Current State of E-Commerce in Mongolia: Payment and Delivery

Abstract

We have studied historical development of e-commerce business, e-commerce companies, online payment options, goods delivery service and its forms and selected certain indicators for unification. Two hypotheses were stated within the research: e-commerce companies in Mongolia have successfully implemented online payment methods; and also goods delivery services. The purpose of the research has been to cover all companies operating actively in e-commerce market that have B2C, i.e., Business to Customer model. In total 70 companies were selected based on the analyzed information from official sources. Regarding the result, the companies are offering 24 types of tangible and intangible goods and 20% of them are selling e-goods. Researchers have found out that there are 13 traditional and electronic payment methods in Mongolia as of today and all companies have implemented at least 1 online payment methods, the maximum amount is 12 methods, and the average is from 5 to 6 methods. Three goods delivery model exists and 56 from 70 companies are offering tangible goods. 84% of them has already solved the issue of goods delivery. 72% of those 56 companies have their own department or employee for delivery service, and remaining 28% are using domestic or international postage services. Half, i.e., 50% of those 56 companies use local transportation for their goods delivery to rural areas. Therefore, regarding the results we assume that hypotheses are proved and the relevant conclusion was made.