digital economy

E-Commerce Under Pressure: Why 1 Retailer Is Shutting Down Its Online Store

E-Commerce Reality Check: Why 1 Retailer Is Shutting Down Its Online Store

The decision by UK retailer The Works to exit e-commerce is drawing attention across the retail industry, highlighting a growing shift toward profitability over digital expansion.

After more than a decade of online operations, the company has chosen to close its e-commerce channel and refocus entirely on its physical store network – a move that challenges the assumption that online retail is always essential for growth.

Why The Works Is Leaving E-Commerce

The Works first launched its e-commerce platform in 2012, but online sales never became a core revenue driver. More than 90% of total sales continued to come from physical stores, reflecting strong in-store customer demand.

At the same time, maintaining an online operation introduced ongoing challenges, including:

high operational costs
dependency on third-party logistics
complexity in managing fulfillment

Over time, these factors made it difficult for the company to achieve sustainable profitability online.

Refocusing on What Works

By exiting e-commerce, the retailer aims to simplify its business model and improve financial performance. The move is expected to reduce costs and allow the company to concentrate on its strongest channel – its extensive store network.

Rather than serving as a transactional platform, the company’s website will now act as a product browsing tool, encouraging customers to visit physical stores to complete purchases.

A Strategic, Not Emotional Decision

Industry insight suggests that this move has been under consideration for some time. For retailers operating on tight margins, e-commerce can introduce more pressure than value if not executed at scale.

In such cases, focusing on a store-led strategy can offer:

greater control over costs
improved margins
stronger customer engagement in physical locations

A Wider Signal for Retail?

While global e-commerce continues to expand, The Works’ decision reflects a more nuanced reality:

👉 Digital is not always profitable
👉 Omnichannel is not always necessary

Retailers are increasingly reassessing whether their digital channels truly support long-term growth – or simply add complexity.

What This Means for E-Commerce

The closure of The Works’ online store does not signal a decline in e-commerce itself, but rather a shift toward more disciplined, profit-driven strategies.

As the retail landscape evolves, businesses are moving away from “being everywhere” toward focusing on channels that deliver real value.

For some, that may still be digital-first.
For others, like The Works, the answer is clear – back to stores.

Source: InternetRetailing

E-Commerce at Risk? 1 Critical WTO Decision Could Reshape the Digital Economy

The global digital economy is approaching a decisive moment as the upcoming WTO Ministerial Conference (MC14) puts the future of digital trade rules under intense scrutiny.

At the center of discussions is the long-standing e-commerce moratorium, a policy that has prevented countries from imposing customs duties on electronic transmissions such as software, digital content, and cloud-based services.

For over two decades, this rule has supported the rapid expansion of global e-commerce by ensuring that digital trade flows remain largely frictionless. Now, however, WTO members are divided on whether to extend or terminate it – a decision that could significantly impact the future of cross-border digital commerce.

A Turning Point for Global E-Commerce

The continuation of the moratorium would maintain a stable and predictable environment for businesses operating across borders. It would allow companies – from large enterprises to emerging startups – to continue accessing international markets without additional cost barriers.

On the other hand, removing the moratorium would give governments the ability to introduce tariffs on digital products and services. This could increase operational costs for companies relying on:

cloud infrastructure
SaaS platforms
digital marketplaces
streaming and content distribution

Such changes may not only affect large corporations but also disrupt smaller players that depend heavily on affordable digital tools.

The Revenue Debate

Supporters of ending the moratorium argue that governments are losing potential tax revenue by not applying tariffs to digital goods.

However, studies suggest that the fiscal impact is relatively limited. In many cases, countries already collect revenue through mechanisms such as VAT or GST on digital services. As a result, the additional income generated from tariffs may not be as significant as anticipated.

Who Faces the Biggest Impact?

The potential introduction of digital tariffs could disproportionately affect:

small and medium-sized enterprises (SMEs)
developing economies
women-led digital businesses

These groups often rely on accessible and low-cost digital infrastructure to participate in global trade. Any increase in costs could reduce their competitiveness and limit their ability to scale internationally.

Beyond Tariffs: A Governance Challenge

The debate extends beyond taxation. It also raises broader concerns about the future of global trade governance.

The e-commerce moratorium has been one of the few unified frameworks within the WTO addressing digital trade. If it is removed, there is a risk of fragmented national regulations replacing a coordinated global approach.

This could complicate cross-border operations and create uncertainty for businesses navigating multiple regulatory environments.

What Comes Next?

As WTO members prepare for MC14, the outcome of this decision will play a defining role in shaping the next phase of the digital economy.

Whether the moratorium is extended or not, one thing is clear:
the rules governing global e-commerce are entering a new era – one that will determine how digital trade evolves in the years ahead.

Source: Diplomacy.edu

Babylonstoren Brings a New Luxury E-Commerce Model to South Africa in 2026

South Africa’s e-commerce landscape is evolving with the expansion of Babylonstoren into the digital retail space, introducing a curated marketplace model focused on premium products and brand-driven experiences.

Rather than following the traditional mass-market marketplace approach, Babylonstoren is building a platform centered on quality, exclusivity, and storytelling. The marketplace brings together carefully selected products across categories such as food, homeware, and lifestyle—creating a refined online shopping environment that reflects the brand’s premium positioning.

Moving Beyond Traditional Marketplaces

Most e-commerce platforms in South Africa compete on scale, pricing, and product variety. Babylonstoren, however, takes a different route by focusing on a curated commerce model, where product selection is limited and intentional.

This approach aligns with a broader global shift in e-commerce, where consumers are increasingly drawn to platforms that offer clarity, trust, and premium experiences rather than overwhelming choice.

A Marketplace Built on Brand Experience

One of the key innovations behind Babylonstoren’s marketplace is its emphasis on experience over transaction. The platform is designed not just to sell products, but to create a cohesive brand environment where presentation, content, and storytelling play a central role.

Instead of standard product listings, the marketplace highlights:

Carefully curated collections
Strong visual identity
Integrated brand storytelling
A seamless and premium user journey

This model mirrors the experience of high-end physical retail, translated into a digital format.

Controlled Ecosystem for Premium Brands

Unlike traditional marketplaces that standardize seller presence, Babylonstoren offers a more controlled ecosystem where products align with a consistent brand vision.

This creates a “closed marketplace” environment, ensuring that every product fits within the platform’s premium positioning. As a result, the marketplace avoids the fragmentation often seen in larger, open platforms.

Differentiation in a Competitive Market

South Africa’s e-commerce sector is becoming increasingly competitive, with major players focusing on scale and fast delivery. Babylonstoren differentiates itself by targeting a niche segment of consumers who value quality, authenticity, and curated experiences.

This strategy allows the platform to stand out without directly competing on price-focusing instead on brand value and customer experience.

A New Direction for E-Commerce in Africa

Babylonstoren’s move into e-commerce reflects a broader transformation in how digital retail is evolving across Africa. As consumer expectations grow, there is increasing demand for platforms that combine commerce, content, and brand identity.

By introducing a curated luxury marketplace model, Babylonstoren signals a shift toward more specialized and experience-driven e-commerce platforms in the region.

Source: MyBroadband

Africa Postal Transformation Gains Momentum: 5 Key Insights from the 44th PAPU Council

44th PAPU Council: 4 Strategic Moves Advancing Africa’s Postal Transformation

Africa’s postal sector is undergoing a major transformation as leaders gather in Kampala for the 44th Ordinary Session of the Administrative Council of the Pan-African Postal Union (PAPU). The high-level meeting brings together ministers, regulators, and industry stakeholders to redefine the future of postal services across the continent.

Once seen as a traditional mail delivery system, the postal industry is now evolving into a critical pillar of digital trade, logistics, and economic development. This shift is largely driven by the rapid growth of e-commerce and the increasing need for efficient last-mile delivery solutions.

From Mail to E-Commerce Infrastructure

Globally, the postal and courier sector is valued at over $400 billion, handling billions of items annually. Today, its role extends far beyond letters-serving as a backbone for e-commerce logistics, cross-border trade, and digital services.

In Africa, postal networks process more than one billion items each year, supporting small businesses and enabling access to wider markets. As online shopping grows, these networks are becoming essential in connecting digital transactions with physical delivery.

Driving Financial Inclusion and Accessibility

Postal systems are increasingly being used to expand financial inclusion, particularly in underserved and rural communities. By integrating digital payment solutions, postal infrastructure provides access points for individuals and small businesses to participate in the formal economy.

In countries like Uganda, post offices are being transformed into citizen service centers, offering government services and digital access to populations with limited internet connectivity.

Technology at the Core of Transformation

Emerging technologies are at the center of this transformation. Industry leaders emphasize the adoption of track-and-trace systems, digital addressing, and data-driven logistics to improve efficiency and transparency.

These innovations are helping postal operators meet modern consumer expectations, including real-time tracking, faster delivery, and reliable cross-border logistics.

Supporting Africa’s Trade and Integration

The modernization of postal networks is also aligned with broader continental initiatives such as the African Continental Free Trade Area (AfCFTA). By strengthening logistics and delivery infrastructure, postal services are playing a vital role in boosting regional trade and economic integration.

This positions the postal sector as a strategic enabler of Africa’s digital economy, supporting both local entrepreneurs and international commerce.

A Strategic Asset for the Digital Future

Experts at the PAPU session highlighted that postal networks are no longer just service providers but strategic national assets. They now sit at the intersection of logistics, digital connectivity, and public service delivery.

As discussions continue in Kampala, policymakers are expected to focus on practical strategies to modernize operations, enhance efficiency, and strengthen cross-border logistics systems.

The outcomes of this session are set to shape a more connected, inclusive, and resilient postal ecosystem-one that supports Africa’s rapidly growing digital economy.

Source: Ministry of ICT and National Guidance Uganda

24 Hours of Disruption Raise New Concerns for E-Commerce After AWS Issues in Bahrain

Amazon has flagged a disruption in its Amazon Web Services (AWS) region in Bahrain following reported drone activity, highlighting growing risks to global digital infrastructure. The incident reflects how geopolitical tensions are increasingly affecting cloud services that power e-commerce, fintech, and digital platforms worldwide.

Disruption Hits Core Cloud Infrastructure

AWS confirmed that its Bahrain region experienced service disruption linked to drone activity in the area. While the company has not confirmed a direct strike on the facility, it acknowledged operational impact and is assisting customers in shifting workloads to alternative regions.

This marks the second disruption in the region within a month, signaling ongoing instability affecting cloud infrastructure.

Ripple Effects Across E-Commerce and Digital Services

AWS plays a critical role in supporting e-commerce platforms, payment systems, and enterprise applications. Disruptions can impact everything from online transactions to logistics and customer experience.

Earlier incidents in the region caused outages affecting banking systems, delivery platforms, and digital services reliant on AWS infrastructure.

This underscores how deeply integrated cloud infrastructure is within the digital economy.

Geopolitical Risks Enter the Digital Economy

The disruption is linked to broader Middle East tensions and drone activity tied to ongoing conflict.

This situation highlights a new reality: digital infrastructure is no longer isolated from geopolitical risks. Data centers, once considered secure back-end systems, are now potential targets in modern conflicts.

Businesses Shift Toward Multi-Region Strategies

In response, Amazon is urging customers to migrate workloads to other AWS regions to ensure continuity.

This accelerates a growing trend in e-commerce and tech: multi-region and multi-cloud strategies to reduce dependency on a single location.

Companies are increasingly investing in redundancy, disaster recovery systems, and decentralized infrastructure.

A Wake-Up Call for the Global Digital Ecosystem

The Bahrain disruption highlights vulnerabilities in the infrastructure powering global commerce. Structural damage, power disruptions, and service outages reported in earlier incidents show how physical risks can directly impact digital operations.

As e-commerce continues to scale globally, ensuring resilience in cloud infrastructure will become a top priority for businesses and governments alike.

Source: Gulf News

E-Commerce in South Africa Surges: 5 Powerful Forces Transforming Retail, Media and ICT

5 Ways E-Commerce Is Transforming Retail, Media and ICT in South Africa

E-commerce is rapidly reshaping South Africa’s digital economy, influencing not only retail but also media and ICT sectors. As online shopping continues to grow, it is driving structural changes in how businesses operate, communicate, and deliver value to consumers.

The Shift from Traditional Retail to Digital-First Models

Retail in South Africa is no longer limited to physical stores. E-commerce has introduced a more customer-centric model, where convenience, accessibility, and speed define purchasing behavior. Consumers now expect seamless online experiences, flexible payment options, and fast delivery services.

This shift is pushing retailers to adopt omnichannel strategies, blending physical and digital experiences. Businesses that fail to adapt risk losing relevance in an increasingly competitive environment.

Retail Media Is Becoming a Key Growth Driver

One of the most notable transformations is the rise of retail media. As consumers spend more time online, brands are reallocating budgets from traditional advertising to digital platforms. Retailers themselves are becoming media owners, using their platforms and customer data to deliver targeted advertising.

This evolution is driven by strong digital adoption and high internet penetration, which enable brands to reach audiences more efficiently and measure campaign performance in real time.

At the same time, consumers are no longer passive. They actively engage with brands, expecting authenticity and culturally relevant messaging rather than generic campaigns.

ICT Infrastructure as the Backbone of Growth

The growth of e-commerce would not be possible without advancements in ICT. Improved broadband access, mobile connectivity, and secure digital payment systems are enabling smoother online transactions and expanding market reach.

Fintech innovations such as mobile wallets, instant payments, and buy-now-pay-later solutions are lowering barriers to entry for consumers and businesses alike.

This strong ICT foundation is essential, as it supports everything from logistics and payment processing to customer experience and data analytics.

Changing Consumer Behavior and Expectations

E-commerce is fundamentally changing how consumers interact with brands. Shoppers now demand personalized experiences, transparency, and fast service. Social media plays a major role in influencing purchasing decisions, turning platforms into key sales channels.

This behavioral shift forces companies to rethink their strategies – focusing more on data-driven marketing, personalization, and real-time engagement.

Challenges Slowing Full Potential

Despite strong growth, several challenges remain. High data costs, cybersecurity risks, and logistics inefficiencies continue to limit the full scalability of e-commerce.

Additionally, rural connectivity gaps and lack of digital skills among small businesses create barriers to inclusive growth. Addressing these issues requires collaboration between governments, private sector players, and technology providers.

The Bigger Picture

E-commerce in South Africa is not just a retail trend – it is a catalyst for broader economic transformation. It is redefining media strategies, accelerating ICT development, and reshaping consumer expectations.

As the ecosystem evolves, businesses that invest in digital infrastructure, data capabilities, and customer experience will be best positioned to lead the next phase of growth.

Source: ZAWYA

Pakistan Retail Growth: 53 Years of Naheed Driving an AI-Powered E-Commerce Shift

Pakistan’s retail sector is undergoing a major transformation, driven by digital adoption, e-commerce expansion, and increasing foreign investment. At the center of this shift is Naheed, a long-established retailer that is redefining how traditional retail and digital commerce can coexist.

Founded in the 1970s as a small grocery store in Karachi, Naheed has evolved into one of Pakistan’s leading omnichannel retailers. Today, the company operates a 52,000-square-foot retail hub and has built a strong e-commerce presence offering more than 80,000 products to customers across the country.

From Traditional Retail to Omnichannel Leadership

Naheed’s growth reflects a broader trend in Pakistan, where legacy retailers are transitioning toward digital-first models. By combining its physical store experience with a robust online platform, the company has created a seamless omnichannel ecosystem.

This approach has helped Naheed build strong customer trust, leveraging decades of brand recognition while adapting to modern consumer expectations. As a result, it has become one of the largest standalone e-commerce players in Pakistan.

AI and Technology Shape the Future

Innovation is playing a central role in Pakistan’s retail evolution. Naheed is now focusing on integrating advanced technologies, including plans to develop an AI-driven data center to enhance operations, customer insights, and scalability.

This move highlights how Pakistani retailers are increasingly investing in data and automation to stay competitive in a rapidly changing digital landscape.

UAE Partnerships Boost Pakistan Retail Growth

International collaboration is becoming a key driver of Pakistan’s retail transformation. Naheed is actively exploring partnerships with UAE investors, aiming to leverage their technological expertise and infrastructure capabilities.

According to company leadership, such collaborations could significantly accelerate innovation and unlock new growth opportunities for Pakistan’s retail ecosystem.

Expanding Product Ecosystems

To diversify its offering, Naheed has expanded beyond traditional grocery retail by launching new verticals such as Naheed Pharmacy, focusing on health, beauty, and wellness products.

This reflects a growing trend in Pakistan where retailers are evolving into multi-category platforms, similar to global marketplace models.

A Market with Strong Growth Potential

Pakistan presents a compelling opportunity for investors, supported by a young population, with around 65% aged between 18 and 35, and a rapidly growing middle class.

As digital infrastructure improves and consumer behavior shifts online, the country is emerging as a high-potential market for e-commerce and retail innovation.

Pakistan’s retail sector is entering a new phase where technology, partnerships, and omnichannel strategies are redefining the industry. Companies like Naheed are not only adapting to change but actively shaping the future of commerce in the region.

Source: Gulf News

Amazon to Invest €5 Billion in Poland as E-Commerce Market Continues to Expand

amazon to invest euro5 billion in poland as e-commerce market continues to expand

Amazon is planning to invest more than €5 billion in Poland between 2026 and 2028, reinforcing its long-term commitment to one of Europe’s fastest-growing e-commerce markets. The investment comes on top of the over €10 billion the company has already invested in the country since 2012, covering infrastructure, logistics, and support for local businesses.

The move highlights Poland’s growing importance in Amazon’s European strategy. As one of the region’s largest and fastest-developing economies, the country continues to attract major investments from global tech and e-commerce players.

Poland Emerges as a Key E-Commerce Hub

E-commerce in Poland has been expanding steadily, with online sales reaching approximately €21.5 billion in 2025, reflecting a 6.8% annual increase. Growth is expected to continue, with projections pointing to further expansion in 2026.

Consumer behavior is also shifting rapidly. Around 75% of Polish consumers shop online at least once a month, while 71% report feeling safer using online marketplaces, indicating growing trust in digital commerce platforms.

These trends are positioning Poland as a strategic market not only for domestic growth but also for cross-border e-commerce across Europe.

Logistics Expansion at the Core of Investment

A significant portion of Amazon’s new investment will focus on expanding its logistics network. The company plans to open a new 200,000-square-meter fulfillment center in Dobromierz, equipped with advanced automation and more than 5,000 robots.

With this addition, Amazon will further strengthen its operational footprint in Poland, where it already operates multiple fulfillment centers. The expansion aims to improve delivery speed, efficiency, and overall customer experience.

In addition to infrastructure, Amazon is also investing in localized solutions, including payment methods and services tailored to Polish consumers, signaling a deeper integration into the local market.

Competition and Market Position

While Amazon continues to scale in Poland, it still faces strong competition from local marketplace leader Allegro. Despite entering the market in 2021, Amazon has rapidly established itself as a key player, supported by continuous investments and infrastructure development.

The company’s strategy focuses not only on growth but also on strengthening Poland’s role in the broader European e-commerce ecosystem.

Amazon’s €5 billion investment signals more than just expansion – it reflects a long-term bet on Poland’s digital economy. As e-commerce adoption continues to rise and logistics capabilities improve, the country is increasingly becoming a central hub for online retail in Europe.

Source: Ecommerce News Europe

Alibaba Revenue Rises 1.7% but Misses Estimates as Profit Drops 66%

alibaba revenue rises 17percent but misses estimates as profit drops 66percent

Alibaba reported a modest 1.7% increase in quarterly revenue, reaching approximately 284.84 billion yuan ($41.28 billion), but the figure came in below analyst expectations. The results highlight continued pressure on China’s e-commerce sector, where consumer demand remains weak despite ongoing promotional efforts.

Heavy spending on discounts and faster delivery options has not been enough to significantly boost consumption. Ongoing concerns around income stability and the broader economic environment continue to weigh on consumer confidence, limiting the impact of major shopping campaigns.

Profit Declines Sharply Amid Rising Costs

While revenue showed slight growth, profitability declined sharply. Alibaba’s net income fell by 66.3%, reflecting rising operational costs and continued investments in logistics, pricing strategies, and user acquisition. The company, like many of its competitors, appears to be prioritizing market share over short-term profitability in an increasingly competitive landscape.

Cloud and AI Business Shows Strong Momentum

At the same time, Alibaba’s cloud business delivered strong results, with revenue growing 36% year-on-year. The growth is largely driven by increasing demand for artificial intelligence solutions and cloud infrastructure. As AI adoption accelerates, this segment is becoming a key pillar of the company’s long-term strategy.

Alibaba is also restructuring parts of its business to focus more heavily on AI-driven services. New initiatives are aimed at expanding its capabilities in digital assistants and enterprise solutions, signaling a broader shift beyond traditional e-commerce. However, while AI usage is growing, monetization and long-term user engagement are still developing.

Market Reaction and Outlook

Following the earnings release, Alibaba’s U.S.-listed shares fell more than 6%, reflecting investor concerns over weaker-than-expected performance and declining profitability. The reaction underscores the challenges the company faces as it navigates slower growth in its core business while investing in future technologies.

Alibaba’s latest results point to a transition phase. As its e-commerce engine faces pressure, the company is increasingly positioning itself around AI and cloud to support future growth.

Source: Reuters

EU Inc.: 5 Major Changes Set to Boost Startup Scaling in Europe

EU Inc. startup scaling in Europe visual showing digital growth and connected ecosystem

The European Union is preparing a major transformation in its startup ecosystem with the introduction of EU Inc., a new framework designed to make it significantly easier for companies to scale across the region.

For years, European founders have faced a structural disadvantage compared to their counterparts in the United States. While the U.S. operates under a single legal and regulatory system, startups in Europe must navigate 27 different national frameworks, each with its own rules on incorporation, taxation, and compliance.

EU Inc. aims to solve this fragmentation by introducing a unified, optional system that allows startups to operate more seamlessly across the EU single market.

Tackling Europe’s Fragmentation Problem

One of the biggest barriers to startup growth in Europe has been regulatory complexity. Expanding beyond a home country often means rebuilding legal structures, adapting to new compliance systems, and managing multiple jurisdictions at once.

The EU Inc. initiative introduces what policymakers describe as a “28th regime” — an additional, standardized corporate framework that companies can choose instead of relying solely on national systems.

This model is designed to reduce administrative friction and create a more consistent environment for scaling businesses across borders.

Faster and Simpler Company Formation

A key feature of EU Inc. is its digital-first approach to company creation and management. Startups would be able to register and begin operating through a fully online process, significantly reducing both time and costs.

According to recent proposals, businesses could be established in as little as 48 hours, a move aimed at bringing Europe closer to the efficiency of markets like the United States.

The system would also introduce more standardized procedures for areas such as employee stock options and insolvency rules, helping startups attract investment and scale more efficiently.

Closing the Global Competitiveness Gap

Despite strong innovation and early-stage startup activity, Europe continues to lag behind global leaders when it comes to scaling companies.

Data shows that while startup creation rates in Europe are comparable to the U.S., the region produces significantly fewer high-value companies. By early 2025, the EU had around 110 unicorns, compared to hundreds in the United States and China.

This gap is largely driven by structural challenges, including fragmented markets, limited access to late-stage funding, and regulatory complexity. As a result, many European startups choose to relocate or expand abroad to access better growth opportunities.

EU Inc. is designed to reverse this trend by making it easier for companies to remain and scale within Europe.

Supporting Investment and Talent Growth

The EU Inc. initiative is part of a broader strategy to strengthen Europe’s startup ecosystem. Alongside regulatory simplification, policymakers are working to improve access to capital, attract global talent, and enhance infrastructure for innovation.

The EU Startup and Scaleup Strategy focuses on creating a more supportive environment for high-growth companies by improving financing options, enabling faster market expansion, and building stronger innovation networks.

Together, these efforts aim to position Europe as a more competitive destination for startups and scale-ups.

Limitations and Ongoing Challenges

While EU Inc. represents a major step forward, it is not a complete solution. Companies operating under the new framework will still need to comply with national rules related to taxation, labor laws, and other local regulations.

Experts also note that simplifying legal structures alone may not fully address deeper challenges such as operational complexity, leadership, and cross-border team management.

Nevertheless, EU Inc. is widely seen as a critical foundation for improving Europe’s ability to scale innovative businesses.

A Turning Point for Europe’s Startup Ecosystem

The introduction of EU Inc. signals a clear shift in Europe’s approach to entrepreneurship and innovation. By reducing fragmentation and streamlining business operations, the EU is taking a significant step toward building a more integrated and globally competitive startup ecosystem.

If successfully implemented, the initiative could help Europe retain more high-growth companies, attract international investment, and close the gap with global innovation leaders.

Source: European Business Magazine, European Commission, Reuters