Cash on delivery is still the most common payment method in BiH, which is a significant difference compared to the EU where digital payments are on the rise – this is one of the conclusions of the panel ‘eCommerce Matrix: European level vs. BiH reality – which pill do we choose?’ held at this year’s 12th NetWork conference in Neum.
Luca Cassetti, Secretary General of Ecommerce Europe, together with Orhan Gazibegović, President of the eCommerce Association in BiH, discussed the key challenges and opportunities for the development of the e-commerce market in BiH, comparing it with the more advanced European model.
During their “duel,” they touched on many topics, including key differences between the e-commerce market in BiH and the EU. Currently, cash on delivery is the most common payment method in Bosnia and Herzegovina, which is a significant difference compared to the EU, where digital payments are on the rise. Luca Cassetti emphasized that EU countries have developed more secure payment methods, such as double authentication, while the BiH market still prefers cash transactions. This difference also represents a great potential for further development by introducing digital solutions that are already transforming European markets.
One of the interesting segments of the discussion was the focus on the optimization of the logistics chain, including reverse logistics and the possibility of developing a collection and delivery network (PUDO – pick-up/drop-off). Luca Cassetti emphasized the importance of an omnichannel approach, where customers in Bosnia and Herzegovina could combine online and offline shopping channels, such as the possibility of picking up products in a physical store after ordering online. Such an approach is already a great success in the EU and could improve the user experience in Bosnia and Herzegovina.
Much attention was attracted by the recent entry of the Chinese platform Temu into the Bosnian market, which represents a challenge for domestic traders. Temu, as a disruptive player, brings significant changes to the EU, and now also to BiH. Luca and Orhan discussed the importance of fair market competition and the need for all e-commerce participants, regardless of the place of registration, to follow the same rules. Luca supported the Ecommerce Europe initiative for stricter regulatory standards that would ensure equal conditions for all market players, as well as consumer protection from potentially dubious business practices.
“What I’m going to say is not specific to Tema or Chinese players. There are quite a few players who come from countries other than China to Europe, but the truth is that most of them come from the Asian region, and have impressive financial resources.
*Ecommerce Europe and its members have launched a campaign calling on decision-makers at European and national level to ensure the effective application of EU rules to all e-commerce players active in the EU single market, regardless of where they are located”, said Luca Cassetti.
Regarding the perspective of the development of e-commerce in Bosnia and Herzegovina and the ways in which domestic companies can improve their business in order to harmonize with European standards, Luca emphasized the importance of investing in digital skills and education, which is key to the progress of the market. In the context of European standards, compliance with laws such as GDPR can help BiH improve its business practices and attract more international customers.
The use of generative artificial intelligence (AI), which is transforming e-commerce in the EU, is also becoming more common. Luca Cassetti noted that AI technologies could improve all aspects of business in e-commerce in BiH, from personalization of offers, optimization of stocks to improved customer support and marketing. He recommended companies to include AI in all business processes, not only in the IT sector, in order to make the most of the advantages that this technology brings.
Bosnia and Herzegovina is at a crossroads – the adoption of European best practices and innovations can be the key to the further development of domestic e-commerce, while domestic retailers are increasingly focused on compliance with high standards that ensure consumer trust and loyalty.
