More sales do not necessarily mean higher profits for businesses embracing e-commerce, according to Matina Zisiadou, director of Cyprus Information Technology Enterprises Association (CITEA), who stressed that the success of online trading should not be measured solely by sales, but by the value created for consumers.

Zisiadou explained that e-commerce has fundamentally changed the way consumers search for, compare and purchase products and services. Consumers now have more choice and easier access to products across different markets, while businesses can reach customers beyond the geographical boundaries of their operations.

The scale of this growth is reflected in the figures. According to the United Nations Conference on Trade and Development (UNCTAD), business e-commerce sales across 43 developed and developing economies were estimated at nearly $27 trillion in 2022.

In the European Union, meanwhile, almost eight in ten people aged 16 – 74 made online purchases in 2025, compared with around six in ten in 2015, according to Eurostat.

However, Zisiadou pointed out that this development is about more than changing the way people shop. It also influences consumer expectations, shapes new competitive dynamics and transforms the way businesses organise and operate.

The question she raised was “But who truly benefits from this growth?”

An online presence, she explained, can open new doors for a business, giving it access to markets and customers who might otherwise be difficult to reach.

Nevertheless, while e-commerce offers opportunities for growth and customer-base expansion, establishing and maintaining an online store, digital advertising, platform commissions, order and returns management, and after-sales service all involve costs that affect the final financial outcome.

Eurostat figures confirm the importance of e-commerce for businesses across the European Union. In 2025, online sales accounted for almost one-fifth of their total turnover.

For large enterprises, the share approached one-quarter, while for small and medium-sized enterprises (SMEs), it was approximately one-eighth.

This difference, according to Zisiadou, emphasises that businesses do not all make use of digital opportunities to the same extent.

For an SME, therefore, the objective should not simply be to launch an online store, but to choose the right business model, understand its costs, serve customers effectively and remain competitive over the long term.

Turning to the relationship between e-commerce and physical stores, Zisiadou explained that they are often presented as competing alternatives.

“In practice, however, they can complement each other, offering consumers more ways to discover products, make purchases and access customer service,” she said.

Physical stores can use the internet to attract new customers, display available stock and maintain relationships with consumers. Similarly, businesses operating primarily online can invest in services that build trust and improve the overall shopping experience.

At the same time, international platforms and digital marketplaces expand consumer choice, making it easier to access products and services across different markets.

Consumers benefit from a wider selection, while businesses gain new opportunities to showcase and sell products and reach customers.

In this environment, Zisiadou emphasised the importance of quality, reliability, customer service and the effective use of digital channels.

As for who the real beneficiaries are, she explained that “Ultimately, everyone can benefit.”

Consumers gain more choice and easier access to products and services, while businesses can expand their reach and grow their sales.

Digital platforms facilitate connections between buyers and sellers, while technology companies develop and support the solutions that make these transactions possible.

The wider economy can also benefit from innovation, productivity gains and the creation of new business opportunities.

“These benefits, however, do not arise automatically,” Zisiadou stressed, explaining that they depend on how effectively and sustainably each participant makes use of the opportunities e-commerce offers.

Beyond sales and retail activity, she also drew attention to the technology behind every transaction.

Behind every online purchase lies an entire chain of technologies and services that often remains invisible to the consumer.

From e-commerce platforms, retail systems and electronic payments to inventory management, hosting infrastructure, data analytics and cybersecurity, multiple technological solutions work together to ensure that transactions are completed smoothly and securely.

Businesses use these solutions to organise their operations more effectively and serve their customers, while technology companies develop, implement and support the systems that make this process possible.

As a result, the growth of e-commerce creates opportunities not only for businesses selling products and services, but also for the wider Information and Communication Technology (ICT) ecosystem.

For Cyprus, Zisiadou explained, this means that e-commerce growth can increase demand for technological expertise, digital services and innovative solutions.

“Technology alone, however, does not guarantee success,” she stressed, adding that what matters is selecting the right solutions and using them in ways that improve business operations, productivity and competitiveness.

Looking specifically at Cyprus, Zisiadou pointed out that the Cypriot market has already taken steps towards digital transformation, but there is still room to make more effective use of available technologies.

According to the statistical service (Cystat), in 2024, almost one in four enterprises in Cyprus received orders for goods or services over computer networks, representing 23.9 per cent.

Around one in six enterprises received orders through its own website or app (17.1 per cent), while approximately one in seven received orders through websites or apps serving multiple businesses, such as online marketplaces (14.1 per cent).

These figures, she explained, show that e-commerce is already part of business activity in Cyprus. At the same time, they indicate that there is room for wider adoption of digital tools, particularly among SMEs.

“The challenge goes beyond creating a website or joining a digital platform,” Zisiadou pointed out.

It involves integrating sales systems with inventory and order management, providing effective customer service, protecting data and making use of the information generated by transactions.

In this context, she highlighted CITEA’s role in connecting market needs with the expertise and capabilities of Cyprus’s ICT ecosystem.

Through cooperation between businesses and the technology sector, practical solutions can be developed to address real market needs and strengthen productivity, innovation and competitiveness.

Consumer trust, meanwhile, remains another important consideration.

Zisiadou stressed that the growth of e-commerce should not be assessed solely by the number of transactions, sales volumes or the variety of products available.

“The experience it delivers to consumers is equally important,” she said.

Indeed, Eurostat figures for 2025 show that more than one in three online shoppers in the EU (35.4 per cent) reported experiencing a problem when shopping online.

The most frequently reported issue was delivery taking longer than initially indicated.

According to Zisiadou, these figures demonstrate that reliability, payment security, personal data protection, clear information about purchasing terms, and the effective handling of returns and complaints are essential prerequisites for building and maintaining consumer trust.

Finally, she explained that e-commerce can create benefits for everyone, from consumers and retailers to digital platforms and the technology companies that support transactions.

“The question is not who gains at someone else’s expense, but how the growth of e-commerce can create lasting value for businesses, consumers and the economy as a whole,” she said.

“Ultimately, the success of e-commerce should not be measured solely by sales, but by the value we create for consumers,” Zisiadou concluded.