In 1999 I bought my first book from Amazon. I don’t remember the title but I do remember the excitement of being part of the new thing called eCommerce.
Actually, I don’t need to remember the title, as Amazon does that for me. I can see the past 16 years of my online buying in my Amazon purchase history.
In the years since my first online purchase, the internet has completely changed the way we interact with each other, with brands, businesses, governments, healthcare, finances, travel, holidays. In short, there is not one aspect of life that has not been impacted.
For businesses it has presented opportunities and challenges. Some have been driven to close, some have flourished and many new companies have been created to cater for needs in some cases we never knew we could come across – online fitness trackers, digital scrapbooks and even an online service to track when and where you use the toilet!
For a small island State like Malta, the promises and challenges of eCommerce are huge. With very public initiatives like Digital Malta, the government understands the huge benefits of getting the nation online and is fully committed to doing so.
The revolution in retail banking means I hardly ever have to visit a branch. And when I do, the demographic of the queue tells the same story as government surveys about who’s been left behind in the digital stampede.
The Malta eGaming framework has also wrought huge changes to society, bringing together nationalities and networks, offering new and profitable business for the real estate market, schools, entertainment and travel sectors. Not to mention the huge increase in salaries for all the local IT talent.
Given all the evidence, putting eCommerce at the heart of your business seems like a good idea. Despite the mountain of tools, software and services available online for free, or nearly so, why are there so few businesses really making eCommerce work for them?
According to figures from the most recent eCommerce survey (MCA eCommerce Strategy 2014-2020), a mere 14 per cent of Maltese enterprises sell online. Compare this with the fact that 45 per cent of Maltese buy from overseas stores and it clearly shows that while there is more than a general acceptance of eCommerce, buying online is not the problem.
There’s so much in our favour. Short distances for delivery. Ease of return. Excellent IT and payment networks, opportunities for innovation in value-added services such as gift wrapping, personalisation and customisation.
Add in the pain points of local travel, parking and general madness on the roads and it is a wonder why everyone hasn’t resorted to ordering all they need online, freeing up valuable time for family, friends or entertainment.
One very obvious aspect is the poor quality of online services available – and not just in the private sector. In the most recent government survey on Online Public Services, one of the most telling findings was the opinion expressed that, in general, public websites lack pleasant aesthetics and uniformity in appearance.
What this means is that in this case, the book is being judged by its cover… and the Maltese don’t like what they are reading.
Mark Lightfoot is one half of the design company Mangion & Lightfoot, set up with business partner Matthew Mangion in 1997. Experienced brand and web developers, two-time winners in the MCA eBusiness Awards and recently appointed Shopify Partners, they are helping clients build branded eCommerce solutions for local and international markets.