
130
106
49
150
107
141
168
320
246
188
69
58
I don`t
like
to b
uy
what
I c
annot
obse
rve,
try
or
chec
k in
per
son
18
19
18
29
27
23
13
912
16
13
15
27
16
21
22
13
15
I don`t
hav
e su
ch h
abit, I
am
not
inte
rest
ed18
17
19
10
18
14
18
19
31
14
17
19
19
20
14
17
13
21
It m
akes
me
ple
asure
to d
o t
raditio
nal
way
of sh
oppin
g14
11
17
910
15
14
18
13
13
18
817
16
10
13
11
17
I don`t
tru
st o
nlin
e sh
oppin
g in
ter
m o
f
qual
ity
of pro
duct
10
812
11
12
12
98
10
11
614
10
10
10
710
10
I do n
ot
hav
e en
ough
of te
chnolo
gica
l
know
ledge
(in
tern
et, c
om
pute
rs…
)7
76
30
213
11
84
10
95
68
87
0
In c
ase
of re
turn
/exch
ange
the
pro
duct
i
would
hav
e to
wai
t to
o m
uch
67
47
98
45
08
33
75
65
11
9
Bad
exper
ience
of oth
er p
eople
- n
egat
ive
new
spap
ers`
hea
dlin
es (
rece
ived
bri
ck
inst
ead o
f la
pto
p a
nd s
o o
n)
56
59
55
65
28
57
14
65
74
I don`t
hav
e a
suffic
ient
know
ledge
about
e-co
mm
erce
, I`m
afr
aid I w
ill b
e double
cross
ed
44
32
46
33
46
33
24
35
35
Bad
pre
vious
exper
ience
44
32
46
33
46
33
24
35
35
I don`t
tru
st o
nlin
e tr
ader
s 3
52
04
26
42
47
22
43
53
5
I don`t
know
who t
o c
onta
ct in
cas
e of a
pro
ble
m
34
210
42
40
04
25
12
54
32
I don`t
tru
st t
o e
-com
mer
ce in
ter
m o
f
pay
men
t3
32
00
24
48
32
23
41
24
4
Expen
sive
21
30
00
14
81
41
13
02
00
Langu
age
bar
rier
1
11
00
32
12
11
22
12
20
0
Per
sonal
dat
a m
isuse
sca
res
me
(nam
e an
d
surn
ame,
addre
ss, p
aym
ent
card
s, e
tc.)
11
10
22
12
02
12
11
11
32
Unin
tere
stin
g offer
00
02
01
00
01
10
00
10
02
I don`t
tru
st c
ouri
er o
ffic
es
00
00
01
00
20
20
00
11
10
Oth
er0
00
20
10
00
00
10
00
10
0
Confidence
inte
rval
Sig
nific
antly
above t
he a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
230
Oth
er s
pont
aneo
usly
men
tione
dT
otal
Men
Wom
en18
-24
25-3
435
-44
45-5
455
-64
65+
Belg
rade
East
Serb
ia
Wes
t
Serb
iaVo
jvod
ina
Urb
anRu
ral
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e56
630
026
558
107
115
130
106
4915
010
714
116
832
024
618
869
58
I don
`t lik
e to
buy
wha
t I c
anno
t obs
erve
, try
or c
heck
in p
erso
n 44
4642
5263
4939
3027
4239
4350
4346
4733
47
I don
`t ha
ve s
uch
habi
t, I a
m n
ot in
tere
sted
4142
4134
4834
3945
5036
4146
4244
3841
3443
It m
akes
me
plea
sure
to d
o tr
aditi
onal
way
of
shop
ping
2923
3527
2429
2932
3328
4022
2730
2729
1726
I don
`t tr
ust o
nlin
e sh
oppi
ng in
term
of q
ualit
y
of p
rodu
ct28
2829
3029
3226
2725
3022
3425
2631
2732
24
I don
`t ha
ve a
suf
ficie
nt k
now
ledg
e ab
out e
-
com
mer
ce, I
`m a
fraid
I w
ill b
e do
uble
cro
ssed
20
2219
2323
1527
1712
2922
249
1626
2427
12
In c
ase
of r
etur
n/ex
chan
ge th
e pr
oduc
t I w
ould
have
to w
ait t
oo lo
ng19
2215
3328
2316
102
298
1719
1722
2131
20
Bad
expe
rienc
e of
oth
er p
eopl
e - n
egat
ive
new
spap
ers`
hea
dlin
es (r
ecei
ved
bric
k in
stea
d
of la
ptop
and
so
on)
1621
1123
1517
1718
626
1719
514
1918
2017
I don
`t kn
ow w
ho to
con
tact
in c
ase
of a
prob
lem
1618
1223
1919
1114
622
1216
1212
2017
339
I do
not h
ave
enou
gh o
f tec
hnol
ogic
al
know
ledg
e (in
tern
et, c
ompu
ters
…)
1413
179
47
2720
1716
1518
1013
1619
145
I don
`t tr
ust t
o e-
com
mer
ce in
term
of p
aym
ent
1414
1410
1214
1413
2516
1114
1414
1310
1418
I don
`t tr
ust o
nlin
e tr
ader
s13
1510
317
1616
98
1416
1210
1213
923
19
Pers
onal
dat
a m
isuse
sca
res
me
(nam
e an
d
surn
ame,
add
ress
, pay
men
t car
ds, e
tc.)
67
52
77
76
412
36
26
55
97
Bad
prev
ious
exp
erie
nce
56
33
58
44
48
63
25
46
68
Expe
nsiv
e 5
55
23
35
613
66
52
63
76
2
I don
`t tr
ust c
ourie
r of
fices
34
30
04
73
44
42
33
43
46
Lang
uage
bar
rier
22
30
03
25
21
32
22
33
10
Uni
nter
estin
g of
fer
23
14
22
04
04
31
01
32
14
Oth
er1
11
20
21
00
00
21
10
11
0
Confidence
inte
rval
Sig
nific
antly
above t
he a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
231
Men
tioned
with r
emin
din
g T
ota
lM
enW
om
en18-2
425-3
435-4
445-5
455-6
465+
Bel
grad
eEas
t
Serb
ia
Wes
t
Serb
iaV
ojv
odin
aU
rban
Rura
lBel
low
Ave
rage
Ave
rage
Above
Ave
rage
Base
566
300
265
58
107
115
130
106
49
150
107
141
168
320
246
188
69
58
I don`t
hav
e su
ch h
abit, I
am
not
inte
rest
ed62
59
66
54
61
58
59
69
81
53
63
69
64
65
59
62
54
61
It m
akes
me
ple
asure
to d
o t
raditio
nal
way
of sh
oppin
g52
45
59
44
50
52
54
54
52
49
64
48
49
53
50
55
39
51
I don`t
tru
st o
nlin
e sh
oppin
g in
ter
m o
f
qual
ity
of pro
duct
44
44
45
40
54
44
44
43
35
50
39
48
40
42
47
45
50
50
I don`t
hav
e a
suffic
ient
know
ledge
about
e-co
mm
erce
, I`m
afr
aid I w
ill b
e double
cross
ed
38
38
39
34
40
32
48
37
35
46
40
42
28
35
43
44
49
28
In c
ase
of re
turn
/exch
ange
the
pro
duct
I
would
hav
e to
wai
t to
o lo
ng
37
38
37
49
45
44
38
28
12
50
28
36
33
37
38
39
46
43
I don`t
know
who t
o c
onta
ct in
cas
e of a
pro
ble
m
37
38
36
34
34
43
38
39
29
40
40
37
33
39
35
43
44
33
I don`t
tru
st t
o e
-com
mer
ce in
ter
m o
f
pay
men
t 30
29
30
28
30
30
30
29
33
38
22
32
26
30
30
25
33
34
Bad
exper
ience
of oth
er p
eople
- n
egat
ive
new
spap
ers`
hea
dlin
es (
rece
ived
bri
ck
inst
ead o
f la
pto
p a
nd s
o o
n)
29
33
25
39
31
25
31
31
17
38
37
30
16
28
31
30
32
36
I don`t
tru
st o
nlin
e tr
ader
s 29
32
25
26
35
33
28
25
21
31
35
30
22
26
32
24
36
36
I do n
ot
hav
e en
ough
of te
chnolo
gica
l
know
ledge
(in
tern
et, c
om
pute
rs…
) 25
21
29
12
10
839
40
40
32
28
22
18
25
25
32
27
11
Per
sonal
dat
a m
isuse
sca
res
me
(nam
e an
d
surn
ame,
addre
ss, p
aym
ent
card
s, e
tc.)
17
18
16
12
20
18
18
17
13
23
14
20
11
15
20
15
20
18
I don`t
tru
st c
ouri
er o
ffic
es11
11
11
47
13
14
10
21
11
14
813
13
10
11
718
Expen
sive
9
810
711
77
815
12
714
39
813
10
3
Bad
pre
vious
exper
ience
6
75
76
86
56
88
64
75
67
11
Unin
tere
stin
g offer
57
38
73
46
28
66
14
75
94
Langu
age
bar
rier
43
50
13
48
83
54
43
55
10
Oth
er2
21
23
21
10
00
51
21
21
474
75
75
70
73
71
63
76
65
67
60
67
67
I don`t
like
to b
uy
what
I c
annot
obse
rve,
try
or
chec
k in
per
son
71
72
70
70
84
Confidence
inte
rval
Sig
nific
antly
above t
he a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
Figure 76. Reasons for rarely/not shopping online
232
Graph 48: Have you ever recently seen some interesting online offer, but you gave up
because of the reasons you just stated?
(Examinees who did not buy anything in last six months, N=566)
Every fourth examinee admits he/she has recently been tempted to order something online, but had given
up because of some reasons. More than others this has happened to the youngest population (18 – 24
years).
25
75
Yes No
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 566 300 265 58 107 115 130 106 49 150 107 141 168 320 246 188 69 58
Yes 25 24 28 38 25 25 26 24 15 23 29 20 30 28 22 19 27 28
No 75 76 72 62 75 75 74 76 85 77 71 80 70 72 78 81 73 72
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
Figure 77. Giving up on potential online purchase
233
Graph 49: What are the experiences of people who surround you (family, colleagues,
friends)?
(Examinees who did not buy anything in last six months, N=566)
Although half of the examinees claim that people from their surrounding haven`t had negative, nor
positive experience, pretty high percentage rate these experience as positive (42%).
Average
3.4 1 8 50 38 41
Very negative Negative Not negative, not positive Positive Very positive
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 374 184 190 31 69 85 84 69 37 90 64 91 129 211 163 120 46 35
Average 3.4 3.3 3.5 3.5 3.3 3.4 3.3 3.5 3.3 3.4 3.3 3.4 3.3 3.3 3.4 3.4 3.4 3.3
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
Figure 78. Experience of people around you (family, colleagues, friends) related to e-commerce
234
Graph 50: Which of the following factors would have an impact on you to start online
shopping? Please use the scale from 1 to 5, where 1 means No impact at all and 5 means it
would much affect.
(Examinees who did not buy anything in last six months, N=566)
16
13
14
19
15
16
19
18
5
5
11
10
13
11
7
9
13
19
18
18
22
23
24
24
22
27
27
23
24
26
25
24
44
35
30
30
25
23
24
24
1
1
1
1
1
1
1
1
It is possible to return/exchange the product bought onlinein the trader`s nearest shop
Positive experience of close friends
Possibility to pay only after the buyer see the orderedproduct, or to give back buyer`s reserved funds (for card
payments)
Lower delivery costs
Better supply
Precise law regulation for online sellers/traders
Possibility to read a review about product/trader written byother buyers
Existence of a unique trust mark (e trust mark) which wouldbe issued by the government to a traders which suits
relevant criteria
No impact at all Mostly would not impact Would not, would have an impact
Mostly would affect Much affect Doesn`t know/refuses to answer
18
20
20
23
23
30
33
12
10
12
9
12
16
14
20
24
23
22
27
25
25
25
24
25
25
20
14
14
23
21
19
20
17
14
11
1
1
1
1
1
1
1
Better online supply of classical traders (which do haveretail stores)
Defining clear rules and obligations of courier offices
Additional education and better informing about onlinebuyer`s rights through media campaign
Shop assistance (e.g. chat)
Possibility of afterward picking up of product in courieroffice
Having an option to remain anonymous
Longer working hours for courier offices
No impact at all Mostly would not impact Would not, would have an impact
Mostly would affect Much affect Doesn`t know/refuses to answer
Average
Average
235
Tot
alM
enW
omen
18-2
425
-34
35-4
445
-54
55-6
465
+Be
lgrad
eEa
st
Serb
ia
Wes
t
Serb
iaVo
jvod
ina
Urb
anRu
ral
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e56
630
026
558
107
115
130
106
4915
010
714
116
832
024
618
869
58
It is
poss
ible
to r
etur
n/ex
chan
ge th
e
prod
uct b
ough
t onl
ine
in th
e tr
ader
`s
near
est s
hop
3.7
3.8
3.7
3.9
3.9
43.
63.
72.
74.
13.
73.
53.
63.
83.
63.
73.
93.
9
Posit
ive
expe
rienc
e of
clo
se fr
iend
s 3.
73.
73.
64.
13.
73.
93.
63.
72.
63.
73.
93.
73.
53.
73.
73.
63.
83.
8
Poss
ibilit
y to
pay
onl
y af
ter
the
buye
r
see
the
orde
red
prod
uct,
or to
giv
e
back
buy
er`s
res
erve
d fu
nds
(for
card
paym
ents
)
3.5
3.5
3.5
3.6
3.5
3.8
3.4
3.6
2.7
3.8
3.5
3.1
3.5
3.5
3.4
3.4
3.8
3.9
Low
er d
eliv
ery
cost
s3.
33.
43.
33.
53.
43.
63.
33.
32.
63.
73.
63
3.1
3.4
3.3
3.5
3.4
3.5
Bett
er s
uppl
y 3.
33.
33.
33.
63.
33.
53.
33.
32.
63.
63.
63
3.1
3.4
3.3
3.3
3.4
3.4
Prec
ise la
w r
egul
atio
n fo
r on
line
selle
rs/tr
ader
s 3.
33.
43.
23.
43.
33.
63.
13.
32.
93.
63.
42.
93.
33.
43.
23.
33.
43.
5
Poss
ibilit
y to
rea
d a
revi
ew a
bout
prod
uct/t
rade
r w
ritte
n by
oth
er
buye
rs
3.3
3.3
3.3
3.5
3.4
3.6
3.2
3.2
2.3
3.7
3.4
33.
13.
33.
23.
23.
53.
5
Exist
ence
of a
uni
que
trus
t mar
k (e
trus
t mar
k) w
hich
wou
ld b
e iss
ued
by
the
gove
rnm
ent t
o a
trad
ers
whi
ch
suits
rel
evan
t crit
eria
3.3
3.3
3.2
3.4
3.2
3.6
3.2
3.2
2.7
3.6
3.5
2.8
3.1
3.3
3.2
3.3
3.4
3.5
Confidence
inte
rval
Sig
nific
antly
above t
he a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
236
To
tal
Men
Wom
en18
-24
25-3
435
-44
45-5
455
-64
65+
Belg
rade
East
Serb
ia
Wes
t
Serb
iaV
ojvo
dina
Urb
anR
ural
Bello
w
Ave
rage
Ave
rage
Abo
ve
Ave
rage
Bas
e56
630
026
558
107
115
130
106
4915
010
714
116
832
024
618
869
58
Bett
er o
nlin
e su
pply
of c
lass
ical
trad
ers
(w
hich
do
have
ret
ail s
tore
s)3.
23.
23.
23.
43.
23.
53.
23.
32.
53.
43.
53
3.1
3.3
3.1
3.2
3.5
3.3
Def
inin
g cl
ear
rule
s an
d ob
ligat
ions
of
cour
ier
offic
es
3.2
3.2
3.1
3.3
3.2
3.4
3.1
3.2
2.5
3.6
3.3
2.9
2.9
3.3
33.
13.
53.
4
Add
ition
al e
duca
tion
and
bett
er
info
rmin
g ab
out
onlin
e bu
yer`
s ri
ghts
thro
ugh
med
ia c
ampa
ign
3.1
3.1
3.1
3.3
3.1
3.4
3.1
3.1
2.6
3.3
3.4
2.8
33.
23
3.1
3.2
3.3
Shop
ass
ista
nce
(e.g
. cha
t)3.
13.
23
3.5
3.3
3.4
33
2.2
3.3
3.3
33
3.2
33.
13.
33.
1
Poss
ibili
ty o
f aft
erw
ard
pick
ing
up o
f
prod
uct
in c
ouri
er o
ffice
33
33.
33
3.3
2.9
2.9
2.2
3.4
3.1
2.7
2.8
32.
93
3.4
3
Hav
ing
an o
ptio
n to
rem
ain
anon
ymou
s2.
72.
82.
63
2.8
2.9
2.7
2.4
2.1
2.9
2.7
2.5
2.6
2.7
2.6
2.7
2.8
2.5
Long
er w
orki
ng h
ours
for
cour
ier
offic
es
2.6
2.6
2.5
32.
52.
82.
52.
61.
93.
12.
62.
42.
22.
62.
52.
72.
72.
6
Confidence
inte
rval
Sig
nific
antly
above t
he a
vera
ge
95%
90%
Sig
nific
antly
belo
w t
he a
vera
ge
95%
90%
*Sm
all bas
e for
conduct
ing
rele
vant
concl
usi
ons
Figure 79. Influence of certain factors on beginning to purchase online
237
The factors that would first motivate someone who does not shop online to start doing so are identical
to those that would persuade the average internet shopper to shop more often. This is, first and foremost,
the possibility of replacing or returning ordered goods at the retailer's store, which is recognized as a
good incentive by two-thirds of respondents (average grade is 3.7 on a scale of 1 to 5). Significance of a
such option is above average among Belgrade citizens (4.1) and people between 35 and 45 years (4.0).
Right behind are the positive experience of the nearest surrounding (62%, or 3.7). The youngest examinees
often rely on the recommendation of close friends (4.1).
Next on the list is the option to pay only after the customer observe or check the product (3.5), and then
there are several factors with the same average grade – 3.3 : Lower delivery costs, netter supply,
transparent former buyers` reviews, clear law regulations aimed at e-commerce and mandatory criteria
for e-traders.
238
Graph 51: How possible is for you to start shopping online in future? Please use the scale
from 1 to 5, where 1 means Completely impossible and 5 means Completely possible.
(Examinees who did not buy anything in last six months, N=566)
According to average grade of 2.7 hardly that anything could break the fears and change habits of people
who do not shop online. However, one quarter claims they will probably try online shopping in future,
and more than third (37%) is still indecisive, but without rejecting such option.
Average
3.4 17 22 37 19 5 11
Completely impossible Impossible
Not possible, nor impossible Possible
Completely possible Dosen`t know/rejects to answer
Figure 80. Likelihood of purchasing online in the future
239
Graph 52: Have you ever sold something online?
(Examinees who did not buy anything in last six months, N=566)
Having in mind that this question was answered by all examinees we could say that among our citizens
online sellers (18%) are outnumbered by online buyers (43%). E-traders (online sellers) are the most
frequent among people with an above average income (33%) and among men (23%).
18
82
Yes No
Total Men Women 18-24 25-34 35-44 45-54 55-64 65+ BelgradeEast
Serbia
West
SerbiaVojvodina Urban Rural
Bellow
AverageAverage
Above
Average
Base 566 300 265 58 107 115 130 106 49 150 107 141 168 320 246 188 69 58
Yes 18 23 12 20 21 21 15 15 10 20 14 15 21 20 15 15 16 33
No 82 77 88 80 79 79 85 85 90 80 86 85 79 80 85 85 84 67
Confidence
interval
Significantly above the average 95% 90%
Significantly below the average 95% 90%
Figure 81. Personally sold something online
240
4.4. SAMPLE STRUCTURE
20
1
1
3
11
15
12
9
2
2
24
1
1
4
14
16
10
6
6
3
3
37
Without income
Up to 5.000 RSD
From 5.001 to 10.000 RSD
From 10.001 to 20.000 RSD
From 20.001 to 30.000 RSD
From 30.001 to 40.000 RSD
From 40.001 to 50.000 RSD
From 50.001 to 70.000 RSD
From 70.001 to 100.000 RSD
Above 100.000 RSD
Without an answer
Income
Figure 82. Interviewees’ income
241
52
4
21
2
11
9
Employed (full time, part-time)
Self-employed
Temporary unemployed, butsearching for job
Farmer
Pensioner
Student, pupil
Employment status
33
5
7
13
12
5
4
22
Up to 5.000 citizens
From 5.001 to 10.000
From 10.001 to 20.000
From 20.001 to 50.000
From 50.001 to 100.000
From 100.001 to 150.000
From 150.001 to 250.000
Above 250.000
Settlement size
Figure 83. Settlement size of the interviewees
Figure 84. Employment status of the interviewees
242
5149
Gender
Male
Female
14
22
22
21
14
7
Age
18 - 24
35 - 34
35 - 44
45 - 54
55 - 64
65+
25
20
27
29
Region
Belgrade
East Serbia
West Serbia
Vojvodina
4
63
33
Professional qualifications
Unfinished or finishedelemntary school
High school (3 or 4 years)
College or University(including MSc or PhD)
6
18
2231
21
1
Household size
1 member
2 members
3 members
4 members
5 or moremembers
Without ananswer
Figure 85. Data on interviewees’ gender, age, region, professional qualifications and household size
243
THIRD PART: ACTION PLAN FOR
STRENGTHENING E-COMMERCE IN SERBIA AND
REMOVING EXISTING BARRIERS
244
During the development of e-commerce diagnosis in the Republic of Serbia, key areas have been identified
that represent barrierS to stronger development of electronic marketing channels. The key weaknesses
and dangers that e-commerce in Serbia faces are identified, alongside the good sides of e-commerce
development, as well as the chances that await us in the future. The analysis was performed from the
perspective of demand ie. e-commerce buyers, perspective of supply ie. e-merchants, as well as from the
perspective of e-commerce enablers (logistics, payments, technology platforms, etc.), with a parallel
analysis of legislation. The proposal for measures to strengthen e-commerce was made in accordance with
the outlined framework.
I PROPOSALS FOR STRAIGHTENING E-COMMERCE IN THE
REPUBLIC OF SERBIA – THE LEGAL PERSPECTIVE
The existing analysis, especially in-depth interviews, has shown that the general position of the key
stakeholders on the market is that there are no significant regulatory barriers for the development of e-
commerce in Serbia. The position of the key stakeholders (from both, private and public sector) is that
the current regulatory framework, including amended E-Commerce Act, the new Trade Act, and other
applicable regulations, is adequate and that amendments to the existing legislation could not impact on the
further development of e-commerce in Serbia. The key stakeholders are of the opinion that barriers are
on the demand and supply side.
Based on the conducted in-depth interviews, it can be concluded that one of the main barriers is the lack
of awareness of citizens as consumers, i.e. lack of education of the consumers regarding their rights when
shopping online (for example: even though the laws of the Republic of Serbia in case of online shopping
offer a refund and return of goods to the customers within 14 days of receiving their goods, i.e. termination
of the agreement without stating a reason, consumers are not aware of that right). Moreover, when it
comes to the online payments lack of trust is one of the main barriers. Additionally, a high percentage of
traders who offer their goods on social networks are not registered. Such fact, i.e. a high level of grey
trading is a reason for consumers’ worries regarding the quality of the goods and their rights in case they
do not receive expected goods. Therefore, consumers are unable to distinguish online traders who
conduct their activities in accordance with the law and those who do not, which results in consumers’
worry about what they have on the internet and what rights they have. In addition, during the last period,
the news stating that someone received goods that were not ordered are more common comparing to
news regarding the online payment frauds. Therefore, it is necessary to promote e-commerce and to
dedicate to barriers such as the lack of education of the consumers, as it is a key cause of undeveloped e-
commerce in Serbia. In this way, lack of consumers’ trust could be eliminated and Serbia could approach
countries in the region.
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Bearing mind above stated, in order to eliminate these barriers, our proposal is to conduct a guide or
other type of educational material, which would help consumers in Serbia to understand e-commerce as
a form of safe commerce and which, in certain extent, offers a higher level of protection, comparing to
the traditional commerce.
Additionally, a number of traders who offer their goods and services online is unsatisfactory. Compering
to the countries in the region, a number of micro, small and medium-sized legal entities who offer their
goods and services online is extremely low. Inability to obtain all the information regarding online trading
is pointed as the main reason for this unsatisfactory number of online traders. As stated, the set of laws
which regulate e-commerce is comprehensive and traders do not have adequate knowledge to comply
with these laws to conduct its business in accordance with the law. Therefore, conducting a guide, which
contains all necessary information and steps that traders need to take to start offering their goods and
services online, would be crucial to increase the number of micro, small and medium-sized legal entities
who offer their goods and services online.
In the previous phase of project, we have analyzed the Draft of the Act on Amendments and Supplements
to the E-commerce Act (hereinafter referred to as: “the Draft”) and the Trade Bill (hereinafter referred
to as: “the Bill”). Additionally, we have analyzed relevant regulations and e-commerce practice in the EU
and other countries in order to determine the most appropriate mechanisms for legislative barriers
overcome. Specifically, while analyzing the mentioned regulations, we have particularly focused on how
to use already available laws, regulations and procedures to improve e-commerce in the Republic of Serbia.
During the analysis of the Draft and Bill, we have concluded that the current texts introduce new legal
institutes and on the other hand, define more precisely provisions that already exist. Both mention
mechanisms improve e-commerce in the Republic of Serbia.
Key additional proposals for further e-commerce development include:
1. ONLINE DISPUTE RESOLUTION (ODR) MECHANISMS
Throughout the EU practice analysis, we found out that in the case of a dispute between a consumer and
an e-trader, who has obtained the E-Trademark, it can be resolved through the ODR platform (Online
Dispute Resolution).
The Online Dispute Resolution (ODR) platform is provided by the European Commission to allow
consumers and e-traders in the EU or Norway, Iceland, and Liechtenstein to resolve disputes relating to
online purchases of goods and services without going to court. The ODR platform is not linked to any
trader. The consumers can use it to send its complaint to an approved dispute resolution body. A dispute
resolution body is an impartial organization or individual that helps consumers and e-traders to settle a
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dispute. This process is known as alternative dispute resolution, and it is usually quicker and cheaper than
going to court. The ODR platform only uses dispute resolution bodies approved by national governments
for quality standards relating to fairness, transparency, effectiveness, and accessibility.
Having in mind the abovementioned, we are of the opinion that the Ministry of Trade, Tourism, and
Telecommunications or other relevant authority could create the ODR platform and to prescribe that
mechanism as a new Alternative Dispute Resolution (ADR) Mechanism. On that way, we would create an
e-mediators for resolving the disputes related to the online purchase of goods or services.
2. BLOCKCHAIN TECHNOLOGY AND SMART CONTRACTS
We will use the opportunity to promote the introduction of two backbones of the new digital era –
blockchain technology and smart contracts.
Blockchain technology offers vast possibilities for business, government, and consumers. Blockchain can
be used in many ways, including, among others: facilitating trade finance; supply chain management;
securities recordkeeping and governance; healthcare management; insurance recordkeeping; energy
distribution; digital identity solutions; consumer banking; international payments; facilitating institutional
custody; and voting.
These include the opportunity for extraordinary economic growth and cost efficiencies. The Republic of
Serbia should encourage the growth and development of blockchain technology. The first step should be
the introduction of the blockchain in our legal system. So far there was no legislative activity inquiring
into and supporting the benefits of blockchain technology.
Countries around the world are taking this opportunity to pass legislation and develop regulatory
frameworks to encourage blockchain-related companies to relocate to their jurisdictions. The Republic
of Serbia should consider the need to foster that interest.
Investment in blockchain companies and projects has skyrocketed globally from millions of dollars in 2014
to billions of dollars in 2018. Demand for blockchain technology has created thousands of jobs, with IBM
reporting that it increased the number of employees focused on blockchain projects from 400 to 1,500 in
the span of a year. Bloomberg reports that blockchain-related job postings on LinkedIn increased from
1,000 in 2016 to 4,000 in 2017, and the number continues to grow as blockchain continues to develop.
TechCrunch estimates that venture capital funds, and other private investors, invested $1.3 billion
between January and May of 2018 into “blockchain and blockchain adjacent” early-stage companies.
The blockchain is in its early stages and its development is often compared to the early days of the Internet.
It is the next wave of technological development. Adopting blockchain-friendly policies can turn Serbia
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into FinTech hub. Blockchain has enormous potential for innovation and economic growth, but this
potential will not be realized in the Republic of Serbia without the support of policymakers. Policymakers
should work with innovators to craft responsible statutes and regulations that provide the clarity and
flexibility necessary to stimulate blockchain development.
Smart contracts have come a long way in a short time. They help to realize the many possibilities of
distributed ledger technology (DLT). The certainty of the outcome, automation of performance, and
efficiencies in the streamlining of processes are reasons enough for smart contracts to be fundamental to
the uptake of DLT. Their potential is now being actively considered and developed in sectors as diverse
as Financial Services, Life Sciences, and Healthcare, Technology and Telecoms, Transport, Energy,
Infrastructure, Mining, and Commodities. In Financial Services, for example, no one will be surprised to
see smart contracts being used in areas such as securities clearing and settlement, collateral management,
derivatives contracts, securities asset servicing, international money transfers, and perhaps even
syndicated lending.
There are still many open issues: When can it be a legally binding contract? Does its electronic nature
deprive it of contractual effect? Is it security? Can it transfer assets or perfect a transfer of title to them?
These are questions of fundamental importance and will affect the extent to which smart contracts will
be deployed beyond a role confined to self-executing, automating code.
We see smart contracts as another possibility to place the Republic of Serbia among a few countries which
understand perspectives and inevitable future development of contract law. This project is a great
platform for the introduction and presentation of digital technology potentials. Even an introduction in
the form of the definition of the above-mentioned terms would represent a massive step towards the
acceptance of these categories in our system.
The following text contains measures for strengthening e-commerce in Serbia.
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II MEASURE 1. STRENGTHENING CONSUMER TRUST IN E-
COMMERCE
Demands, demographic, socio-economic and cognitive-behavioral barriers have been identified on the
demand side, but most of them can be summed up in customers' mistrust in e-commerce and their
unwillingness to get involved. Highlighting the benefits of e-commerce, eliminating prejudice against e-
commerce and lowering the risk perception of customers towards this type of trading are the focus of
measures to strengthen e-commerce in Serbia on the demand side.
The willingness of users to use e-commerce is one of the key conditions for successful development of e-
commerce (Alioubi, 2015). It is important to understand that in addition to the economic component,
which accounts for a significant portion of the total benefit to e-customers, there is a significant intangible
component. Many psychological and social risks associated with e-shopping significantly limit the potential
of e-commerce in Serbia. One of the most effective ways to overcome these risks is to take a proactive
approach to building trust with potential and existing e-customers in Serbia. The aim is to point out the
benefits and ways of using e-commerce to attract new customers, as well as to represent the legal security
and protection of e-customers, to increase the e-shopping frequency of existing customers and to increase
the value of the average transaction and to expand the product range and services purchased online. It is
necessary to create adequate channels of communication with potential and current e-commerce
customers.
Bad business practices and the gray economy are a common occurrence and something that buyers face
in both traditional commerce and e-commerce. The problem is that bad practices in e-commerce
have high visibility. Thanks to the Internet, mass dissemination of information and news is instantaneous
and multichannel. Potential buyers have a number of online sources based on negative PR when it comes
to e-commerce. Exposure to this information adversely affects the buyer's willingness to engage in e-
transactions. While much of the information is accurate, over-emphasis and one-sided reporting focus,
which often omits the part about the merchant that led to the problem (most often illegal sales), creates
a false image of e-commerce, especially when all the benefits of online shopping are not clearly presented
to customers. For this reason, it is crucial to develop a package of measures aimed at breaking down e-
commerce biases and raising the willingness of potential customers to use e-transactions.
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Table 4. Summary of activities for strengthening consumer trust in e-commerce
Activity Responsible bodies Partners Deadline
8. Development of the citizens' digital
skills in the area of online shopping
The Ministry of Education, Science
and Technological Development;
Ministry of Trade, Tourism, and
Telecommunications (MTTT)
External
partners 2020.
9. The improvement of the MTTT e-
commerce information portal
Ministry of Trade, Tourism, and
Telecommunications
External
partners
End of
2019.
10. Media campaign to promote e-
commerce (professional TV shows,
short promotional videos, guest
appearances by the e-commerce
experts in the media, etc.)
Ministry of Trade, Tourism, and
Telecommunications
RTS and
other
external
partners
2019. and
2020.
11. Creating a concise guide for the e-
commerce customers
Ministry of Trade, Tourism, and
Telecommunications
External
partner
(USAID)
End of
2019.
12. Trustmark – new approach and the
significantly higher recognition by
the customers and acceptance by
the traders
Ministry of Trade, Tourism, and
Telecommunications; The
organization that will issue the trust
mark
External
partners
(USAID)
End of
2020.
13. Training for journalists on electronic
commerce
Ministry of Trade, Tourism, and
Telecommunications
External
partner
(USAID)
2019.
14. An online dispute resolution
platform
Ministry of Trade, Tourism, and
Telecommunications (Consumer
Protection Sector)
External
partners
End of
2020.
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1. DEVELOPMENT OF THE DIGITAL SKILLS OF THE RESIDENTS OF
SERBIA
In addition to the psychological aspect, which implies willingness and a certain affinity, the e-commerce
usage and the participation in e-transactions imply another significant predisposition, the technical-
technological competence of the e-transaction actors. At the individual e-buyers, there is a significant
positive feedback between these two elements, due to the fact that knowledge of digital technologies and
the possession of certain computer skills raise the self-confidence and the safeness of internet users, which
positively reflects on their willingness to engage in e-transactions, as vice versa. Positive examples of close
friends and the environment, as well as an existing affinity towards digital technologies, are a significant
motivator for people to, independently or through a certain type of education, develop their computer
skills, which in turn has a positive effect on enhanced security and resourcefulness in the digital world,
resulting in a greater likelihood of participating in e -transactions. Out of the total number of
companies surveyed, 36% see the lack of technological literacy among the population as one
of the two main barriers, on the demand side, for e-commerce development. Therefore, it is
necessary to strike a balance between these two significant factors which influence on the readiness of
individual customers to use e-commerce. Population digital literacy development activities must be in
function of removing the perceived barriers to the e-commerce usage. In order to maximize the
effectiveness of this approach, it is necessary to segment the market of potential users (primarily by using
the age structure of the population) and to target each relevant segment with a tailored set of activities.
In order to gain access to the internet, citizens over the age of 55 use PCs (59%) significantly more than
other age segments, while they use mobile phones and laptops much less. Despite a significant online
presence, only 25-30% of members of this segment have purchased something online (an average of 43%).
Older citizens rarely use Internet to collect information about specific products, whether they buy the
products in stores or online, but much more often they collect information about the products in the
store itself. The main reason for avoiding e-shopping for 31% of members of this segment is the lack of
habit and disinterest (average is 18%). This suggests that digital skills development activities for citizens
over the age of 55 should be focused at raising the level of their interest. Accentuating the benefits of e-
commerce, such as the convenience of shopping and the absence of time pressure during the act of
shopping, would provide a good basis. It is recommended to create an online educational program in the
form of videos (e.g. on the YouTube platform) tailored to the elderly with the basics of e-commerce and
the recommendations for online shops. Printed material, with an access link and picturesque explanations,
would also be prepared and distributed at places such as the local Post Office.
The situation with the people aged 45-54 is different, 38% of them buy online, which is below the average
(43%), but is significantly more than 31%. It is important to note that lack of knowledge of technology
(computers, internet) is cited as the main reason for avoiding e-shopping in 13% of respondents of this
age, which is significantly higher than the average (7%). It is the same situation when we observe other,
spontaneously cited, reasons for avoiding e-shopping, where as many as 27% of these respondents cited
lack of technologies knowledge (average is 14%). This suggests that educational programs for these users
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should be focused on developing key competencies, primarily on how to use the Internet, to identify
trusted sites and e-shops, etc. This program could be offered through companies, where employers would
suggest to their employees to educate themselves in this regard and encourage them to access a free
educational program. This would have multiple positive effects on the employees approaching the end of
their working lives.
Young people represent the engine and the future of the e-commerce. These are relevant people, age 18-
24 and 25-34. Almost all members of these segments are daily online and on social networks and more
than half of respondents (58% and 52% respectively) have been shopping online in the last six months
(average is 43%). Although these are good results, it is clear that there is significant room for improvement
that must be utilized. The main barrier to e-shopping is the mistrust that comes from the fact that they
do not want to buy something they cannot see (29%, i.e. 27%, respectively). Young people are much more
interested in e-shopping (only 10% of respondents cited disinterest as a reason to avoid it) and have the
knowledge they need. It is evident that they know what they want, they are difficult to deceive them and
they have the analytical skills which they use to compare products and gather information. A significant
problem is that 33% of young respondents, on their own initiative, state that they do not know to whom
to refer to in the event of a problem. It is therefore necessary to provide adequate support through
following measures that will be discussed in more detail. The focus of these activities should be on
connecting young people with relevant content, such as e-guides, portals, etc. It is necessary to raise their
awareness of these contents, which will be the task of media campaigns, especially through the social
network strategy. In primary and secondary school programs, greater emphasis should be placed on digital
literacy. This topic is very up-to-date in our education, but there is still room for improvement. What
should be included in all digital literacy programs is one segment on e-commerce, i.e. basic elements of
secure online shopping and the basic benefits of e-commerce.
Another problem characteristic for all age segments is the knowledge of modern technological
achievements that will soon find application in e-commerce, such as block chain technology (6%) and smart
contracts (10%). It is necessary to develop specific advanced educational programs, which would
complement the aforementioned initial programs, which can be accessed by all interested citizens. This is
a good approach because a more iterative approach to the education through knowledge levels has proven
to be very effective and efficient. This would allow users to choose to what level they want to develop
their competencies, while avoiding overburdening users with too much knowledge or unnecessary
knowledge. Another way of organizing courses is thematically, i.e. by modules. This would ensure that
each student selects exactly the areas they are interested in without having to waste time on listening to
something they already know. The intersection of these two approaches gives the necessary flexibility,
where each level, e.g. beginner, intermediate and advanced had a list of recommended modules, which the
user could eject or extend at will. The courses would be developed by MTTT and The Ministry of
Education, and would be featured on ministry websites, on a newly developed portal and on accompanying
social networks.
Organization of seminars and educational programs for the improving digital literacy of people over 45
years, with an emphasis on the older female population, minority groups, residents of less developed areas
in Serbia, as well as all those who wish to be digital literate. Under the Digital Literacy Program, one
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segment should be dedicated to e-commerce. These educational seminars could be organized under the
auspices of the Ministry of Trade, Tourism and Telecommunications, as well as the Ministry of Education,
Science and Technological Development, in cooperation with regional chambers of commerce or other
organizations that have a wide network covering the entire territory of the Republic of Serbia.
2. CREATING E-COMMERCE INFORMATION PORTAL (E-COMMERCE
PROMOTIONAL WEBSITES IN SERBIA, MOBILE APPLICATION, SOCIAL
NETWORKS AND RELATED CONTENT)
As part of confidence-building measures of existing and potential e-customers, it is essential to develop
an adequate digital marketing strategy. A digital marketing strategy would have three essential
components: a specialized e-commerce promotion website, a strategy for social networks, and the mobile
app development.
Of all respondents who do not shop online, 38% of them has some fear that they will be scammed because
they think they do not know enough about e-commerce, while 37% is unsure who should they contact in
case of some problems and which institutions are competent for resolving disputes in e-transactions. It is
essential to establish a centralized place for informing the public on e-commerce issues. Therefore, the
first step would be to develop a website whose mission is be to be a digital hub for all relevant e-commerce
content as well as a basis for further activities of this type. It is important to note that as many as 42% of
respondents who buy online is concerned and insecure to some extent. Out of these, 28% have fear that
the package will not arrive, 18% are not familiar with the jurisdiction of the relevant institutions, 15% have
a problem with unresolved complaint rules, every tenth respondent is not familiar with online shoppers'
rights and legal regulations, while 9% of respondents is scared of data misusage. The above-mentioned
barriers and fears count to one third of the total and represent some of the most significant ones. These
are mostly psychological-cognitive barriers that can be influenced by providing relevant information. The
goal of a developed internet portal must be to answer the above problems.
The website must have a clear overview of all the rights e-buyers have. A 55% of the respondents who
buy online are not well familiar with their rights. This section will clearly outline the most important
customer rights, especially those related to the delivery of goods, since 42% of respondents who had a
negative e-shopping experience received poor quality products, while 36% received the wrong product
or did not receive the product at all. This section will specify the buyer's right to return the product within
the two weeks at the seller's expense, and that in the case of e-payment, he/she has the right to request
a refund from the bank, which significantly reduce his/her own risk. Bearing in mind that 11% of
respondents are concerned about customs procedures, it is important to explain what the customs
clearance process looks like and how a potential problem can be solved.
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Another significant part of the website would be dedicated to customers’ advice on how to behave in a
digital environment. Bearing in mind that 18% of concerned respondents do not trust e-commerce, it is
necessary to explain how to identify a good, reliable website and e-store, how to pay online, how to
compare product information and how to analyze relevant customer comments. A special focus would
also be on using social networks as an e-shopping platform. This is especially important for the younger
population, since as many as 50% of e-shoppers under the age of 35 buy through Facebook and Instagram
profiles of boutiques and shops, while 40% buy via the Facebook and Instagram profiles of individual
shoppers. This is a potentially dangerous statistic, since most illegal dealers market their goods this way.
These are unreliable sellers of products with dubious quality and questionable origin, whose customers
do not fall under the veil of legal protection. It is necessary to show what reliable profiles look like, how
it is advisable to buy from multi-channel sellers, and how to use criticism of earlier buyers as a tool to
check the credibility of sellers.
A separate part of the web portal would be dedicated to the business entities, i.e. to internet marketers.
It would as the first item, but B2B, which purpose would be to outline all the legal obligations that e-
marketers must abide by. A separate section of the website would be dedicated to current affairs, which
would highlight all the relevant legal and regulatory changes that are tangible to e-commerce in Serbia. In
addition, access would be made to all the relevant publicly available business statistics, which would be
aggregated and grouped within the portal.
A separate section would be the Multimedia Corner. This would include access to the e-Shopping Guide,
as well as all the links for social networks and the most important media activities and announcements. In
addition, there would be a separate section with competent institutions and an overview of their activities
and areas of work, their contacts, as well as the contact and email address of the call center, the arbitration
portal, and consumer advisors.
The final part of the site would be organized like a forum, i.e. public chat room. Since the average rating
of the impact of other customers' public comments on the likelihood and frequency of e-shopping is 4.1,
it is clear that this is an extremely important aspect. In order to prevent possible abuse, only the users
with an account could leave comments. A special part would be dedicated to the so-called "A blacklist"
listing all proven unreliable e-marketers. This list would be updated both manually and automatically, based
on the number of negative reviews and later inputs collected through mobile applications and relevant
statistics.
The portal presented should have some significant features in order to maximize its positive effect.
Considering that almost the entire population of the Internet users under 45 years uses mobile devices
for daily Internet access, while between 45% and 60% of users over 45 use PCs, the Internet portal must
be optimized for all platforms. An additional feature of the portal would be flexibility, i.e. adaptability to
the user. When accessing, the user would be offered the option, if he had not previously been logged in
and does not want to do it, to access the portal as a business user, e-buyer, or in full informational scope.
Depending on the chosen approach, the website would show personalized content relevant to the option
selected. This would avoid overloading users with too many information. This would imply that all content
would be interactive. For example. The guide could not be uploaded as a PDF file, but as a multi-section
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interactive text that is customizable to the user. The importance of the internet portal is greater this way
because it represents a significant source of information for the female population. The survey found that
women significantly more visit the official websites of companies (38%) and retail chains (25%) than men
(20% and 13%).
The accompanying social media strategy must be well designed and focused on information synergies. We
should focus on Facebook, as the social network which is most used in Serbia, Instagram as the fastest
growing, especially among the younger population and the YouTube as the best multimedia content
platform. In this way, all the relevant content from all the public online channels would be networked, and
interested parties could informed themselves by watching videos and reading about the experiences of
other e-shoppers from the comments, rather than browsing through extensive legal content, which are
for the most part incomprehensible to the average person. The presence of a public official moderator of
social networks would provide directional communication and a positive tone in sharing experiences. The
focus is entirely on content networking and linking a public e-commerce portal, i.e. its parts, with the
official channels on social networks. Active collaboration would be established with all the significant
national e-shops and consumer advisors, which have a significant internet presence.
The last development phase in this part would be to create a mobile application. Its goal would be the
same as that of a public portal and most content would be identical. The difference would be that the
application would be adapted to all mobile software and integrated with other applications on the phone.
This is important because 9% of respondents use mobile apps to make a purchase. This number will
continue to grow in the coming years, and it is imperative to create a tool that can analytically monitor
user activity and send relevant information to the public institutions.
3. MEDIA CAMPAIGN FOR E-COMMERCE PROMOTION (PROFESSIONAL
TV SHOWS, SHORT PROMOTIONAL VIDEOS, GUEST APPEARANCES
BY E-COMMERCE EXPERTS IN THE MEDIA, ETC.)
The media campaign must be consistent with the earlier given suggestions and conclusions. Generational
differences would be the main criterion for customizing the communication mix. For older members of
the population (builders and baby-boomers), it is essential to use the above-the-line marketing approach.
The focus would be on mass communication, such as television, radio and print media. Bearing in mind
the earlier conclusion that this group is not interested in e-commerce, it is necessary to interest potential
older of e-users to examine and test certain aspects of the e-commerce, as well as to positively affect
their self-confidence, which is mainly threatened by the lack of the necessary computer skills. We suggest
short video inserts on TV, thematic newspaper articles, billboards (especially in front or within public
institutions), hosting e-commerce experts (especially if they are older people) in news or other TV
programs, as well as possibly considering launching a themed show that would touch the e-commerce
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field to some extent. A significant contribution would also be the creation of mini-promo messages in a
short video in which would famous people highlight one or two essential e-commerce related information.
For younger generations (Y and Z generations) the focus would be on highlighting and networking relevant
content. In addition to the social media strategy mentioned earlier, certain topics or sections of the E-
Buyers Guide would be presented through banners and online advertisements (e.g., Google Ads). It is also
important to note that younger generations identify popular peers and influential public figures (so-called
influencers) as a significant source of socialization, and often resort to their imitation, such as using their
phrases in speech or imitating their clothing style. Because of that, an action would be launched where
these persons would discuss specific topics and positive e-commerce experiences within sponsored
videos. These multimedia content would be shared through social networks and public portals, but public
appearances of these persons would also be used as a kind of promotion tool. The most significantly
ranked factor in influencing non-e-commerce persons to start using e-commerce is the positive
impressions of people who are close to them. This is especially important for people between the age of
18 and 24 (4.1 point, while the average is 3.7), who see interesting celebrities as close ones. Due to the
internet networking, increasing the number of young e-shoppers would have a multiplier effect. It is
important to note that among the oldest population this factor is not emphasized (grade 2.6). The benefits
of e-commerce should be brought closer to the young population, in order to fully utilize the available
potential. In collaboration with higher educational institutions and the Ministry of education, science and
technological development there would be the development of educational programs, seminars and
lectures in the field of e-commerce. Additionally, MTTT could emerge as a potential sponsor of research
and student conferences, if the agenda includes e-commerce. A related measure would be to enable the
electronic payment of all financial obligations towards the educational institutions, which would bring
electronic payment closer to the younger population.
An important aspect of the media campaigns would be a focus on the development of women's
entrepreneurship. All of these activities should mostly represent well-known, influential women, while
successful women entrepreneurs that have established a sustainable e-commerce business model would
be accentuated by the TV shows. A special addition would be the emphasizing of people from less
developed areas of Serbia and the focus of all the thematic events in this region.
It is imperative that a wider range of media is involved in e-commerce promotion. The goal is to deliver
information on the benefits of e-commerce to a large number of people in the short term using their
exposure to the mass media. This would be accomplished by a TV campaign that would present in a
humorous and educational way possible situations in e-transactions, setting up billboards with key benefits
of e-commerce, as well as distribute of thematic pamphlets in public institutions. Similar to the VAT
campaign conducted ten years ago, in this case it is necessary to develop content in cooperation with RTS.
4. CREATING A CONCISE GUIDE FOR THE E-COMMERCE BUYERS
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It is essential that there is a good guide for the customers in e-commerce. The existing Guide is too
extensive as it has 64 pages. In addition, it has been many years since the Guide was created. The situation
in e-commerce in Serbia has changed a lot in the last seven years. There are a large number of businesses
that trade through the social networks and it is necessary to pay adequate attention to this element. It
has already been said that the Buyers Guide would be integrated into the E-commerce Guide and it would
represent its interactive part for e-Buyers. The guide itself may be available as a PDF, but the emphasis
would be on combining multimedia content into textual tips and recommendations in order to maximize
informative content. The user should have the choice of watching a pre-prepared video covering a specific
area of the Guide, or reading the text itself, which includes useful links, illustrations, and short video and
audio content. The focus is on raising the reader's interest and the Guide itself should not be
overburdened with complex information. The guide would include the following parts:
• What is e-commerce - conceptually defining and presenting all possible situations that can be
characterized as e-transactions and their components and participants.
• What are my rights and obligations when making an online purchase - a detailed overview of
the rights and obligations of e-buyers. The emphasis here would be on the rights regarding the return of
goods, payment, data protection, customs procedures, etc. This section would have a separate section
with current affairs, showing all the latest legal and regulatory changes that affect the rights and obligations
of the e-customers.
• Who is selling online - a description of the sales channel as well as defining the term multi-channel
sales. Parallel view of the advantages and disadvantages of pure click, brick and click and brick and mortar
concepts. View all intermediaries and their role in the e-transaction.
• What can I buy online - View products that can be purchased online, related purchase restrictions
(age, limited advertising, specific administrative and customs requirements, etc.), as well as a list of
products that cannot be purchased online.
• How to pay - an overview of all the payment methods, as well as their advantages and disadvantages.
Emphasis would be on the positive presentation of the cashless payment methods and emphasizing their
advantages over cash payment.
• How to protect yourself in e-commerce - an overview of the most common frauds on the internet,
as well as how fraudsters can be identified and reported to the competent authorities. A list of useful
mundane tips to increase the safety of online shopping (trusted sites, multi-channel sellers, sites with lots
of positive reviews, etc.). The possible misunderstandings that may arise when ordering (wrong numbers
or items, terms of delivery, additional costs, foreign exchange differences, customs procedures, etc.) and
how to predict or resolve them would be highlighted.
• How to further expand my knowledge - a list of useful thematic links, seminars and programs
• List of trusted e-marketers
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• List of unreliable e-marketers
• FAQ - interactive parts of the Guide where users can browse through frequently asked questions and
answer on them, as well as ask a question to a competent public administrator or members of a public
forum.
5. TRUST MARK - A NEW APPROACH AND A SIGNIFICANTLY GREATER
CUSTOMER RECOGNITION, AND ACCEPTANCE BY THE MERCHANTS
Trust mark is very important in e-commerce, especially for electronic retailers who sell only online and
who cannot count on the transfer of trust from a classic store like multichannel retailers can. The
confidence mark as a factor in influencing online shopping was rated 3.3. The particular significance of the
Trust mark in this regard would be for buyers age 35-44 (rating 3.6). The trust mark is also important for
micro, small and medium-sized businesses and drastically affects first-time customer conversion. Also, if it
is an internationally recognized certificate, it has a positive effect on foreign buyers.
The trust mark serves as a further assurance to potential buyers that their products or services are offered
by an e-seller who is recognized on the market and whose business is in accordance with law and good
business practice. It is essential that there is a standardized evaluation and certification process as well as
a competent authority. The competent authority should have great authority in the field of e-commerce
and should also work in cooperation / under the auspices of the Ministry of Trade, Tourism and
Telecommunications when it comes to awarding previously mentioned certificates.
There is an E-Trustmark in Serbia that is issued and can be seen on the e-commerce websites. What
should be further enhanced is the level of the importance of the trust mark for the e-commerce
customers. The problem is that the trust mark is not sufficiently recognized by the customers. Also,
sometimes businesses emphasize this mark of trustiness as a recognition, and often at the bottom of the
website, where is not visible enough. It is necessary to significantly raise the level of customer awareness
of this trust mark. Regardless of whether the mentioned mark is issued by the organization that has issued
it so far or is being transferred to another organization, it is necessary to increase the number of business
entities that have a given mark in the compliance with the given standards.
The e-trust mark should have a distinctive logo, which would be exposed to the media, especially in the
initial implementation phase, in order to increase the consumer awareness and to get e-shoppers
accustomed to the tag and to be able to unambiguously recognize it in e-transactions.
The certificate can be issued to existing pure click and brick & click companies that would meet certain
standards, such as the introduction of procedures for efficient response to consumer requests and return
logistics, timely settlement of financial obligations, certain % of successfully resolved customer complaints,
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responsive submission of required business data to the competent bodies for the purpose of forming
specialized databases, etc. The key indicators to monitor the implementation of the trust mark after
market introduction would be the ratio of certificates awarded and requests received, the percentage of
renewed certificates, the annual growth rate of the total number of certificates issued in the Serbian
market, as well as certain qualitative parameters that would be obtained by the market research of e-
customers' views on the e-trust mark.
It would be good if the trust mark that our e-merchants receive is internationally recognized - that this
can be achieved by issuing it in cooperation with one of the recognized institutions in Europe or the world,
such as for example trust mark Safe.Shop. Also, a potential solution could be a trust mark that will be
recognizable in the Balkans.
6. TRAINING OF JOURNALISTS ON THE ELECTRONIC COMMERCE
Bad experiences of other people, negative headlines in the media ("wooden log arrived instead of…") are
the reasons for avoiding online purchases for 29% of respondents. This is a particularly emphasized
secondary reason in men (21%, average 16%), as opposed to women (11%). With this information in mind,
it is of utmost importance to educate journalists to focus their research efforts on relevant e-transaction
participants, depending on the topic of analysis. This means that any journalistic analysis on the topic of e-
commerce must have a clearly defined research scope. This ensures the separation of trusted, serious e-
merchants from unreliable resellers operating in the gray economy. Journalists are a significant source of
information and education for the population, which is why they need to refrain from unrealistic bombastic
headlines and focus on a substance, with the aim of raising the awareness and willingness of the population
to buy products and services online. With this in mind, it is necessary to organize educational programs
and seminars for journalists who write articles and do research in the field of e-commerce. The focus of
the training would be to get journalists acquainted with the participants in e-commerce in Serbia and to
indicate to them for which participants the level of customer complaints is very low, and which traders
(mostly unregistered, on social networks, etc.) are the riskiest.
7. AN ONLINE DISPUTE RESOLUTION PLATFORM
A discussion has begun, from a legal point of view, on alternative dispute resolution mechanisms.
Interviews with relevant stakeholders showed that for the direct participants in e-transaction were not
profitable to bring litigation for disputed transactions which are worth less than RSD 6,800. Considering
that more than 55% of e-transactions in Serbia are worth less than 50 euro, we conclude that there is a
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significant barrier to the further development and expansion of e-commerce, especially in the initial stages,
in the form of significant risk and mistrust of customers. It is important to enable out-of-court dispute
settlement in lower value e-transactions. An online platform for the arbitrary dispute resolution could
boost e-commerce efficiency. When customers are aware that they are protected and that an official body
is actively working to protect them, they will be more willing to participate in e-transactions and spend
larger sums of money online, even purchasing certain products or services that they would not otherwise
purchase electronically. The arbitral body governing the online platform would need to have state support
but would have to be independent.
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III MEASURE 2. STRENGTHENING THE POSITION OF
ELECTRONIC TRADERS IN THE MARKET OF THE REPUBLIC
OF SERBIA
Table 5. Summary of activities for strengthening the position of e-traders
Activity Responsible bodies Partners Deadline
9. Creating Ecommerce Guides (Shorter
and Longer Version) MTTT
External partner
(USAID) June 2020.
10. Setting up a Call Center for the
support of e-traders
Ecommerce Association or
other relevant institution MTTT June 2020.
11. Incentives to startups and existing MMS
businesses in e-commerce (financial
support, mentoring support ... analyze
different options)
MTTT External partners 2020.
12. Tax incentives for electronic traders MTTT, Ministry of Finance 2020.
13. A project to support women's
entrepreneurship in one district in
Serbia
MTTT External partners 2020.
14. E-commerce development training
courses for the e-traders MTTT
External partners;
An eminent
educational
institution
2020.
15. Organizing contest for the e-trader of
the Year
MTTT, E-Commerce
Association, Serbian
Chamber of Commerce or
other relevant institution
2019. and
2020.
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16. Development of electronic retail at
classic local and regional offline
retailers in Serbia - Multi-channel
approach
MTTT External partners 2020.
1. CREATING ECOMMERCE GUIDES (SHORTER AND LONGER VERSIONS)
A version of the Ecommerce Guide already exists and is available online at
HTTPS://EUROPA.RS/IMAGES/PUBLIKACIJE/VODIC_ZA_E_TRGOVCE.PDF. It is a document with a
legal focus, intended to be an instrument for informing e-merchants of their legal obligations and rights in
e-transactions, depending on the stage of the transaction itself. This material is complex and difficult to
understand. The guide should be a comprehensive document that adequately covers the legal, business,
financial and technological aspects.
In the conducted research, the importance of the ecommerce guide is clear. As many as 10% of non-e-
commerce companies believe that having an e-commerce guide would encourage them to enter into the
e-commerce area (especially important for SMEs, not so much for large enterprises (no large enterprises
would be stimulated this way)). The importance of the existence of a Guide to Further Ecommerce
Development is rated 4.4.
The public portal has already been explained in the previous section. Business users would have the
opportunity to access content tailored to their needs on the portal. In addition to the standard
informational content, personalization would also be directed to tutorials and educational programs to
improve certain e-commerce business activities, successful case studies, a special section for women
entrepreneurs and SMEs. Within the website there would be a section for useful links and files, which
would contain links or contacts of potentially interesting partners (software providers, e-merchant
support banks, and trusted couriers), open source materials, software extensions and files for e-stores,
etc. The portal will also include an interactive e-commerce guide. Business users would be automatically
redirected to the part of the Guide that directly addresses them and their needs.
E-traders consider that the absence of a clearly defined legal framework (11% of respondents) represents
one of the most significant limitations on the part of e-commerce enablers, but on the other hand, they
do not know to state what the legal barriers are. From the above mentioned, it is clear that ignorance of
legal regulations is a problem for existing and potential e-merchants. The legal part of the Guide should
explain everything that is needed to start an e-business. From starting a business/entrepreneurship to
fulfilling the legal requirements that e-commerce requires. The legal aspects of customer relations, import-
export business, exceptions to certain legal restrictions, etc. would be included here. It is important that
all legal and regulatory guidelines are sorted and clearly displayed, both by the part of the business activities
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that they are related and by the level of significance, so that users have a clear overview and the ability to
prioritize. Considering that 7% of respondents see customs regulations as one of the most significant
restrictions by e-commerce facilitators, a separate section would be dedicated to the customs operations,
regulatory review and the accompanying elements of international business and traffic. A segregate
segment would be all the recent changes to the e-commerce laws and regulations. This section would
ensure centralization of relevant legal obligations. This is especially important for MSMEs who do not have
enough specialized staff and lawyers, nor enough time to scrutinize all the laws while seeking the guidance
relevant to their business.
The business-financial part should cover two basic segments. Marketing, which should help e-businesses
determine who, what, at what price and where to sell, as well as how to reach the customers they are
targeting. Knowing customers is essential and customer data obtained online is a treasure trove of
optimizing your digital marketing strategy. In addition to the analytics and the analytical tools like Google
Analytics, readers would also be familiar with the importance of being proactive on social media. Networks
like Facebook, YouTube, Instagram, Pinterest, Twitter, and Tumblr provide significant segmentation and
targeting capabilities, as well as positioning businesses online. It is necessary to explain the character of
each network, as well as to give an example of good content posted on those networks. Content
networking and multimedia messaging are essential for engaging and animating leads and must be
technically explained and linked to the explanation of how to create a website and an e-commerce site. In
terms of business management, it is imperative to show business owners how they can measure the
financial performance of their business. Assistance with creating business strategy was rated 4.2 as an
ecommerce development factor. Linking financial indicators such as ROI, ROA, GMROI etc. with digital
operational metrics like customer conversion rate, visits, clicks, views, incomplete transactions, number
of website returns, etc. provides a comprehensive understanding of the relationship between business
performance and e-customer behavior. Basic accounting requirements for e-businesses would be
addressed in the guide as well.
In addition to the internal aspect, advices would be given regarding the provision of the necessary financial
resources for further expansion of business. Centralized record of all the national and international funds
available to entrepreneurs is a good basis, especially when paired with advices on collecting and writing
the necessary documentation, applying for a competition and similar advices. The aim is to show the
potential sources of financing to the entrepreneurs and enable them to successfully apply for these funds.
The guide would be rounded off by introducing business owners to the basic strategic concepts and tools.
Environmental analysis instruments would be presented as tools for understanding the market situation
of an enterprise, while the benchmark analysis would be presented as a form of comparison with
competition and mapping of enterprises by certain dimensions of business. Also, all the ways to pay for
the product online would be explained, as well as the obligations and benefits they bring with them.
Businesses would also be given relevant business statistics and studies that they can use when needed in
their internal analyzes. The ultimate goal would be to demonstrate the importance of value management
and that it is not always right to use a cost focus strategy. Products sold online can be unique and base
their market position on delivering superior value to consumers. The focus of the guide itself would not
only be on pure click companies, but also on traditional, physical retailers, who are interested in
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implementing multi-channel sales. Of course, the importance of integration and synergetic effects between
channels would be exposed in detail, as well as a process of transition from a multichannel to an
omnichannel approach. It is important to note that the study should contain a wealth of case studies and
interesting business stories, as well as illustrations and diagrams, etc. The business part of the guide would
also include support activities necessary for the e-commerce, such as courier services, financial institutions,
etc.
The technological aspects in the guide must be aimed at increasing the understanding of digital technologies
as well as explaining what is technologically necessary to do to start an e-business and what the costs are.
From the website design to more sophisticated technology solutions. This includes a list of relevant e-
commerce platform providers, such as Shopify, but also an up-to-date list of companies in Serbia that may
be active partners in this regard, such as Raiffeisen or SoGe Bank, which offer their clients an e-platform
for website creation and e-shops.
The guide should be written in a simple language and be a practical tool for starting and running a business.
It could be available in PDF format, but it should primarily be an interactive segment of the public portal,
with the ability to personalize the presentation of relevant multimedia content. In this way, business users
would seek aspects of the Guide which are important to them, by themselves; they could choose the
thematic areas, i.e. depth of consideration of individual activities.
2. CREATING A CALL CENTER
Government assistance presents a significant measure of incentives for e-commerce development,
according to the 8% of surveyed internet traders. Government assistance involves not only financial
subsidies but also active involvement and processes for optimization and improvement of e-commerce.
One of the best approaches in this regard is to create supporting content that presents the necessary
information and advisory support, as well as education and communication channels. In this context, it
involves: launching a call center, creating a public portal, formulating a social network strategy, and
developing a mobile application.
The existence of a formal call center dedicated to the advising e-commerce users would affect 3% of
companies that do not have online sales to consider this option, while existing online retailers estimate
that the importance of the call center on the development of e-commerce is 4.3. This is where businesses
could get information on issues of interest in e-commerce or in solving problems they encounter. An
ecommerce guide could help a lot to the call center work. The Call Center could be within the E-
Commerce Association.
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3. INCENTIVES TO STARTUPS AND TO EXISTING MMS E-COMMERCE
ENTITIES
Giving incentives for the business development i.e. the incentives to the existing e-businesses and startups
that have good ideas for developing a new or existing business is very important for the further
development of e-commerce in Serbia, especially given that 29% of e-marketers see insufficient
government assistance as one of the two main barriers for the realization of e-commerce, and 17% of e-
traders see financial shortages as one of the two major barriers to e-commerce development. In 5% of
cases non-e-commerce companies cite capacity limitations (financial and human) as the main reason for
not entering e-commerce (much more important for product traders, 8% than services traders, 0%), while
financial subsidies would be an entry ticket to ecommerce for 7% of companies. Because of this, it is
necessary to provide financial incentives for startups, especially product sellers. Entrepreneurs would
submit a business plan that is adequate for e-commerce. On the workshops they could master how to
develop a business plan. Incentives could be in the form of grants for the best business proposals or in the
form of favorable loans.
According to e-traders, three major barriers to e-commerce development are lack of previous experience
(14%), excessive data security requirements (11%), and monitoring of rapid technological development
(5%). All these factors are directly reflected on one of the most important activities of e-business - creation
and maintenance of a functional website and e-store. 12% of the analyzed e-marketers are not satisfied
with the conditions of technological service providers (creation of website, platform, etc.). The lack of
resources to create an adequate website or complete technological solution is often a limitation for
starting an e-commerce business. Financing part of the cost / full-service provider support needed to start
a business, such as making a website or covering part of the cost of courier services for a certain period
of time could encourage the development of e-commerce, because e-traders estimate that the importance
of state aid for technology is 4.4. Incentives could be provided from government funds, but also through
sponsorships of those who sell services to e-commerce providers e.g. banks or courier services.
A significant proposed educational measure is related to the mentoring support for e-business
development in Serbia. Each year, under the auspices of MTTT, an interdisciplinary team of experts would
be formed to represent a mentoring committee. Each year a call for proposals will be launched to award
consulting and mentoring support to the interested e-marketers. Those with the best proposals and
realistic analysis of their needs would be selected (e.g. 10 companies a year) and the mentoring committee
would work with these companies over the next year to improve and develop their e-businesses. Support
would be in the form of workshops, individual meetings, staff training, the development of a professional
analysis of the current state of business, and the development of a short and long-term development plan.
Within the scope of this assistance, women entrepreneurs and SMEs would be privileged and this measure
would be targeted primarily at them (especially entrepreneurs of less developed countries).
The public portal has already been explained in the previous section. Business users would have the
opportunity to access the portal as B2B users or to log in, thereby accessing content tailored to their
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needs. In addition to standard informative content, personalization would also be directed towards
tutorials and educational programs for the promotion of certain e-commerce business activities, successful
case studies, a special section for women entrepreneurs and SMEs. Within the website there would be a
section for useful links and files, which would contain links or contacts of potentially interesting partners
(software providers, e-merchant support banks, and trusted couriers), open source materials, software
extensions and e-files -stores, etc.
The social media strategy for business users would rely on a previously elaborated strategy for individual
users. In this case, a greater focus would be on creating an official presence on LinkedIn and creating a
digital merger of interested e-marketers. When it comes to the YouTube channel, the business part would
be focused on creating content related to certain aspects of e-commerce, which e-marketers can
download and distribute through their social networks, as well as developing advisory videos with
instructions on creating quality online content. Facebook and Instagram public profiles would focus on
individual users but would allow e-traders to access discussions and forums, as well as privileged rates for
highlighting banner ads and related content.
4. E-COMMERCE TAX BREAKS
An exemption from taxes and contributions for a certain period of time, or payment at a lower tax rate,
would make it easier for startups to start operating, since many of them start earning in the second year
of business, and start operating profitably after three years. Many of them do not get started, and close
their startup due to high initial costs. This is another significant measure of direct state aid. Special reliefs
should be defined for women entrepreneurs and startups from Eastern Serbia.
5. A PROJECT FOR SUPPORTING WOMEN'S ENTREPRENEURSHIP IN ONE
DISTRICT IN SERBIA
A specific set of incentive measures and education should be created for the development of women's
entrepreneurship in e-commerce. Particular attention should be paid to women in less developed areas
who may sell certain products on the Internet. The main goal of these programs is to eliminate the
technological and business fear of ignorance that exists and to present the benefits of e-commerce. In the
case of financial incentives, the preferential treatment should be given to women entrepreneurs, in the
form of higher co-financing rates, greater absolute amounts of available grants, wider coverage of financed
business aspects, as well as more relaxed competition criteria for the aforementioned funds.
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In addition to the above-mentioned additions for women entrepreneurs in the proposed measures, a set
of the following activities would be created:
• Creation of a program to support women's entrepreneurship "Digitize Your Idea" -
This is a mentoring-financial support program that would allow interested women from a selected
less developed district to apply to the competition in order to participate in the program. The
first part of the program would be mandatory for all applicants and would represent a set of
specialized educational programs for women entrepreneurs. The focus would not only be on the
e-commerce topics mentioned above, but also on the accompanying topics. Skills development
would include human resource management, writing business plans, financial analysis basics and
basic digital skills. After that, the candidates would have a month to formulate a business plan and
submit it to the Evaluation Committee. Selected candidates (focus would be on ideas involving
more women entrepreneurs and on those with existing complementarities) would enter into the
second phase of the project, which includes mentoring and financial support (exemption from tax
payment for two or three years, space usage for performing economic activities, co-financing the
procurement of equipment, etc.) and the realization of a business idea. Quarterly meetings would
be mandatory, where all the candidates would comment on the activities carried out and advises
each other. Participants in this project would be required to participate as speakers at e-
commerce and entrepreneurship conferences as well as at the national media campaigns.
• Organization of conferences or summits on women's entrepreneurship in Serbia - in
this case the competent institutions would act as organizers and would organize specialized
courses and conferences, where women's entrepreneurship would be approached from many
different angles. In this way, media awareness would also be focused on the actualization of this
topic. Guests at these summits would have the opportunity to present their business stories and
the challenges they are encountered. At topics like this, sharing experience is extremely
important. An option for consideration is the organization of a women's entrepreneurship fair,
which would be held in the first week of March in the city of Nis.
• Co-financing organized economic events, which one of the topics is women's
entrepreneurship in e-commerce - this is a good way of indirectly supporting women's
entrepreneurship. In this way, conference organizers will do their best to incorporate related
topics and relevant speakers into the agenda in order to benefit from it. This would make the
topic of women's entrepreneurship current and serve as an encouragement to the future
entrepreneurs. The support does not have to be exclusively financial - it may also involve the
provision of conference space and other things. Preferential treatment would be particularly
provided to the summits in the selected district.
• Creation of educational training programs, as well as reeducation programs for
women entrepreneurs - the idea of these activities is to create specialized educational
programs for women entrepreneurs. The focus here would be not only on the e-commerce topics
mentioned above, but also on the accompanying topics related to the basics of business. The aim
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of the trainings would be to explain to women how they can create e-business based on their
ideas, but also to generate new ideas. This measure could be implemented in multiple districts.
• Advising women entrepreneurs and helping them to apply for funding sources - this
measure would be there to support women entrepreneurs who did not receive direct financial
assistance or subsidies from the state. The focus would be on helping to gather the necessary
paperwork and supporting documentation, as well as directing it to the adequate funds and other
sources of funding. This option would be offered nationally.
6. DEVELOPMENTAL TRAINING PROGRAMS FOR ELECTRONIC TRADERS
One of the key steps for further development of e-commerce in Serbia is the development of e-traders'
business competencies. From the economic experience it has been established that Serbian businesses,
especially entrepreneurs, lack the focus and expertise in the field of digital technologies. This was
confirmed by the fact that 24% of the observed e-traders highlighted education as a significant factor in
the advancement of e-commerce, making it the most common survey answer, with an estimated
significance of 4.5. Therefore, it is necessary to develop a good package of educational measures.
Educational efforts should be directed both to the strategic level of e-commerce management (help in
defining a business strategy is perceived as an e-commerce enhancement factor with a rating of 4.2) and
to certain operational aspects, such as optimizing the digital marketing mix in e-commerce (9% of
respondents believe that marketing promotion is a significant factor in the further development of e-
commerce).
In accordance with the inter-disciplinary nature of e-commerce, cooperation with the relevant higher
educational or other professional institutions is necessary in order to create a comprehensive educational
program for e-traders. The program would consist of the thematic areas such as: Business tools and
models, Business organization, Legal aspects of e-business, Creation and development of the digital
marketing tools and instruments, Logistics management and Sales planning and organization, Finance in e-
commerce, Accounting Basics for e-traders, etc.
The educational program should have the character of a certified development program where after, for
example, the two-month development program, the students would receive a certificate from an eminent
educational institution.
7. ORGANIZING THE COMPETITION FOR THE E-TRADER OF THE YEAR
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MTTT, in collaboration with the SCC or other relevant institution, could launch the competition for the
e-trader of the year. The idea is to link market inputs to the ratings of professional jury experts. This
activity could be aligned with and linked to the annual e-commerce conference. The focus of this
competition would be of an educational character, because the presented businessmen would be able to
see good examples from Serbia's economic practice, as well as certain innovations from the field of e-
commerce. As an added benefit, it can be worked on bringing key players in the field of software
development and e-platforms which are relevant to the e-commerce field and on constructively engaging
them with a targeted audience- e-trader.
8. DEVELOPMENT OF THE ELECTRONIC RETAIL AT CLASSIC LOCAL
AND REGIONAL RETAILERS IN SERBIA - MULTI-CHANNEL APPROACH
Multi-channel retailing has proven to be a successful concept in developed countries. There are a significant
number of successful local and regional retailers in Serbia covering the territory of one or more
municipalities. Most of them do not decide to enter into electronic retail due to their lack of technological
knowledge, lack of knowledge of e-commerce and its advantages and general fear of entering a new sales
channel. It has been observed that 6% of e-traders consider poor multichannel sales development as one
of the two major barriers to the e-commerce development. This is a direct consequence of the poor
development of the e-commerce market in the country (identified by the 20% of e-traders as the most
significant barrier and by 11% as the second most important barrier to the development of e-commerce)
and lack of previous experience (14% consider it to be one of the two most significant barriers). The aim
of educational and incentive efforts in this field should be to identify and present successful national and
regional examples of multi-channel vendors for specific product groups (particular focus on footwear and
clothing (37% of respondents), technique and technology (17%), toys, books, furniture and flowers (16%)
and digital products (12%).
The incentive system for these merchants should also apply, with the appointment of a special mentor
who would work with one company to develop electronic retail and educate their staff. These companies
would also receive some e-commerce development funds based on the proposal of their new business
model which would they develop with a mentor. It should be noted that the development of e-commerce
at small and medium-sized retailers of local and regional importance is a way to facilitate access to the
market for small and medium-sized suppliers.
It is necessary to foster the creativity and innovative potential of modern disruptive e-businesses.
Synergistic effects resulting from specialization in the field of business decision making digitization, as well
as certain business functions, such as the digitization of logistics, represent a significant step forward.
Global business models like Wolt, GLovo, CarGo, etc. are essential for e-business development, and can
represent guiding ideas, as well motors of national e-market development in Serbia. Another significant
way to diffuse this kind of innovation and increase market representation, is the integration and / or
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cooperation with established, traditional multi-channel business systems. As an international example we
cite the cooperation between Carrefour and Glovo, aiming to achieve synergistic effects through the
collaboration of FMCG hypermarket giant and innovative national product delivery models109. Similar
models of business cooperation are necessary in the Serbian market and it is necessary to promote this
type of cooperation and to raise the awareness of relevant people in the profession.
109 HTTP://WWW.CARREFOUR.COM/CURRENT-NEWS/CARREFOUR-AND-GLOVO-SIGN-A-STRATEGIC-
PARTNERSHIP-IN-FOUR-COUNTRIES-IN-ORDER-TO-OFFER-30
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IV MEASURE 3. DEVELOPMENT AND IMPROVEMENT OF THE
LOGISTIC FLOWS IN THE ELECTRONIC TRADE
Table 6. Summary of activities for developing and improving logistic flows in e-commerce
Activity Responsible
bodies Partners Deadline
7. Setting up 24/7 pickup
locations in big cities
(„paketomati“)
MTTT, City
administration?
External partners
(postal service
operators)
End of 2020. This activity
will take longer, perhaps the
first phase in 2020.
8. Standardization of business
procedures of courier services MTTT External partners 2020.
9. Subsidizing part of the shipping
costs which electronic
merchants have
MTTT 2019. or 2020.
10. Educational programs for
courier employees MTTT External partners 2020.
11. Enabling electronic payment of
customs duties
Customs
Administration 2020.
12. Acceptance of the electronic
documentation in customs
procedures
Customs
Administration After 2020.
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1. SETTING UP 24/7 PICKUP LOCATIONS IN LARGE CITIES (PACKAGE
MACHINES) (THIS HAS TO BE WORKED OUT WITH THE POSTAL
SERVICE OPERATORS)
One of the main reasons for shopping online is the delivery to the desired address (73%), however it is
important to note that this is not usually a priority reason (5%), but primarily an additional benefit of e-
shopping. Within this analysis, it was observed that delivery to the desired address means most to the e-
buyers aged 18-24 (15%). Setting up 24/7 pickup locations in major cities would be another major step in
raising e-customer satisfaction. One of the problems noted is that e-shoppers often have a problem
receiving packages. Courier services operate and deliver goods during business hours, when there is often
no one at the home address (especially a problem with single-member households), which very often
discourages potential buyers from the e-shopping. Our survey has confirmed this, as 5% of respondents
who had poor e-shopping experience cited it was because of the delivery of parcels during business hours
when no one was home to receive it. Regarding the respondents who do not shop online, the ability to
pick up packages subsequently in their post office is rated 3.0 as a factor of influence of the usage of e-
commerce (especially for people aged 35-44, where the score is 3.3). Setting up checkpoints to pick up
packages at a specific city location is the solution. These checkpoints would be automated, would operate
nonstop and could be used by all courier services for a fee. This approach raises the courier's
competitiveness, while on the other hand it represents an additional source of revenue for the city
municipalities. These points should first be set up in Belgrade and other major cities.
2. STANDARDIZATION OF BUSINESS PROCEDURES OF COURIER
SERVICES
One of the main obstacles to the development of e-commerce, by service providers, is the unreliability of
courier services (in 44% of cases as the main reason and in 7% as the second main reason), while 13% of
the surveyed companies believe that a better and more efficient operation of courier services would be a
significant incentive for the e-commerce development. It has already been mentioned that courier services
are a link between e-traders and e-customers. Although courier services do not form part of an e-traders'
business system, their attitude and appearance towards the customer directly affects the customer's
perception of the e-trader. Basically, if the courier damages the goods, is unpleasant, late or simply will
not deliver the goods at the contracted location, the buyer will be disappointed, but his frustration will
most often not be directed to the courier but to the e-trader, who did not participate in the delivery of
the goods, nor did make any omission. As many as 7% of respondents who had a negative online shopping
experience cited the unreliability of the courier service as the reason, while 14% said that when they shop
online, they are concerned about the delivery of the goods.
272
When outsourcing logistics activities, unprofessionalism can occur, which can have an extremely harmful
effect on the e-traders' reputation and a customer satisfaction. As a result, it is necessary to develop a
Code of Conduct for courier service and to establish standardized procedures. It is necessary
to provide a high level of courier service, in order to increase the level of trust and satisfaction with e-
commerce. Some of the measures would be a mandatory way of contacting and delivering shipments (e.g.
to the buyer's apartment), a way of contacting the buyer, as well as creating a portal for reporting courier
behavior that buyers can access at any time and submit a report. It is important to note that 28% of
respondents who buy online have a fear that their package will not arrive. The reason is a significant lack
of confidence in the courier services, a reason why respondents do not buy online (11%), which is
especially emphasized in the elderly population (21%, versus 0% in people under 35). Inbound logistics
should also not be overlooked, which is why a one part of business standardization would be to optimize
relationships with business customers who use distribution services to minimize the risk of erroneous
deliveries, data processing errors, damaging goods, and a return logistics which is primarily concerned
with the return of goods.
3. SUBSIDIZING PART OF THE SHIPPING COSTS WHICH ELECTRONIC
MERCHANTS HAVE
In the 28% of cases, e-traders see the high price of domestic shipments as a barrier on the part of service
providers, while for international ones this number is 18%. Cheaper delivery, as a factor influencing more
frequent e-shopping, is estimated at 4.2 (this figure is the highest in Belgrade at 4.5, while it is the least
significant in Vojvodina at 3.9). It is evident that e-purchases are significantly influenced by the shipping
price. This is especially true for highly urbanized areas, such as Belgrade. The problem with e-commerce
in Serbia is that the delivery cost is often passed on to the customer, which he/she is often unaware by
the time the goods arrive, or it significantly affects the final price of the e-store product, discouraging
customers from buying. The solution to this problem, at this stage of e-commerce development, can be
to subsidize part of the delivery cost. It is recommended that these subsidies be granted to the final buyers
if they pay electronically for the goods. On the other hand, it is important to ensure that there is no abuse
of subsidizing by e-sellers, by charging the subsidy amount into realized price differences.
4. EDUCATIONAL PROGRAMS FOR COURIER EMPLOYEES
273
Creating educational programs for the employees in courier services is a measure analogous to the
proposal for standardization of business procedures for courier services. It is about organizing workshops
and professional courses for courier representatives. The aim is to raise awareness of these intermediaries
about their importance for the development of e-commerce, as well as to increase business efficiency
through education. The courses would be tailored to the hierarchical level they relate to, but the topics
would be related to customer relations, communication, developing digital business management tools
and optimization of business flows.
5. ENABLING ELECTRONIC PAYMENT OF CUSTOMS DUTIES
Customs is an indispensable element of any international commodity transaction. That is why it is crucial
that the import and export of goods from Serbia goes smoothly and efficiently. This is especially important
for the development of e-commerce, where timeliness of delivery is a significant component of customer
satisfaction.
An activity that would affect the development of e-commerce in Serbia is the electronic payment of
customs duties. This proposal is in line with the proposal on the introduction of e-payment option in
public institutions and bodies. This possibility should be available to both Serbian citizens and foreign
citizens (primarily because of the Serbian diaspora). It would be a measure of speeding up the customs
clearance process, which would have a positive impact on the speed of international deliveries. This is a
very significant measure, as the survey showed that one in five e-shoppers had a bad experience when
shopping online because they waited too long for ordered goods (21%). It is difficult to separate the
influence of courier services and customs in this case, but it is clear that slow and inefficient customs
clearance has an extremely detrimental effect on the development of e-commerce.
6. ACCEPTANCE OF THE ELECTRONIC DOCUMENTATION IN CUSTOMS
PROCEDURES
An additional measure to increase the efficiency of the Customs Administration in order to improve e-
commerce in Serbia is to digitize the process of preparation and submission of export-import documents.
This activity cannot be accomplished in the short term, according to representatives of the Customs
Administration. However, there is definitely more work to be done on this measure. In addition to this
measure, it is possible to organize special customs treatment of goods from e-transactions (separate high-
speed warehouses, simplified, standardized documentation for repeated operations, etc.) as a simplification
of procedures related to the return of goods from abroad (there was a problem of double payment of
274
customs duty if returned the goods are sent in open or modified packaging, or if it is shipped under another
number). The Customs Administration must have a partner attitude towards the e-traders from Serbia
and provide them with the necessary legal and technical support. Customs inefficiency is a problem
perceived from both e-traders and e-buyers, as 7% of e-traders believe that customs regulations are a
major barrier on the part of other participants to help / support e-commerce, while 11% of e -customers
is worried about customs procedures when e-shopping, which is to be expected, since complicated
customs procedures were the cause of poor e-shopping experience in 9% cases of e-buyers. A large
number of products purchased online in Serbia come from abroad, which is why it is extremely important
to modernize customs procedures and regulations.
275
V MEASURE 4. IMPROVEMENT OF FINANCIAL
INFRASTRUCTURE IN THE ELECTRONIC TRADE OF SERBIA
Table 7. Summary of activities for improving financial structure in e-commerce
Activity Responsible
bodies Partners Deadline
6. Promotion of card payments and electronic banking MTTT, NBS
Banks, credit
card
companies,
etc.
2019. and
2020.
7. Popularization of paying bills electronically
MTTT, Office for
IT and
eGovernment,
NBS
Banks, credit
card
companies,
etc.
June 2020
8. Introduction of the possibility that the seller receives
payments from foreign buyers in a foreign currency Banks, NBS
2019. and
2020.
9. Increasing the security for the customer - the
possibility that payments are made only after the buyer
confirms that he/she has received adequate
good/service (banks should enable and offer this
service, and a trader can decide to use it if he/she has a
desire and a business interest to use it)
MTTT, NBS Banks etc. End of
2020.
10. Encouraging banks to provide support for starting or
developing an online business MTTT, NBS
Banks, The
association of
Banks
2020.
276
1. PROMOTION OF CARD PAYMENTS AND ELECTRONIC BANKING
It has already been established that the shift to cashless payments, especially when it comes to e-
transactions represents a global trend. The situation in Serbia is still such that paying with cash upon
delivery is dominant and preferred form of payment when e-shopping. 40% of analyzed e-traders claim
that the main barriers on the side of demand is the fear of the unknown, while financial illiteracy is present
in 6% of cases. As a result, it is necessary to create awareness among consumers that the electronic
payment is present and secure and to accentuate all the positives. It has already been mentioned that
certain sections of the public portal and the e-Buyers Guide would be dedicated to electronic payment. It
would be explained there how these systems work, how to protect themselves, who and how uses data,
etc. Another mentioned incentive measure is the granting of subsidies for courier services to the e-
customers who make payments electronically. Electronic payment, with an emphasis on card payment,
would certainly be one of the topics of the media campaign, as well as in other accompanying media
messages. It is necessary for this topic to be present in mass communication channels such as TV,
billboards, etc. In this way, awareness is created in a population with insufficiently developed technological
knowledge. Banks would also play an important role in this activity, because they could accentuate the
benefits of electronic payment and the benefits of using this form of payment in e-commerce, when
opening accounts to new customers and they could inform the existing ones about the benefits of the
electronic payment.
2. POPULARIZATION OF PAYING BILLS ELECTRONICALLY
As it has already been mentioned, one of the recommended measures is the granting of subsidies for
courier services to e-customers who make payments electronically. In addition, as discussed earlier there
should be the option of paying customs duties electronically. Additionally, it is proposed to introduce the
possibility of electronic payment for all the public services at national and local level, both electronically,
e.g. when using eGovernment, and by card, on the location, e.g. in the municipalities. For paying bills
electronically, it should be allowed an additional 10% discount, for the period of, for example, 3 months.
The aim is to maximize the payment of bills electronically, thus overcoming the fear of cashless
transactions.
3. INTRODUCTION OF THE POSSIBILITY THAT THE SELLER RECEIVES
PAYMENTS FROM FOREIGN BUYERS IN A FOREIGN CURRENCY
277
During the in-depth interviews, electronic traders who sell goods to the international buyers have noted
that they receive payments from foreign customers in dinars rather than in foreign currencies. Banks justify
this by technical/software inability. Banks should be influenced on in order to allow this form of payment,
so that sellers do not suffer from losses due to exchange differences.
4. INCREASING THE SECURITY FOR THE CUSTOMER - THE POSSIBILITY
THAT PAYMENTS ARE MADE ONLY AFTER THE BUYER CONFIRMS
THAT HE/SHE HAS RECEIVED ADEQUATE GOOD/SERVICE
The primary purpose of this measure is to increase security in e-shopping and to reduce the risk of e-
shopping for the customer. As many as 18% of e-shoppers do not have trust in e-commerce, while 71%
of respondents do not buy online because they do not want to buy something that they cannot see or try.
These are significant constraints on the further development of e-commerce, both in terms of number of
users and in terms of average transaction, i.e. people's willingness to buy more expensive, complex
products online. One solution of customers' protection is the deferred payment, until buyers are
convinced that they have received quality goods. This option is one of the most important for the e-
commerce respondents and is rated 4.3 (4.5 for the more affluent respondents), while non-online
respondents rated their willingness to start shopping online, if offered this option, with 3.5 (3.8 for
Belgrade respondents and 3.9 for more affluent respondents). What is important to note is that this option
is particularly significant to respondents with above-average incomes. This is a market segment that is
important for the further development of e-commerce, because it is these people who are the most willing
to expand the range of the products they buy online, as well as part of their budget. Security and building
a positive e-shopping perception with these people is essential.
It is suggested to introduce the possibility of electronic funds transfer realization only after the e-buyer
confirms that he/she has received the goods/service and is satisfied, i.e. that they will not use the
reclamation. This option would be offered by banks, and interested e-traders would have the discretion
to use it if they want to raise their own competitive advantage.
5. ENCOURAGING BANKS TO PROVIDE SUPPORT FOR STARTING OR
DEVELOPING AN ONLINE BUSINESS
Banks have an interest in developing e-commerce because that way they expand their customer base.
There have already been initiatives that the bank covers all or part of the cost of developing a website or
other segment of an e-business concept. It is necessary to stimulate financial institutions to support the
278
start-up and development of online businesses. Banks have multiple influences in this regard. Certan banks,
such as SoGe Bank, which offers payment service, monthly online store maintenance for customers (RSD
1000), as well as iPAY services, instant payments, QR codes payments, with certain innovations in the
fintech business, as well as Raifeissen Bank, which offers to its clients, but also to interested parties, an
opportunity of using their online retail platform, with accompanying digital, advisory and analytics services,
represent positive examples when it comes to indirect support for e-business development. In addition,
banks can play a more direct role through more favorable financing of such entrepreneurial ventures. It is
necessary to actively involve banks in certain activities mentioned earlier, as active partners in the
development of e-commerce in Serbia. Banking incentives should be non-financial, such as accessing and
participating in media campaigns and advertising efforts.
279
VI MEASURE 5. STRENGTHENING THE CAPACITIES OF
INSPECTION AUTHORITIES RESPONSIBLE FOR
SUPERVISION IN THE AREA OF ELECTRONIC COMMERCE
E-commerce is very sensitive to question of security. Therefore, it is very important to ensure adequate
behavior of bisuness participants in the electronic market game. Further text provides a set of measures
for strengthening the capacities of inspection authorities responsible for supervision in the area of e-
commerce
Table 8. Summary of activities for strengthening the capacities of inspection authorities responsible
for supervision in the area of e-commerce
Activity Responsible
bodies Partners Deadline
5. Revision and modification of e-commerce checklists,
taking into account the specifics of e-retail MTTT
External
partners
End of
2019.
6. Creating a guide, for market inspection, for the
implementation of regulations in the field of e-
commerce
MTTT
External
partners
(USAID)
June 2020.
7. Educational program on electronic commerce for the
market inspection MTTT
External
partners
(USAID)
2020.
8. Formation of e-commerce unit of market inspection MTTT 2020.
280
1. REVISION AND MODIFICATION OF E-COMMERCE CHECKLISTS,
TAKING INTO ACCOUNT THE SPECIFICS OF E-RETAIL
E-commerce checklists are very important and should be adjusted / developed so they could to meet the
requirements imposed by modern e-commerce. It is imperative that there is an adequate e-commerce
control framework in order to reduce the presence of e-merchants that damage the image of e-commerce
in Serbia. However, adequate checklists are required which would not slow down/stifle healthy e-
businesses.
2. CREATING A GUIDE, FOR MARKET INSPECTION, FOR THE
IMPLEMENTATION OF REGULATIONS IN THE FIELD OF E-COMMERCE
A document that would serve as educational material for market inspectors for better and more effective
carrying out controls would be created. The document would emphasize the following elements:
• Specificities of e-commerce: here the focus would be on reviewing all potential direct and indirect
participants in an e-transaction, as well as the modalities of their interactions. The point is for
inspectors to become familiar with all the legal specifics of e-commerce, as well as the real
challenges, such as internet scams, data misuse or market position, etc.
• Control implementation: The specifics of e-commerce require a special approach for conducting
the inspection itself, from false online identities, delivery control addresses, payment methods and
the process of spotting, recording and sanctioning violations. This part of the Guide would focus
on reviewing all the key points in this regard.
• Spotting the Problems: In addition to the notifications and reports from citizens or companies,
inspectors need to be proactive in identifying problematic e-commerce situations. This refers
primarily to spotting retailers in the gray zone, primarily those who sell through social networks,
but also controlling consumer reviews and spotting potential negative trends. Another useful
element would be to work with consumer advisors.
• Communication: This section would explain the inbound and outbound communication of the
Market Inspectorate. Inbound communication is an analysis of how interested users can contact
the Inspectorate. The emphasis would be on the formation of official channels on social networks,
as well as a part of the public portal intended for this.
All segments would also have multimedia content. This is very important because in this way inspectors
can see and feel the dynamics of certain specific situations or challenges.
281
3. EDUCATIONAL PROGRAM ON ELECTRONIC COMMERCE FOR THE
MARKET INSPECTION
In addition to the aforementioned Guide, it is necessary to organize specialized courses for E-Commerce
Market Inspectors. The emphasis would be on gathering theoretical knowledge and topicality from a
dynamically and rapidly changing field, as well as practical skills such as communication with people in a
digital environment, sorting reviews, recognizing market signals, spotting the gray economy, and the like.
These programs would be organized once or twice a year, but continuously, due to the dynamic nature
of the e-commerce field.
4. FORMATION OF E-COMMERCE UNIT OF MARKET INSPECTION
It is necessary to set up a special e-commerce unit within the market inspection. This step would lead to
specialization of employees in this unit and an exclusive focus on e-commerce, adequate allocation of
necessary resources, avoidance of hierarchical conflicts of jurisdiction, market recognition, efficiency and
speed of communication (necessity in the digital environment), as well as to the development of specialized
procedures and regulations.
282
VII MEASURE 6. IMPROVEMENT OF COOPERATION
BETWEEN THE KEY STAKEHOLDERS - STATE
INSTITUTIONS, ECONOMY AND ACADEMIA, WITH THE
AIM OF DEVELOPING E-COMMERCE IN REPUBLIC OF
SERBIA
Table 9. Summary of activities for improving cooperation between key stakeholders
Activity Responsible bodies Partners Deadline
4. Supporting international and
national conferences on electronic
commerce
MTTT
Ecommerce
Association,
Faculties
Continuous
activity
5. Analysis of existing academic
programs in order to introduce e-
commerce into study programs
Universities, The Ministry of
Education, Science and
Technological Development
MTTT 2020.
6. Inclusion of e-commerce in the
university programs
Universities, The Ministry of
Education, Science and
Technological Development
MTTT 2020. and
further
1. SUPPORTING INTERNATIONAL AND NATIONAL CONFERENCES ON
ELECTRONIC COMMERCE
Large international and domestic conferences sponsored by the MTTT, the E-Commerce Association or
some other significant institution could influence the promotion of e-commerce. The aim of this activity
is to actualize e-commerce as a relevant and propulsive economic activity in Serbia. It is necessary to
include a large number of official stakeholders, such as state institutions, Chamber of Commerce and
Industry of Serbia and similar.
283
2. ANALYSIS OF EXISTING ACADEMIC PROGRAMS IN ORDER TO
INTRODUCE E-COMMERCE INTO STUDY PROGRAMS
It is necessary to carry out an analysis of the existing academic programs, primarily in the fields of
economics and business management, as well as other programs that cover these fields. The aim is
considering the possibilities and possible ways of introducing subjects such as e-commerce, e-commerce,
digital marketing, e-commerce management, etc. It is necessary to introduce subjects like these into the
study programs, given that there is an evident lack of high-quality, well-educated working staff. In this way,
modern business achievements would be updated by academic recognition and adjustment of study
profiles.
3. INCLUSION OF E-COMMERCE IN THE UNIVERSITY PROGRAMS
The formation of working staff which is trained in e-commerce is very important for the development of
e-commerce. The lack of quality staff who is familiar with e-commerce is evident in the market, especially
those who own both business and IT dimensions. Creating and strengthening directions at the universities
that have a component of electronic business and e-commerce itself is very important. Here the focus
would primarily be on the basic level of studies, with the creation of specialized courses for the certain
specific aspects of e-commerce at master and doctoral studies.
284
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NE%20U%20RH%20I%20EU%20U%202013.,%20BRO%C5%A1URA,%20OLISTOPAD%202014..P
DF (30.5.2019.)
• HTTPS://WWW.MINGO.HR/PUBLIC/DOCUMENTS/VODI%C4%8D%20ZA%20POSLOVNE%2
0SUBJEKTE%20KOJI%20TRGOVINU%20OBAVLJAJU%20SREDSTVIMA%20DALJINSKE%20....P
DF (30.5.2019.)
• HTTPS://WWW.MINGO.HR/PUBLIC/TRGOVINA/DESI_RH161115.PDF ZA 2015. (30.5.2019.)
• HTTPS://WWW.MINGO.HR/PUBLIC/TRGOVINA/VDC2_20116.PDF (30.5.2019.)
• HTTPS://WWW.MOJAPOSTA.HR/O-PROGRAMU (30.5.2019.)
• https://www.nbs.rs/internet/latinica/80/index.html
• https://www.osce.org/mission-to-serbia
• HTTPS://WWW.POSTA.HR/EPAKET/234 (30.5.2019.)
• HTTPS://WWW.RIIGITEATAJA.EE/EN/ (3.6.2019.)
• HTTPS://WWW.RIK.EE/EN/INTERNATIONAL (3.6.2019.)
• HTTPS://WWW.RIK.EE/EN/INTERNATIONAL/E-FILE (3.6.2019.)
• https://www.societegenerale.rs/e-commerce/
• https://www.statista.com/
• https://www.worldbank.org/
• HTTPS://WWW.YOUTUBE.COM/CHANNEL/UC3DACHDOXV2VOS5QHXP6SQQ/VIDEOS
(30.5.2019.)
• HTTPS://WWW.YOUTUBE.COM/CHANNEL/UCJZZ2QC3FE4PMBO1_9SRNYW/VIDEOS
(3.6.2019.)
• HTTPS://WWW.YOUTUBE.COM/CHANNEL/UCMB926TR_2IXHIZYUTOSKBG/PLAYLISTS
(3.6.2019.)
• HTTPS://WWW.YOUTUBE.COM/USER/ESTONIANICT (3.6.2019.)
• HTTPS://WWW.ZUTIKLIK.HR/ (30.5.2019.)
289
APENDIX
Questionnaire No. ______________________
290
I APENDIX A – QUESTIONNAIRE FOR GENERAL POPULATION: ONLINE COMMERCE IN SERBIA
Good afternoon. My name is _____. This survey is a part of the Project for cooperation and development funded by the USAID. We
currently conduct a survey among adult citizens, with topic of online trade, i.e. buying and selling over the Internet. It would be very
important to us to hear the opinion of your company.
Your answers are confidential and will not be published individually within the research findings. The interview will take between 10
and 15 minutes. Do you have time to answer the questionnaire? Your answers will remain completely anonymous and will be used in
statistical purposes only. They will be kept for 3 years. You can refuse to answer a question at any stage or terminate the interview
altogether. At any time, you can require deleting your personal data afterwards.
Do you agree with these conditions?
1. Yes
2. No
If there are any comments, please write them down here:
Questionnaire No. ______________________
291
Section Q – General information- Base: all respondents
Q1
Interviewer:
Q2
Date:
Q3
Gener of the respondent:
1. Male
2. Female
Q4
How old are you?
1. 18 – 24
2. 25 – 34
3. 35 – 44
4. 45 – 54
5. 55 – 64
6. 65+
Q5 In which municipality do you live?: __________ Q6
Do you use the Internet?
1. Yes
2. No
Questionnaire No. ______________________
292
SCRIPTER: If Q06=2 => SCREENOUT
Questionnaire No. ______________________
293
Section A: Habits in the Internet usage - Base: all respondents
A1 A2 A3
How often do you use the Internet? On what devices do you use the
Internet?
How often do you visit the following content on the Internet?
INTERVIEWER: READ THE ANSWERS. SINGLE ANSWER.
INTERVIEWER: READ THE ANSWERS. MARK ALL THAT RESPONDENT SAYS.
INTERVIEWER: READ THE ANSWERS ONE BY ONE.
1. Every day
2. Several times a week
3. Once a week
4. Several times a month
5. Once a month
6. Less that that
a. Mobile phone
b. Desktop computer
c. Lap top/ Netbook/
Notebook
d. Tablet
e. Other, what? [O]
_____ Social networks (Facebook, Instagram, Twitter, LinkedIn itd.)
_____ Official websites of FMCG retail chains
_____ Official websites of retailers selling technique and technology
_____ Official websites of other companies (clothes, footwear, sports equipment, baby
equipment, cosmetics products, accessories, air companies, travel agencies, movies and
theatres, furniture and household equipment etc.)
_____ Group purchase websites (for purchasing vouchers for products/services), such as:
Grupoman, Kupoman etc.
_____ Websites specialized in online shopping (Limundo, Kupindo, Ali Express, Alibaba,
Amazon etc.)
_____ Websites specialized in searching, booking or buying accommodation (Booking,
AirBnb etc.)
_____ Regular websites of electronic traders
1. Every day 2. Several times a week
3. Once a week
4. Several times a month
5. Once a month
6. Less that that
7. I don’t visit at all
Questionnaire No. ______________________
294
A4 A5
Have you bought ANYTHING over the Internet over the last 6
months? Please have in mind all categories we mentioned in the
previous question. So, we’re interested to find out have you bought
any product or service online over the last 6 months.
How often do you practice the following activities?
1. I never do that
2. I rarely do that
3. I sometimes do that
4. I do that very often
5. I always do that
INTERVIEWER: READ THE ANSWERS ONE BY ONE.
1. Yes
2. No
_____ I search the Internet for the information on products I’m interested in and also buy them over the Internet
_____ I search the Internet for the information on products I’m interested in, but I buy them in traditional (offline) stores
_____ I search for the information on products I’m interested in in offline stores, but I buy them over the Internet
_____ I search for the information on products I’m interested in in offline stores, and also buy them there
Section A: Habits in the Internet usage
A6- before B3 A7 Base: all respondents A8 Base: all respondents
If A4=1, Where on the Internet do you purchase
products/ services?
Where on the Internet do you search for the information on
products/ services?
Have you ever heard of blockchain technology?
INTERVIEWER: DON’T READ THE ANSWERS
Questionnaire No. ______________________
295
INTERVIEWER: READ THE ANSWERS.
SCRIPTER: Multiple answers
INTERVIEWER: READ THE ANSWERS.
SCRIPTER: Multiple answers
a. Social networks
b. Websites
c. Mobile application
a. Social networks
b. Websites
c. Mobile application
1. Yes
2. No
3. I’m not sure
A9 Base: all respondents A10 Base: all respondents
If A8=1, Can you explain in a simple way what
blockchain technology is?
Have you ever heard of smart contract?
1. Yes
2. No
1. Yes
2. No
3. I’m not sure
Questionnaire No. ______________________
296
Section B: Online customers – attitudes, habits, barriers, incentives IF A4=1
B1 B2 B3
In general, how often do you
purchase over the Internet?
No matter of the purchase frequency, what do you purchase most often
over the Internet?
Over which websites do you purchase most often?
INTERVIEWER: READ THE ANSWERS. SINGLE ANSWER.
INTERVIEWER: READ THE ANSWERS. MARK ALL THAT RESPONDENT SAYS.
INTERVIEWER: READ THE ANSWERS. MARK ALL THAT RESPONDENT SAYS. PLEASE READ LISTED OPTIONS CAREFULLY AND TRY TO RECORD RESPONDENT’S ANSWER UNDER SOME OF THEM. IN CASE IT IS STILL NOT ON THE LIST, WRITE IT DOWN IN THE FIELD “Other”.
Questionnaire No. ______________________
297
Section B: Online customers – attitudes, habits, barriers, incentives IF A4=1
B4 B5
No matter whether you have ever bought anything from them, tell me please to what extent do you believe to
the following categories of online sellers, i.e. electronic traders? Use a scale from 1 to 5, where 1 means not at all
and 5 means completely believe.
What is the main reason why you purchase online?
SCRIPTER: Top of mind
1. Rarely
2. Occasionally
3. Regularly
a. Food products
b. Clothes, footwear, sports equipment
c. Technique and technology (big and small home appliances,
audio and/or video equipment, mobile phones, music etc.)
d. Products and/or equipment for babies and kids
e. Cosmetics, products for personal care
f. Home cleaning products
g. Accessories (jewelry, bags, glasses, mobile phone
equipment, etc.)
h. Travel arrangements
i. Air and/or other travel tickets
j. Books
k. Tickets for movies, theatres, tourist attractions etc.
l. Furniture, household equipment
m. Products and/or equipment for car, bike, motorcycle
n. Accommodation in the country or abroad
o. Other, what?
a. Individual sellers on Facebook, Instagram, etc.
b. Facebook, Instagram profile of store, boutique offering online sales
c. Websites of retailers who have offline retail stores
d. Domestic websites specialized in intermediation between sellers and
customers (KupujemProdajem, Limundo etc.)
e. Foreign websites specialized in intermediation between sellers and customers
(Ebay, AliExpres, etc.)
f. Websites of domestic electronic retailers (they don’t have offline retail
stores, or you don’t know they have them)
g. Websites of foreign electronic retailers (they don’t have offline retail stores,
or you don’t know they have them)
h. Websites specialized in service purchasing (e.g. searching, booking or buying
accommodation, air tickets etc. - Booking, AirBnb etc.)
i. Group purchase websites (for purchasing vouchers for products/services),
such as: Grupoman, Kupoman etc.
j. Other, what?
Questionnaire No. ______________________
298
INTERVIEWER: READ THE ANSWERS ONE BY ONE. INTERVIEWER: DON’T READ THE ANSWERS. MARK THE FIRST ANSWER OF THE RESPONDENT.
a. Individual sellers on Facebook, Instagram, etc.
b. Facebook, Instagram profile of store, boutique offering online sales
c. Websites of retailers who have offline retail stores
d. Domestic websites specialized in intermediation between sellers and customers (KupujemProdajem,
Limundo etc.)
e. Foreign websites specialized in intermediation between sellers and customers (Ebay, AliExpres, etc.)
f. Websites of domestic electronic retailers (they don’t have offline retail stores, or you don’t know they
have them)
g. Websites of foreign electronic retailers (they don’t have offline retail stores, or you don’t know they
have them)
h. Websites specialized in service purchasing (e.g. searching, booking or buying accommodation, air tickets
etc. - Booking, AirBnb etc.)
i. Group purchase websites (for purchasing vouchers for products/services), such as: Grupoman,
Kupoman etc.
j. Other, what?
1. I don’t believe at all
2. I mainly don’t believe
3. I neither believe nor disbelieve
4. I mainly believe
5. I completely believe
6. Don’t know/ refuse (DON’T READ)
Questionnaire No. ______________________
299
Section B: Online customers – attitudes, habits, barriers, incentives IF A4=1
B6 B7 B8
Are there any other reasons? SCRIPTER: Spontaneous awareness. Don’t show TOM reason.
I’m going to read some more reasons why people buy online. Do you recognize your reasons among them? SCRIPTER: Spontaneous awareness. Don’t show TOM reason, spontaneous reasons and option “Other
What is the highest amount in RSD that you’re ready to
allocate for one online purchase?
INTERVIEWER: DON’T READ THE ANSWERS. MARK ALL THAT RESPONDENT SAYS.
INTERVIEWER: READ THE ANSWERS. MARK ALL THAT RESPONDENT SAYS.
Questionnaire No. ______________________
300
a. Time saving
b. Money saving
c. Greater choice of products and services
d. It’s practical – comparison of different offers in a very short time
e. There is no physical effort
f. Delivery to the preferred address
g. I can easily obtain products from abroad that are not available in Serbia
h. Anonymity
i. Other, what?
j. None of the above
B9 B10 B11
Questionnaire No. ______________________
301
Although you already purchase
online, is there something you
worry about or don’t like in this
type of purchase?
IF B9=1, What do you worry about or don’t like in online purchase? Do you have any negative experience in online
purchase so far?
1. Yes
2. No
INTERVIEWER: READ THE ANSWERS. MARK ALL THAT RESPONDENT SAYS. TRY TO RECORD
RESPONDENT’S ANSWERS UNDER GIVEN OPTIONS. IN CASE THEY ARE STILL NOT ON THE LIST,
WRITE THEM DOWN IN THE FIELD “Other”.
a. Customs procedure
b. Frequent lack of goods in stock
c. Distrust in online purchase
d. Language barrier
e. Poor offer/ assortment
f. Low quality of goods
g. Violation of privacy / possible misuse of data (name and surname, address, payment card, etc.)
h. Insufficient familiarity with competent authorities in case of problems
i. Incomplete on incorrect information about product/ service
j. Unreliable delivery/ courier service
k. Unfamiliarity with legal regulation and online customer’s rights
l. Unclear websites
m. Unresolved rules of reclamation or return of goods
n. Available payment options
o. Fees and other similar financial costs
p. Expensive delivery q. High prices of goods
r. Fear that packet will not arrive
s. Fear that wrong packet will arrive
t. Other, what?
1. Yes
2. No
Questionnaire No. ______________________
302
Section B: Online customers – attitudes, habits, barriers, incentives IF A4=1
B12 B13
Questionnaire No. ______________________
303
IF B11=1, What was the reason for such experience? To what extent would each of the following factors affect you to buy more frequently over the Internet?
Use a scale from 1 to 5 where 1 means not at all, and 5 means it would strongly affect.
INTERVIEWER: READ THE ANSWERS ONE BY ONE.
Questionnaire No. ______________________
304
INTERVIEWER: READ THE ANSWERS. MARK ALL THAT RESPONDENT SAYS. TRY TO
RECORD RESPONDENT’S ANSWERS UNDER GIVEN OPTIONS. IN CASE THEY ARE STILL
NOT ON THE LIST, WRITE THEM DOWN IN THE FIELD “Other”.
a. Customs procedure
b. Due payment amount
c. Language barrier
d. Low quality of delivered goods
e. Violation of privacy/ misuse of data (name and surname, address, payment card, etc.)
f. Inability to reclaim or return goods
g. Incomplete on incorrect information about product/ service
h. Unreliable, untested seller i. Unreliable courier service
j. Unclear website of seller
k. Available payment options
l. I waited too long for a delivery
m. Goods have never arrived/ wrong product arrived
n. Packet was delivered in work time, none couldn’t receive it
o. Other, what?
_____ Possibility of payment non-realization until customer sees the goods, i.e. possibility to get
reserved funds back (in case of payment by card)
_____ Precise legal regulations about obligations of electronic traders
_____Additional education and better informing about online customer’s rights through media
campaigns
_____Possibility for customer to remain anonymous
_____ Existence of unique e trust mark issued by the government to e-traders who meet required
criteria
_____Defining clear rules and obligations for courier services
_____Possibility to take goods afterwards in premises of courier service
_____Lower costs of delivery
_____Better online offer of regular retailers (those who have offline retail stores)
_____Longer working hours of courier services
_____Available reviews about products/ services made by previous customers
_____Possibility to return or change the goods in the nearest store of the retailer
_____Purchase assistance (e.g. chat)
_____Positive experience of close people
1. It wouldn’t affect at all
2. It mainly wouldn’t affect
3. Neither would, nor would not affect
4. It mainly would affect
5. It would strongly affect
6. Don’t know/ refuse
Questionnaire No. ______________________
305
Questionnaire No. ______________________
306
Section B: Online customers – attitudes, habits, barriers, incentives IF A4=1
B14 B15 B16 B17
How familiar are you with your
rights in online purchase?
Is there any regulatory barrier whose resolving
would improve e-commerce in Serbia?
If B15=1, Please indicate the concrete regulatory
barrier whose resolving would improve e-
commerce in Serbia.
All in one, to what extent do you believe in online
purchase? Use a scale from 1 to 5, where 1 means
very little, and 5 means completely.
INTERVIEWER: READ THE ANSWERS. SINGLE ANSWER.
INTERVIEWER: READ THE ANSWERS. SINGLE ANSWER.
Questionnaire No. ______________________
307
1. I’m not familiar at all
2. I’m mainly not familiar
3. I’m neither familiar nor
unfamiliar
4. I’m mainly familiar
5. I’m very familiar
6. Don’t know/refuse
(DON’T READ)
1. Yes
2. No
3. I’m not sure
1. Very little
2. Little
3. Partially
4. Quite a lot
5. Completely
6. Don’t know/refuse (DON’T READ)
Questionnaire No. ______________________
308
B18
Which of the following statements describes you the best?
SCRIPTER: After this question, go to C9 and then to Section D.
INTERVIEWER: READ THE ANSWERS. SINGLE ANSWER.
1. I rather purchase online than in traditional way
2. I give priority to traditional way of purchase
3. It’s the same to me
4. Don’t know/refuse (DON’T READ)
Questionnaire No. ______________________
309
Section C: Respondents who don’t purchase online – attitudes, barriers, incentives
C1 C2 C3 C4
IF A4=2, Have you ever
bought anything over the
Internet?
IF A4=2, What is the main reason why
you don’t purchase/ rarely purchase over
the Internet?
SCRIPTER: Top of mind
IF A4=2, Are there any other reasons?
SCRIPTER: Spontaneous awareness.
Don’t show TOM reason
IF A4=2, I’m going to read some more reasons why people don’t
buy online. Do you recognize your reasons among them?
SCRIPTER: Spontaneous awareness. Don’t show TOM reason, spontaneous reasons and option “Other”.
INTERVIEWER: DON’T READ THE ANSWERS. MARK THE FIRST ANSWER OF THE RESPONDENT.
INTERVIEWER: DON’T READ THE ANSWERS. MARK ALL THAT RESPONDENT SAYS.
INTERVIEWER: READ THE ANSWERS. MARK ALL THAT RESPONDENT SAYS.
1. Da
2. Ne
a. Language barrier
b. Poor assortment
c. Negative experience of other people, negative media
articles (e.g. instead of laptop, log was delivered)
d. Negative previous experience
e. In case of changing or returning, procedure takes too long
f. I wouldn’t know whom to contact in case of problems
g. I’m not familiar enough with new technologies
(computers, the Internet)
h. I don’t want to buy something I cannot see or check
i. I’m not enough familiar with online purchase, I’m afraid I’ll
be cheated
j. I’m not used to that, I’m not interested
k. Lack of trust in online sales in regard of goods quality
l. Lack of trust in online sales in regard of payment
m. Lack of trust in courier services
n. Lack of trust in courier in electronic traders
o. Fear of data misuse (name and surname, address, payment
card etc.)
p. It’s expensive
q. I love to visit stores, I enjoy traditional way of purchase
r. Other, what?
Questionnaire No. ______________________
310
C5 C6- respondents who didn’t mark option 3 on C2, C3 or C4
C7
IF A4=2 Have you recently seen
some online offer that drew your
attention, but you still gave up the
purchase for reasons you
mentioned?
IF A4=2, What experience in online
purchase do people in your surrounding
have? Use a scale from 1 to 5, where 1
means very negative and 5 means very
positive.
IF A4=2, To what extent would each of the following factors affect you to start to purchase over the Internet?
Use a scale from 1 to 5 where 1 means not at all, and 5 means it would strongly affect.
INTERVIEWER: READ THE ANSWERS ONE BY ONE.
Questionnaire No. ______________________
311
1. Yes
2. No
1. Very negative
2. Negative
3. Neither negative nor positive
4. Positive
5. Very positive
6. Don’t know/refuse (DON’T
READ)
_____ Possibility of payment non-realization until customer sees the goods, i.e. possibility to get reserved funds
back (in case of payment by card)
_____ Precise legal regulations about obligations of electronic traders
_____Additional education and better informing about online customer’s rights through media campaigns
_____Possibility for customer to remain anonymous
_____ Existence of unique e trust mark issued by the government to e-traders who meet required criteria
_____Defining clear rules and obligations for courier services
_____Possibility to take goods afterwards in premises of courier service
_____Better offer
_____Lower costs of delivery
_____Better online offer of regular retailers (those who have offline retail stores)
_____Longer working hours of courier services
_____Available reviews about products/ services made by previous customers
_____Possibility to return or change the goods in the nearest store of the retailer
_____Purchase assistance (e.g. chat)
_____Positive experience of close people
_____ Other, what?
1. It wouldn’t affect at all
2. It mainly wouldn’t affect
3. Neither would, nor would not affect
4. It mainly would affect
5. It would strongly affect
Questionnaire No. ______________________
312
6. Don’t know/ refuse
Section C: Respondents who don’t purchase online – attitudes, barriers, incentives
C8 C9 All respondents
Questionnaire No. ______________________
313
IF A4=2, How likely are you to start to purchase over the Internet in
the future? Use a scale from 1 to 5, where 1 means not likely at all and 5
means very likely.
Have you ever sold anything over the Internet?
Questionnaire No. ______________________
314
1. Not likely at all
2. Not likely
3. Nether likely nor unlikely
4. Likely
5. Very likely
6. Don’t know/refuse (DON’T READ)
1. Yes
2. No
Questionnaire No. ______________________
315
Section D: Demography
D1 base: all respondents D2 base: all respondents D3 base: respondents with code 1 or 2 on D2 D4 base: all respondents
What is your current level of
education (the last completed
school)?
Your employment status? In which industry do you work? Household size including the
respondent.
INTERVIEWER: READ THE ANSWERS
INTERVIEWER: READ THE ANSWERS
INTERVIEWER: READ THE ANSWERS
INTERVIEWER: READ THE ANSWERS
Questionnaire No. ______________________
316
1. Uncompleted or
completed primary school
2. High school (3 or 4 years)
3. Higher school and
university degree (including MA, PhD
4. Don’t know/ refuse to
answer (DON’T READ!)
1. Employed (full-time or part-time job)
2. Self-employed
3. Currently unemployed but looking for a
job
4. Agriculturist, farmer
5. Retired
6. Student
7. Don’t know/ refuse to answer (DON’T
READ!)
1. Construction
2. Manufacturing
3. Agriculture
4. Trade
5. Transportation, communication and other service sectors
6. Banking, finance
7. Education
8. Health
9. Security sector
10. Government
11. Military
12. Other
13. Don’t know/ refuse to answer (DON’T READ!)
1. 1 member
2. 2 members
3. 3 members
4. 4 members
5. 5 and more members
6. Don’t know/ refuse to
answer (DON’T READ!)
Questionnaire No. ______________________
317
D5 base: all respondents D6 base: all respondents D7 base: all respondents
Personal monthly income. Monthly income per household member. Settlement size.
INTERVIEWER: READ THE ANSWERS
INTERVIEWER: READ THE ANSWERS
INTERVIEWER: READ THE ANSWERS. ASK FOR APPROXIMATE ESTIMATION. IF RESPONDENT LIVES IN VILLAGE, IT IS ALWAYS CODE 1.
Questionnaire No. ______________________
318
1. No income
2. Up to 5.000 RSD
3. 5.001 to 10.000 RSD
4. 10.001 to 20.000 RSD
5. 20.001 to 30.000 RSD
6. 30.001 to 40.000 RSD
7. 40.001 to 50.000 RSD
8. 50.001 to 70.000 RSD
9. 70.001 to 100.000 RSD
10. More than 100.000 RSD
11. Don’t know/ refuse to
answer (DON’T READ!)
1. No income
2. Up to 5.000 RSD
3. 5.001 to 10.000 RSD
4. 10.001 to 20.000 RSD
5. 20.001 to 30.000 RSD
6. 30.001 to 40.000 RSD
7. 40.001 to 50.000 RSD
8. 50.001 to 70.000 RSD
9. 70.001 to 100.000 RSD
10. More than 100.000 RSD
11. Don’t know/ refuse to answer (DON’T
READ!)
1. Up to 5.000 inhabitants
2. 5.001 to 10.000
3. 10.001 to 20.000
4. 20.001 to 50.000
5. 50.001 to 100.000
6. 100.001 to 150.000
7. 150.001 to 250.000
8. More than 250.000
Questionnaire No. ______________________
319
II APENDIX B – QUESTIONNAIRE FOR BUSINESS RESEARCH: ONLINE COMMERCE IN SERBIA
Good afternoon. My name is _____. This survey is a part of the Project for cooperation and development funded by the USAID. We
currently conduct a survey among business entities, on topic of online trade, i.e. buying and selling over the Internet. It would be very
important to us to hear the opinion of your company.
Your answers are confidential and will not be published individually within the research findings. The interview will take between 10
and 15 minutes. Do you have time to answer the questionnaire? Your answers will remain completely anonymous and will be used in
statistical purposes only. They will be kept for 3 years. You can refuse to answer a question at any stage or terminate the interview
altogether. At any time, you can require deleting your personal data afterwards.
If there are any comments, please write them down here:
Do you agree with these conditions?
1. Yes
2. No
Section A – General information about a company all respondents
A1
Interviewer:
A2 Municipality of company operations:
Questionnaire No. ______________________
320
A3
Date:
A4
What is your position within the company?
1. Owner, Coowner
2. Director
3. Electronic/Online Trade Manager
4. Other employees competent for survey topic
INTERVIEWER: READ ANSWERS.
Section B: General perception of online commerce
B1 all respondents B2 B3
Does your company offer
online/Internet sales of its
products or services?
If B1=2, Why doesn’t your company offer online/Internet sales of its products or services?
SCRIPTER: Rotate answers except the last one
If B1=2, Which of the following measures could convince you to
consider launching online sales?
SCRIPTER: Rotate answers except last two of them
INTERVIEWER: DON’T READ ANSWERS. WRITE DOWN EVERYTHING THAT RESPONDENT MENTIONS. PLEASE READ LISTED OPTIONS CAREFULLY AND TRY TO RECORD RESPONDENT’S ANSWER UNDER SOME OF THE. IN CASE IT IS STILL NOT ON THE LIST, WRITE IT DOWN IN THE FIELD “Other”.
INTERVIEWER: READ ANSWERS. WRITE DOWN EVERYTHING THAT RESPONDENT MENTIONS
Questionnaire No. ______________________
321
1. Yes
2. No
B1a. Does your company have sales facilities?
1. Yes
2. No
a. General distrust in online sales
b. Distrust in financial service providers and payment methods for online commerce
c. The costs of creating and maintaining the site/ platform for online sales
d. Lack of a clear legal framework on online commerce
e. Unreliability and costs of courier services
f. Limited company capacities (financial capacities, human resources, etc.)
g. Small customer demand
h. We don’t have a need for online sales
i. High bank commissions
j. Lack of adequate Internet connection
k. Inability to use online payment options
l. Inability to synchronize and update online offerings and inventory status
m. Problems related to foreign exchange operations
n. Customs barriers
o. Competition does not use e-sales
p. There is too much international competition in e-sales
q. Developed domestic competition in e-commerce
r. Other, what?
a. Organized education for potential e-traders
b. Financial subsidies for e-traders
c. Help in defining business strategy
d. Technology assistance (web site development,
appropriate platform development, etc.)
e. Creating an e-commerce guide
f. Additional education and better informing of
potential customers through the media
g. Defining clear rules and obligations for courier
services, banks and other service providers
h. Precise legal regulations aimed at suppressing the
gray economy in e-commerce
i. Existence of a call center supported by the
Ministry where people will be able to get all
necessary information
j. Existence of an arbitrary body for out-of-court
settlement of potential disputes in e-commerce
k. Introduction of official certification on quality/
reliability for e-sales
l. Other, what?
m. None of the above
Questionnaire No. ______________________
322
Section B: General perception of online commerce
B4 B5
If B1=1, From the perspective of businessman, how would you rate
the importance of e-commerce in Serbia in general? Please use the
scale from 1 to 5, where 1 means very low importance, and 5 means
very high importance.
If B1=1, How satisfied are you with the current e-commerce activity of your company? Please use the scale from 1 to 5,
where 1 means very unsatisfied, and 5 means very satisfied.
ANKETAR: READ ANSWERS. SINGLE ANSWER. ANKETAR: READ ANSWERS. SINGLE ANSWER.
1. Very low
2. Low
3. Neither low nor high
4. High
5. Very high
6. Don’t know
1. Very unsatisfied
2. Mostly unsatisfied
3. Nether satisfied nor unsatisfied
4. Mostly satisfied
5. Very satisfied
Section B: General perception of online commerce
B6 B7 B8
If B1=1, Koje godine je
vaša kompanija razvila
internet prodaju? How long does your company have online sales?
If B1=1, What percentage of your total sales is currently generated
through online sales? Please try to give at least your rough estimation.
If B1=1
Based on your previous experience, what percentage of online sales is generated in each of
the following ways?
SCRIPTER: SUM MUST BE 100%
ANKETAR: READ ANSWERS. SINGLE ANSWER.
ANKETAR: READ ANSWERS. SINGLE ANSWER.
1. Up to 1 year
2. Between 1
and 3 years
3. Between 3
and 5 years
4. More than 5
years
1. Less than 1%
2. Between 1% and 5%
3. Between 5% and 20%
4. Between 20% and 50%
5. Between 50% and 99%
6. 100% of our sales are generated through online sales
1. Social networks (FB, Instagram etc.)
2. Web sites
3. Mobile applications
Questionnaire No. ______________________
316
Questionnaire No. ______________________
317
Section C: Barriers to e-commerce B1=1
C1 C2
C3
In your opinion, what is the biggest barrier to further
development of e-commerce in regard of supply, i.e.
e-traders?
SCRIPTER: Top of mind
And what is the biggest barrier in regard of demand i.e.
customers?
inace? SCRIPTER: Top of mind
What do you consider as the biggest barrier in regard of other participants who contribute to e-commerce implementation?
SCRIPTER: Top of mind
INTERVIEWER: DON’T READ ANSWERS. WRITE DOWN THE FIRST ANSWER OF THE RESPONDENT.
INTERVIEWER: DON’T READ ANSWERS. WRITE DOWN THE FIRST ANSWER OF THE RESPONDENT.
INTERVIEWER: DON’T READ ANSWERS. WRITE DOWN THE FIRST ANSWER OF THE RESPONDENT.
Questionnaire No. ______________________
318
a. Lack of financial resources
b. Lack of quality staff
c. Lack of previous experience
d. Inability to track fast technological development
e. Poor development of e-commerce market in the
country
f. Gray economy in e-commerce
g. Poor development of multi-channel approach
(combination of classic and electronic commerce)
h. Too many requirements in regard of data safety
i. Distrust of the customers
j. Other
a. Lack of money
b. Insufficient technological literacy
c. Distrust
d. Fear of the unknown
e. Socio-demographic indicators such as education and
income
f. Fear of data misuse (first and last name, address, payment
card.)
g. Insufficient financial literacy
h. Language barrier
i. Poor representation of tablets and smartphones in e-
commerce
j. Infrastructural barriers, such as the inaccessibility of high-
speed Internet
k. Certain geographic barriers (too expensive delivery to
certain parts)
l. Other
a. Unreliability of courier
services
b. Too expensive parcel services
in domestic traffic
c. Too expensive parcel services
in international services
d. Lack of clearly defined
legislative framework and
regulations
e. Insufficient support of the
state
f. Banking conditions i.e.
payment systems
g. Terms of technological service
providers (web site design,
platforms)
h. Customs regulations
i. Internet infrastructure
j. Other
C1a C2a C3a
Questionnaire No. ______________________
319
I’m going to read some barriers to further e-
commerce development in regard of supply, i.e. e-
traders. Please indicate another key barrier.
SCRIPTER: Maximum 1 answer. Don’t show TOM reason
I’m going to read some barriers to further e-commerce
development in regard of demand, i.e. customers. Please
indicate another key barrier.
SCRIPTER: Maximum 1 answer. Don’t show TOM reason
I’m going to read some barriers in regard of other participants who contribute to e-commerce implementation. Please indicate
another key barrier.
SCRIPTER: Maximum 1 answer. Don’t show TOM reason
INTERVIEWER: READ ANSWERS. MARK ANSWER OF THE RESPONDENT.
INTERVIEWER: READ ANSWERS. MARK ANSWER OF THE RESPONDENT.
INTERVIEWER: READ ANSWERS. MARK ANSWER OF THE RESPONDENT.
Questionnaire No. ______________________
320
a. Lack of financial resources
b. Lack of quality staff
c. Lack of previous experience
d. Inability to track fast technological development
e. Poor development of e-commerce market in the
country
f. Gray economy in e-commerce
g. Poor development of multi-channel approach
(combination of classic and electronic commerce)
h. Too many requirements in regard of data safety
i. Distrust of the customers
j. Other
a. Lack of money
b. Insufficient technological literacy
c. Distrust
d. Fear of the unknown
e. Socio-demographic indicators such as education and
income
f. Fear of data misuse (first and last name, address, payment
card.)
g. Insufficient financial literacy
h. Language barrier
i. Poor representation of tablets and smartphones in e-
commerce
j. Infrastructural barriers, such as the inaccessibility of high-
speed Internet
k. Certain geographic barriers (too expensive delivery to
certain parts)
l. Other
a. Unreliability of courier
services
b. Too expensive parcel services
in domestic traffic
c. Too expensive parcel services
in international services
d. Lack of clearly defined
legislative framework and
regulations
e. Insufficient support of the
state
f. Banking conditions i.e.
payment systems
g. Terms of technological service
providers (web site design,
platforms)
h. Customs regulations
i. Internet infrastructure
j. Other
Section E: Incentives B1=1
E1 E2
Questionnaire No. ______________________
321
In your opinion, what measures would improve further
development of e-commerce in Serbia?
What would be the influence of the following measures on further development of e-commerce in
Serbia? Please use the scale from 1 to 5, where 1 means very small influence, and 5 means very big
influence.
1. Very small
2. Small
3. Neither small nor big
4. Big
5. Very
6. Don’t know/ refuse (DON’T READ!)
SCRIPTER: Rotate answers
INTERVIEWER: READ ANSWERS ONE BY ONE.
a. Organized education for potential e-traders
b. Financial subsidies for e-traders
c. Help in defining business strategy
d. Technology assistance (web site development, appropriate platform development, etc.)
e. Creating an e-commerce guide (business, legal, technological guide)
f. Additional education and better informing of potential customers through the media
g. Defining clear rules and obligations for courier services, banks and other service
providers
h. Precise legal regulations aimed at suppressing the gray economy in e-commerce
i. Existence of a call center supported by the Ministry where people will be able to get all
necessary information
j. Introduction of official certification on quality/ reliability for e-sales
k. Other
Section E: Incentives B1=1
Questionnaire No. ______________________
322
E3 E4 E5 E6
Is there any regulatory
barrier whose resolving
would improve e-commerce
in Serbia?
If je E3=1, Please indicate the concrete
regulatory barrier whose resolving
would improve e-commerce in Serbia.
Have you ever heard of
Blockchain Technology?
If E5=1, Can you explain in a simple way what Blockchain
Technology is?
1. Yes
2. No
3. Not sure
1. Yes
2. No
1. Yes
2. No
Questionnaire No. ______________________
323
Section E: Incentives B1=1
E7 E8
Have you ever heard of Smart Contract?
In your opinion, compared to the period of 3 years ago, are status and operations of e-commerce traders in
Serbia…?
5. Yes 6. No
1. Deteriorated
2. Remained at the same level
3. Improved
Questionnaire No. ______________________
324
Questionnaire No. ______________________
325
F1 F2 F3 F4 F5 F6
Predomina
nt
registered
business
activity
(4 digit
NACE):
What is the real main business activity
of your company?
** If a business entity has more than
one activity, ask to cite the one that
generates the highest revenue in total
income
The share of
company owned
by women %:
Total number of
employees
(according to the
latest financial
report):
SCRIPTER: Mark category automatically
Total income of your
company (according
to the latest financial
report, 000 EUR):
How long does your company exist?
INTERVIEWER: READ THE ANSWERS. SINGLE ANSWER.
Questionnaire No. ______________________
326
1) Clothes and footwear
2) Sportswear, footwear and
equipment
3) Mainly food products (FMCG)
4) Technique and technology
(big and small home appliances,
computers, mobile phones, etc.)
5) Other goods trade (books,
furniture, toys, flower shops etc.)
6) Sports betting
7) Sale of air and other travel
tickets, tourist arrangements, tickets
for various events, etc.
8) Other service trade
(software, information content, various
professional services etc.)
[1] >=50%
[2] 1 - 49%
[3] = 0%
1. Up to
9
2. Betwe
en10
and 49
3. 50+
1. Up to
50,000€
2. Between
50,000 and 100,000€
3. Between
100,000 and 200,000€
4. Between
200,000 and 300,000€
5. Between
300,000 and 500,000€
6. More than
500,000€
1. Don’t know/
refuse (DON’T
READ!)
1. Up to
year
2. Between
1 and 3
years
3. Between
3 and 5
years
4. Between
5 and 10
years
5. More than
years
