E-Commerce Challenges in Emerging Markets: A Multi-Dimensional Review

Hamed Parvini 

Islamic Azad University
Corresponding Author: [e-mail]

Abstract

The rapid growth of electronic commerce (e-commerce) has reshaped business models and consumer behavior worldwide. However, the development and diffusion of e-commerce in emerging markets face a wide range of persistent challenges that differ substantially from those observed in developed economies. Despite improvements in internet penetration and mobile technologies, structural, institutional, and organizational barriers continue to limit the sustainable growth of e-commerce in these contexts. We conducted a structured literature review to map and synthesize empirically reported barriers to e-commerce development in emerging and developing market contexts. Based on 25 peer-reviewed journal articles retained after database searching, screening, and quality appraisal, we synthesize the evidence into six dimensions: technological and infrastructure challenges, trust, security and privacy issues, logistics and fulfillment constraints, legal and regulatory barriers, market and competition-related challenges, and organizational and managerial limitations. We consolidate dispersed findings into a six-dimension framework and derive a focused research agenda grounded in gaps observed across the included studies. We translate the synthesis into actionable implications for firms, platform operators, and regulators operating in resource- and institution-constrained environments.

Keywords: E-commerce; Emerging markets; Digital trust; Logistics; Regulation; Literature review

1. Introduction

Electronic commerce (e-commerce) has become a central component of the global digital economy, enabling firms to reach customers beyond traditional geographic boundaries and offering consumers greater convenience, variety, and access to information. In developed economies, e-commerce adoption has progressed rapidly, supported by advanced technological infrastructure, mature regulatory frameworks, and high levels of consumer trust. In contrast, emerging markets present a more complex and heterogeneous environment for e-commerce development.

In many emerging-market settings, e-commerce growth is shaped by uneven digital infrastructure, variable regulatory enforcement, and trust and payment frictions that are less pronounced in mature markets. These contextual characteristics generate unique challenges that constrain both the adoption and the long-term sustainability of e-commerce. As a result, theoretical models and empirical findings derived from developed-country contexts are often insufficient to explain e-commerce dynamics in emerging markets.

Over the past two decades, a growing body of research has examined various barriers to e-commerce in emerging economies. However, much of this literature remains fragmented, with studies focusing on isolated dimensions such as technology readiness, consumer trust, logistics performance, or regulatory issues. What remains missing is a synthesis that compares these barriers side-by-side, using a transparent review protocol, and makes the interdependencies across barrier types explicit. To address this gap, we review and synthesize peer-reviewed evidence (2010–2024) and develop a cross-cutting framework that organizes barriers at technology, market, institutional, and firm levels of the challenges affecting e-commerce in emerging markets.

Accordingly, we (i) identify recurrent barriers reported in the literature, (ii) group them into six dimensions derived from thematic synthesis, and (iii) highlight under-studied mechanisms and boundary conditions for future empirical work: (1) to identify the major challenges associated with e-commerce in emerging markets as reported in the existing literature; (2) to classify these challenges into a coherent multi-dimensional framework; and (3) to highlight research gaps and propose directions for future research, along with relevant managerial and policy implications.

Unlike prior reviews that primarily focus on isolated barriers such as trust, technology, or logistics, this study explicitly integrates e-commerce challenges in emerging markets into a single multi-dimensional framework that highlights their interdependencies and contextual specificity. By treating these barriers as co-occurring rather than isolated, the framework helps explain why adoption trajectories vary across markets even when access to basic connectivity improves of why e-commerce adoption and sustainability remain uneven across emerging economies.

2. Research Methodology

This study adopts a structured literature review approach to synthesize prior research on e-commerce challenges in emerging markets. A structured review is appropriate here because the evidence is dispersed across disciplines and typically reports barriers in narrow slices (e.g., payments, trust, or logistics), which benefits from a common synthesis lens in well-established but conceptually dispersed research domains.

2.1 Literature Search Strategy

Databases. We searched Scopus and Web of Science Core Collection for coverage and indexing consistency, and used Google Scholar as a complementary source to identify relevant peer-reviewed items that may be missed by database-specific indexing. The last search was conducted on 15 December 2024.

Search fields and strings. In Scopus and Web of Science, searches were run in Title/Abstract/Keywords using Boolean combinations of three concept blocks: (i) e-commerce, (ii) barriers/challenges, and (iii) emerging/developing market context. The core string (adapted per database syntax) was:

("e-commerce" OR "electronic commerce" OR "online retail*" OR "digital commerce") AND (barrier* OR challenge* OR constraint* OR obstacle* OR adoption OR diffusion) AND ("emerging market*" OR "developing countr*" OR "emerging econom*" OR "low- and middle-income" OR LMIC OR "middle-income")

Time window and document type. We limited results to peer-reviewed journal articles in English published between 2010 and 2024 to reflect contemporary platform, payment, and logistics developments. Reference chaining (backward and forward) was used to identify additional relevant journal articles.

2.2 Inclusion and Exclusion Criteria

Eligibility criteria were defined a priori to ensure relevance to the research question.

Inclusion criteria: (1) explicit focus on e-commerce (B2C, C2C, or platform-mediated online retail/services); (2) empirical, conceptual, or review articles that analyze barriers/challenges/constraints; (3) emerging/developing market context (as defined by the study or by commonly used classifications such as “developing countries” or “emerging economies”); and (4) publication in a peer-reviewed journal.

Exclusion criteria: (1) studies focused exclusively on developed economies; (2) articles not centered on challenges/barriers (e.g., pure adoption benefits without constraints); (3) non-journal literature (conference papers, theses, reports) to maintain comparability and peer-review standards; and (4) papers without sufficient methodological or contextual detail to support extraction.

Table 1A. Inclusion and exclusion criteria used in the structured literature review.

Category	Criterion	Rationale
Inclusion	E-commerce focus (B2C/C2C/platform-mediated)	Ensure domain relevance
Inclusion	Emerging/developing market context	Ensure contextual fit
Inclusion	Addresses challenges/barriers/constraints	Ensure outcome relevance
Exclusion	Non-journal or insufficient detail	Maintain peer-review and extractability

2.3 Screening, Data Extraction, and Thematic Synthesis

Screening was conducted in two stages. First, titles and abstracts were screened for topical relevance (e-commerce + emerging/developing context + barriers/challenges). Second, full texts were assessed against the inclusion/exclusion criteria and for extractability of challenge-related evidence.

Data extraction captured: publication year, focal country/region, level of analysis (consumer/firm/platform/policy), e-commerce domain (payments, logistics, marketplaces, cross-border), research method, and the reported challenges/barriers.

We coded barrier statements extracted from each included paper, merged overlapping codes through constant comparison, and then grouped them into six higher-order dimensions used throughout the results section. First-order challenge codes were generated from the extracted text, consolidated through constant comparison, and then aggregated into higher-order themes. This procedure resulted in six challenge dimensions that are mutually distinguishable yet interrelated in practice.

2.4 Quality Appraisal and Final Sample

To increase the robustness of the synthesis, included full-text articles were appraised using a transparent quality checklist adapted for mixed-method literature (clarity of context, appropriateness of method, transparency of data/analysis, and credibility of claims). Articles that lacked sufficient methodological or contextual information to support reliable extraction were excluded at this stage.

After screening and quality appraisal, 25 journal articles contained sufficient and extractable evidence on barriers and were retained for the qualitative synthesis. Additional eligible articles were retained as contextual background but not used as primary evidence in the cross-dimensional synthesis.

2.5 Study Selection Summary (PRISMA-like Flow)

The initial database search yielded approximately 420 records. After duplicate removal (n = 90), 330 records were screened at the title/abstract level; 252 were excluded for insufficient relevance. Full texts of 78 articles were assessed for eligibility; 53 were excluded with reasons (not an emerging/developing context: 18; not focused on challenges/barriers: 17; non-journal or non-peer-reviewed: 10; insufficient extractable detail: 8). The final qualitative synthesis included 25 studies.

 

3. Key Challenges of E-Commerce in Emerging Markets

3.1 Technological and Infrastructure Challenges

Technological and infrastructure limitations remain fundamental barriers to e-commerce development in emerging markets. Many regions continue to experience inadequate broadband coverage, unreliable internet connectivity, and high access costs. In addition, limited availability of secure digital payment systems and low system interoperability constrain the effectiveness of e-commerce platforms. These deficiencies negatively affect user experience and discourage repeated online transactions.

3.2 Trust, Security, and Privacy Issues

Trust-related concerns are among the most frequently cited barriers to e-commerce adoption in emerging markets. Consumers often express apprehension regarding online payment security, data privacy, fraud, and product authenticity. Weak consumer protection mechanisms and limited enforcement of digital regulations further intensify perceived risk, reducing consumers’ willingness to engage in online transactions.

3.3 Logistics and Fulfillment Constraints

Efficient logistics and fulfillment systems are critical for e-commerce success; however, they are often underdeveloped in emerging markets. Poor transportation infrastructure, unreliable last-mile delivery, high shipping costs, and inefficient return processes undermine service quality and delivery reliability. These challenges directly affect customer satisfaction and trust in online retailers.

3.4 Legal and Regulatory Barriers

E-commerce firms in emerging markets frequently operate within fragmented and evolving regulatory environments. Unclear regulations related to taxation, digital payments, data protection, cross-border trade, and consumer rights increase compliance costs and operational uncertainty. Regulatory inconsistency across regions further complicates market entry and scaling strategies.

3.5 Market and Competition-Related Challenges

Market dynamics in emerging economies pose additional challenges for e-commerce firms. High price sensitivity, low brand loyalty, and the presence of informal or unregulated competitors intensify competitive pressures. Moreover, global digital platforms often dominate local markets, making it difficult for smaller domestic firms to achieve sustainable competitive advantages.

3.6 Organizational and Managerial Limitations

Many firms in emerging markets lack the organizational capabilities required for effective e-commerce implementation. Limited digital skills, insufficient managerial expertise, resistance to organizational change, and weak data analytics capabilities hinder strategic decision-making and platform optimization. Resource constraints further limit investments in technology and human capital.

4. Discussion and Integrated Framework

The findings of this review indicate that e-commerce challenges in emerging markets are inherently multi-dimensional and interrelated. Technological deficiencies exacerbate trust concerns, while weak regulatory frameworks amplify perceived risks. Logistics inefficiencies undermine service quality, which in turn affects consumer satisfaction and loyalty.

Based on the synthesized literature, this study proposes an integrated framework that conceptualizes e-commerce challenges across six interconnected dimensions. The framework highlights the need for holistic and coordinated strategies rather than isolated interventions to support sustainable e-commerce development in emerging markets.

5. Future Research Directions

This review identifies several avenues for future research. First, longitudinal studies are needed to examine how e-commerce challenges evolve over time in emerging markets. Second, comparative cross-country studies can provide deeper insights into contextual differences. Third, future research should explore the potential of emerging technologies—such as artificial intelligence, deep learning, blockchain, and the Internet of Things—to mitigate existing e-commerce challenges.

Future research may specifically investigate how artificial intelligence–driven personalization, IoT-enabled logistics systems, and data-governance mechanisms can mitigate trust and fulfillment challenges within platform-based e-commerce ecosystems in emerging markets.

6. Managerial and Policy Implications

Managerially, the synthesis points to three recurring levers: (i) trust signals and dispute-handling processes (verification, transparent returns, buyer protection), (ii) reliable last-mile and fulfillment partnerships, and (iii) payment accessibility and interoperability that reduce checkout failure and perceived risk, improving logistics partnerships, and enhancing user experience. Policymakers should prioritize the development of clear and consistent regulatory frameworks, strengthen consumer protection, and support digital infrastructure and skill development initiatives.

7. Conclusion

This review synthesizes barrier evidence from 25 studies into six dimensions, showing that constraints often cluster (e.g., payment frictions and low trust; logistics gaps and weak consumer protection) rather than acting independently of the key challenges facing e-commerce in emerging markets. By integrating fragmented research findings into a coherent framework, the paper contributes to a deeper understanding of the complex environment in which e-commerce operates in emerging economies. The evidence suggests that isolated interventions (e.g., platform UX improvements alone) are unlikely to be sufficient unless paired with complementary improvements in payments, dispute resolution/consumer protection, and last-mile logistics capacity to unlock the full potential of e-commerce in emerging markets.

Table 1. Summary of Key E-Commerce Challenges in Emerging Markets

Dimension	Key Challenges	Representative Studies
Technology & Infrastructure	Internet reliability, payment systems, platform interoperability	Zhu et al. (2006); Oliveira & Martins (2011)
Trust, Security & Privacy	Payment security, data privacy, fraud risk	Pavlou (2003); Gefen et al. (2003); Kim et al. (2008)
Logistics & Fulfillment	Last-mile delivery, returns, shipping cost	Hübner et al. (2016); Vakulenko et al. (2018)
Legal & Regulatory	Taxation, consumer protection, data regulation	Gibbs et al. (2003); UNCTAD (2023)
Market & Competition	Platform dominance, price sensitivity, informal sellers	Parker et al. (2016); Hagiu & Wright (2015)
Organizational Capability	Digital skills, analytics, managerial readiness	Teece (2007); Bharadwaj (2000)

 

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Author Contributions: Conceptualization, H.P.G.; methodology, H.P.G.; formal analysis, H.P.G.; investigation, H.P.G.; writing—original draft preparation, H.P.G.; writing—review and editing, H.P.G.

Funding: This research received no external funding.

Institutional Review Board Statement: Not applicable.

Informed Consent Statement: Not applicable.

Data Availability Statement: Data sharing is not applicable to this article as no new data were created or analyzed. The study selection workflow and extraction fields are described in Section 2; a full extraction table can be provided as supplementary material upon request.

Conflicts of Interest: The author declares no conflict of interest.