Belma Agic – Executive Director of the eCommerce Association of Bosnia and Herzegovina
What key trends do you currently observe in the local eCommerce market, and how do you see them evolving in the next few years?
The eCommerce market in Bosnia and Herzegovina is currently experiencing a dynamic and transformative phase, marked by a series of significant trends that are reshaping the landscape of online shopping within the country and setting the stage for future growth. Drawing from the latest research and insights, we observe a distinct shift towards digitalization, with a notable 23% of online purchases being made in countries within the region. This trend highlights the fact that regional e-commerce entities have a notable presence and impact in Bosnia and Herzegovina.
A particularly striking development is that over 24% of surveyed webshops in Bosnia and Herzegovina operate exclusively online. This trend is not only growing but also highlights the increasing preference of businesses to leverage the online space for retail, reflecting a broader global shift towards digital commerce. The adoption of eCommerce is further evidenced by the behavior of consumers, with a 78.1% of respondents indicating that they conduct their online shopping via mobile devices. This mobile shopping trend underscores the importance of optimizing online shopping platforms for mobile use, ensuring accessibility and convenience for consumers.
The financial landscape of eCommerce in Bosnia and Herzegovina also presents compelling data. In 2022, citizens through card transactions spent an 14 billion BAM (Bosnian Convertible Marks), equivalent to approximately 7.14 billion Euros, with the number of card transactions showcasing a clear upward trajectory. The average value of a single transaction stood at 98 KM, approximately 49.98 Euros, with the average annual turnover per card amounting to 6,045 KM, or about 3,082.95 Euros.
Notably, there has been a significant increase in card transactions on the internet, accounting for 29% of domestic turnover and a remarkable 71% abroad. The year also saw 2,333,131 active cards issued by 21 banks operating in Bosnia and Herzegovina, further emphasizing the growing penetration and acceptance of electronic payments.
The surge in internet card turnover, particularly the substantial portion occurring abroad, highlights the global nature of consumer behavior in Bosnia and Herzegovina, as residents are increasingly engaging with international markets. This trend not only reflects the globalized shopping habits of consumers but also signals potential areas for local eCommerce platforms to expand and cater to the diverse needs of their customer base.
As we await the results of our (eCommerce Association in Bosnia and Herzegovina is conducting this research) new research expected to be released in March, which will provide deeper insights into evolving trends, it is clear that the Bosnian eCommerce market is on a healthy growth path. These developments, supported by data from the Central Bank of Bosnia and Herzegovina, Masterindex, and our own research, indicate a market ripe with opportunities for both local and regional businesses. The continuous increase in online and mobile shopping, coupled with the growing acceptance of card transactions, both domestically and internationally, suggests a favourable future for eCommerce in Bosnia and Herzegovina.
The evolution of the eCommerce market in Bosnia and Herzegovina in the coming years is poised to be shaped by these trends, with digitalization, mobile commerce, and cross-border transactions playing pivotal roles. The ongoing research and forthcoming data will undoubtedly provide further insights, enabling stakeholders to strategize effectively and capitalize on the emerging opportunities within this vibrant and expanding market.
How does your organization perceive the role of eCommerce in contributing to the economic development of the local region?
The eCommerce Association of Bosnia and Herzegovina recognizes the pivotal role that eCommerce plays in the economic development of the local region, not merely as a trend but as a fundamental component of our evolving digital economy. Our perspective is rooted in comprehensive research, data analysis, and the tangible outcomes observed within the sector, reflecting a deep understanding of the multifaceted impact of eCommerce on regional economic growth.
eCommerce serves as a powerful engine for economic development by facilitating market access, enhancing consumer choice, and driving efficiency across supply chains. It empowers local businesses, from small entrepreneurs to established companies, to reach beyond traditional geographic limitations, accessing national and international markets with relative ease. This expansion is not only vital for business growth but also for fostering a competitive marketplace that benefits consumers through greater variety, improved service quality, and competitive pricing.
Given the evolving eCommerce landscape in Bosnia and Herzegovina, with a growth trajectory indicated by increasing digital commerce and internet penetration, it’s clear that the sector is positively influencing the economy. The development of eCommerce is encouraging advancements in logistics and delivery services to meet the rising demand for online shopping. This growth is paralleled by innovation in financial services, highlighted by the adoption of digital payment systems and the emergence of fintech startups. These trends suggest a digital transformation that is gradually reshaping the economic framework, highlighting the role of eCommerce as a catalyst for modernization and economic development within the country.
Moreover, the data indicating a substantial portion of online purchases made from regional webshops highlights the cross-border nature of eCommerce, underscoring its role in integrating the Bosnian market with the broader regional economy. This interconnectivity not only supports local businesses in scaling operations but also contributes to the economic resilience of the region, promoting stability and growth amidst global economic fluctuations.
The eCommerce Association of Bosnia and Herzegovina is committed to supporting this digital transition through advocacy, education, and partnerships. By collaborating with stakeholders across the spectrum, from government bodies to private sector entities, we aim to create an enabling environment that maximizes the economic benefits of eCommerce. This includes efforts to streamline regulatory frameworks, enhance digital literacy, and foster innovation, ensuring that the full potential of eCommerce can be realized for the economic benefit of Bosnia and Herzegovina and the region at large.
In conclusion, our organization views eCommerce not just as a commercial activity but as a strategic economic catalyst that can drive significant and sustainable growth. Through fact-based initiatives and data-driven strategies, we are dedicated to nurturing an eCommerce ecosystem that contributes to the prosperity and development of our local region, making a tangible impact on the economic landscape of Bosnia and Herzegovina.
Can you point out any regional characteristics in terms of payments, logistics, customer behavior, shopping habits, etc?
The eCommerce market in Bosnia and Herzegovina is marked by a balance between traditional shopping practices and a shift towards digital methods. Cash on delivery is still widely used, reflecting a careful approach to online payments. However, there’s also a growing confidence in digital transactions, with 21.4% of people having a separate account or card specifically for online shopping.
Most people prefer using debit cards, with 94% of respondents having one, while a quarter of people also have a credit card. These cards are often used for purchases at supermarkets (66%), clothing and footwear stores (46%), and gas stations (44%). Discounts and a wide acceptance of cards are encouraging people to use them more often.
Even for smaller amounts up to 30 EUR, more than half of the people (55%) prefer using cards or mobile wallets over cash. When it comes to online shopping, domestic online stores are more popular than foreign ones, with 45% of people shopping locally compared to 10% internationally. Social media platforms are also becoming significant for shopping, with one in five people using them.
Regionally, Bosnia and Herzegovina leads in the online purchase of food or beverages compared to other CEFTA countries. Most online shopping is done using mobile phones, and people are shopping both locally and internationally, with 22.7% of online purchases made in regional webshops, indicating a market that is becoming increasingly globalized.
The data paints a picture of a market that holds on to traditional methods while gradually embracing digital solutions, offering a snapshot of a society that values the security of cash transactions but is also open to the conveniences of digital payments.
How do you analyze and assess the competitive landscape in the eCommerce industry?
Our analysis of the competitive landscape in the eCommerce industry in Bosnia and Herzegovina is grounded in rigorous and targeted research. Every year, we conduct a detailed market research study across Bosnia and Herzegovina, the most thorough of its kind in the country.
We focus on two key areas: web shops and end-consumers. Our goal is to provide a detailed view of the eCommerce environment, giving valuable insights into market dynamics.
This research serves as a benchmark, providing data-driven insights that are both deep and relevant, helping stakeholders and industry observers understand the state of eCommerce in Bosnia and Herzegovina. We provide actionable insights that help local eCommerce businesses to remain competitive and adaptive in this fast-changing industry.
Additionally, our collaboration with the European Ecommerce Association contributes to the European eCommerce Report, encompassing 37 countries across Europe. This report provides a data-driven look at the current and expected dynamics of digital markets, internet use, and consumer online shopping trends. Our participation ensures that we are at the forefront of eCommerce developments, sharing the latest information and trends, such as internet penetration, e-shopper engagement, and B2C e-commerce turnover. An executive summary highlighting key findings is accessible here.
Furthermore, our engagement in the second annual international e-commerce survey conducted in partnership with Mediapost Hit Mail in Bulgaria enriches our perspective, especially within the context of Central and Eastern Europe. A summary of the report can be found here.
These efforts combined allow us to understand and navigate the competitive landscape effectively, ensuring that the local eCommerce community is well-informed and strategically positioned to thrive.
How do organizations approach innovation in eCommerce, and what role does technology play in the picture?
In the sphere of eCommerce, organizations in Bosnia and Herzegovina are approaching innovation with a strategic focus on customer needs and technological advancements. For instance, our research shows a strong trend towards online payments, with a significant number of consumers (63%) choosing to save their card details for future purchases, indicating a demand for a streamlined shopping experience.
Further data reveals that debit cards are the most common payment method for online shoppers, highlighting the need for reliable and secure payment processing systems. Moreover, fast and dependable delivery options are highly valued, with most consumers preferring home delivery services for their online purchases. This emphasis on efficiency and security is driving eCommerce businesses to invest in technology that enhances the user experience, from advanced payment systems to robust logistics solutions.
The MasterIndex study reveals that a significant number of consumers are moving towards online payment methods. With 63% of online payment users opting to save their card information with merchants, there is a clear trend towards convenience and efficiency. Additionally, the survey shows that 94% of respondents use debit cards, suggesting that while alternative payment methods are gaining ground, traditional forms of digital payment remain dominant. This data points to a market that, while innovative, still values the security and familiarity provided by well-established financial instruments.
Moreover, the preference for using payment cards even for smaller transactions (up to 30 EUR) indicates that technology is enabling a frictionless shopping experience. This is further supported by the fact that 66% of respondents use their payment cards for everyday supermarket purchases, and there is a strong demand for using cards at medical facilities and local markets.
Overall, technology plays a crucial role in the competitive landscape of the eCommerce industry, as it enables businesses to meet the increasing expectations of consumers for convenience, speed, and security. Organizations are leveraging these insights to stay competitive and cater to the evolving preferences of shoppers in Bosnia and Herzegovina.
What rating from 1 to 10 do you give to the local logistic companies and their role in delivery efficiency and customer satisfaction? In the context of increased interest in cross-border sales, how well prepared are the logistics companies from your country?
According to our research findings, a significant majority of respondents, totaling 79.9%, express a preference for home delivery via local courier services for orders within Bosnia and Herzegovina. This underscores the importance of efficient and convenient delivery options for consumers. Customer experience remains paramount, thus we defer to them for ratings on logistic services’ efficiency and satisfaction.
It is somewhat challenging to collectively assess logistics companies, but we can talk about market leaders and their challenges and activities that set good standards for Bosnia and Herzegovina. We are proud to say that one of our most prominent members, X-Express, a logistical company, is one of the leaders in our market. In 6 years, they have expanded their business, through 17 distribution centers and 5 business centers, with over 450+ vehicles, they deliver shipments across the entire territory of Bosnia and Herzegovina. The company faced challenges in establishing an efficient system, growing its fleet, and optimizing its distribution network while maintaining high service quality and customer satisfaction. They solved this by investing in the expenditure of its vehicle fleet to over 400 vehicles and strategically distributed them across existing distribution and business centers to achieve a high level of optimization for all delivery lines. They have also adopted advanced technological solutions to enhance the security and efficiency of their distribution network.
The modern technological solutions they apply daily have enhanced the security and efficiency of their distribution network with a delivery quality of over 98%, and significantly, the satisfaction of more than 16,000 users. They have pioneered the introduction of environmentally sustainable electric delivery vehicles and have implemented a comprehensive online payment option available for every delivery, establishing a noteworthy precedent in their industry.
When it comes to cross-border sales, there is one element to consider prior to readiness of our logistics companies – the infrastructure, or notably, its inadequacies. The imperative for further enhancements to the quality of transport infrastructure is evident, as the nation continues to grapple with the deficiency of efficient and contemporary road, rail, and air transport networks, emphasizing the need for ongoing improvements to facilitate seamless connectivity and economic advancement.
How does your organization facilitate cross-border eCommerce activities, especially for local businesses looking to expand globally?
We adopt a multifaceted approach aimed at providing a comprehensive support ecosystem. We strive to create strategic partnerships with leading global, European and national eCommerce events, such as: ShopTalk Europe, Adria Summit, CEFTA Week, Cro Commerce (Croatia), eComm Business Live, InnFest (Albania), Regional eCommerce Conference (N. Macedonia), SERP Conference (Bulgaria), White Label, Money Motion (Croatia) and the Balkan Ecommerce Summit to empower our members with networking opportunities, industry knowledge, visibility, collaboration possibilities, exclusive resources, influence, and skill development.One key area of focus is education and knowledge dissemination. We organize various educational initiatives, including workshops, webinars, and training sessions, to equip local businesses with the necessary insights and skills to navigate the complexities of cross-border trade. This encompasses understanding international regulations, logistics, and diverse payment methods. Networking is another grande aspect of our strategy. By connecting our members with international partners, distributors, and regional industry stakeholders, we foster collaborations that are fundamental to successful cross-border ventures. Our Association serves sort of as a catalyst for relationship-building through events such as our trademark event – eCommerce day conference, Networking Nights, and targeted matchmaking sessions.
Information sharing is another thing we keep as a priority. Through regular updates, we keep our members and general audience up to date with global market trends, conferences to look out for, relevant research that show shifts in consumer behavior, and changes in international trade regulations. This ensures that they are well-informed and agile. By building trust and credibility, we introduced audits for webshops and certification with trust seals that signify adherence to international standards.
Can you share key eCommerce or digital marketing events a foreign business person should visit in your country?
During the previous year, members and representatives of our Association actively engaged in 33 conferences, with 17 of them being collaborative endeavors. We highly endorse our signature events, namely eCommerce Day, a pivotal component of the Sarajevo Marketing Summit scheduled for November 2nd and 3rd this year. eCommerce Day and Sarajevo Marketing Summit represent a top-notch platform for marketing professionals, e-commerce experts, and business leaders offering the latest examples and strategies for achieving excellent business results. This renowned annual conference in Sarajevo gathers industry leaders from BiH and around the world, providing a unique opportunity to share innovative marketing ideas and establish strong business connections.
We would further recommend our partnering NetWork Conference as a prime event dedicated to the business and technology sector in Bosnia and Herzegovina, bringing together the best from the domestic and regional IT industry. Over the years, it has become a key event in the regional market, providing innovative content, interaction with leading experts, and an opportunity to establish important business connections. Number of attendees is over 1000. Target groups are professionals in the business and technology sector in Bosnia and Herzegovina and the region.
The ORBIZ conference is a business opportunity for companies to familiarize themselves with new products and services on the market, through presentations, keynote speeches by domestic and regional experts, panels, and interactive discussions, with the possibility of establishing long-term collaborations through business meetings.
Sarajevo Unlimited is a regional forum for innovation, technology, and entrepreneurship, focuses on topics such as manufacturers’ response to the COVID-19 pandemic and encourages bold decisions and technological investments for survival and adaptation to a new business approach. Sarajevo Unlimited target groups are innovators, technology enthusiasts, and business leaders.
Which are the key companies and organizations in your region helping the ecosystem grow?
In the context of regional initiatives, the advancement of eCommerce in Bosnia and Herzegovina and the wider region is facilitated through the collaboration of GiZ (Gesellschaft für Internationale Zusammenarbeit) and The Open Regional Fund for South-East Europe – Foreign Trade (ORF-FT). It supports regional initiatives which focus on the facilitation of trade in goods and services, with the ultimate goal of creating a common market.The project fosters regional cooperation in e-commerce and innovation by strengthening the competitiveness of e-commerce providers and start-up hubs and their ties with the EU market.
In the latter part of 2023, the national e-Commerce associations of North Macedonia, Serbia, Albania, and ourselves as representatives of Bosnia and Herzegovina, have collectively established the Balkan eCommerce Alliance (BECA). This regional entity is strategically designed to foster collaboration and provide support to both national and regional e-commerce ecosystems.
Which are the key companies and organizations in your region helping the ecosystem grow?
In the context of regional initiatives, the advancement of eCommerce in Bosnia and Herzegovina and the wider region is facilitated through the collaboration of GiZ (Gesellschaft für Internationale Zusammenarbeit) and The Open Regional Fund for South-East Europe – Foreign Trade (ORF-FT). It supports regional initiatives which focus on the facilitation of trade in goods and services, with the ultimate goal of creating a common market.The project fosters regional cooperation in e-commerce and innovation by strengthening the competitiveness of e-commerce providers and start-up hubs and their ties with the EU market.
In the latter part of 2023, the national e-Commerce associations of North Macedonia, Serbia, Albania, and ourselves as representatives of Bosnia and Herzegovina, have collectively established the Balkan eCommerce Alliance (BECA). This regional entity is strategically designed to foster collaboration and provide support to both national and regional e-commerce ecosystems.
Are there any specific digital marketing strategies that have shown success in your market?
The integration of physical experiences and real-life and real-time interactions with online content dissemination has proven to be an effective strategy. One of the most famous local-turned-regional campaigns in the past year was performed by Bingo, the largest supermarket chain, a campaign featuring the famous Bosnian actor Enis Bešlagić. Namely, Enis spent 7 days at their Bingo supermarket store where he slept, ate, and socialized with a plethora of interesting guests, as well as customers of this brand. The event became a real sensation on social media with a total of 45.7 million video views, with 13.4 million views on TikTok alone. 85% of the reach was organically achieved. It’s fascinating to note that every day, for all 7 days while Enis was in Bingo, over 1.5 million people watched content on Facebook, and over 600,000 people on Instagram. A unique reach of 3.3 million people on Facebook is particularly interesting, considering that it’s estimated there are between 1.6-1.8 million Facebook users in Bosnia and Herzegovina, indicating that the campaign has gone viral and surpassed the borders of BiH. Additionally, the unique reach on Instagram is impressive at 1.15 million, as well as 1.1 million on YouTube. TikTok has amassed over 30,000 followers (in 7 days) and is the strongest corporate profile on the network in BiH.
Another good example is company Alma Ras,one of BiH premier fashion retail companies, in a strategic move towards fostering innovation and capitalizing on local talent, has forged collaborations with prominent local fashion influencer Erna Saljević. Together, they have embarked on the creation of an exclusive online fashion line, aiming to blend her unique style and expertise to cater to discerning consumers both locally and internationally.
– Size of the eCommerce as % of GDP of the country;
0.95% (the last available data is for 2022)[1]
– Internet usage;
2.47 million internet users[2]
– Number of people buying goods online;
39%[3]
– Approximate number of eCommerce shops;
Around 1000 legal eCommerce shops
– Average size of shopping cart in Euro;
The average value of a single card transaction was a little less than 50 EUR, and the average annual turnover per card amounted to 3,090 EUR.[4]
– Key market players:
Key market players are three national telecoms BH Telecom, HT Eronet, M Tel, followed by delivery service companies Korpa and Glovo, Ekupi platform (an online shopping platform in Bosnia and Herzegovina. It operates as a marketplace where consumers can browse and purchase a wide range of products from various sellers, including electronics, clothing, household items, and more), JYSK (home and gardening appliances), JP Autoceste (public company in charge of motorways), Domod.ba (home appliances), Sport Vision (sports equipment and apparel).
[1] https://www.eurocommerce.eu/european-e-commerce-report/
[2] https://datareportal.com/reports/digital-2023-bosnia-and-herzegovina