Rapid E-Commerce Growth in Georgia, But Business Involvement Behind EU Levels

A new study by Galt & Taggart reveals that while Georgia's e-commerce market is growing rapidly, only a small percentage of businesses are active online, leaving the country significantly behind European Union benchmarks.

The research shows that in 2024 just 4% of Georgian companies were engaged in e-commerce, compared with 21% in the EU. The picture improves among large enterprises where 26.6% of Georgian firms sell online, narrowing the gap with the EU average of 31.4%. Analysts say this contrast shows the untapped potential among small and medium-sized businesses which remain largely absent from digital commerce, The Caspian Post reports, citing Georgia Today.

Despite low business participation, the overall market has expanded dramatically. Since 2018, Georgia’s e-commerce sector has grown tenfold, reaching GEL 3.5 billion in 2024. Growth remained strong in the first half of 2025, with turnover rising 40% year-on-year and the market is projected to reach GEL 4.7 billion by the end of the year. Domestic transactions accounted for 61% of online sales in 2024 while 39% came from cross-border purchases.

Around 10,000 Georgian companies currently sell products online. More than half (57.8%) rely on third-party platforms rather than their own websites while many businesses combine both channels in a hybrid model.

The services segment is dominated by platforms such as Wolt, Glovo, Bolt, Yandex, biletebi.ge and tkt.ge, with international players playing a main role in accelerating market development. Competition is even more intense in online retail. Leading local marketplaces include Veli.Store and Extra.ge while international shopping is driven by Temu, followed by Amazon, eBay, AliExpress, Taobao, Trendyol, Zara and Farfetch.

Among foreign platforms, Temu stands out for its direct shipping model to Georgia, made possible through contracted logistics partners. In contrast, most international retailers require Georgian consumers to use freight-forwarding services, a process that typically takes two to three weeks and involves multiple steps, customs procedures and 18% VAT on orders exceeding 300 GEL. The report identifies this complexity as a main obstacle to cross-border e-commerce, with Temu being the main exception.

Galt & Taggart reported that Georgian consumers most frequently order clothing, electronics, cosmetics, perfumes and household goods from international platforms. While demand continues to rise, the study concludes that expanding SME participation and improving logistics will be critical for bringing Georgia closer to European e-commerce standards.