Iraq's e-commerce boom fuels growth, fraud, and consumer mistrust
Shafaq News- Baghdad
Online shopping has rapidly evolved from a niche convenience into one of Iraq's fastest-growing retail sectors, driven by rising smartphone use, expanding internet access, and social media platforms that have become virtual marketplaces.
The boom has widened consumer choice and created thousands of jobs in delivery, warehousing, and digital marketing. Yet the sector's rapid growth has also exposed buyers to fraud, counterfeit products, and weak consumer protections, leaving confidence in Iraq's e-commerce market increasingly fragile.
Unlike many countries, Iraq's online retail market relies heavily on cash on delivery, allowing customers to order goods without bank cards or digital payment services. While the model has fueled the sector's expansion, it has also enabled unverified sellers and fake online stores to flourish.
Government employee Asmaa Ali told Shafaq News she now shops online regularly to save time but only buys from pages with strong customer ratings after previously receiving products that failed to match their advertised quality.
University student Baraa al-Hassan described a common scam in which online sellers advertise professional product images at attractive prices before requesting only a customer's name, province, and phone number for delivery.
"When the order arrives, it's completely different from what was advertised," she said. "The delivery driver cannot accept returns, and when I try contacting the seller, the page has disappeared or stops responding." She called for stronger government oversight and legislation to combat online fraud.
Delivery workers say they are frequently caught in disputes despite having no role in the sale itself. "Our job begins only after we receive the package," delivery driver Khaled Mahmoud told Shafaq News, explaining that couriers simply collect payments and hand the money back to delivery companies in exchange for transport fees.
He said customers often refuse deliveries after discovering products differ from their online descriptions, while drivers have no authority to process returns or replacements.
Ali Hussein, who works as an intermediary between sellers and buyers, said most disputes stem from sellers failing to deliver products matching their advertisements. The problem becomes nearly impossible to resolve when online pages disappear after completing a sale.
Economic analyst Ali Khalil said Iraq's e-commerce industry has become “one of the country's fastest-growing sectors,” with tens of thousands of online purchases taking place every day. He estimated the market generated more than $700 million in revenue in 2024 and could exceed $1 billion within the next few years if digital adoption continues at its current pace.
However, Khalil warned that 60-70% of online purchases still rely on cash on delivery, reflecting “consumers' reluctance to pay before inspecting goods.” He argued that sustainable growth will depend on legislation requiring online retailers to adopt transparent return and exchange policies, register with official authorities, and strengthen consumer protections against fraud.
