suitable for rural use and meet the requirements of the rural population, including
subsistence farming communities and commercial farming.
The focus on social media by consumers is reflected in the number of e-commerce
merchants that sell through social media informally. Social media e-commerce seems to be
widespread with many informal merchants online on such platforms. This has resulted in
some trust issues, lack of merchant traceability and an inability of Government to monitor
activity or collect taxes. There is a need to increase the proportion of formal e-commerce
merchants to increase trust and improve customer service. The relationship between the use
of social media and informality is contingent; indeed social media can be used by formal
businesses and formal websites and e-commerce platforms can be used by informal
businesses. However, where the business is formal, social media is generally the link to the
formal website, and not the only means of dealing with the business. Therefore, it seems
appropriate to set a goal and put in place measures that will enable informal merchants to
formalize both as businesses and through their e-commerce platforms.
Despite developments in digital payments, most payments for goods purchased online are
made cash on delivery, even with merchants on trusted platforms. The merchants themselves
believe that this use of cash enables goods to be rejected if they do not meet the customer’s
requirements and therefore its use is a reflection of the low level of trust, either in the
merchant, or the quality, sizing or other characteristics of the products sold. The platforms
themselves have implemented processes to weed out sub-standard goods before they are
sent out to customers, indicating that this issue is fundamental and must be addressed
immediately. However, the use of cards through all channels – ATM, POS and e-commerce
is low; the society is cash oriented. In rural areas, cash can be in short supply and that inhibits
trade. Attention paid to the provision of mobile payments and other digital payment services
may increase use in e-commerce but also lead to additional use in rural areas leading to
increased local trade with the advantages that brings.
E-commerce merchants have failed to make use of warehouses on e-commerce platforms
for their stock, and this causes delay in making deliveries. E-commerce merchants may
source goods after a sale has been made, leading to further delay.
Customs needs to improve its treatment of small packages. Importing from foreign ecommerce websites may lead to hold ups, even though Myanmar Posts and couriers to clear
packages on behalf of the final recipients. Indeed, customs clearance for wholesalers is also
a problem, with limited use of IT in goods clearance despite the introduction of the Myanmar
Automated Cargo Clearance System.
There is a need for a national addressing system tied to digital maps that can then be used
for scheduling deliveries.
The ban on the use of motorcycles in cities such as Yangon have an impact on local delivery.
Myanmar is already using e-commerce, and it is doing well within its limits. By itself, e-commerce
will develop in a market driven way and this will lead to success for many e-commerce participants,
both traders and consumers. The e-commerce strategy should support this development as well as
enabling other developments, and in particular:
Nurture existing e-commerce initiatives;
Ensure that e-commerce contributes to the economic development objectives of
government;
Ensure that gaps in the enabling environment are filled; and
Encourage initiatives in areas of the economy that might not otherwise benefit from ecommerce.
By doing so, e-commerce, may be used to promote the development of key sectors in Myanmar and
particularly family businesses, and other micro and small businesses. In addition, e-commerce may
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