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Here we present an interview with Belma Agić, Executive Director, and Orhan Gazibegović, President of the eCommerce Association of Bosnia and Herzegovina. They discussed current e-commerce trends in their country, including payments and cross-border selling, as well as the work of their association. Read more below!
General info about the association:
- Website: www.e-comm.ba
- Year founded: March, 2021
- President: Orhan Gazibegović
- Executive Director: Belma Agić
- Governance bodies: Management Board, Advisory Board
- Current number of Members: 100+
- Annual Events hosted (name and month): eCommerce Day Conference, November
EGN: What are the current trends in e-commerce in your country?
Belma and Orhan: E-commerce in Bosnia and Herzegovina is undergoing significant transformation, reflecting broader global trends while also exhibiting some unique local characteristics. One of the most notable developments is the increasing consumer trust in online shopping. Recent data shows that nearly 60% of surveyed consumers have made between two to five purchases in the last three months. Moreover, there’s a growing segment of frequent buyers, with 7.4% of users making more than ten purchases in the same timeframe. This indicates a shift toward more consistent online shopping habits.
Another key trend is the dominance of mobile devices in online shopping. Over 83% of purchases are now made via mobile phones, underscoring the critical importance for businesses to optimize their websites and apps for mobile users. Companies that fail to cater to this growing segment risk losing out on a large portion of the market.
There’s also an interesting dynamic between local and global marketplaces. While there’s a strong preference for domestic e-commerce platforms, about 20% of purchases are made on international websites. This suggests that while local platforms are popular, global retailers still have significant opportunities to tap into the Bosnian market.
When it comes to product categories, Hobby & Leisure leads with 26.4% of sales, followed by Electronics at 20.7%, and Fashion at 17.2%. These segments highlight where most e-commerce activity is currently concentrated. Looking ahead, Bosnia’s e-commerce revenue is projected to grow at a compound annual growth rate (CAGR) of 6.8%, potentially reaching $841.1 million by 2028. However, despite the positive outlook, challenges remain, particularly around shipping costs, market size, and consumer habits. To overcome these, businesses are focusing on solutions such as social media marketing and workforce training to drive further growth.
EGN: What are the biggest challenges and opportunities in your country’s delivery and logistics for e-commerce?
Belma and Orhan: In Bosnia and Herzegovina, the delivery and logistics sector faces a number of challenges, though these also present opportunities for innovation and improvement. One of the primary hurdles is the underdeveloped logistics infrastructure, especially in rural areas. Poor road quality and a limited rail network make timely deliveries challenging, particularly when it comes to the last mile. High shipping costs also plague the sector, driven by inefficient logistics networks and the country’s geographical constraints, such as mountainous terrain. As a result, businesses often struggle to provide affordable shipping, which in turn limits the growth of e-commerce.
Another challenge is customs and cross-border shipping. International shipping often faces delays and added costs due to customs processing, making it more complicated for e-commerce platforms to handle imports and exports efficiently. This complexity leads to longer wait times for consumers and additional duties on purchases from international sellers. Furthermore, many small businesses in the country lack the digital integration necessary for efficient logistics. The absence of integrated inventory management systems and digital shipping solutions creates bottlenecks in the delivery process.
However, there are several opportunities on the horizon. There is growing potential for public and private investment in transportation infrastructure, which could vastly improve logistics services, particularly in underserved rural areas. Additionally, local delivery services are expanding in response to increasing e-commerce demand, which offers the potential for more competitive pricing and improved last-mile logistics. The growth of fulfillment centers within the country is another promising development. These centers could help reduce both delivery times and costs by enabling businesses to store inventory closer to their customers.
Finally, the rise of technology-driven solutions presents a significant opportunity. Digital platforms offering real-time tracking, automated warehousing, and improved payment systems could enhance the efficiency of the supply chain, ultimately improving delivery services.
EGN: What are the most preferred ways of payment and what other payment solutions are used in your country? What are the most common challenges related to payments for e-sellers?
Belma and Orhan: In Bosnia and Herzegovina, e-commerce payment preferences are evolving. While cash on delivery remains the most popular method due to consumer concerns about trust and security in online transactions, card payments are becoming more common. Currently, around 32.8% of online shoppers use card payments, reflecting a growing shift toward digital financial transactions. Bank transfers are also used, though less frequently, particularly for higher-value purchases. However, this method is often seen as cumbersome due to longer processing times.
Mobile wallets and platforms like PayPal are still in the early stages of adoption, but they are expected to rise alongside the increasing dominance of mobile shopping. Despite this shift toward digital payments, there are still significant challenges for e-sellers. A large portion of the population remains wary of online payment methods, with concerns about fraud and data security driving many consumers to prefer cash on delivery. This payment method, while convenient for customers, limits e-sellers’ ability to collect payments efficiently.
Furthermore, Bosnia and Herzegovina’s digital payment infrastructure is still developing compared to other countries. Many e-sellers lack the necessary knowledge and education about online payments, though more merchants are recognizing the security and reliability of digital payment solutions. High transaction fees, particularly for international platforms like PayPal, also pose a challenge. These fees can cut into the profit margins of smaller businesses. To counter this, there is a growing movement toward integrating local payment service providers (PSPs) that offer lower fees and the ability to accept both domestic and international card payments.
EGN: Are any recent changes or upcoming regulations particularly significant?
Belma and Orhan: Bosnia and Herzegovina’s e-commerce landscape is undergoing important regulatory changes, particularly as the country aligns more closely with European Union standards as part of its EU accession process. This alignment is leading to a harmonization of e-commerce laws with EU directives, particularly those related to consumer protection, digital services, and cross-border trade. These changes are expected to simplify cross-border e-commerce, especially within the framework of the Central European Free Trade Agreement (CEFTA), providing smoother access to regional markets.
Mobile commerce is also growing in prominence, and businesses are expected to optimize their platforms accordingly. This trend is pushing for more secure, streamlined payment processing options, which will likely become increasingly important as mobile payments and e-wallets gain popularity.
EGN: How is cross-border e-commerce developing in your country, and what are the main barriers and opportunities?
Belma and Orhan: Cross-border e-commerce is growing in Bosnia and Herzegovina, driven by increasing consumer demand for international products. However, several barriers continue to hinder its full potential. Customs barriers, high shipping costs, and long delivery times remain major obstacles. Complex import regulations and delays in customs processing often discourage consumers from purchasing from international platforms, making it difficult for cross-border e-commerce to thrive.
That said, opportunities are emerging. Bosnia’s alignment with EU standards is expected to simplify trade with European markets. Local e-commerce platforms are also starting to focus more on cross-border fulfillment and improving payment solutions, which should help reduce some of the friction currently faced by both businesses and consumers.
EGN: What are the most significant events related to e-commerce and related industries in your country that someone should visit?
Belma and Orhan: There are a few key events related to e-commerce in Bosnia and Herzegovina that are worth noting. One of the most significant is eCommerce Day, an annual conference organized by the eCommerce Association of Bosnia and Herzegovina. The event brings together e-commerce professionals from across the Balkans, offering valuable insights on trends, networking opportunities, and discussions on the regional e-commerce landscape.
Another important event is Sarajevo Networking Nights, also hosted by the eCommerce Association. This event focuses on connecting leaders and innovators in sectors like digital payments, blockchain, and AI, offering a more casual space for cross-industry collaborations.
EGN: What are the biggest opportunities and challenges for the future of e-commerce in your country and the Western Balkans region?
Belma and Orhan: The future of e-commerce in Bosnia and Herzegovina and the wider Western Balkans region holds significant opportunities. One of the most promising areas is mobile commerce, which is expected to grow as more consumers shift to shopping via smartphones. Optimizing platforms for mobile shopping could unlock vast market potential.
Cross-border trade is another opportunity, particularly as Bosnia and Herzegovina moves closer to EU accession. Harmonizing regulations with the EU will make cross-border e-commerce simpler and allow local businesses to expand into regional markets. Additionally, digital payment solutions, including mobile wallets and secure payment gateways, are expected to play a key role in attracting more customers and building trust.
However, challenges remain. Poor infrastructure, particularly in rural areas, continues to hamper timely deliveries. Consumer trust in online payments also needs to be improved, as many shoppers remain hesitant to use anything other than cash on delivery. Overcoming these challenges will be critical for the growth of e-commerce in the region.
EGN: How does your e-commerce association contribute to the growth and development of e-commerce? Can you highlight some of your key initiatives?
Belma and Orhan: The eCommerce Association of Bosnia and Herzegovina plays a vital role in supporting the growth and development of the e-commerce sector. One of our key functions is advocacy—ensuring that the interests of e-commerce businesses are represented in policy discussions and legislative processes. We also focus on creating networking opportunities through events like eCommerce Day and Networking Nights, which allow industry professionals to connect, share insights, and build partnerships.
Training and education are another important part of our mission. We offer workshops, webinars, and other professional development opportunities to help businesses stay up to date with the latest trends and technologies. Additionally, we conduct research on consumer behavior and market trends, providing our members with valuable data to guide their strategies.
One of our key initiatives is the eCommerce Day conference, which brings together industry leaders from across the region. We also conduct research that is included in the eCommerce Europe report, providing key insights into the local market. Through these initiatives and others, we aim to foster a dynamic and innovative e-commerce ecosystem in Bosnia and Herzegovina.
EGN: If there is anything else you would like to share that you haven’t had a chance to in the answers above please feel free to (i.e if your Association has an interesting case of helping a member overcome some challenge, some lobbying initiative worth mentioning, etc.)
Belma and Orhan: As the eCommerce Association, our mission is to serve as a comprehensive resource for entrepreneurs venturing into e-commerce. We spearhead initiatives that simplify the process of launching an online business, significantly reducing the barriers to entry. One of our key objectives is to create a seamless experience for entrepreneurs by connecting all major stakeholders in the market. This includes facilitating frictionless company registration, streamlining communication with Banks and financial institutions, and providing integrated solutions for payment processing on their platforms. Additionally, we support the promotion and growth of their online stores through tailored marketing strategies.
EGN: Thank you for this conversation. We wish you good luck with your work!
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Belma Agić
Belma Agić serves as the Executive Director of the first leading eCommerce Association in Bosnia and Herzegovina. With a rich background in both life and career, Belma has amassed substantial experience and competencies in marketing, product development, communications, PR, and branding strategies through her long-standing career with renowned FMCG companies such as Coca-Cola and Pernod Ricard. Her efforts have significantly shaped the local presence and promotion of globally recognized brands including Coca-Cola, ABSOLUT Vodka, Chivas, Fanta, Ballantine’s, and Jack Daniel’s, etc. Belma’s contributions extend beyond the profit sector to the nonprofit sector through her work at Mozaik Foundation, and she has also gained product development experience at Klas, part of AS Holding, the largest food conglomerate in Bosnia and Herzegovina. Currently, she also serves as the Head of PR at Communis Agency . Her dedication has earned her several awards, including Digital Champion for the Adriatic region and Woman of the Year in Business Courage, as well as a distinguished service award from Her Majesty Queen Elizabeth II. She holds two Honours degrees in business and international business from UK and New Zealand unifersities. In her current role, Belma is committed to developing and promoting the eCommerce sector in Bosnia and Herzegovina, aiming to enhance awareness, provide necessary information and education, and foster the growth of this sector in the country.
Orhan Gazibegović
With over two decades of impressive experience, Orhan Gazibegović has acquired extensive knowledge in the fintech industry, IT sector, and marketing. For the past ten years, he has focused on developing digital solutions in the payment industry and the eCommerce market of Bosnia and Herzegovina. He is also responsible for developing internet payment channels in the Montenegrin and Macedonian markets. As the President of the eCommerce Association in Bosnia and Herzegovina, Orhan actively works to enhance digital commerce with the aim of developing the country’s online ecosystem. Serving as a Unit Manager at Monri Payments, he contributes to the development of innovative payment methods and promotes the digitalization of business in the BH market. His passion for this mission makes him an unstoppable force that inspires his colleagues, with his expertise and dedication serving as invaluable resources for the eCommerce community in Bosnia and Herzegovina. His current focus includes innovative payment methods, enhancing eCommerce business, philanthropy, and key initiatives for digital transformation at the national level.
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