AZE.US
Online commerce in Azerbaijan has expanded rapidly since the pandemic, reshaping consumer behavior and placing new pressure on traditional retail stores.
Shoppers are increasingly comparing prices before making purchases, reading reviews and choosing between multiple platforms. The shift has not gone unnoticed by brick-and-mortar retailers, many of whom report declining foot traffic and rising competition.
In one comparison conducted by local media, the same shirt was offered in a physical store for 25 manats, while an identical item on an online platform was priced at 17 manats. Although price differences remain a major factor, analysts say convenience now plays an equally important role.
Marketing specialists note that consumers value the ability to browse a full digital catalog, compare products instantly and receive direct home delivery. Online platforms provide transparent pricing and centralized product information, reducing the time required to make a purchase decision.
By contrast, some local sellers operating through social media pages offer limited product displays and disclose prices only upon request. Analysts argue that this lack of transparency weakens their competitiveness compared to large e-commerce platforms.
Traditional retail, however, retains structural advantages. Customers can physically inspect products, try on clothing and resolve exchange or return issues more easily. For many buyers, tactile experience and immediate availability remain decisive factors.
Another element influencing competition is Azerbaijan’s customs regulation that allows individuals to import goods valued at up to $300 without paying duties. Some experts believe this threshold strengthens cross-border online shopping and intensifies pressure on domestic retailers.
At the same time, limited local production capacity keeps the market heavily dependent on imports, contributing to price volatility and uneven competition. Specialists suggest that strengthening domestic manufacturing and harmonizing tax conditions could help create a more balanced environment between online and offline commerce.
As consumer habits continue to evolve, the question facing retailers is not whether digital trade will expand further – but how quickly traditional businesses can adapt.