Greece is the birthplace of theatre, philosophy, Olympic Games, Politics and also Economics. Unfortunately, these perks have not helped out in the current situation of Greece. Greece is in its 7th year of the bailout and trying to recover. With Germany’s elections coming closer Germany is reluctant to keep its role as the lender. The country is closer to closing the budget deficit that has a big role in the Eurozone debt crisis. The IMF and European bailout measures seem to be causing a 25% decline in the economic output of Greece according to WSJ. How about the e-commerce market in Greece? Let’s take a look at that, shall we?
Despite the amazing popularity of e-commerce all over the world, only 24% of Greek retailers are selling their products to all over the EU and only 47% is selling in the country online. It is not possible to say that they are making the most of the digital opportunities. A reason for these numbers can be that cross-border e-commerce is experiencing some problems due to the differences in contract laws regarding trade. As we have mentioned earlier, the difference is e-commerce laws can affect the ability to do cross-border e-commerce.
10% of Greek customers are buying products from other EU countries. The problem that limits their choice of good products and prices is related to contract law rights. 30% of customers express their concerns regarding non-delivery of their order, repairing or replacing their orders if it turns out to be a faulty product.
Afterward, the mergers and acquisitions of banks in Greece the use of cards in circulation were experiencing a decline. However, in 2015, the country’s card use has increased in both transactions and value. The frequent usage followed this as well. The Greek population is mostly cash oriented and but is following the European countries even though it lags behind. The reasons for the upward trend of card usage are a familiarization of debit card use or government regulations towards compulsory card use for purchases over a certain amount which explains.
Greek banks, in order to keep the deposits from flowing away, are increasing the advertisement on debit cards and promoting them through reward schemes. Consumers are reacting to this familiarization in a positive way and accepting the benefits and security they offer. Credit card usage has definitely suffered since the economic crisis. The introduction of commercial debit cards is a successful tool to stabilize the levels of card usage.
Mobile payments are another positive development in Greece. Banks are investing in new payment systems online and this is a trigger for the mobile commerce to thrive as well. Another popular payment system in Greece is the pre-paid cards which seem to be the safest option for online transactions. The consumer expenditure on card payments is expected to double around 2020 according to an article. Digital wallets are also expected to increase card payments’ development in Greece.
The big problem for Greece is that it still experiences certain limitations because of its economy. Cross-border e-commerce is good however it triggers the imports to increase in Greece which is bad for its balance of payments. The country needs to hold its money supply at a stable level. The Greek government has put some limitations on online shopping from Amazon, Google, and other companies to avoid the imports to go up. This is both a big necessity for the country itself and the EU. Several years have passed since the Eurozone crisis however Greece has not caught up yet. Hopefully, this situation won’t last too long.
Greece’s e-commerce market is not at its best condition due to its economic situation.