Brunei's e-commerce industry is still in its infancy, despite the country having the highest internet penetration in Southeast Asia at 95% in 2021. The government has shown interest in developing the sector, with the establishment of a Digital Economy Council and the publication of the Digital Economy Masterplan 2025. The country's first local online e-commerce directory, eKadaiBrunei, was launched in 2020 to help businesses and customers find trusted e-commerce and logistics providers. The platform also provides a directory of delivery services and connects to the One Village One Product website, which offers locally made items.
Revenue in the e-commerce market in Brunei is projected to reach US$224.5 million in 2024, with an expected annual growth rate of 4.68% from 2024 to 2029. With the rise of e-commerce, businesses can reach a wider customer base, increase sales, and offer innovative products and services.
What You'll Learn
Using online directories to connect with customers
While Brunei's e-commerce industry is still in its infancy, the country has the highest internet penetration in Southeast Asia, with 95.0% as of 2021. The government has also shown its commitment to developing the digital economy, with various agencies undertaking initiatives to promote the use of e-commerce. This includes the establishment of a Digital Economy Council and the launch of the country's first Digital Economy Masterplan 2025.
To build a successful e-commerce business in Brunei, utilising online directories can be an effective strategy to connect with customers. Online directories are not just "digital yellow pages"; they can be powerful tools to help potential customers find, learn about, and connect with your business. Here are some tips for using online directories effectively:
Choose the Right Directories
Select directories that are relevant to your target audience and business type. Consider both general directories like Best of the Web (BOTW) and Yahoo Directory, and niche-specific platforms. Local business directories such as Google Business Profile, Yelp, and Foursquare are essential for local businesses as they help improve local SEO and visibility.
Create a Comprehensive Profile
Ensure your business information is up-to-date, accurate, and detailed. Include basics such as name, address, phone number, and website, but also add a snappy and informative description, identifying unique attributes and amenities your business offers. Include relevant keywords in your description to improve SEO.
Engage with Reviews
Reviews are crucial. Encourage customers to leave reviews, and respond to both positive and negative feedback. Reviews help build trust and credibility, and they can also provide valuable insights into what aspects of your business are most important to customers.
Share Updates and News
Treat your directory profile like a social media page. Share updates, news, and promotions about your business to keep customers informed and engaged. This can also help improve your SEO ranking.
Track and Analyse
Use tools like Google Analytics to track web traffic and measure the effectiveness of your directory listings. This will help you understand which directories are driving the most traffic and sales, and allow you to optimise your online presence.
By following these tips, you can effectively use online directories to connect with customers and build a successful e-commerce business in Brunei.
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Understanding the regulatory environment
Brunei's e-commerce industry is still nascent, but the government has shown a clear interest in developing the sector. In 2019, the government established a Digital Economy Council to explore the potential of the digital economy, and the Ministry of Transport and Info-communications published the country's first Digital Economy Masterplan 2025, which outlines strategic plans and key projects towards building a Smart Nation. This indicates that the government is committed to creating a favourable environment for e-commerce growth.
In terms of legislation, there are no specific laws governing e-commerce activities in Brunei. Common law rules apply to all commercial activities, and the country's central bank, the Brunei Darussalam Central Bank, regulates the requirements for payment systems. The bank has issued a notice on "Requirements for Payment Systems," which includes a definition of "merchant acquiring services." This notice is an important reference for businesses looking to accept online payments.
It is worth noting that there are no restrictions on the types of e-commerce entities that can be established in Brunei, providing a flexible environment for entrepreneurs. However, foreign direct investment in certain sectors, such as oil and gas, may face some limitations.
To facilitate e-commerce activities, the country has implemented various initiatives. These include the enforcement of consumer protection laws, surveys on consumer behaviour, the provision of secure server facilities, and the issuance of Fintech Regulatory Sandbox Guidelines by the central bank. The country's high internet penetration rate of 95% (as of 2021) and widespread social media usage also provide a strong foundation for e-commerce growth.
Brunei's first local online e-commerce directory, eKadaiBrunei, was launched in 2020 by the Authority for Info-communications Technology Industry of Brunei Darussalam (AITI) and Darussalam Enterprise (DARe). This directory helps businesses and customers find trusted e-commerce platform providers, delivery services, and logistics companies, simplifying the process of establishing an online presence for local businesses.
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Choosing a suitable e-commerce platform
Firstly, it is important to assess the features and specialisations offered by different platforms. Some platforms may focus on specific sectors like groceries, food deliveries, fashion, or lifestyle, while others offer a wider range of categories. For instance, WAWA Shopping, one of Brunei's latest e-commerce platforms, offers categories such as fashion, kitchenware, gadgets, and festive décor. Similarly, the eKadaiBrunei directory lists platforms specialising in various sectors, including food and beverage, groceries, and fashion. Selecting a platform that aligns with your product or service offering is essential for reaching the right customers.
Secondly, consider the integration of online payment capabilities and delivery services. In Brunei, credit cards are currently the only mode of e-commerce payment, and it is advisable to choose a platform that facilitates these transactions securely. Additionally, integrating delivery services can enhance the customer experience and streamline your logistics. Many platforms, such as Domo, GoMamam, and KadaiRuncit, offer integrated online payment and delivery options, providing convenience and peace of mind for both businesses and customers.
Thirdly, evaluate the scalability and flexibility of the platform. As your business grows, you may require a platform that can scale with you and provide end-to-end solutions. This includes considering the platform's ability to integrate with other services, such as online payment providers and delivery services, to ensure a seamless experience as your operations expand.
Lastly, it is essential to understand the costs and requirements associated with joining an e-commerce platform. Each platform has different charges, packages, and criteria for businesses to join. Conducting thorough due diligence on these aspects will help you make an informed decision that aligns with your business model and budget.
By carefully considering these factors, you can choose an e-commerce platform that suits your business needs, enabling you to effectively reach and serve your target market in Brunei.
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Integrating online payment systems
Payment Gateways
A payment gateway facilitates the secure transfer of payment information between your e-commerce platform and the payment processor. In Brunei, there are several payment gateways available, including Baiduri Payment Gateway Services (BiGS), Baiduri MerchantSuite, MyBillPayment by ThreeGMedia, and BIBD. Each of these options has its own integration process, which may require the assistance of a developer to ensure a smooth checkout experience for your customers.
Payment Methods
The choice of payment methods offered on your platform is essential for catering to a wide range of customers. Credit and debit card payments are commonly accepted, with Baiduri MerchantSuite and Baiduri Payment Gateway System (BPGS) supporting major cards such as Visa, Mastercard, American Express, and UnionPay. Additionally, consider integrating digital wallets like PayPal, Stripe, and BruPay, which are increasingly popular among consumers.
Compatibility and Customisation
When selecting a payment gateway, ensure it is compatible with your e-commerce platform and customisable to your specific needs. For instance, Baiduri's payment solutions are compatible and customisable with most e-commerce stores. However, it is essential to note that some payment gateways may only be available for specific frameworks or cart solutions, as mentioned in the context of Shopify and Mastercard Payment Services.
Cost Considerations
The cost of integrating online payment systems can vary. Baiduri MerchantSuite offers an affordable annual plan starting at USD120/year, while Baiduri Payment Gateway System (BPGS) plans start at B$100/month. It is important to evaluate the features and pricing of different options to make an informed decision.
Security and Compliance
When handling online transactions, ensuring the security of your customers' payment information is paramount. Look for payment gateways that offer robust security features, such as BPGS's payment processing and fraud prevention tools, which include 3D Secure and Card Verification Number. Additionally, compliance with relevant standards, such as PCI DSS, is essential to protect sensitive payment data.
Alternative Payment Options
While digital payments are prevalent, offering alternative payment options can cater to a broader customer base. Cash on Delivery (COD) is a common alternative, especially in the food industry and small businesses. This method eliminates the need for advanced payments and associated transaction fees, but it may carry the risk of cancellations.
By carefully considering these instructions and factors, you can successfully integrate online payment systems into your e-commerce platform in Brunei, providing your customers with a secure and convenient purchasing experience.
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Marketing to social media users
Brunei's e-commerce industry is still developing, and social media marketing can be an effective way to boost your brand's visibility and reach. Here are some strategies to consider:
- Utilize Instagram and Facebook: These platforms are the most popular in Brunei, so ensure your business has an active and engaging presence on both. Share regular content, interact with your audience, and consider using targeted ads to reach specific demographics.
- Collaborate with Influencers: Identify local influencers or micro-influencers with a strong following on social media. Collaborating with them can help promote your products or services and increase brand awareness. Their endorsements can build trust and encourage their followers to become your customers.
- Engage with your Audience: Social media provides a direct line of communication with your target market. Respond to comments and messages, encourage feedback, and create content that invites interaction. This will help build a community around your brand and foster customer loyalty.
- Use Hashtags Strategically: Hashtags can increase the visibility of your posts and make it easier for potential customers to find you. Research and use relevant, popular hashtags that your target audience is likely to follow. You can also create unique hashtags for your business to help build a community and make your products or services more memorable.
- Share Engaging Content: Create a content strategy that showcases your products or services in an engaging way. This could include high-quality images, videos, tutorials, or behind-the-scenes content. Share user-generated content featuring your products to build authenticity and trust.
- Run Social Media Contests and Promotions: Encourage engagement and create a sense of exclusivity with social media contests and promotions. For example, you could offer discounts, run giveaways, or create exclusive deals for social media followers.
By implementing these strategies, you can effectively market your e-commerce business to social media users in Brunei, increasing brand awareness, and driving more sales.
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Frequently asked questions
eCommerce in Brunei involves the buying and selling of goods and services online. eCommerce platform providers are like online shops, and can help Micro, Small and Medium Enterprises (MSMEs) market their goods/services online to reach more customers.
eCommerce can provide MSMEs with another avenue to continue their business sales, which may help to stabilise their income in light of the current COVID-19 related restrictions that limit physical interactions. Through eCommerce platforms, customers are able to purchase or buy items and make payments online, as well as get their items delivered to their doorstep.
You can start by selecting an eCommerce platform that is most relevant to your product or service and current business needs, and then register with them directly. You can refer to eKadaiBrunei, Brunei’s first online e-commerce directory, to find trusted eCommerce platform providers.