eCommerce has become a very important factor for retailers and online retailers across the globe. The market for global online retail has been growing on an average of 18% per year. In comparison, sales conducted through other channels are only growing by 1.3%. This means that more and more people are utilising the Internet to purchase goods, rather ordering over the telephone or through a printed catalogue.
Malta is no exception. Online shopping has become so popular that according to Eurostat figures 46% of the Maltese population did online shopping in the last year, which actually is a little below the EU average of 47%, but the Maltese are spending more money online and more frequently as well. Especially younger people up to 24 years are using the Internet a lot more for shopping than other young people in Europe.
The Malta Communications Authority has now launched a new eCommerce strategy that aims to help local companies to make the best out of their business with regards to online shopping. What is mostly bought online are as clothes (65%). Electronic goods are in second place with 46% and books in third with 37%.
The new strategy is being put in place to help local businesses make use of eCommerce options. It consists of a series of actions that are based on four main pillars. The strategy also addresses the future prospects for Malta to help attracting foreign companies that offer eCommerce services, to move their business to the island.
The 4 pillars of the eCommerce strategy
The first pillar of the strategy involves establishing trust in online commerce and awareness for individuals that are not familiar with the opportunities they are missing out on.
The second pillar is to help transform small businesses and helping them to face the challenges of a digital world with training, mentorship and government schemes.
The third pillar is for medium and larger businesses and it focuses on the development with specialist advisers, education campaigns, trainings and support from the government in order to help already established online commerce companies to expand their business.
The fourth pillar has the purpose of helping Malta to transform itself into a global player. The Malta Communications Authority is going to develop a policy that aims to attract global and European eCommerce companies to move their business operations to Malta and to offer support to foreign companies that wish to do this.
Overall, Malta has been improving their competitiveness in the European market in the last few years, and the government is constantly working on improving the attractiveness of the country to foreign investors. Internet based business are booming, and even Melita is building new data centres to cope with the high demand in data infrastructure.
