Obstacles of e-commerce in Algeria with the eyes of experts

- Published: 12 May 2018
Obstacles of e-commerce in Algeria with the eyes of experts

Long awaited by the web merchants, the law on electronic commerce was adopted by a majority by the deputies earlier in the day.

Among the key provisions of the law include the fact that web merchants wishing to sell on the internet will necessarily have to host their website in Algeria and be registered in the commercial register.

If national transactions follow a simple path (purchase according to price displayed, delivery, online or delivery payment ...), transactions to or from other countries will be exempt from foreign trade and exchange control formalities. and this, '' when the value does not exceed the equivalent in dinar of the limit fixed by the legislation in force ".

On the prohibitions side, online shopping or transactions involving games of chance, betting and lotteries, alcoholic beverages and tobacco, pharmaceuticals, products infringing intellectual, industrial or commercial property rights, are prohibited. any good or service prohibited by the legislation in force.

Short Delay
Lastly, web merchants already working in e-commerce in Algeria have six months from today to comply with the new provisions.

Localizing e-Payment Service
But the only proven electronic payments those are made through dedicated payment platforms in Algeria, which are created and operated exclusively by approved by a Bank or Algeria Post and connected to various types of electronic payment terminals, and this not give preference to national electronic payment methods only, In terms of the world's most secure electronic payment methods like PayPal or other payment gateway for merchant seem not covered.
 
Domain Name
Also, to involve to ecommerce business, we see that the law recomend only domain, (.dz) which is a country code top level domain following the form (ccTLD) reserved for Algeria, which is restricted to be used only by Associations or legal persons having a business register and an address in Algeria (validation on the owner and the administrative contact), able to be registred via CERIST or Algeria Telecom, that will not open the gate to other domain name registrar to start business.
 
Exclusivity of Hosting Service
The Domain name is not the Problem, because it can be linked to any hosting company through DNS pointing, CNAME redirection..., but the problem still is poor quality of service of the data centers found in algeria, bad geographical distribution, which does not serve all regions, as seen servers cannot held longer compared to foreign data-centers, also most services exist now cannot use only one data-center, and services based multi-data center and connected with API for big-data servers and CDN Networks for content delivery network refers to a geographically distributed group of servers which work together to provide fast delivery of Internet content, typically it's impossible to be implimented on local servers found in algeria, face to bandwidth consumption costs for website hosting is a primary expense for websites. Through caching and other optimizations.
 
Critical Problems and Instability of Service
Uptime is a critical component for anyone with an Internet property. Hardware failures and spikes in traffic, as a result of either malicious attacks or just a boost in popularity, have the potential to bring down a web server and prevent users from accessing a site or service, as we see most 60% of algerian website does not serve all services 24h due eeof high pressure, include the govement websites, and commercial gateway and client space, there is also a common problem that most of contact Form does not work, which translated to SMTP protocol failure and display all same message :
 
The requested URL was rejected. Please consult with your administrator.
Your support ID is: 432727985135245xxxx

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This is not suitable for ecommerce, the merchant must have the choice to choose which web hosting fit his platform to avoid any failure, also DDoS attacks disrupt normal business operations by degrading website and application performance and availability, sometimes knocking them offline completely. The average hourly cost of downtime due to an infrastructure failure is $100,000 per hour in other countries, so whatever the cause of down-time, related of insecured servers against attacks, or high traffic that lead to customer churn, brand degradation, and lost business.

The Data-center must offer a flexible and convenient network connection paths to more International and local service providers, all facilities must backed up by a host of quality certificates including Quality Management System ISO 9001, Information Security System ISO/IEC 27001 and PCI DSS compliance for e-payment, also must be pass the GDPR if business intended to cross-over EU zone.