The country’s e-commerce sector is growing, with more businesses now shifting towards video-based platforms such as TikTok. However, according to a recent study by the Competition and Consumer Affairs Authority, over half of the businesses reported challenges with delivery and logistics, worsened by competition from unlicensed sellers. The study on the state of e-commerce in Bhutan calls for targeted government interventions to boost the sector.
According to the Trade and Industry Rules, e-commerce includes buying and selling of goods or services online, ranging from physical products to digital content, among others.
The study titled “State of e-commerce in Bhutan, challenges and government support to improve service to consumers” reveals that Facebook and personal websites remain the most widely used platforms for e-commerce in the country, used by about 68 per cent of businesses.
Instagram follows at 47 per cent while 37 per cent use customised mobile applications and TikTok, indicating a growing interest in video-based platforms.
Despite this growth, the study highlights that the sector faces significant challenges. More than half of the businesses reported problems with logistics and delivery.
Other issues include high app development costs, unreliable payment systems, and cyber security risks.
The study found that most e-commerce deliveries in Bhutan rely on taxis and buses, with no proper tracking systems. Nearly 60 per cent of the businesses surveyed cited high transport costs and frequent delays as major issues.
To support a strong and sustainable e-commerce sector in the country, the authority recommends strengthening regulatory enforcement to address the rise of unlicensed online sellers, especially those operating on social media.
It also suggests involving partnerships between Bhutan Post and private courier companies to create a shared delivery platform with tracking features, supporting access even in rural areas.
Likewise, the study recommends that the government help small businesses by offering targeted subsidies or grants to develop mobile apps or online stores, reducing the digital gap for startups.
The study assessed 35 operational e-commerce firms out of 73 registered businesses.
It highlights that with the right policies and interventions, the country’s growing e-commerce sector can boost innovation, strengthen businesses, protect consumers, and expand access to diverse goods and services.
Sangay Chozom
Edited by Sonam Pem
