The benefits of e-commerce extend far beyond economic gains. By fostering the growth of this sector and supporting its participants, policymakers can advance social equity. However, Iranian online businesses have encountered significant challenges in recent years, making survival a struggle. Despite these difficulties, many have expanded their reach, striving to deliver products and services across the country.
Access to Diverse Products and Services
Although there remains a considerable gap between Iran and other countries in the realm of e-commerce, the number of online businesses in Iran has grown steadily in recent years. A 2023 report on electronic trading revealed that online retail businesses accounted for 6% of the total retail sector in the country—a notable increase from the previous year. This growth places Iran among the world’s fastest-growing e-commerce markets.
This progress is both promising and challenging. On one hand, it reflects the resilience of e-commerce players in overcoming barriers such as unstable internet access, sanctions, and limited investment. On the other hand, it highlights the ongoing need for infrastructure and policy improvements. E-commerce has the potential to bridge long-standing gaps in the fair distribution of goods and services across Iran, a concern frequently raised by economists and sociologists.
Historically, resources and opportunities have been concentrated in Tehran, leaving other regions underserved. While Tehran, the capital of Iran, still dominates the e-commerce landscape with the highest number of active businesses, recent statistics show a decline in its share of online businesses from 51% in 2022 to 46% in 2023. This shift suggests a gradual decentralization of e-commerce, signaling more equitable distribution across the country.
Reducing Inequities Through Online Shopping
The growth of e-commerce fosters accessibility, enabling rural and underserved populations to enjoy the same variety of products and services as urban centers. For instance, Digikala, which holds a quarter of Iran’s e-commerce market, serves customers in 2,256 cities and villages. By 2023, its network included 1,614 cities and towns, with 5.1 million customers and 396,000 retailers located outside Tehran.
Through initiatives like its local retailers program, Digikala has integrated suppliers from 728 towns and villages, totaling 7,536 local participants. The platform has also delivered 16.4 million orders to areas beyond Tehran, with in-person pickup options further reducing delivery costs—a particularly popular feature in provinces outside the capital.
Ease of Access to Financial Resources
Beyond providing access to goods and services, e-commerce platforms like Digikala play a critical role in addressing financial challenges. With Iran’s economic struggles impacting purchasing power, strategies such as discounts, sales campaigns, and instalment plans have gained popularity. In 2023, discounted items accounted for 46% of Digikala’s inventory and 45% of its total sales, with over 1 million discounted products sold.
Innovative payment solutions like Buy Now, Pay Later (BNPL) have further supported consumers. Over the past year, BNPL transactions grew by 472%, while instalment-based purchases increased by 566%, benefiting 182,000 users. These measures highlight the dual role of e-commerce in ensuring fair access to goods while offering financial relief to middle- and lower-income groups.
E-commerce in Iran is steadily evolving into a vital tool for reducing disparities in access to products, services, and financial opportunities, bridging the gap between urban and rural areas, and supporting equitable economic development.
