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ARCA DEVELOPMENT TO BOOST E-COMMERCE IN ARMENIA
The 60-strong Internet Society NGO was founded in 1994 to promote the development of the internet in Armenia. The NGO consists of Network information, training and e-nusiness centers. The president of the NGO Igor Mkrtumyan is kindly answering ARMINFO's question on e-commerce development in Armenia.
Q: How are things going with e-commerce in Armenia?
A: E-commerce is underdeveloped in Armenia - only 3-4 e-shops all over the country. This first of all is due to the lack of the system of e-cards inspection and control. For example, the Internet Society e-shop - www.webshop.am - was opened specially for Diaspora Armenians - the whole idea is that they buy goods on the internet for their relatives in Armenia. Meanwhile it is so expensive to export goods from Armenia country by available schemes that it makes no sense at
all to buy anything in the country. The international organization for plastic card servicing - www.2checkout.com - was set up for this very purpose - it sends accounts through the American system armed with all necessary means of security. Besides being expensive own system of card servicing would have to go through a licensing procedure at the International Center. To tell the truth, people in Armenia do not much trust this technology as e-purchase by "stolen"
cards is a general practice here. But there are good examples too - among them Brabion flora service and Zigzag domestic appliance shop. E-commerce in Armenia seems to have been considerably encouraged by E-Dram, a safer way of making e-commerce by e-money. A number of stores have already joined this system. But the key obstacles here are the population's low solvency on the one hand and the internet's poor development on the other. The latter problem is due to technically underdeveloped infrastructure and the expensiveness of ArmenTel services.
Q: The ArCa plastic card system has nevertheless been dynamically developing in the last two years. Don't you think that this may be a good basis for e-commerce development in Armenia?
A: This system is really successful. They have even opened a processing center for the e-payment of bill (www.arca.am). The system will shortly enlarged to allow for ordinary trade operations. However, more attention should be paid to its security as in Armenia hacking is developing quite in pace with the internet. Special attention should be given to computer network security. To this end Internet Society has set up a center for training administrators of
e-commerce web-servers. Here too we are facing a problem - the insolvency of young specialists wishing to raise their qualification and to get certificates. Most of net administration and security
specialists in Armenia are self-trainees. But self-education requires much more time than training at relevant centers.
Q: Nevertheless what are the prospects of e-commerce development in Armenia?
A: The corner stone of any business development is the market and demand. This equally concerns e-business. Companies should be willing to offer this type of service. Presently all is done through enthusiasm only with no much profit. E-commerce can be profitable
only if it has a certain minimal quantity of users. On the other hand with the current rate of ArCa clientele growth we can hope for e-commerce eventual profitability in Armenia.
2004, ARMINFO
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