Is Ecommerce the new business trend in Cyprus?

What are the advantages and disadvantage of ecommerce?

What are the advantages and disadvantage of ecommerce?

Ecommerce opens up a host of opportunities to target new customers around the globe. It means you can sell your products or services online, 24/7, all year round. Electronic Commerce (e-Commerce, ecommerce or e-Comm) essentially allows online transactions through a website.

In many European countries, ecommerce is an established practice, but Cyprus, being a small island, follows rather than initiates trends and is usually a few years behind. After the economic crisis and the “haircut” on bank deposits in 2013, many people lost their jobs, or had their salaries cut. The unemployment rate rose to 12% - 15%, a significant amount for such a small population. The upside was to see a number of people turn to self-employment or starting their own companies. The ease of getting into an online business due to limited capital requirements compared to the traditional offline businesses was a no-brainer for many. Aside from the economic crisis, people turn to ecommerce as it is a new way of doing business that offers many possibilities and prospects to reach a wider global audience.

Cypriots are using ecommerce for retail including: clothes, shoes, handmade jewelleries, accessories, crafts, home decor, biological health and beauty products, and more. They also provide services such as: advisory, legal, economic/financial, media, multimedia, marketing, sales and promotion.

There are many benefits from ecommerce and not just the obvious low start-up costs. The nature of ecommerce gives flexibility and speed meaning businesses can quickly expand into new markets, and small businesses can develop a larger global footprint. New and geographically remote customers are able to access local products and services. It allows a business to offer more choices, communicate faster and create more automation. No clocks, no bosses, and the luxury of working from your own home, are some of the lifestyle benefits and freedoms that come with ecommerce.

Though before you quit your day job, let’s do a reality check. First and foremostly is the uncertainty of income. That is followed by the isolation that comes from working on your own or with a limited number of people. Competition is fierce and there issues of mistrust on both sides – the buyer and the seller. Identity theft, credit card fraud and hacking are real threats to mitigate.

Since 2004 EU citizens are entitled to start an ecommerce business in Cyprus without restrictions or the need of a local Cypriot partner. A growing number of companies choose to host their ecommerce sites or ventures in Cyprus to take advantage of its beneficial tax regime, excellent telecommunications infrastructure and intellectual property protection laws. Ecommerce business may operate outside of Cyprus with a very small tax burden, and may also take advantage of Cyprus’ Wide Double Taxation Treaties Network, which may be extremely useful in the context of the internet server as a permanent establishment.

All indications are in favour of ecommerce and in all likelihood it will continue to grow over the next few years. If you have a great idea or product that the world should know about, then perhaps it’s time to take advantage of everything the internet has to offer.