It is estimated that Barbadians are spending more than $1 billion via electronic commerce (e-commerce) transactions and that most of this money is going overseas.
George Connolly, Barbados Chamber of Commerce and Industry (BCCI) council member and digital technology expert, believes that there is an opportunity for the country to keep more of that money in Barbados.
He says the BCCI is working to establish an e-commerce platform that will help small and medium enterprises (SME) cash in more on online sales.
The entrepreneur explored these issues on VOB 92.9 FM during a recent airing of the BCCI radio programme Let’s Talk Business which focused on E–commerce And SMEs Unlocking Growth In The Digital Age.
“Total e-commerce transactions made by Barbadians globally, so cash leaving Barbados, $1.07 billion is the total market value of Barbadian spend on e-commerce. The total spend that stays inside Barbados of that [amount] is $246 375,” Connolly said, referencing information from international e-commerce information sources Grips Intelligence and AfterShip.
“At the end of the day, we have got a situation where a billion dollars is being spent, and only $246 000 of that stays here in Barbados. So 2.4 per cent of a billion dollars is staying here, and the other 97 per cent is going to Amazon and Shein and all those other firms.
“But there is an opportunity for us to close that gap, and the critical thing is convenience. It’s the convenience of being able to pay for it, click for it, and then have it delivered.”
He added: “If you knew what was available, that’s the starting point. So if we go back to those three words that I use, visibility, connection and simplicity. And simplicity is fulfilment, so we get those three right and we have a place to start.”
The businessman said the BCCI would be doing its part give SMEs an e-commerce push by establishing a special platform to facilitate such business.
This included partnering with the General Post Office as he shared that discussions with this state entity had already started.
“It’s all now just in the process of being built out, but we have the skill available, we have the structure available, we have partners coming on board,” said Connolly.
“What we have to do now is really execute, and the real goal is to have it free of cost to the SMEs. So when I say free of cost you have you have your Amazon-esque marketplace, and have teams that help the SMEs to onboard, help them to take the photos, help them to do the descriptions, help them to do the marketing, help them do the packaging, get them online – free of cost.
“We are having discussions with [the Post Office] we need to nail that down, but the post office is willing
to be the fulfilment partner.”
He explained: “The real goal now is the billion dollars in product that’s being sold in this country through an e-commerce platform, have that billion dollars in product help to build out the logistic capabilities of the Post [Office] that they become more efficient, and then let them build that out regionally as well, so that we don’t take four months to get a product into St Kitts or to Monserrat.
“And then there are global connections, but everything requires skill. If they don’t have the numbers, they can’t build out the resources in order to do it. Every purchase helps strengthen our economy, . . . you’re not just supporting the local or regional entrepreneur and not a distant tech [company]. You’re not just buying a product, you’re investing in your community.”
He said there were some serious questions that Barbados needed to answer in relation to e-commerce.
“What are we going to do? Are we going to keep clicking on Amazon and using our [payment] card? Are we going to use that for a local person and have someone here be able to fulfil that for us, build jobs, build scale, build the business community?”.
During the discussion, Connolly emphasised the importance of e-commerce for SMEs in Barbados and highlighted the need for clear customer service processes, responsiveness, and brand trust.
He argued that local businesses could increase their e-commerce competitiveness by offering unique, authentic products and same-day or next-day delivery. There was the potential for a regional e-commerce platform to support SMEs, reduce costs, and enhance logistics efficiency.
Stressing the importance of the best customer service, Connolly said this “will either make your business thrive or die when you have now transitioned that to an e- commerce platform where you can’t eyeball the customer, so it’s not, it’s not customer facing”.
“You find that customers are less patient and you find that they are more demanding and quite inflexible. So one of the things that you have to do is that you have to define the process. That process has to be clearly defined, and that process is what you have to live and die by,” he said.
“As long as you define that process and you do what you say you are going to do, the customer service will follow.
“It can be so easy for someone who has poor experience to give you a rating that’s poor on either Yelp or one of these other reputational management systems, or a review and there has to be review options, because you want to weed out bad actors as well.”
The post Bajans’ e-commerce spending past $1b appeared first on nationnews.com.
