Barriers of e-commerce in Romania

E-commerce can take place all around the world regardless of

geographical location, language or payment type. Some of the
barriers to cross-border on-line trade relate to language,
demographics, individual preferences, technical specifications or
standards, Internet penetration or the efficiency of the postal or
payment system.

Romanian people are enthusiastic about the Internet. They are
generally well-educated and technically literate. Internet trends
vary within Romania's regions. Internet has a positive image,
particularly in cities and among the young while rural
communities remain far behind. There's a world of difference
between major cities like Bucharest, Sibiu and Timioara,
Constana and the rural hinterland.

Romania offers a fertile ground for entrepreneurs but
unfortunately consumer e-commerce remains largely embryonic
throughout the country. Among factors keeping growth at bay
are:
Lack of trust in the Internet.
Lack of access to credit cards and reliable courier services.
Awareness and education: A lack of awareness is a crucial
barrier to the implementation of ecommerce in Romania.
Market size: business to consumer.
E-commerce infrastructure which includes lack of a
certificate authority.
While Internet use in Romania is growing fast, the required
technology remains too expensive for most consumers.
Few people in Romania have the money to buy computers,
and regulatory barriers are keeping telecommunications
companies from upgrading their services.
Romanian economy is still quite small and undeveloped.
Large, multinational companies are for the most part staying
out of Romania.
Currently Romania is working on major regulatory reforms,
which should help boost e-commerce in the years ahead.
Money and expertise from abroad, high computer use in
offices and a steady improvement in the telecommunications
infrastructure will also help move things along.

Romanian Electronic Commerce: status and trend

Romania is a relatively small country with a population of more
than 22 million people. Romania is commonly viewed as lagging
behind in its efforts to transition from a centrally planned
economy into a modern free market and democratic system. In
spite of various developmental barriers associated with
transitional economies, Romania has resources for facilitating the
adoption of e-commerce, including a high level of general
education, the rapid growth of Internet users, consumers with
good computer literacy and English skills, and an abundance of
human capital in the IT field Guarau, 7.

Its entry into the European Union in 2007 has provided the
country with great incentive to undertake needed regulatory and
economic reform, as well as an influx of funds aiding in the
development of its infrastructure.

Romanian Internet use has increased rapidly in recent years.
According to the Internet World Statistics (2008), as of
March 2008, the 12 million Romanian Internet users make up
5.9% of the countrys entire population. Nearly one-third of
Internet users from Romania use online stores or auction portals
as a place for purchasing various goods.

Internet sales in Romania totaled about RON .5bn 5m in
2011, according to PMR estimate. The estimate includes sales for
both online stores and at auction portals. About 30% of internet
users shopped online in 2011, according to GfK Romania.

The number of online stores in Romania dropped from 2,401 at
the end of 2008 to less than 1,900 in 2011, according to
www.trafic.ro, a website that analyses Romanian internet traffic.
The crisis forced many small e-commerce stores to close down.
This negative trend will change in 2012, according to PMR
estimates. However, although some stores were closed, the
number of page views has steadily been increasing. Moreover, the
financial results of major players also show a positive trend in
spite of a general slowdown on the market. It shows that, in
general, e-commerce is on the rise and attracts more customers
every year, also, by posting more attractive prices than those
found in local stores.


However, Romanians are cautious and reserved about online
shopping in part because of their concern about the high risks
associated with financial transactions on the Internet.

Technology is getting faster every single day. People are
consuming and interacting with content in new and exciting
ways, the age of mobile technology has arrived.

The Internet entrepreneurs of the future are focused on a world
where everyone is connected, with unlimited bandwidth and
powerful hardware. Their gaze will never be on a country where
the basic right of electricity is not given to its citizens.
The situation in developing countries around the world can only
improve. Access to food, clean water, electricity and the global
market is everyones right and privilege.

Globalization, as defined by rich people like us, is a very nice
thing... you are talking about the Internet, you are talking about
cell phones, you are talking about computers. This doesnt affect
two-thirds of the people of the world.Jimmy Carter