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Building digital bridges: Unlocking the Caribbean’s e-commerce potential

by Steven Williams
5 min read
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It feels like just yesterday that I was teaching e-commerce at the Barbados Community College, though it’s been at least 15 years. I remember asking colleagues why we’ve seen so little progress in our e-commerce journey. Two memorable answers often came up: first, that we lacked the legislation necessary to create a viable market, and second, that businesses simply didn’t have the bandwidth to support it.

Interestingly, Amazon faced its bandwidth challenges when it launched in 1995 as a humble online bookstore. Back then, most consumers were using dial-up modems with speeds of just 14.4 to 28.8 kbps—speeds that feel prehistoric by today’s standards. The “fast” 56 kbps modems didn’t even become common until later. For Amazon, which needed something more reliable, a T1 line or similar leased connection would have been essential, providing around 1.5 Mbps—just enough to support a basic e-commerce platform.

Despite limited speeds and infrastructure, Amazon managed to scale and evolve into the e-commerce giant we know today. It’s a reminder of how vision, coupled with foundational support, can drive growth, even in seemingly restrictive conditions.

Today, we carry internet speeds 20 times faster than Amazon’s early connection right in our pockets, capable of streaming high-definition video on the go. Yet, despite this explosion in connectivity and technology, the Caribbean e-commerce landscape is still evolving, with the region very much in its nascent stages.

While giants like Amazon in the US have grown exponentially, and Asian e-commerce titans like Shein and Temu seem to have emerged overnight, much of the e-commerce journey in developing markets, especially in the Caribbean, remains cautious. Many businesses across the Caribbean are still deciding whether to dip their toes into digital retail beyond simply establishing a social media presence. Even 25 years after Amazon’s founding, and despite Caribbean consumers’ enthusiasm for online shopping through these platforms, the region’s e-commerce potential is still unfolding, leaving ample room for growth, innovation, and local adaptation.

If you ask me, unlocking the Caribbean’s e-commerce potential requires balancing growth, innovation, and local adaptation. But first, let’s consider some key indicators that create an enabling environment for e-commerce, grouped into four essential categories.

Infrastructure is essential. With average internet speeds around 50 Mbps and over 80 per cent internet penetration, Barbados has a solid digital foundation, further supported by strong mobile connectivity, making the island well-suited for digital business. Government policies and support are equally crucial, as supportive regulations create a secure environment for online transactions, fostering investment in digital ecosystems.

A digitally literate population also plays a role. With growing digital adoption, Barbadians are increasingly ready to engage with online platforms, positioning the region for further growth. Finally, digital payments and logistics remain key to e-commerce. Strengthening payment infrastructure and delivery networks will ensure more efficient transactions and reliable deliveries.

With 25 years of industry experience, I believe Barbados and the wider Caribbean have a strong foundation for e-commerce. However, targeted improvements in payments and logistics are still needed to unlock the full potential of the region’s digital business landscape. So, why such limited growth?

While global indicators help identify success factors, the Caribbean remains a unique economic zone where business and culture are closely tied to the people. From a business perspective, the region isn’t dominated by a capitalist or expansionist mindset, and innovation often meets resistance. There’s a local saying that “Bajans want progress but not change,” which conflicts with the spirit of innovation. This mindset, combined with significant foreign influence, can make local adaptation to technology solutions challenging, sometimes even undermining it. For example, when a Bajan AI assistant was announced in March 2023, it was quickly satirised, potentially damaging its credibility before it even launched. This reluctance to embrace and uplift local innovations reflects the unique cultural dynamics that shape the region’s e-commerce landscape.

So, how can we create a balance that drives growth, innovation, and local adaptation? One of the region’s most significant obstacles is a lack of data sharing. In Barbados, there’s a prevailing sense of distrust, which often makes informed decision-making a matter of intuition and gut feeling rather than fact. For instance, there’s no accessible source to determine what percentage of Barbados’ businesses actively use e-commerce. This data gap limits both strategic planning and opportunities for growth.

However, a greater challenge lies in shifting people’s attitudes, not the technology itself. Barbados’ social partnership must take a clear stance on retaining and creating jobs through new business and economic activity—not through retrenchment. Achieving this requires a national commitment to innovation, perhaps with the creation of a centre for innovation and excellence, complete with awards to recognise local achievements. Barbadians need to see their own recognised at the highest level to shift the common belief that “nothing local is good.”

To be competitive, building local capacity is essential. Today’s global economic landscape is driven by unique market offerings, which can only be scaled practically and economically through modern technology. By fostering a culture of innovation and celebrating local success, the Caribbean can create an environment where digital businesses—and the people behind them—are empowered to thrive.

Steven Williams is the executive director of Sunisle Technology Solutions and the principal consultant at Data Privacy and Management Advisory Services. He is a former IT advisor to the Government’s Law Review Commission, focusing on the draft Cybercrime bill. He holds an MBA from the University of Durham and is certified as a chief information security officer by the EC Council and as a data protection officer by the Professional Evaluation and Certification Board (PECB). Steven can be reached at Mobile: 246-233-0090; Email: steven@dataprivacy.bb

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