An e-commerce business is one that sells its products or services in the online environment. In order to open a company in Lithuania as an e-commerce business, investors will have to purchase a domain name sold by the local authorized entities and buy a website template that is suitable for online transactions.
Specific security measures will have to be taken and investors should verify which payment methods are most suitable for them. Of course, an online business will need to comply with all the rules and regulations that are prescribed for commercial companies, regardless of the manner in which they conduct their operations. You can address to our team of consultants in company registration in Lithuania for advice on how to register an online business and how to obtain the necessary permits for this activity.
What are the main things to consider when opening an e-commerce business in Lithuania?
First, any e-commerce business will have to be registered following the standard procedure for company formation in Lithuania (selecting a legal entity, a trading name, assigning an official business address, register for taxes and so on). Then, other steps, as the ones mentioned above, are necessary, in order to be able to develop an online activity.
When entering this sector, as a local or a foreign entrepreneur, you will have to make sure that certain technical aspects are being fulfilled. For instance, the payment method is one of them. Your potential customers (who are currently living in Lithuaniaor elsewhere) should be able to complete a transaction from anywhere in the world, in order to increase your customer satisfaction and overall sales, but also so that you can reach as many clients as you can.
For this, it is vital for you to choose payment methods which are reliable and which can easily work when international transactions are made. Then, your website should be optimized for mobile e-commerce platforms – such as the smartphone or the tablet, and this should definitely be included in your business model strategy, as more and more persons use their mobile phones for a variety of activities, shopping included.
When opening a Lithuanian companyas an online business, regardless if your intention is to start an e-commerce business or another type of business endeavor, a crucial component that can increase your potential market success is the digital market strategy and SEO rules – these will vary based on the customers’ characteristics you’re interested in (you can target your clients by age, sex, country and you can use in your product or services presentations specific key words easily detected by search engines).
If you have an e-commerce business, you must also learn which is the most suitable option with regards to shipping, which is the party that will pay for it (for instance, clients that buy goods above a certain threshold will not pay shipping). The competitiveness of an e-commerce business is influenced by numerous factors and you can address to our team of consultants in company registration in Lithuania for more details; our team can also advise on the taxes applicable in this case.
What should investors know on the e-commerce industry in Lithuania?
After completing the steps for company registration in Lithuania, you will need a domain name, as said above. Websites operating in this country are known by the country code top-level domain “.lt”, so if you will register a business here, your website will contain this code as well, although other options are available, such as “.com”. Below, you can find few interesting facts regarding the online market and the e-commerce industry in Lithuania:
- • Lithuania is a small country, with a population of only 2,71 million citizens, out of which 2,22 million are internet users (data available for January 2021);
- • in January 2021, the internet penetration rate was of 82% (according to the World Bank) and, as said above, mobile e-commerce platforms are advised for e-commerce businesses as, in January 2021, there were 3,82 million mobile connections made in Lithuania;
- • in a study published few years ago, data on e-commerce businesses showed an increasing trend regarding sales, as the sales of online companies stood at 18% in 2015, while the rate increased at 22% in 2017;
- • the annual value of the e-commerce market for 2020 is estimated at $818 million, and, by 2025, it is estimated to reach $1,090 million;
- • those who want to open a company in Lithuania should know that at the moment, the largest e-commerce sector is the toys, hobby and DYI segment, which represents a share of 43% of the entire revenue of this industry.
If you need more details on how to open an e-commerce business, please contact our team of specialists in company registration in Lithuania. Our team can help you prepare the incorporation and registration documents, and can also advise in the steps you need to follow when setting up the online business.