1

Literature Review:

2- E-Commerce in Lebanon

Introduction

Electronic commerce (e-commerce) involves executing and conducting any business, trade, or

service over an internet website and electronic channel (Raza, Umer, Qureshi, & Samad, 2020).

This involves the use of median cell phone, phone, online chat, and email employed in

conducting and finalizing business transactions. The ease of executing e-commerce transactions

is associated with key deficiencies which are intrinsic to the digitized environment. The

development of security features and awareness regarding online and mobile applications has

presented an opportunity to reengineer the issue of trust. Bhalla (2017) acknowledges that the

feeling of trust is one of the core elements with regard to the steady growth and proliferation of

e-commerce. It should be notes that e-commerce includes the transfer of not only money in

exchange for goods and services but also business documents, internet banking, money orders,

forms, and supply order and bills. However, according to Tabsh (2018) e-commerce is still

unsecure and thus requiring significant development, innovation, and securitization. Lebanese e-

commerce has thrived by virtue of factors such as comparison shopping, low prices,

simplification of business process, and urban development. But, Chami (2018) notes that on the

contrary growth and development of e-commerce in Lebanon is challenged by issues such as fear

of data abuse, low service levels, lack of security, and absence of guarantee of product delivery

and quality. As articulated by Zulfikar and Mayvita (2018) these attributes have culminated into

low trust levels which has not been helped by rising fraud losses due to phishing fraud, identity

fraud, and technical failures.

 2

E-commerce denotes the process of buying and selling both goods and services using online

platforms. These also includes digital forms of payment for instance the e-bay owned PayPal

(Hakim & Maamari, 2017). Various forms of e-commerce exist. To begin with business to

consumer (B2C) involves businesses selling products to consumers via online platforms. As

highlighted by Inkesar and Maqsood (2019) business to Business encompasses variants of

electronic commerce between manufacturers, wholesalers, and retailers. In the same vein, e-

commerce also includes consumer to consumer (C2C) where consumers interact directly with

fellow consumers in buying and selling of goods as well as services. It should be distinguished

that C2C model is guaranteed by websites offering features such as auctions and classified

advertisements.

Octaviani and Gunawan (2018) acknowledges that despite the reality that Lebanon is yet to

realize its own version of E-bay and Amazon, numerous e-commerce websites have emerged in

the past few years. In 2017 it was indicated that only 10% of internet users performed online

shopping in contrast to the global average of 40% (Najjar, Shikhani, Maroun, & Samaan, 2018).

E-commerce in Lebanon has however increased to permeate diverse segments of the economy. It

the information gleaned from market sources in Lebanon regarding online experience and

consumer behavior is anything to go by then Lebanese e-commerce has made commendable

strides (Organization for Economic Cooperation and Development (OECD), 2019).

 3

Figure 1: leading products purchased online within Lebanese e-commerce, Source:

IPSOS (2017)

Problems Associated with E-Commerce in Lebanon

Bizri, Khachfe, Fayes, and Musharrafieh (2020) argues that one of the key challenges that

marked the development of e-commerce in Lebanon in the pre-COVID 19 period was creation of

awareness regarding safety if online payments. This can be seen from the fact that most

consumers in Lebanon continues to shy away from revealing information regarding their credit

cards on online platforms. This has caused many Lebanese consumers to resort to cash-on-

delivery methods of payment even after ordering services or items online. But, Tabsh (2018)

argued that this pattern and consumer behavior was gradually changing since the online sphere

was increasingly being integrated in the day-to-day routine of the Lebanese populace. According

to Tarhini, Alalwan, and Algharabat, (2019) between 2017 and 2018 it was established that the
 4

level of trust in terms of online payments and more specifically the use of credit cards used for

online purchasing was increasing exponentially.

An independent assessment on firms offering payment gateways to e-commerce businesses also

indicated that banks have continued to play a significant function in spreading awareness

concerning e-purchases. As a matter of fact, achieving safety with regard to online purchases

demands that the issuing bank guarantees that the customer will be covered in the event that

fraud occurs on their card. But, Hammoud, Bizri, and Baba, (2018) underline that the bank must

shield itself from any possible risks of fraud. Nevertheless, Han and Kim (2017) note that other

significant challenges comprise of identifying the right mix of products via-a-vis price.

Consequently, e-businesses faced the challenge of correctly identifying their target customers so

as to convert traffic into sales. This was particularly true in the pre-COVID 19 period whereby

business were expected to react and adjust fast to the constantly changing product mix. Chami

(2018) asserts that since Lebanon differs from other places in terms of the e-environment,

businesses adopt uniquely tailored marketing strategies. This is important in addressing the issue

of conversion rate which entails turning website visitors into buyers.

 5

Figure 2: Highlighting purchase intention for Lebanese shoppers

Hakim and Maamari, (2017) explains that measurement of the e-commerce sector in Lebanon is

premised on the evaluation of three major elements: 1) E-commerce impact which is determined

by the effects on a business performance alongside the perceived benefits associate with e-

commerce 2) E-commerce readiness is measured based on the holistic consideration of the

telecommunications infrastructure in its entirety 3) E-commerce intensity is evaluated by the

frequency and intensity of internet use as well as calculated internet penetration rate.

E-Commerce Impact in Lebanon

Going by the increasing proliferation of e-commerce businesses alongside the intensified

launching of online activity in comparison to the traditional brick-and-mortar physical stores it is

apparent that many businesses in Lebanon are keen on optimizing benefits associated with an

established online presence. Raza, Umer, Qureshi, and Samad (2020) is cognizant of the purview

that for Lebanese businesses establishing online presence in parallel to their physical stores is in
 6

congruent of the reality that online spaces are instrumental in opening new markets. This is

instrumental in exposing the numerous opportunities that exists beyond the Middle East and

North Africa (MENA) region.

E-Commerce Readiness

Mahadin, Akroush, and Haddad (2020) documents that initially the cost of accessing the web in

Lebanon was indicated to be four times higher than countries abroad. Both online businesses and

facilitators of online payments have been driven by this concern which is underlined as creating

major hurdles to the Lebanese e-commerce sector. As accurately captured by Tarhini, Alalwan,

and Algharabat (2019) this created the much needed impetus to activate and actualize the

measures developed in 2014 by the Lebanon’s Telecommunication Ministry aimed at slashing

internet costs of DSL services while simultaneously boosting the speeds of internet services.

Table 1: Decreasing DSL Prices while initiating Faster Service, Source: Ministry of

Telecommunication

E-Commerce Intensity

Statistics by IPSOS are rife with indication pointing to the fact that Lebanese internet population

was 2.1 in 2015 a growth from 1.9 million registered in 2014 (Tabsh, 2018). Similarly, internet
 7

penetration rate grew from 56% in 2013 to 61% in 2014 and finally to 66% in 2015 as

documented in presentations made by Wehbi (2020).

Figure 3: Respondents who do not use the internet in MENA region in 2017, Source: (Statista,

2020)

Size of E-Commerce in Lebanon

The Lebanese electronic commerce market continued its moderate rate of growth in terms of

both sales as well as volume of online shoppers in the pre-COVID 19 period. Going by data

provided by PayFort (2017) 2.3 million people performed online shopping in 2016, a significant

increase from 2.1 million attained in 2015. This coincided with an annual growth rate of 9.5%

(Bizri, Khachfe, Fayes, & Musharrafieh, 2020). Demographically speaking, younger age groups

of individuals below 30 years of age form the majority of online users. Actually, statistics by

offered by Hammoud, Bizri, and Baba, (2018) indicate that this demographic group represents

50% of the total online users in Lebanon. Going by income level, Najjar, Shikhani, Maroun, and
 8

Samaan (2018) note that in terms of e-commerce customers and sales the mid-income class of

between USD533 to USD1, 065 represented the most dynamic and robust online users. Items

with leading preference by shoppers included fashion and clothing which represented by 44% of

the total online shoppers whereas electronic equipment with items such as TV sets and Tablets

were among the least regarded by Lebanese online shoppers.

Key reasons and motivations for Lebanese online shoppers encompasses of competitive prices,

exclusive products, and lastly group offers. Because of the fact that a paltry 11% of Lebanese

citizenry possess credit cards, Chami (2018) observes that cash-on-delivery remains the preferred

mode of payment. This accounts for more than 60% of the total online orders in Lebanon.

Inkesar and Maqsood (2019) remind that such a pattern is a reflection of other countries within

the MENA region. According to statistics provided by Hootsuite (2018) as cited in Khoury,

Azar, and Hitti (2020) electronic wallet has consistently failed to elicit interest of a significant

group of consumers. This can be seen from the fact that only 5% of men and 4% of women were

using internet payments in 2017 as qualified by Najjar, Shikhani, Maroun, and Samaan (2018).

However, the situation changes in 2018 when new mobile payments methods were ushered as a

result of a partnership between MasterCard and Bank Audi. Hakim and Maamari (2017) argue

that irrespective of this development in terms of mobile payments, projections promoted by

PayFort Survey showed that still 47% of consumers were willing to transact in cash despite

benefits created by the newly created mobile wallet.

E-Commerce Market in Lebanon

 9

Being a small Middle Easter country, Lebanon has a population of slightly more than 6 million

people. According to research assessments by Internet World Stats cited in Tarhini, Alalwan, and

Algharabat (2019) internet penetration in Lebanon increased to 75.4% during the end of 2017.

However, according to Hootsuite survey (2018) carried in Wehbi (2020) a similar assessments

indicated that internet penetration rate rose to 91%. This coincided with 4.6 million internet users

who accounted for 3.1% of the total population of internet users in the Middle East. It is

evidently clear that internet penetration rate in Lebanon exceeds the regional average of 57.8%.

But, as presented by Ayyash (2017) it falls below the regional average for GCC countries. One

of the reasons for these improvements in internet penetration rate is as a direct result of steady

increase in smartphone penetration rate in not only Lebanon but also the rest of the MENA

region. However, as indicated in Hakim and Maamari (2017) figures significantly vary with

survey by PayFort (2016) putting it at 52% while those presented by Mideast Media Survey

(2017) as cited in Tarhini, Alalwan, and Algharabat (2019) putting it at 91%. The share of

laptops and desktops in web traffic rose in 2017 which was highlighted as 51% of the total traffic

this coincides with 18% increase on a year-over-year (y-o-y) basis. But, Khoury, Azar, and Hitti

(2020) indicate that during this period of time the share of mobile in the web traffic decreased to

46% coinciding with 13% on a year-over-year basis. With regard to the search engines, Najjar,

Shikhani, Maroun, and Samaan (2018) highlight that Google is way ahead with a market share of

96.38%, Yahoo comes at a distant second with 1.78%.

The fact that Lebanon is fairly free and liberal as compared to other Arab countries, social media

has played a significant function as an agent of change. The leading social media sites in

Lebanon’s digital space by virtue of market share were highlighted as YouTube with 50.67%,
 10

Facebook with 32.07%, Pinterest with 8%, Twitter with 6.29%, Instagram with 2.13%, and

Google+ with 0.24% (Epaminonda, Chaanine, Vrontis, Thrassou, & Christofi, 2020). Inkesar

and Maqsood (2019) promotes that internet users in Lebanon are free and active on the various

social media. Users also enjoy the option of accessing their individual accounts via either mobile

phones or computers. Indications by Hootsuite (2017) cited in Khatoon, Zhengliang, and Hussain

(2020) point to the fact that the number of users on social media increased to 4 million this

coincides with a 14% year-over-year (y-o-y) increase for 2018. This accounts for close to 66% of

the total Lebanese population. Of these population of social media users, 3.6 million people were

indicated to use their smartphones to access accounts. Like in many Middle Eastern countries

most social media users in Lebanon are on Facebook and WhatsApp. Of the two, Tarhini,

Alalwan, and Algharabat (2019) underscores that Facebook accounts for 3.6 million Lebanese

users of which 68% are below the age of 34 years. Consequently, 57% of users are male. On its

part, Instagram increasingly gaining popularity among younger generation of users. This is

attested by the fact that 73% of the total population of Instagram user is below the age of 34

years. In terms of the gender, Khoury, Azar, and Hitti (2020) provide that there is a near perfect

balance with 51% being male and 49% being female users. This is an indication that Instagram is

steady widening its market share in Lebanon with users amounting to 1.4 million coinciding with

23% of the total population at present (Wehbi, 2020). Lagging behind is Twitter and LinkedIn

which are represented by 80000 and 520000 respectively.

 11

Figure 4: Rapid increase in global mobile data traffic, Source: (Statista, 2017)

Like most international and Pan-Arab websites, e-commerce market in Lebanon is characterized

by cross-border trade. However, Najjar, Shikhani, Maroun, and Samaan (2018) argue that

Lebanon lacks a local general retailer giant. While Amazon has some significant presence in

Lebanon the e-commerce site has a limited function dealing majorly with book delivery. Ali

Express is highlighted as the largest e-commerce site within Lebanon. Initially e-transactions

made but Ali Express were not subjected to customs duties but Piarna, Fathurohman, and

Nugraha (2020) indicate that this changed when international shipment scheme was revised by

the national postal company. Deliveries made by Ali Express are made by Lamppost. Similarly,

another e-commerce site with presence and significant market share in the Lebanese e-commerce

market is the Pan-Arab Sou alongside other significant but smaller e-tailers including Lakshmi,

Ishtar, Alexina, and GSA. But, Najjar, Shikhani, Maroun, and Samaan (2018) distinguish that of

the aforementioned above only Ishtar operates as a sole general retailer, while GSA and Lakshmi

offer a special service as well as merchandise deals but only for a limited duration guided by the

Group on model. On its part Alexina has adopted and exploits the classified advertising
 12

approach. However, Tarhini and Hayek (2021) offers that in Lebanese e-commerce is not limited

to traditional websites. This is informed by the fact that it is increasingly becoming

commonplace for individuals to offer their products for sell on both Facebook and Instagram. A

case in point of products traded in e-commerce is fashion.

However, according to according to the UNCTAD B2C E-commerce Index (2017) Lebanon is

out ranked by many of its neighbors in terms of e-commerce market. This is despite the fact that

Lebanon is placed at the 5th position with respect to e-commerce readiness within the Middle

East region and 56th in the world. Recent data indicate that USD 341 million in terms of sales

was accrued in 2016 (Bizri, Khachfe, Fayes, & Musharrafieh, 2020). This indicate a significant

growth of 9.8% in comparison to USD 310 million generated in 2015. But, Epaminonda,

Chaanine, Vrontis, Thrassou, and Christofi (2020) argue that this only represents less than 1% of

Lebanon’s gross domestic product (GDP). One of the reasons for the moderate adoption of

online shopping is hinged on the reality that in Lebanon most products are situated near

consumers’ homes (Tabsh, 2018). Consequently, there are issues of trust in related to online

payment security. As a result, cash-on-delivery for long has been appreciated and preferred as a

method of payment. Actually, over two-thirds of online shopping transactions are made in cash

this is despite the fact that a number of websites continue to discourage this form of payment

method. Issues are further complicated by the reality that Lebanon is marked by the absence of e-

commerce regulatory framework or laws on e-transactions. Nonetheless, Hakima, Sengupta, and

Cuny (2020) hint at the new set of e-commerce laws being developed under the sanction of the

Ministry of Economy. These laws are expected to set standards that will offer guidance for the

new digital market alongside generating the much desired impetus that will propel the Lebanese
 13

digital industry to greater heights. In the same vein, an e-government initiative has been prepared

with the aim of encouraging and nurturing a “more digital-oriented culture”. This is set to prove

instrumental in roping in Lebanon’s senior citizens.

IPSOS statistics indicate that e-commerce in Lebanon is largely used in e-banking services. An

attestation to this end is hinged on the fact that 49% in terms of e-commerce usage rate is

associated with money transfer. In the same line, 26% is attributed to payment of bills while 18%

goes to online booking of airline tickets (Khoury, Azar, & Hitti, 2020). Despite the reality that

Lebanon’s telecom infrastructure as well as internet speed is comparatively slower, the country is

served by two significant local payment gateways comprising of Audi’s E-payment and Net

Commerce. Haddad, Aïmeur, and Hage (2018) reminds that payment gateway in e-commerce

refers to a secure “service” designed to authorize payments and processes with user’s merchants

account by the use of a credit card.

E-Government Projects in Lebanon

Between 2017 and 2021 government services have shifted towards e-platforms, thus gaining

popularity among Lebanese citizenry. E-government in Lebanon has created a new experience

with projections indicating that its adoption has proved instrumental in creating a continuum of

convenient services especially during the coronavirus pandemic (Naeem & Ozuem, 2021). The

creation of a single official government online portal which is designed as a uniform commercial

registrar has begun to show its fruitfulness. Another important government creation is the “open-

data” project which despite being new is changing organizational procedures by reducing red

tape. This has proved important within the Ministry of Economy and Trade in preparing IT
 14

infrastructure which as noted in Mahadin, Akroush, and Haddad (2020) is instrumental in

creating propped and adequate database as well as hardware. Initially, Lebanese ministries were

defined by the absence of proper database. Therefore, online government portal is designed to

create a single master data or data set. This objective is targeted at creating a single government

online commercial registrar. According to Piarna, Fathurohman, and Nugraha (2020) the “open-

data” project is aimed at regulating the information so as to allow access by Lebanese citizens.

Some of the services promoted under the “open-data” includes easy and free settlement

approaches for individuals while safeguarding privacy and confidentiality of information related

to the citizen.

Figure 5: Usage of e-commerce within the MENA region, Source: IPSOS (2017)

Future Development for E-Commerce Sector in Lebanon

To further grow and develop the Lebanese E-commerce environment Mahadin, Akroush, and

Haddad (2020) guide that one area that should be targeted is the mobile-commerce (m-
 15

commerce). Going by the global trends, key market players are cognizant of the constant rise in

smartphone penetration rates. This is embedded in the understanding that online consumers are

prone to browse on mobiles, however, when it comes to making purchases they turn to their

laptops (Khoury, Azar, & Hitti, 2020). Therefore, market players within the Lebanese e-

commerce are expected to design e-commerce websites that are replete with not only an easy-to-

use desktop version but also a mobile-friendly version. Lebanese e-commerce business

comprises transactions arising from Business to Business (B2B), Business to Customers (B2C),

Customers to Customers (C2C), and Associations to Businesses (A2C) with the converse being

true.

E-commerce in Lebanon

While other Middle East countries had computers in business by 1991, Lebanon was yet to use

such technology until 1996 when the internet was introduced (George, 2017). This was after a

period of rebuilding business and infrastructure in the country which had been ravaged by the

civil war. During this time, internet penetration was low, slow, and expensive while limited to

government offices and a few people who could afford paying for it (Najjar, Shikhani, Maroun,

& Samaan, 2018). In 1997 MasterCard introduced an electronic card which was enabled for

online purchases which enabled purchases to be made from other online stores mostly Amazon,

eBay, and software purchases. By 1998, several companies were looking at ways to tap into the

Lebanon market through use of the internet and this saw a collective effort of; Bank of Lebanon

and Gulf, MasterCard and Global sign created a technology that ushered in the adoption of

ecommerce in Lebanon through their joint effort infrastructure. From 1999 going forward saw

the growth of ecommerce through more companies offering online products; such included
 16

banks, hospitality sector offering reservation for hotels, airline ticketing and a few companies

had started targeting selling to consumers business-to-consumers (B2C) through their own

websites and the infrastructure support offered by the joint consortium.

The year 2000-2016 moving forward there was a tremendous growth which was attributed to,

increased internet providers, low cost of internet connectivity, access to computers, smartphones,

increased ICT knowledge which lead to creativity in the Fintech market. Lebanon also adopted

friendly policies that lead to increased investments by foreign investors in their ICT sector. In

2018 e-transactions and data protection laws were enacted to safe guard ecommerce users. This

was a long step in giving assurance to users on their safety while using ecommerce sites and

restricting the amount of information to be accessed and shared.

Development of E-Commerce in Lebanon during the COVID-19

Hammoud, Bizri, and Baba (2018) reminds that by 2016, e-commerce in Lebanon had grown

and there was an increased use of both local and foreign ecommerce platform by citizens. At this

time, both business-to-business and business-to-customers were doing well and customers were

utilizing online shopping for their purchases. On the contrary, Ong, Nguyen, and Syed (2017)

observe that there were some local firms and business which still preferred to transact their

businesses in the brick and mortar sales points. Many of such business were contented with

meeting their clients and maintaining their client base within their borders.

With the advent of the covid-19 infection in 2019, most business suffered a blow since many had

to close shop owing to the measures put in place to contain the spread of the deadly virus

(Naeem & Ozuem, 2021). In most cities around the world, quarantine was introduced to reduce
 17

the spread of the virus this meant that no one was allowed to go shopping like before or if

allowed the social distancing made things a bit hard since few people could only be allowed in a

shop at a time. This forced many Lebanese businesses to fully venture into online selling through

utilizing ecommerce. It was a choice that had to be made given businesses where at stake of

collapse after years toiling to build them. Tarhini, Alalwan, and Algharabat (2019) highlight that

during this time, the infrastructure necessary to support ecommerce was quite developed and

elaborate given more players had moved in to offer services such as banks, logistics companies,

internet service providers, among other essential services which one may need to facilitate

ecommerce sales.

Effects of Covid-19 on Shopping in Lebanon

The effects of shopping in Lebanon have affected both positively and negatively. This is

attributed to the new measures introduced by the government to curb the virus as well as the exit

and entry of new players in the market. The positive effects are:-

Growth in ecommerce

Epaminonda, Chaanine, Vrontis, Thrassou, and Christofi (2020) explains that given many

businesses could not open fully as before many had to move their selling online in order to

capitalize on the clients present on the online platforms. Many used the existing online platforms

while other businesses opted to start their own online shops targeted on specific product niches.

The uptake also led to innovative auxiliary services such as online bank transactions, courier

services.
 18

Innovation of new ways of doing business

With the spread of covid-19 many businesses had to learn new ways to do business and remain

afloat. This lead to innovation of new products, services, and in some cases redesigning of

existing models in order to capture the market and remain afloat (Bizri, Khachfe, Fayes, &

Musharrafieh, 2020). For instance, adoption of online marketing and sales was adopted by much

business which initially depended on mass marketing as the only way to reach customers.

Discovery of new markets

The use of the internet provides a much wider scope than having a localized shop within a given

geographical location. With internet, one is bound to have new clients from all over the world or

far away geographical location from a locality (Chami, 2018). Furthermore use of optimization

and other online tools can help one get clients who are more specific and are likely to buy the

products.

Remote working

Naeem and Ozuem (2021) guides that with Covid-19 and internet it has proved that many

businesses can actually run and operate away from the brick and mortar office and still make

huge sales. During the outbreak many businesses had to adopt a work from home policy more so

for the service industry and a bit of those businesses dealing in goods.

Negative Effects

Loss of control of clients

 19

Not every business had the capacity to do online sales such like the service industry in beauty,

grooming and dressing (Naeem & Ozuem, 2021). Most of the people in this category had to

close down and stay away to avoid exposure to the virus given the nature of their work. This

resulted to loss of business and livelihood to them.

Entrant of competitors

The loss of jobs to some caused a career change as well as opened an avenue to new competitors

through the increased use of the internet. (Hakima, Sengupta, & Cuny, 2020) This has made

many business struggles to keep up since in their former niches there has been an increase of

competitors and in some cases the market has not grown to accommodate the new entrants.

Factors Affecting Online Shopping in Lebanon

Customer satisfaction

Customers’ satisfaction is dependent on the changing taste and preference based on the various

products in the market at a specific time (Epaminonda, Chaanine, Vrontis, Thrassou, & Christofi,

2020). In Lebanon, locals are likely to buy locally produced goods more so the household items

given locally produced goods blend well with their culture and many have product loyalty.

Behaviors of consumers

Online shopping gives an option of a variety of products that a consumer can choose from.

Where a consumer was used to visiting a particular store for purchases online shopping gives a

varied option which in many cases creates a varied taste in the consumer mind (Herrero-Crespo,
 20

Gutiérrez, & Salmones, 2017). The consumer ends up more informed with a more refined taste

owing to the variety he has known.

Social environment

Lebanon is divided between Muslims, Christians with Muslims forming the largest population.

The cultural background of Muslims mostly has been known to detect what to buy or engage in

online (Naeem & Ozuem, 2021). Many will like to engage in business that are not “haram” and

are compatible with their faith.

Key consumer purchasing intentins for Lebanon’s e-commerce

How Covid-19 Increased Online Purchases and Changed Consumer Behavior

 21

Many buyers prior to Covid-19 only bought products and services in the physical shops. But with

the rise in the covid-19 infections and adoption of ecommerce there was a big change in

consumer buying behavior and patterns (Wehbi, 2020). Previously most purchases made online

were of luxurious products with the coming of covid-19 restrictions, a bigger portion of the

purchases made are mainly homecare and household items. Secondly, people become

comfortable with buying unbranded items which were mainly manufactured by big companies

and distributed through certain outlets, with the increase in people venturing in small scale

manufacture of goods more and more unbranded items were made and sold through the online

stores. Lastly, COVID-19 led to shift in customer loyalty given availability of substitute goods

made by innovative people were readily available and accessible through ecommerce platforms

(Bizri, Khachfe, Fayes, & Musharrafieh, 2020). Active generation with the increased internet

penetration in Lebanon the ages 18-45 are the most active online shoppers. This group mainly

buy things like; clothes, software’s, online lessons, banking services.

Lebanon Business Environment

There is a high number of businesses operating in Lebanon given the peace enjoyed within the

country and government support given to entrepreneurs both local and investors. Business to

business mainly offer support services, some of the major business to business present in

Lebanon includes Logistics companies, Banks, Business to consumers this category comprises

businesses offering services directly to consumers (Hakim & Maamari, 2017). Such businesses

form a majority in Lebanon they include; supermarkets, retail shops, boutiques, banks among

others. With the increased usage of ecommerce platforms more business are now.
 22

How Customer Satisfaction has affected Online Shopping in Lebanon

Online shopping is largely affected by customer satisfaction largely because as compared to a

physical shop one can feel, sample, or sample the product before making a purchase. In this case

the customer buyers more from an informed point. With online purchase most products bought

are bought on the trust that what is shown or presented is the exact product to be delivered

(Piarna, Fathurohman, & Nugraha, 2020). Where a customer is unsatisfied with a purchase, in

most cases it marks the end of most online shopping. In addition to this the time taken to deliver

a product determines the overall satisfaction level of the purchase made. Faster deliveries more

so for household items will warrant another purchase and delays will definitely cancel future

prospects of purchasing due to the inconvenience caused.

Developing Online Shopping Customer Satisfaction with Respect to Covid-19

It has been observed that in most cases customers’ e-satisfaction is attributed to the delivery of

the promise made and the guarantee given on the purchase made. Where a customer buys a

product or orders for a service that is satisfactory the likelihood of ordering again is high and

assured (Wehbi, 2020). During the covid-19 pandemic, customers may not be able to visit stores

by themselves to make purchases. This limits their judgment of product quality on assurance

given by ecommerce stores. It is therefore important for the ecommerce stores to offer warranties

and guarantee of purchase to the willing buyers.

Negative Factors Affecting Online Purchasing in Lebanon

Online purchasing in Lebanon is affected by the following factors; knowledge on use of

information communication technology such as computers, smartphones, and tablets. There is a

 23

bigger population of Lebanese who do not own such gadgets and therefore they cannot use them

in doing purchases online (Epaminonda, Chaanine, Vrontis, Thrassou, & Christofi, 2020).

People’s attitude on use of online shopping influences the choice to use such avenues for selling.

Mostly consumers who prefer buying goods through first trying them out and ascertaining their

worth will find it hard to buy goods online. In Lebanon just like in all online platforms, shoppers

buy what they see posted on the given websites. Most online products have no product

information beyond the little description provided on the captions. Many people would like to

buy products knowing very well the compositions used. For example, with foodstuffs being a

country predominantly occupied by Muslims, all foods sold should be “halal” certified (Chami,

2018). This information may be available but doubts may exist more so if it is from a country

that is not strict on such certifications.

Future of E-Commerce in General

With the increased knowledge in information technology and availability of hardware, faster

internet connectivity and IT support the future of ecommerce is huge. The internet has made the

world a village in that more people are now moving to claim a space through going digital.

Ecommerce sites like amazon, E-bay (Usman, Monoarfa, & Marsofiyati, 2020). With the

increased number of people in the world using social media, most sites have now created widgets

which can be used by users to sell their products or create online shops. Other available avenues

include Shopify, Bitsy, Snapchat, iTunes among others. This increased adoption of online selling

has also resulted in creation of Customer relationship management systems which can be of huge

support more so to those people who are not IT experts but to manage their sites (Wehbi, 2020).
 24

These are web based systems which can be used remotely from anywhere in the world. They

include Bitrix24 and Zoho.