Kazakhstan Looks to Increase E-Commerce Share to 20%

The further development of e-commerce in Kazakhstan was considered at a government meeting on January 16th, chaired by Prime Minister Alikhan Smailov. The Minister of Trade and Integration, Arman Shakkaliev reported that in 2023 the volume of e-commerce in Kazakhstan exceeded 2.2 trillion tenge ($4.8 billion), equating to 13% of all retail trade, a 0.5% rise on the previous year. Household goods, clothing and footwear, food, cosmetics, and medicines are the most popular goods purchased online.

The Ministry is looking to increase the share of e-commerce to 20% by 2030 by expanding the representation of domestic goods on popular marketplaces, developing warehouse and logistics infrastructure, and protecting consumer rights. The Prime Minister noted that globally, by 2025 the share of online trade is expected to exceed 25% of total retail. In Kazakhstan, a significant market share is occupied by foreign online marketplaces.

“We must use this opportunity as an additional sales channel for Kazakh products on the world stage. At the same time, we need to develop domestic online stores. To do this, it is necessary to ensure the uninterrupted operation of payment systems, transport and logistics infrastructure, and courier services,” Smailov said.

The Prime Minister instructed the relevant bodies to find effective solutions for the development of domestic online stores and broader representation of domestic commodity producers on foreign online marketplaces within a month. “We need our own bonded warehouses, which would simplify the process of delivering goods to both domestic customers and foreign ones. Therefore, it is necessary to launch the construction of bonded warehouses in Astana, Almaty, and Shymkent this year,” Smailov said.