E-Commerce in Trinidad & Tobago- Mid-2015 Update

I give you now, an update on a topic I’ve been getting many inquiries of lately- you guessed it- E-Commerce in Trinidad. If you didn’t guess it, there’s no shame in that.

Yes, E-Commerce is in the air and local businesses have accepted the reality that they have to get on board. I have no doubt that many have plans to set up an online store and eventually will. However, it’s easier said than done and any business-owner worth his (or her) salt knows that it takes a great deal of preparation, finance and other resources to pull it off which can take months. Hence the reason why you are not seeing an avalanche of new local online stores.

There is good news. As of 2015 till present day all the moving parts required to set up a working online store are still here. These moving parts are:

1. The online store platform (my choice is Magento)
2. The payment gateway- First Atlantic Commerce (FAC) via FCB
3. Delivery- TT Post (or your own delivery)

Though my choice is Magento, any open source platform will be able to be integrated with the local payment gateway.

I’m not getting into the progress (or lack therof) of the Electronic Transactions Act as last time I checked, the rest of it was still yet to be proclaimed. Now that election fever is in the air, it’s likely to remain where it is.

I’m just happy there are no TECHNICAL obstacles. In general, any business or individual who wants to set up an online store in Trinidad & Tobago can do so right now. It will function EXACTLY the way it should and the way everyone is accustomed to on US sites; the way we know and love: Browse → Add to Cart → Checkout

Online shopping in Trinidad & Tobago is still focused on US sites and that’s no surprise. I myself have several orders being shipped from Amazon and others to a US address as I write this. There just aren’t many online stores as yet to make a significant impact and for any to be known as a ‘player’.

Again, those who you think are players aren’t, and those who think they are players also aren’t. There are NO PLAYERS in the local market.

I’m sure that people are shopping on local sites but not to a substantial level yet. The reasons are:

1. Few online stores
2. Limited variety of merchandise
3. Lack of confidence to shop local
4. Local online stores not marketing themselves

Like I said, there just aren’t many online stores in the local marketplace at the moment, and Trinis aren’t inspired to shop from them in general. But that’s not what’s preventing or Trini companies and individuals from going E-Commerce. The headlines after last shopping season of how much was spent shopping online are enough to know that the is money to be made. So why the seemingly slow going to establish online stores?

1. It’s expensive
2. It takes time to build and launch a site
3. Offline business gets priority
4. Lack of local web designers with expertise
5. There’s no dire need

I agree it’s expensive as my prices start at least $20,000 TTD for a Magento store, and that’s my fee alone. Hosting, SSL, payment integration, marketing and other incidentals added on take it to about double that and more.

Why am I so expensive? Believe me I’m real cheap, and I didn’t pull that figure out of the sky. I’ve learnt a lot about the process that is priceless ‘intel’ for one. Mere technical know-how about setting up an online store isn’t enough to build a solid and competitive site for the long term. And I’ve gained that knowledge the hard way.

I would still surmise that it’s the lack of a dire need is the main culprit. There are many well oiled companies with the financial resources that $100K wouldn’t register a blip on their balance sheet. But they’re busy with offline business and online takes a back seat.

For individuals and smaller businesses, it’s the money.

Our local E-Commerce market is young and in early days. Online shopping has been around for over twenty (20) years. Our local banks and past governments are to blame. First Citizens Bank (FCB) came on board just last year to be only the second bank to offer a TT Dollar payment solution after Scotiabank, and don’t even get me started on Scotiabank.

A third bank is still a little way off, and a little bird told me it’s Republic Bank, but it appears that our local banks are indifferent.

As far as governments go, I don’t blame them as Trini politicians have their own pockets to fill and can’t be expected to be the least concerned about yours.

The answer is simple in theory. We need more local online stores and we need more Trinis shopping on them. Again, easier said than done. However:

I only know of a few online stores in Trinidad & Tobago. Knowing they exist doesn’t compel me to visit them. These site-owners have to get savvy with online marketing the way that US sites do. I don’t get deals in my inbox, I don’t see Facebook ads promoting a sale… nothing. It’s simply a case of ‘out of site, out of mind’ (pun intended!).

Offline, Trini stores are legendary in their piss-poor attitude to customers, so not much different can be expected online. The only way to get Trinis to shop online is to actually DUPLICATE the US online shopping experience.

The good news is, is that the US online shopping experience is not rocket science, nor is it some intricate and complex business model. You browse, shop, pay online and the items get delivered to your door, no fuss, no muss.

I get that smaller businesses and individuals are limited in financial resources. I don’t know if government programs like NEDCO etc., would support business ventures such as these. But established companies with multiple stores or large enough business can easily afford. They just have to get it off the backburner.

I’m to blame for this idea not coming to fruition. The good news is that it’s not an idea. The site is currently being built, it’s in a minimal state but I can’t find the time to finish with all my current client projects. I don’t see such time in the horizon either, as my own Forward Multimedia site is also not where I want it to be and needs my attention.

But I’ve had a brainwave that would allow the directory to go live without me having to eat my words about launching a site that’s not ready. I’ll launch it as BETA, i.e in a testing mode. How does that sound?

And just what it is this T&T Online Store Directory? Just that, all online stores in Trinidad & Tobago in one place, even those of my competitors.

This has been a long article but I’m sure it has been very informative. I think such an update is needed as my most recent articles on E-Commerce, though still relevant, are chronologically ‘old’. Almost all inquiries I get by email or phone start with “I’ve been reading your articles…”. Though, my readers are deign to like, comment, send an email, make a post on FB, but I do it because I love you.