ANALYSIS OF THE ROLE OF E-COMMERCE IN THE ECONOMY OF AZERBAIJAN OVER THE LAST DECADE

Abstract

E-commerce has emerged as one of the most significant economic phenomena of the modern era. The rapid development of technology—particularly internet-based and mobile platforms—has strongly accelerated its growth. The exchange of goods and services over the internet has not only transformed consumer behavior but also reshaped traditional business models. Globally, the e-commerce market is expanding exponentially, with annual revenues approaching trillions of dollars. The key drivers behind this growth include the expansion of internet access, increased affordability of digital technologies, and rapidly  evolving consumer demands.Azerbaijan, located at the crossroads of Western Asia and Eastern Europe, has also made considerable progress in this field. In recent years, the country has strengthened its digital infrastructure and increasingly embraced online business models. Nevertheless, the market is still developing and faces several challenges, including payment security, enhancement of legal frameworks, and improvements in logistics infrastructure. The economic efficiency of e-commerce lies in reducing transaction costs, simplifying contracts and sales processes, and broadening investment opportunities. Furthermore, it has the potential to mitigate the so-called “resource curse” by diversifying the economy away from its heavy dependence on the oil sector. E-commerce also plays a vital role in fostering international relations, promoting tourism, and encouraging the creation of new business structures. To ensure sustainable growth, it is recommended that government fiscal policies and budget planning be revised to stimulate e-commerce development. Additional support mechanisms for entrepreneurship, coupled with policies encouraging innovation and digital transformation, could further strengthen  Azerbaijan’s position in the global digital economy.