E-Business Reduces Costs and Increases Profits

The Head of the Department for Trade at the Ministry of Trade, Tourism and Telecommunications Željko Rakić said that one quarter of the citizens of Serbia are using online purchases, a number similar or higher than the frequency of these types of purchases in the region.

According to 2014 data, 28 percent of the citizens of Croatia completed purchases online, 17 percent in Bulgaria and only 10 percent of the citizens of Romania.

“In order to attain EU levels, where on average half the citizens have ordered goods online during last year, we need to understand that e-Business is not a thing of the future, but of the present, and that the citizens, and even more importantly businesses, need to be educated and aimed in that direction”, said Rakić at a roundtable held at the Serbian Chamber of Commerce, gathering relevant representatives of state institutions and companies interested in accelerating the development of e-Business in Serbia.

Rakić, also the Director of the project “E-Business Development” financed by the EU, warns that the rapid growth of digital economy during the past several years is placing many companies before a dilemma. On the one hand, they could retain their old business model that was functional until now, and on the other hand, they could modify it by implementing e-tools and make a step towards more serious e-Business. “Keeping to the old model is usually much easier in the short term, but for the long term it almost certainly means decreasing efficiency and productivity compared to other, more advanced and competitive players”, said Željko Rakić.

The goal of the “E-Business Development” project, implemented by the Ministry of Trade, Tourism and Telecommunications, is to change the situation whereby most small and medium enterprises in Serbia do not offer their products and services online.

Among those who do offer their goods through their websites or advertising websites, social networks or discount websites, most offer the option of online ordering, but only a small number have the option of online payment.

The Project Director says that their activities will introduce this segment of the private sector to the possibilities of internet advertising and trade, train them in using e-tools to make all areas of business more efficient, with fewer costs and increased profits.