Evaluation of Barriers to E-commerce in Malawi using Grey Relational Analysis

Abstract

E-commerce (electronic commerce) provides a convenient way of buying or selling products online and is a popular choice in certain segments of societies worldwide. The significance of e-commerce has been observed during the COVID-19 crisis, where customer preferences shifted from physical stores to online stores due to lockdowns and social distancing. E-commerce has been observed to be more effective in developed countries than in developing countries such as Malawi due to the difference in the resources required for the sustainability and growth of e-commerce. The current study evaluated the barriers to e-commerce in Malawi and ranked them using the Dynamic Grey Relational Analysis model. Using the primary data collected from the customers in Malawi, the study found that lack of trust in online systems and limited access to cell phones and computers and online payment methods are the most significant barriers. The study found that both human and technical (infrastructure) factors are hindering the growth of e-commerce in Malawi.