A new study by Galt & Taggart shows that Georgia’s e-commerce market continues to grow at a fast pace, yet only a small share of businesses are active online, leaving the country well behind European Union benchmarks.
In 2024, just 4 percent of Georgian companies were engaged in e-commerce, compared with 21 percent in the EU. The gap narrows among large enterprises, where 26.6 percent of Georgian firms sell online versus the EU average of 31.4 percent. Analysts say the contrast highlights substantial untapped potential among small and medium-sized enterprises, which remain largely absent from digital commerce.
Despite limited business participation, the overall market has expanded dramatically. Since 2018, Georgia’s e-commerce sector has grown tenfold, reaching GEL 3.5 billion in 2024. Growth remained strong in the first half of 2025, with turnover rising 40 percent year on year. The market is projected to reach GEL 4.7 billion by the end of 2025 and could expand to GEL 10.7 billion by 2030, supported by average annual growth of more than 20 percent.
Consumer engagement has also increased sharply. The number of e-commerce users has risen from about 600,000 in 2018 to more than 1 million in 2025. In 2024, domestic transactions accounted for 60.9 percent of total online turnover, while cross-border purchases made up 39.1 percent. In the first half of 2025, online sales represented 8 percent of total retail turnover, with cross-border shopping contributing 5.8 percent.
Around 10,000 Georgian companies currently sell goods or services online. More than half, 57.8 percent, rely on third-party platforms instead of their own websites, while many use a hybrid model that combines both channels.
Competition in the services segment is led by platforms such as Wolt, Glovo, Bolt, Yandex, tkt.ge and biletebi.ge. International players have played a major role in accelerating market development.
Online retail competition is even more intense. Leading local marketplaces include Veli.Store and Extra.ge. International shopping is driven primarily by Temu, followed by Amazon, eBay, AliExpress, Taobao, Trendyol, Zara and Farfetch.
Among foreign platforms, Temu stands out for its direct shipping model to Georgia through contracted logistics partners. Most other international retailers require Georgian consumers to use freight-forwarding services, a process that typically takes two to three weeks and involves multiple steps, customs procedures and an 18 percent VAT on orders exceeding GEL 300. The report identifies this complexity as a main obstacle to cross-border e-commerce, with Temu as the primary exception.
Georgian consumers most frequently order clothing, electronics, cosmetics, perfumes and household goods from international platforms.
Despite the sector’s rapid expansion, several structural challenges remain. Long delivery times, limited coverage outside major cities, courier shortages and concerns over product quality continue to hinder user experience and operational efficiency.
The study concludes that expanding SME participation and improving logistics infrastructure will be critical if Georgia is to move closer to European e-commerce standards and establish online retail as a major pillar of its economy.
By Team GT
