Law 126-02, which was passed in 2002 and governs electronic commerce, digital documents, and electronic signatures, creates a very favorable regulatory environment for it in the Dominican Republic. The same legally-binding effect as acts under private signing is made possible by this current law, which permits the admissibility and legal power of digital documents and electronic signatures.
Six types of e-commerce
- Business-to-Business (B2B)
- Business-to-Consumer (B2C)
- Consumer-to-Consumer (C2C)
- Consumer-to-Business (C2B)
- Business-to-Administration (B2A)
- Consumer-to-Administration (C2A)
E-commerce services
Within the last three years, there has been a notable increase in the use of e-commerce platforms. This increase is for service payment, enabling users to pay for everything from utilities to official government activities like taxes, certificates, and business permits.
Domestic e-commerce
Even with a supportive legislative environment, Dominican companies took some time to fully adopt internet commerce into their daily operations. The extraordinary growth and uptake of e-commerce in the DR is a result of the Covid-19 problem. Online shopping was pioneered by supermarkets and department stores, enabling customers to virtually shop and have their purchases delivered right to their door. Applications for mobile delivery saw a rapid expansion of their business.
The banking and telecommunications industries have seen the fastest development and influence in the domestic e-commerce market, while the hospitality sector has also steadily boosted its domestic e-commerce activity. Most hotels allow online room reservations, and many fast food chains provide online ordering. The Dominican Republic has a sizable diaspora (about two million Dominicans live in the USA), which has increased this niche market. In addition, many businesses offer online ordering of their goods and services in the US that can be ordered and paid for overseas but delivered to the DR.
Mobile e-commerce
Mobile devices are the most popular platform for conducting business among SMEs, with a 45 percent penetration rate, followed by computers (10%), the Internet (11%), e-mail (7%), and web pages (7%). (4 percent).
Dominican Republic’s total retail e-commerce revenue 2017-2025
By the end of 2020, e-commerce retail in the Dominican Republic was projected to generate more than 952 million dollars in revenue, per Statista’s Digital Market Outlook. Compared to roughly 750 million dollars in 2019, that amounts to an increase of over 27%. Furthermore, it is anticipated that by 2025, the Dominican Republic’s e-commerce business will generate more than $1.44 billion in revenue.
E-commerce intellectual property rights
The GoDR established a framework to safeguard intellectual property rights in eCommerce through Law 126-02, which established the National Office of Intellectual Property Rights (ONAPI) and its National Strategic Plan. However, due to a shortage of qualified local staff, ONAPI has found shortcomings in the prosecution of eCommerce IPR infringement. This gives a chance for American companies to offer goods and services to the Dominican government to improve their capacities and raise awareness of IPR infringement in eCommerce.
Popular e-commerce sites
Consumer trading websites, including COROTOS and E-MARKET, are numerous and used by people from all income levels. To help with information flow, major news organizations post their papers online, including their classified advertising.
With the establishment of the Presidential Office of Information and Communication Technologies (OGTIC) in 2004, the Dominican government began developing an electronic government strategy. Through this office, significant initiatives have been carried out to integrate ICT in modernizing the Dominican Republic’s public administration.
Digital Marketing
The Dominican Republic has demonstrated significant growth in the field of digital marketing. This is a result of the presence of a wide range of local businesses that offer digital services to the local sector and in collaboration with multinational corporations. The Dominican Republic has recently played host to some of the most significant digital marketing conferences in the area. Businesses and brands are still having trouble coming up with digital marketing strategies that can attract customers and generate revenue via various digital media.
