Describes how widely e-Commerce is used, the primary sectors that sell through e-commerce, and how much product/service in each sector is sold through e-commerce versus brick-and-mortar retail. Includes what a company needs to know to take advantage of e-commerce in the local market and , reputable, prominent B2B websites.

Electronic commerce is slowly increasing in Azerbaijan from a low base.  The domestic electronic payment systems such as GoldenPay and online authentication systems such as the “Asan Imza” (“Easy Sign”) electronic signature system have encouraged online sales.

Despite the availability of electronic payment and authentication systems, most Azerbaijanis prefer to make payments in cash.  E-commerce is otherwise only used for purchases made abroad.  For sales overseas, AzExport.az online sales portal provides a database of goods produced in Azerbaijan available for buyers anywhere in the world to purchase online.  It offers secure payment options using major credit cards and global and local transport and logistics companies.  The site has also partnered with other large international sales portals to direct potential buyers to its database of products.

Credit and debit cards are accepted at most major hotels, restaurants, supermarkets, and mid-range shops in Baku, but the economy is still overwhelmingly cash-based.  Many shippers are reluctant to send goods without pre-payment, and e-commerce is limited by a lack of clear and effective legislation.  To address some of these challenges, the government passed legislation in April 2017 to promote the use of non-cash transactions in an attempt to improve tax collection and promote transparent transactions, but these efforts are ongoing.

E-commerce is subject to relatively weak intellectual property rights (IPR) enforcement, as with every sector in Azerbaijan.  Several multinational IT companies report widespread usage of unlicensed software in homes, offices, and government workspaces.  The government has not taken concerted steps to improve e-commerce IPR protections.  Some multinational IT companies, have made progress by engaging directly with government officials to highlight the security risks of unlicensed software and the investments IT companies would be willing to make in Azerbaijan if the government purchased licensed software, but enforcement and implementation of agreements are inconsistent.  The American Chamber of Commerce in Azerbaijan, which represents many of the largest local companies, took a pledge in May 2019 to respect and protect IPR rights and advocate for improved IPR enforcement in Azerbaijan. 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.