Factors affecting the adoption of e-commerce in Sri Lanka: internet users’ perspective

Abstract

Despite being one of the earliest adopters of the Internet in the region, e-commerce adaptation in Sri Lanka appears to be relatively low. In this paper, we identify user-related barriers that prevent the wide-spread adoption of e-commerce in Sri Lanka. We adopted a mix-method methodology to identify Internet user-related adoption factors and to understand e-commerce merchants’ views on those factors. First, a preliminary survey was carried out by interviewing stakeholders to identify barriers affecting e-commerce adoption. Next, users’ perspective was captured using an online and paper-based survey. Survey results were analyzed using structural equation modeling. Finally, a set of interviews were conducted with e-commerce merchants to identify their views on those factors. Affordability, knowledge and awareness, and facilities expected from retailers were identified as the most significant factors contributing to the e-commerce adoption. Government and legal factors, consumer perception, and digital infrastructure are the least significant factors. Smoothening of the delivery process, convenient return policies, and enhancing government involvement to promote e-commerce were identified as the key recommendations to strengthen e-commerce adoption. Keywords: E-commerce adoption.