Readiness of internet user for e-commerce - case studies from Sri Lanka

Abstract

Electronic commerce (E-Commerce) has emerged with the development of Internet and spread rapidly because of its capability of improving efficiency and productivity in many business areas. Many countries paid attention on developing e-commerce and its usage and benefitting from it today. However the adaptation of developing countries to e-commerce was a challenge because of the infrastructure limitations and other issues related to consumers. Sri Lanka has not yet passed the medium level of e-readiness because of the less coverage of Internet and low computer and Internet literacy levels. However the existing Internet users display comparatively high adaptability to e-commerce transactions. Sri Lankan Internet user has a moderate level of Internet shopping usage while more people pay bills through Internet and access Internet banking application. With this the current level of ecommerce readiness of country can be said as in a higher medium level compared to the world averages and display better performance than other countries in region and similar economic indicators. Income and education is positively related to Internet shopping while age group 20-40 dominated in purchasing goods and services over the Internet. People who pay more household bills displayed significantly high usage of Internet shopping. Sri Lankan males were more interested in buying on Internet compared to females. However the spending on Internet and frequency of online purchases were in very low levels and less availability of buying options coupled with low trust on e-commerce sites created such a behavior. Current Internet users display very healthy reactions to e-commerce and less shadows of traditional trading mechanisms also acts -positive. Development of infrastructure creating high awareness and opportunities will improve the Internet usage and the e-commerce involvement of people in Sri Lanka. With a matching e- commerce model, there is a high possibility in creating a very active e-buyer community in future if authorities take the correct actions soon.