Ecommerce in Albania

1. Recent growth and trends in e-commerce

Albania has seen a marked expansion in e-commerce, with recent years showing especially robust growth. This growth is largely attributed to increased internet penetration, widespread smartphone usage, and digital transformation efforts supported by both the public and private sectors. According to the Albanian Ministry of Finance and Economy, online transactions within Albania rose significantly, especially following the COVID-19 pandemic, which fueled a rapid transition to online shopping as physical retail spaces faced restrictions.

In 2020, the value of the e-commerce market in Albania was estimated at approximately €50 million, a significant increase compared to previous years. This trend has only intensified, with experts predicting a consistent growth trajectory in the coming years as the infrastructure supporting online payments and logistics continues to improve. By 2024, the Albanian e-commerce market is expected to exceed €100 million, almost doubling within a few years.

Albanian consumers are increasingly inclined to shop online, not only with local e-stores but also from international e-commerce platforms. The latest data from INSTAT, the national statistics institute, indicates that around 35% of Albanian internet users made at least one online purchase in the past year, with younger consumers leading this trend. Popular categories among Albanian online shoppers include:

• Clothing and accessories: 19%
• Electronics and household appliances: 12%
• Books and entertainment: 8%

In response to these developments, Albanian regulatory bodies, such as the Albanian Competition Authority, have undertaken initiatives aimed at ensuring a secure and fair e-commerce landscape. These measures include addressing issues related to consumer data protection, combating fraudulent online activities, and ensuring transparency in online advertising. Furthermore, the recent enactment of the "Law on E-Commerce," aligning with the EU e-commerce directive, marks a significant regulatory step toward fostering a safer and more regulated online marketplace in Albania.

In Albania, foreign companies do not necessarily need a local physical presence to sell products online directly to Albanian consumers. However, the "Law on E-Commerce" in Albania aligns with EU regulations, requiring foreign e-commerce businesses to adhere to local consumer protection, data privacy, if they are actively targeting the Albanian market. For instance:

• Consumer Protection compliance: Foreign companies must follow Albanian consumer protection laws, including the right of consumers to withdraw from purchases, fair advertising, and transparent information on prices and delivery times.
• Data Protection compliance: Albania’s data protection law, aligned with GDPR principles, requires businesses handling Albanian consumer data to implement adequate data protection measures, even if they lack a physical presence in the country.

There are no specific licenses for e-commerce businesses in Albania. However, Albanian businesses must comply with general commercial laws, including registration with the national business center (NBC) and obtaining a vat number if applicable.

• Business registration: All businesses, including those operating solely online, are required to register with the national business center (NBC). Registration provides businesses with a unique identification number, allowing them to legally operate within Albania. Foreign companies may also need to register for tax purposes if they engage in significant commercial activity targeting Albanian consumers.
• Data Protection compliance: E-commerce businesses must comply with Albania’s data protection regulations. If they collect and process consumer data, businesses may need to notify or register with the commissioner for the right to information and protection of personal data (IDP), especially for extensive data processing.
• Compliance with the law on e-commerce: Under Albania’s “law on e-commerce,” businesses are required to provide clear information about their identity (such as company name, address, and contact details), terms of sale, and consumer rights. While there is no e-commerce-specific license, businesses must adhere to consumer protection standards and advertising transparency.
• Tax registration and VAT compliance: E-commerce businesses must comply with tax laws, including registering with the Albanian tax authorities for vat if sales exceed set thresholds. This registration is particularly important for businesses generating substantial revenue from Albanian consumers.

To set up an e-commerce business in Albania, various contracts and operational elements are essential to ensure compliance, smooth operations, and customer trust. From securing reliable suppliers and payment processors to drafting website policies and managing logistics, each component plays a role in creating a successful online business framework. Here’s a detailed breakdown:

• Domain name: A domain name serves as the digital address for an e-commerce business. Albanian businesses can select from national (.al) or international (.com, .eu) domain extensions for a cross-border presence. Additionally, goods may be offered through various online marketplaces to extend reach.
• Hosting services: Hosting services are necessary, with options including cloud servers, shared web hosting, virtual private servers, and dedicated servers, depending on the anticipated site traffic and specific business needs.
• Contracts with suppliers: Supplier contracts define product pricing, inventory management, delivery terms, and responsibilities for defective items. These agreements are essential to maintaining a reliable and consistent supply chain, critical for a seamless online shopping experience.
• Agreements with payment processors: Agreements with payment processors are crucial for secure online payments, covering transaction fees, data security, and dispute resolution processes. These contracts protect both business and customer financial transactions and ensure compliance with Albanian e-commerce regulations.
• Fulfillment and logistics contracts: Logistics providers help manage storage, packaging, and shipping, including delivery times, return processes, and liability for lost or damaged goods. Albanian e-commerce businesses may rely on third-party logistics providers or use a drop-shipping model, where orders are forwarded to a partner for direct shipment to customers.
• IT-related services: For a streamlined ordering experience, IT services should support inventory tracking, order processing, and data security. This ensures customer satisfaction and builds trust in the website’s functionality and security.
• Creative services: Developing an e-commerce website requires creative services for design and technical requirements, such as invoicing, accounting, marketing tools, and customer relationship management systems. These elements help optimize customer engagement and operational efficiency.
• Website terms and conditions, privacy policies, and user agreements: Comprehensive website policies protect both the business and customers. Terms and conditions define the legal relationship, covering issues like payment terms, order cancellations, refunds, and dispute resolution. Privacy policies inform users of data collection, storage, and usage practices, ensuring compliance with Albania’s data protection laws. User agreements establish the rights and responsibilities of customers when using the site, limiting liability and setting clear expectations.
• Payments: While cash-on-delivery is popular in Albania, electronic options like credit and debit cards, online transfers, e-wallets, and mobile payments offer flexibility to accommodate customer preferences.

Yes, there are specific restrictions in Albania that affect the types of products that can be offered for online purchase, primarily for safety, health, and regulatory compliance. Certain categories of goods, especially those that could impact public health or safety, require special permissions or are restricted.

• Regulated products: Products like pharmaceuticals, medical devices, alcohol, and tobacco are heavily regulated. E-commerce businesses offering these items must obtain specific licenses and permits. For example, a license from the Ministry of Health and Social Protection is required for pharmaceuticals and medical devices, while alcohol and tobacco sales are subject to strict licensing and age-verification requirements.
• Prohibited goods: Some items are outright prohibited from being sold online, such as illegal drugs, unlicensed firearms, and certain types of wildlife products. Albanian law prohibits the sale of goods that violate national security or public safety standards, and violators may face legal penalties.
• Cultural artifacts and antiquities: The sale of cultural heritage items and antiquities is restricted to prevent unauthorized distribution or export. Sales involving such items generally require approval from relevant cultural authorities to ensure compliance with national heritage laws.
• Food and cosmetics: While food and cosmetics can be sold online, they are subject to strict health and safety regulations. Businesses selling perishable goods or cosmetics must meet packaging, labeling, and storage requirements as specified by health authorities to ensure consumer safety.

Age-restricted products: Items like alcohol, tobacco, and certain types of entertainment products (e.g., adult content or video games with mature ratings) are subject to age-verification requirements. E-commerce s must implement robust age-verification systems to restrict sales to minors.

Compliance with these product-specific restrictions is essential for any e-commerce business operating in Albania, as it ensures adherence to legal standards and minimizes potential risks associated with offering restricted items online.

Yes, defining the target audience—whether the e-commerce website will address consumers, professionals, or both—is essential for an Albanian e-commerce business. This decision significantly impacts various aspects of operations, including legal compliance, website functionality, and marketing strategies. Different regulations apply based on the audience; for instance, consumer protection laws are more extensive in B2C settings, requiring clear information on pricing, return policies, and consumer rights, while B2B transactions allow more flexibility in contract terms.

The website's structure also varies: B2C sites are typically designed for easy navigation and fast checkouts, focusing on product variety, whereas B2B platforms may offer features like bulk ordering and customized pricing. Additionally, knowing the audience type helps tailor marketing efforts, as B2C strategies often emphasize broader reach through social media and influencer marketing, while B2B approaches may focus on industry-specific platforms and targeted email campaigns.

Furthermore, contractual terms differ, with B2C websites usually having standard terms for individual consumers and B2B sites requiring more customizable agreements.

In Albania, e-commerce websites are subject to specific legal requirements designed to protect consumer rights and ensure compliance with privacy and data protection laws. Here is a detailed analysis of each mandatory element, including privacy policies, cookies, and data management practices:

• Identification of the Business: E-commerce websites must clearly display the full legal name of the business, its registered address, and contact information, including an email address and phone number. This transparency ensures that consumers can identify the business entity they are interacting with and reach out for inquiries or complaints.
• Comprehensive product/service information: Businesses are required to provide accurate, accessible descriptions of products and services. This includes details about the nature, main characteristics, and functionalities of goods or services offered. All associated costs, such as product prices,  applicable taxes, and additional charges (e.g., shipping fees), must be displayed before the consumer proceeds with a purchase.
• Terms and conditions of sale: A section outlining the terms and conditions governing transactions is mandatory. This should cover key aspects such as payment methods, delivery schedules, cancellation rights, and return policies, providing clarity on the processes and timelines for each. These terms also typically include details about warranties, consumer rights, and dispute resolution mechanisms, as mandated by the Albanian Consumer Protection Law.
• Privacy Policy: Albanian data protection law mandates that e-commerce websites have a comprehensive privacy policy that informs users about how their data will be collected, used, stored, and protected. This policy should specify the types of personal data collected (such as name, contact information, payment details, etc.), the purpose for collecting each category of data, and the legal basis for processing it (usually user consent or contract necessity). Users should also be informed of their rights, including the right to access, rectify, or delete their data and the right to withdraw consent.
• Cookies Policy: Websites that use cookies (for tracking, analytics, or personalized advertising) must inform users about cookie use through a cookies policy. Albanian law requires that users are notified when they visit a website that employs cookies, and they must be given the option to consent to or decline their use. The policy should outline what types of cookies are used (essential, analytics, advertising, etc.), the purpose of each type, and the duration for which they remain active. Users must also be provided with options to manage or disable non-essential cookies directly from the website.
• Data Management and Security: Under Albanian law, e-commerce businesses must implement and disclose reasonable data security measures to protect user information. This typically involves the use of secure payment methods (such as SSL encryption for transactions), regular software updates, and access controls to prevent unauthorized access. The website should explain its data retention policy, specifying how long user data is stored and the circumstances under which it is deleted, ensuring compliance with data minimization principles.
• Advertising standards and transparency: E-commerce websites must comply with advertising regulations by ensuring all promotional materials are accurate and do not mislead consumers. Advertised discounts, offers, and promotions must be clearly explained, including any terms or limitations (such as expiration dates or specific conditions for eligibility).
• Customer support and complaint mechanism: A section on customer support, including details on how users can submit inquiries or complaints, is often required or encouraged. The contact information for customer service should be easily accessible, and response times and procedures for complaint resolution should be specified where possible.

Yes, under Albanian law, it is generally required that essential information on e-commerce websites be provided in the local language—Albanian—to ensure accessibility and understanding for consumers. This includes key sections such as terms and conditions, product descriptions, pricing details, privacy policies, cookies policies, and other essential consumer information.

Providing information in Albanian aligns with the consumer protection framework, which emphasizes the need for clarity and transparency in all communications with users. Additionally, offering the website in the local language helps prevent misunderstandings about consumer rights, purchase obligations, and the protection of personal data.

Under Albanian law, e-commerce sites that publish customer reviews must ensure that these reviews are genuine and not misleading. To comply, businesses should verify that reviews come from actual customers who have purchased or used the products or services. Any attempt to alter, fabricate, or selectively display reviews to mislead consumers can be seen as deceptive advertising and is prohibited.

Websites should also inform users of their policies regarding review authenticity and any moderation practices (such as screening for offensive language), ensuring transparency. Additionally, Albanian law may require that fake or incentivized reviews (i.e., reviews written in exchange for benefits) are either prohibited or clearly disclosed to avoid misleading potential customers.

¾    Authenticity verification: Ensure reviews are from genuine customers who have purchased or used the product or service.

¾    No misleading content: Avoid fabricating, altering, or selectively displaying reviews in a way that misleads consumers.

¾    Transparency in moderation: Inform users of review policies, including any moderation or screening processes (e.g., filtering offensive language).

¾    Disclosure of incentives: Clearly disclose if any reviews were incentivized (written in exchange for benefits) to maintain transparency.

¾    Prohibition of fake reviews: Albanian law may restrict posting or soliciting fake reviews, emphasizing fair and honest consumer representation.

Certain interface elements on an e-commerce store can be considered "dark patterns" if they are designed to manipulate user behavior, often in ways that may be misleading or deceptive. Key examples include:

• Hidden costs: Surprising users with additional fees (like shipping or taxes) at checkout, rather than being upfront about the full price.
• Countdown timers: Using timers that create a false sense of urgency, suggesting a limited time offer even when it isn’t genuine.
• Confusing cancellation processes: Making it challenging to cancel a subscription or order, such as requiring multiple steps or concealing the cancel option.
• Pre-checked boxes: Automatically selecting add-ons or subscription services that users must uncheck to avoid unwanted charges.
• Trick questions: Designing consent or opt-in forms with double negatives or misleading language to obtain user consent without clear understanding.
• Forced account creation: Requiring users to create an account before they can complete a purchase, limiting guest checkout options.

In Albania, any announced price promotion must be transparent, truthful, and not misleading. The previous price (often referred to as the "reference price") must be shown alongside the promotional price, enabling consumers to clearly understand the discount offered.

Promotions should disclose all relevant conditions, including time limitations, quantity restrictions, or eligibility requirements, to avoid any misinterpretation. Prices must also include all applicable taxes and additional fees (such as delivery charges) up front. Promotions that misrepresent discounts or omit crucial information could be regarded as deceptive advertising, subject to legal action by consumer protection authorities.

Under Albanian data protection law, explicit consent is mandatory for marketing communications via email, SMS, or other direct channels. This means that consumers must voluntarily opt-in to receive these communications, ideally through a clear consent form or checkbox that is unchecked by default. Consent should be specific, informed, and easily revocable, giving users the ability to unsubscribe or opt-out at any time.

Businesses should clearly outline how user data will be used and stored, in compliance with privacy standards. Non-compliance, such as sending marketing messages without consent or using pre-checked boxes for opt-ins, may result in fines or penalties under Albanian law.

Certain promotional activities are especially scrutinized by Albanian authorities due to their potential to mislead or unfairly pressure consumers. These include:

• False or misleading discounts: If discounts are not based on actual prior prices or are applied selectively, they may be seen as deceptive. "Fake" discounts—raising the original price before applying a discount—are prohibited.
• Bait-and-switch tactics: Advertising a product at a low price to attract consumers, only to replace it with a more expensive or different product once they attempt to purchase, is also closely monitored.
• Scarcity and urgency messaging: Any claims about limited stock or time-limited offers should be factual. False urgency messages, such as countdown timers or messages like "Only 2 items left," are subject to examination if they create artificial pressure.
• Influencer and celebrity endorsements: Promotions that use influencers or public figures must ensure that paid endorsements are transparently disclosed. Influencers must state clearly if they were paid or given free products for endorsements, helping consumers identify genuine recommendations.

Albanian law provides strong consumer protections regarding returns and warranties, particularly for defective or nonconforming goods. Consumers generally have a statutory right to return a product within 14 days from delivery, especially for online purchases. For defective goods, businesses are obligated to repair, replace, or refund the product within a reasonable time.

This right often extends for a warranty period, during which any non-conforming goods can be returned or exchanged. For non-defective goods, returns may depend on the seller's policy, but it should be stated clearly within the terms and conditions. If sellers impose limitations on returns, these restrictions should be communicated to customers clearly and transparently.

Online sellers in Albania need to be mindful of competition laws that protect against practices that could harm market fairness and consumer choice. Risks include:

• Price-fixing and collusion: Agreements with competitors to set fixed prices are prohibited, as they restrict fair competition. This includes agreements that prevent discounts or special pricing arrangements that could stifle market competition.
• Dominance abuse: Sellers with a dominant market position should avoid using their influence to restrict other businesses or create unfair market conditions, as this can lead to investigations by competition authorities.
• Exclusive or tied selling: Arrangements that require consumers to purchase additional products or limit their ability to shop elsewhere could also be viewed as anti-competitive. Exclusive agreements, especially if restrictive or limiting, may require special authorization if they impact consumer choice.

• Legal Considerations for Financial Services in E-Stores: For e-commerce platforms offering financial services, such as payment processing or credit options, Albanian law mandates strict data security and transparency in all transactions. E-stores should ensure:
• Transparency in fees and charges; Any transaction fees, interest rates (if offering credit), or processing fees should be disclosed upfront, and users should be clearly informed of any extra charges before completing a transaction.
• Data protection and security: Payment processing services must comply with data protection regulations, which include secure data handling practices, encryption of sensitive financial information, and limited access to personal financial data.
• Fraud prevention and compliance: Payment processors must adhere to anti-money laundering and fraud prevention regulations, implementing appropriate controls to monitor suspicious transactions. Additionally, any external payment processing services integrated with the e-store must comply with local licensing requirements, ensuring compliance with Albanian banking and financial regulations.

In Albania, e-commerce businesses are primarily regulated by a few key authorities:

• Ministry of Finance and Economy Responsible for overseeing general trade practices and ensuring compliance with financial regulations, particularly concerning tax obligations. The ministry monitors business   registration and licensing, which e-commerce companies must comply with under Albanian law.
• Consumer Protection Commission This authority, operating under the Ministry of Finance and Economy, enforces consumer protection laws in e-commerce by addressing complaints from consumers. It plays a role in ensuring that businesses provide accurate product information, comply with advertising standards, and uphold consumer rights.
• Albanian Competition Authority: This authority ensures fair competition within the Albanian e-commerce sector. The ACA regulates anti-competitive practices, such as price-fixing or monopolistic practices that could harm consumer interests or reduce market competitiveness.
• Commissioner for Personal Data Protection E-commerce businesses handling consumer data must comply with Albania’s data protection laws. This Commissioner enforces the Law on Personal Data Protection and monitors compliance with data handling, storage, and processing standards to safeguard consumer privacy.

In Albania, private enforcement of consumer rights in the e-commerce sector is becoming more prevalent as consumer awareness increases. Consumers can enforce their rights through various mechanisms, such as filing complaints with the Consumer Protection Commission for issues like misleading advertising, defective products, or fraud. This commission facilitates dispute resolutions, often requiring e-commerce businesses to correct issues or compensate consumers. Additionally, consumers have the option to pursue private legal action against businesses in cases of contract breaches, poor product quality, or deceptive advertising.

Consumer associations also play an important role by advocating for consumer rights, providing legal guidance, and sometimes representing consumers in disputes with e-commerce companies. These associations raise awareness about consumer protections and often work with authorities to improve e-commerce compliance.

Albania is in position for significant regulatory updates impacting e-commerce, aiming to align more closely with EU standards and enhance consumer protections. Key upcoming changes include potential adoption of frameworks like the EU Digital Services Act (DSA) and Digital Markets Act (DMA), which would enforce transparency, consumer rights, and digital accountability. Strengthening of data protection laws, modeled on the EU’s GDPR, is also on the horizon, meaning e-commerce businesses may need to adopt stricter practices for data collection, processing, and consent.

• Strengthening of Data Protection regulations Albania is working toward stricter data protection laws in line with the General Data Protection Regulation (GDPR). This would mean stricter requirements for e-commerce businesses on data collection, processing, and user consent, impacting how they handle customer information.
• Enhanced cybersecurity measures Given the rise in cyber threats, Albania is considering introducing additional cybersecurity requirements for online businesses. This could require e-commerce businesses to implement advanced cybersecurity protocols to protect against data breaches and fraud.
• Updates in Consumer Protection laws The Consumer Protection Commission is advocating for stronger e-commerce-specific consumer protection laws, including better refund policies, product transparency, and protection against unfair contract terms, which would enhance consumer rights in the online shopping sector.