Foreign Online Marketplaces to Be Registered in Kazakhstan
Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, has proposed introducing regulations requiring foreign online marketplaces operating in the country to register on a dedicated electronic platform. The proposal was discussed during a government meeting on e-commerce development held on January 14. As outlined by Shakkaliyev, the mandatory conditions for these platforms would include: Compliance with product safety standards; Measures to combat counterfeit products; Protection of consumer rights and personal data; and Adherence to tax and customs transparency requirements. Addressing Consumer Complaints The proposed measures aim to address a growing number of complaints from Kazakh citizens about foreign online trading platforms. Many of these platforms operate outside of Kazakhstan's jurisdiction, making it difficult - if not impossible - for customers to return or exchange goods due to geographic distances. Furthermore, goods purchased through foreign marketplaces often lack certification in Kazakhstan, raising concerns over product safety and quality. The Rise of E-Commerce in Kazakhstan In 2023, purchases on foreign online marketplaces in Kazakhstan totaled $1.3 billion, accounting for about 20% of the country’s total online sales. The sector continues to grow, with new foreign platforms entering the market. Notably, Russian marketplaces Ozon and Wildberries plan to establish three fulfillment centers in Astana and Almaty in 2024, with a combined area of 291,000 square meters. Kazakhstan’s e-commerce industry has witnessed rapid growth in recent years. According to the Ministry of Trade and Integration, e-commerce transactions from January to November 2024 amounted to approximately 3.2 trillion KZT (over $6 billion), representing 14.5% of the total retail trade and creating over 300,000 jobs. The government aims to increase e-commerce's share in total retail trade to 18.5% by 2029. Comparative Trends and Local Initiatives The Times of Central Asia previously reported that in 2023, Kazakhstan's e-commerce volume exceeded 2.2 trillion KZT ($4.8 billion), accounting for 13% of all retail trade - an increase of 0.5% compared to the previous year. In addition to regulating foreign platforms, Kazakhstan is fostering its domestic e-commerce sector. Recently, a new local online marketplace, Teez, was launched, with investments totaling $50 million. Teez boasts its own infrastructure, further strengthening the country's digital economy.