September 23, 2021

Success factors of e-commerce in retail industry in Sri Lanka

Research Background

The growth of information technology in the business world is spreading at a phenomenal rate. This has caused to change in retail business in Sri Lanka and online retail websites were introduced from 2006. At the beginning the market share is minimal. Now there are lot of players coming in to market and it has caused to change the competition. The success of a retail business organization stands at the usage of IT (ecommerce) in their business.  Growth of ecommerce is the new born business method, which has originated through an extensive usage of IT in retail business.  This study will focus on the level of adoption of e-commerce in retail business, mainly focusing Social & Culture Factors, Technical Factor, Organizational Factors on implementing of e-commerce and more importantly find out the critical success factors and discover potential benefits on those factors

E-Commerce is growing. All Commercial banks have online banking services. A Handful of Travel Agents, Hotels and major retailers all have online trading services (, 2018). E-Commerce in Sri Lanka offers Millions of global Products to its Customers. The Government also promotes electronic Services. An important E-commerce portal has been set up for the automatic Liquidation of the tax (, 2018). Sri Lanka is also offering other Government Traders to file Tax Repatriations, Taxes and Income. Most global EU sites, including PayPal, are available in Sri Lanka, but there are Restrictions because there is no Refund mechanism or transfer receipts. Transactions in which credit cards issued by Sri Lankan banks are converted into Foreign Currency require a Sealing Fee of 2.5%. Transactions in local Currency are exempt from this Tariff. Currently, Sri Lanka does not have a local Authority to Manage e-commerce. The same as competition for international E-commerce sites such as and airbnb has intensified, the Tourism Hotel Association of Sri Lanka (THASL) has come to ask the Government to review the EC business (, 2018).

1. Research Problem

The main purpose of this study is to investigate the success factors of e-commerce in Sri Lanka and how can achieve their goals.

As per the boom in ecommerce industry in Sri Lanka, there are new players everyday coming in to the market, so the competition is high and need to offer reliable services to customers. So, in this research, will study,

 1) What are the critical success factors of the selected company relevant to other online retailers engaged in e-commerce in Sri Lanka.

2) What are the key requirements that e-commerce retailers to follow in the industry to achieve company goals.

2. Significance of the research

Practical Significance

   – Identify the growth opportunities in ecommerce retail industry and make the recommendation

   – Useful to Management for business planning and decision making

Academic Significance

     – Identify the ecommerce growth and trends in Sri Lanka

     – Further studies can be carried out along the identified factors

3. Scope

E-commerce technology is evolving rapidly worldwide. As you know, e-commerce technology is seen as an important tool for improving the country’s economic competitiveness and providing new business routes for people. Several authors argue that the complexity of the organizational environment and technology is due to the high cost of installing infrastructure and technology and a lack of vision and management support. The aim of this study is to examine the position of workers in small and medium-sized enterprises in the retail sector and to examine factors influencing the use of e-commerce technologies.

Independent VariableDependent Variable
Social & Culture Factors Technical Factor Organizational Factorssuccess of e-commerce Business

4. Conceptual Framework

Independent Variables

  • Social & Culture factors
  • Technical factors
  • Organisational Factors

Dependent Variables

  • Success of e-commerce business

5. Hypothesis

H1There is relationship between social/ culture factors, Technical factors, organizational factors and success in ecommerce business
HOThere is no relationship between social/ culture factors, Technical factors, organizational factors and success in ecommerce business

Table 2 Hypothesis



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