THEORETICAL FOUNDATIONS AND METHODOLOGICAL SUPPORT OF E-COMMERCE IN UKRAINE’S FINANCIAL ECOSYSTEM

Abstract

E-commerce is an integral component of modern economic systems and has been made possible through the Internet, which provides the foundation for its development. As a global tool for exchanging information and resources, the Internet has opened new horizons for businesses and consumers, fostering the emergence of innovative platforms and transforming traditional business models. In Ukraine, the growth of e-commerce is directly influenced by the level of Internet access, which remains lower than that of developed Western European countries but is showing promising progress.The expansion of Internet coverage in Ukraine is accompanied by the dominance of mobile traffic, the implementation of various digital payment systems, and the rapid increase in the number of online platforms. These factors significantly alter consumer behavior and shape the strategic decisions of businesses. Additionally, the COVID-19 pandemic has accelerated digital transformation, compelling companies to adapt to new conditions by integrating online channels to ensure business continuity. This shift not only changed the way businesses operate but also highlighted the importance of digital tools in maintaining competitiveness in challenging circumstances. E-commerce in Ukraine is a dynamic and evolving sector that plays a crucial role in the modernization of the economy and the country’s integration into global economic processes. The unique socio-economic conditions in Ukraine present both challenges and opportunities that require careful consideration. For instance, while the rise of digital payments and online marketplaces boosts consumer convenience and market reach, issues such as regional disparities in Internet access and cybersecurity risks pose significant hurdles. Nevertheless, Ukraine’s e-commerce sector is increasingly driven by innovation, with startups and established businesses alike investing in technology to improve customer experience, streamline operations, and expand their market presence.In this article, we examine the interconnection between Internet development and e-commerce growth in Ukraine, identifying key factors influencing this process. We also explore the unique challenges and opportunities that arise in the context of Ukraine’s socio-economic environment. Key drivers include increasing mobile Internet penetration, the adoption of digital financial services, and government initiatives aimed at supporting digital transformation. However, obstacles such as inadequate infrastructure in rural areas, limited digital literacy among certain population groups, and economic instability highlight the complexity of the e-commerce landscape in Ukraine. Understanding the development of e-commerce in Ukraine is vital, as this sector not only contributes to economic modernization but also enhances the country’s ability to compete on the global stage. By addressing the existing barriers and leveraging emerging trends, Ukraine can further unlock the potential of e-commerce, driving innovation, job creation, and overall economic growth. Through a detailed analysis of these dynamics, this article aims to shed light on the ongoing transformation of Ukraine's e-commerce sector and its broader implications for the country's future.