Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

E-commerce market amounted to 435 billion tenge in first half of 2020

Tuesday, 28 July 2020, 10:20:20

At the government session chaired by Prime Minister Askar Mamin, Minister of Trade and Integration Bakhyt Sultanov reported on the development of electronic commerce in Kazakhstan.

Sultanov noted that many people today understand the benefits and convenience of online shopping and are getting used to them. It is obvious that this trend will continue in the future.

“Consumers are now focusing more on product quality. According to international reports, 40% of surveyed consumers choose a product based on brand reliability. Most e-commerce companies note that the main factors of customer retention are the relevance of data on the availability of goods, fast processing and delivery of goods to the customer. Among other global trends, it is important to note the strengthening of international cooperation between countries for the development of cross-border online trade and logistics,” the minister informed.

The COVID-19 pandemic has led to significant growth in online commerce and increased sales through B2C channels. The rise in online retail activity occurs during outbreaks of disease and quarantine. The increase in sales through B2C channels is especially noticeable in the online sale of medicines, household items and food.

More than 2 thousand online stores operate in Kazakhstan. However, only 601 online stores were registered to receive tax benefits in the form of exemption from income tax.

According to Kazpost JSC, the volume of the e-commerce market in the first half of 2020 amounted to 435 billion tenge. This represents 9.4% of the total retail trade. By the end of this year, 900 billion tenge is expected. By 2022, this figure will reach 1.9 trillion tenge, accounting for about 13% of the total retail trade. The goal previously set was to bring the share of e-commerce in total retail to 10% by 2025. However, the ministry has begun revising the target for the share of e-commerce to 15% by 2025, which will be reflected in the State Trade Development Program 2021-2025.

During the quarantine, there was an increase in online trading and payment transactions. According to the National Bank, as of May 1, 2020, the volume of non-cash transactions in the country increased by more than 2.5 times and amounted to approximately 7.5 trillion tenge.

Sultanov also said that despite the growth in the share of e-commerce, there are still barriers to further full-fledged transition to online. Such as the high share of the shadow economy, high commissions for interbank payments, acquiring, unavailability of small medium-sized enterprises and late delivery of goods.

To fully increase the existing growth rate of e-commerce, further improvement of regulatory and technical support is required.

First. Direct support for promotion on Internet platforms for novice and experienced entrepreneurs is provided. Today, country partnerships are being worked out to bring Kazakhstani companies to international online trading platforms such as Alibaba, Amazon, Yandex, Ozon, Shopify. For example, 50 companies were selected to provide access to the Alibaba platform as a Gold Supplier. This premium status provides access to a global audience, the possibility of comprehensive promotion within the marketplace.

Second. Measures are being taken to support Kazakhstani digital trading platforms, which are developing at a rapid pace, especially in a pandemic.

There are 13 platforms on the market today. Marketplaces such as kaspi, chocofamily, technodom, mechta and others have about 20 categories of goods and services.

So, for example, the amount of orders of the national leader kaspi store for the first half of 2020 increased almost 2 times compared to the same period last year.

“In order to further develop e-commerce, we ask you to support the amendment to the norm in the tax code, exemption from CIT and IIT for individual entrepreneurs if income from e-commerce is at least 40% of the total annual income. To stimulate the use of non-cash payments, it is necessary to work together with the National Bank on the issues of reducing the commission for interbank transfers, acquiring, as well as to develop new non-bank payment systems,” the minister said.

Third. As part of the new norms of the Law on Consumer Protection, the ministry provides for the launch of a Unified Platform for Receiving Complaints from Consumers on the principle of “one window”. It will enable the consumer to restore their rights, as well as expand their knowledge and improve the business culture online. Today the topic of consumer protection marketplaces is trending on the agenda of the WTO, EAEU and OECD.

Fourth. Together with the International Trade Center, a large-scale 4-year project “Ready4Trade Central Asia” is being implemented. Its goal is to support the development of intraregional and international trade in the five Central Asian countries.

Fifth. The draft State Trade Development Program for 2021-2025 provides for a number of measures. These are: the creation of a unified information and analytical system for monitoring and analyzing the development of trade, improving statistical accounting, analytical and marketing research of the e-commerce market, developing and expanding electronic platforms, expanding the network of fulfillment centers, opening e-commerce centers for training entrepreneurs.

In conclusion, Bakhyt Sultanov noted that the main trends in the field of e-commerce are an increase in demand for the use of digital cryptocurrencies, the development of omnichannel tools, delivery and logistics using robotization with the principle of "day-to-day delivery", the use of big data for accurate forecasting, deep analytics, providing personalized services to the client, transition to cross-border payment systems on blockchain technologies to minimize transaction fees.

“Taking into account these trends, we will create a full-fledged architecture to support all e-commerce players and allow increasing volumes in the B2B and B2C segments in Kazakhstan,” the minister summed up.


News feed
30 October 2020, 16:57
Askar Mamin's trip to Akmola region: Infrastructure, agro-industrial complex, industry and tourism
30 October 2020, 16:24
Yeraly Tugzhanov instructs to take restrictive measures in order to stabilize epidemiological situation in East Kazakhstan region
29 October 2020, 19:14
Yeraly Tugzhanov gets acquainted with readiness of Aktobe and West Kazakhstan regions for possible wave of coronavirus
29 October 2020, 18:47
Prime Minister of Kazakhstan Askar Mamin receives Minister of Foreign Affairs of Kyrgyzstan Ruslan Kazakbayev
28 October 2020, 16:07
Optimizing costs and increasing oil recovery factor — what was done to digitalize energy industry
28 October 2020, 10:54
Working trip to Atyrau region: Tugzhanov inspects preparations of the region for possible wave of COVID-19
27 October 2020, 20:21
Arriving in Kazakhstan with international flights: What you need to know about restrictive measures regarding PCR certificates
27 October 2020, 10:33
From 2021, it is planned to develop three new draft laws — Ministry of Justice
27 October 2020, 10:28
Azamat Amirgaliyev appointed vice minister of justice of the Republic of Kazakhstan
27 October 2020, 10:22
Government considers Plan of Legislative Work for 2021
27 October 2020, 10:16
Prime Minister Askar Mamin and US Secretary of Commerce Wilbur Ross launched Kazakh-American Business Council
27 October 2020, 09:55
Prime Minister instructed to update Employment Roadmap for 2021
27 October 2020, 09:50
Resolving issues of providing population with clean drinking water — strategic task of Government
26 October 2020, 19:16
Prime Minister Askar Mamin chaired meeting of Interdepartmental Commission on Preventing Spread of COVID-19
26 October 2020, 17:14
Prime Minister Askar Mamin received Minister of Defense of Turkey Hulusi Akar
26 October 2020, 15:42
Government session to be held Oct. 27 in Ukimet Uyi
23 October 2020, 18:49
Issues of state information order, consolidation of state media and access to information — development of information sphere of Kazakhstan
23 October 2020, 15:41
Prime Minister Askar Mamin chaired meeting of Commission on Digitalization
23 October 2020, 15:02
Prime Minister Askar Mamin and EU Ambassadors discussed cooperation in economic recovery
22 October 2020, 18:20
Gulmira Isaeva relieved as vice minister of agriculture 
22 October 2020, 17:24
Council for Improving Investment Climate considers prospects for economic recovery in Kazakhstan
22 October 2020, 15:22
Prime Minister Askar Mamin informed about plans for development of electric vehicles production in Kazakhstan
22 October 2020, 14:54
Prime Minister Askar Mamin chaired meeting of Project Office on Entrepreneurship
22 October 2020, 12:03
Rural medical organizations presented with mobile medical complexes
21 October 2020, 09:56
Askar Biakhmetov appointed Deputy Head of the Office of the Prime Minister of Kazakhstan
20 October 2020, 14:51
Government approved project of gas supply to Almaty CHPP-2
20 October 2020, 14:38
Prime Minister of Kazakhstan Askar Mamin met with Suma Chakrabarti
20 October 2020, 13:35
Three-month supply of personal protective equipment formed in medical organizations — Alexey Tsoy
20 October 2020, 11:02
For 9 months of 2020, vaccination plan in Kazakhstan fulfilled by 100% — Ministry of Agriculture
20 October 2020, 10:27
Domestic enterprises daily produce 900 thousand masks — Beibut Atamkulov
20 October 2020, 10:17
Government considers issues of providing population with medicines
20 October 2020, 10:02
Government considers issues of veterinary and phytosanitary safety
19 October 2020, 17:13
Prime Minister Askar Mamin gave instructions on sanitary and epidemiological situation in Kazakhstan
19 October 2020, 14:36
Government session to be held Oct. 20 in Ukimet Uyi
15 October 2020, 23:56
Improving healthcare and increasing business activity — development of Almaty for 9 months of this year
15 October 2020, 15:28
Prime Minister Askar Mamin takes part in opening ceremony of Hyundai car assembly plant
13 October 2020, 13:14
Main task of clarifying forecast was to provide financial support to doctors and take proactive measures on COVID-19 — Alikhan Smailov 
13 October 2020, 13:01
Production in machine-building industry grew by 16.6% — Beibut Atamkulov
13 October 2020, 11:35
State budget expenditures executed at 99.5% — Ministry of Finance
13 October 2020, 11:13
National Bank launches remote biometric identification service for obtaining financial services
13 October 2020, 10:22
Over 9 months in Kazakhstan, investments in healthcare increased by 85.7% — Ministry of National Economy
13 October 2020, 09:49
Along with growth in real sector, recovery of activity in service sector began in September 2020 — Askar Mamin
12 October 2020, 16:34
Askar Mamin’s visit to Abu Dhabi: Kazakhstan and the UAE accommodated investment projects for $6.1 billion
12 October 2020, 16:18
Government session to be held Oct. 13 in Ukimet Uyi 
09 October 2020, 19:23
Amendments to law, social payments to electronic wallet and use of pension savings — how Ministry of Labor implements instructions of the Head of State
09 October 2020, 16:57
Prime Minister Askar Mamin presents initiatives on strengthening competitiveness of EAEU
08 October 2020, 19:06
Prime Minister Askar Mamin discusses implementation of joint projects with leadership of large Russian companies
08 October 2020, 18:44
Interdepartmental Commission adopts decisions on implementation of instructions of the Head of State
07 October 2020, 23:04
Prime Minister of Kazakhstan Askar Mamin meets with Prime Minister of Russia Mikhail Mishustin
06 October 2020, 14:58
Beibut Atamkulov: Investments in country's pharmaceutical industry grew by 5.2% and amounted to 4.1 billion tenge
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.