Compared to the rest of Europe, the Maltese are keen online buyers but they would rather get their products from foreign websites than Maltese merchants. A Eurostat survey last year revealed that only seven per cent of Maltese buy from local sites, while 44 per cent shop from other EU countries.
Indeed only 12 per cent of Maltese businesses are selling online, with 61 per cent thinking that their product is not suitable to sell online. Yet 46 per cent of Maltese internet users spend millions online, and purchases done through the popular PayPal payment system are estimated at €66 million, double the 2009 figure.
What do the Maltese buy online? Patterns largely depend on the type of product. According to the MCA eCommerce survey published in May 2012, the items bought online most from Maltese shops were concert/event tickets (27 per cent of online shoppers bought such items in the six months preceding the study) insurance and financial services (25 per cent), followed by books (14 per cent) and flights (11 per cent).
When it comes to buying from foreign websites, Maltese customers seek items of clothing and sports goods, followed by films and music, and travel. Indeed, the Eurostat report for 2013 revealed that Maltese buyers are less active in most categories of online shopping than those in other EU member states with the exception of clothing and sports goods.
Price may be an issue here. Another Eurostat survey published in June has revealed how consumer prices in Malta were generally found to be below the EU28 average except for clothing and consumer electronics, where they were found to be among the highest in the EU28.
To make sure that e-commerce grows locally and is of benefit to consumers, businesses and the Maltese economy alike, the Malta Communications Authority has just launched a draft National e-Commerce Strategy 2014-2020 for consultation. This strategy is framed within the overall umbrella of the Digital Malta Strategy (2014-2020) launched earlier this year.
Only 7% of Maltese buy from local sites while 44% shop from other EU countries
The draft strategy suggests that when considering whether to start or expand into an online commercial activity targeting local businesses or consumers, local enterprises mention diseconomies of scale, resistance to adopt new business models, lack of expertise and lack of centralised support from a single entity as the major weaknesses. The economies of scale enjoyed by foreign merchants are a real threat for them. Then again, Malta’s small geographical size, low cost of local delivery, internet-savvy population, cheaper local online marketing and opportunity to provide personalised and localised services are seen as major opportunities. The way they see it, there are far more opportunities than threats.
The draft strategy proposes four pillars of actions: develop the local e-commerce market; address sectors with high potential; supporting vulnerable sectors; and attracting e-commerce-related business activity.
The proposed actions and programmes include carrying out research studies, promoting best practice, developing action plans for specific industries, monitoring technological developments, incentivising export-oriented e-commerce, supporting digital supply chains, education and information to consumers on benefits of e-commerce, and exploiting social media for marketing, among others.
The consultation on the draft e-Commerce Strategy ends on August 14.
The document is available at the link below.
https://meibcms.gov.mt/en/public_consultation/Pages/National-eCommerce-Strategy.aspx
Mr Debattista is a freelance digital technology researcher, educator and writer.