How to Expand Your E-Commerce Business to Kazakhstan | Ultimate Guide

Kazakhstan's e-commerce market has exploded, growing fivefold since 2020, with citizens spending nearly 3.2 trillion tenge ($6 billion) on online purchases in 2024 alone. This Central Asian powerhouse sits strategically between Europe and Asia, offering businesses a unique gateway to 80+ million regional consumers.

At Filuet, we've guided countless e-commerce businesses through successful Kazakhstan expansions. Our teams on the ground have witnessed the digital revolution firsthand as the country aims to triple e-commerce volume to 9.3 trillion tenge by 2029.

Ready to tap into a market where online shopping is growing faster than the global average? Let's map your Kazakhstan expansion strategy.

Why Kazakhstan Should Be Your Next Market Expansion

Kazakhstan sits at a pivotal spot between Europe and Asia, making it a perfect launchpad for brands eyeing Central Asian markets. As the largest landlocked country globally, Kazakhstan has turned its geography into an advantage by developing extensive trade corridors connecting East and West.

What makes Kazakhstan particularly attractive right now is its rapidly growing middle class.

Over 99% of Kazakhstanis earn at least the equivalent of the highest 40% of global income earners, giving the country the largest middle-class share among all Commonwealth of Independent States.

The numbers speak for themselves – Kazakhstan is projected to be the 59th largest market for e-commerce globally, with predicted revenue reaching US$1,751.5 million by 2025 and showing a compound annual growth rate of 16.7% through 2029.

When we helped one beauty brand enter Kazakhstan, we were struck by how quickly they achieved market traction compared to other regional expansions. Their products resonated with Kazakhstan's upwardly mobile consumers who had both the desire and means to purchase high-quality imported goods.

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The growing digital economy

The digital landscape in Kazakhstan has transformed dramatically in recent years. Internet penetration has reached 92% of the population, creating a solid foundation for e-commerce growth. Mobile usage is especially strong, with high smartphone penetration driving online shopping behavior.

What's particularly exciting is how quickly Kazakhstanis have embraced cashless payments – 89% of all transactions now are done digitally.

We've seen Kazakh consumers embrace online shopping across various categories. The most popular purchases include:

• Home appliances and electronics
• Clothing and footwear
• Beauty and personal care
• Household products
• Food and grocery items

This growth shows no signs of slowing, with the total e-commerce volume increasing fivefold since 2020. Our team at Filuet has helped numerous brands capitalize on this momentum, creating tailored market entry strategies that address the unique aspects of the Kazakhstani digital ecosystem.

Research Before You Expand to Kazakhstan

Before diving into the Kazakh market, thorough research is essential. Our experience helping businesses expand into this region has shown that understanding local market dynamics significantly improves success rates.

Market research & product selection

Finding your product-market fit in Kazakhstan starts with understanding what's already working. According to PwC research, the retail e-commerce market showed a remarkable 61% growth in the first half of 2024, following a 79% increase in 2023. 

According to recent data, the most popular e-commerce categories include household products, electronics, clothing, and cosmetics.

When conducting competitive analysis, pay special attention to:

1. Pricing strategies – Kazakh consumers show increasing price sensitivity, with many actively comparing options across different sales channels
2. Seasonal patterns – In 2022 and 2023, only about 37% of annual sales occurred in the first half of the year, indicating stronger performance in the second half
3. Average transaction values – The average purchase amount has decreased to 20.4 thousand tenge (approximately $45.5), suggesting a shift toward everyday purchases

These patterns are clearly visible in Kazakhstan's retail e-commerce market data, which shows transaction volumes growing at a higher rate than monetary values. That's why our mission is to help businesses interpret these trends to create successful market entry strategies.

Understanding Kazakh consumers

Kazakhstan's consumer demographics play a crucial role in e-commerce success. The country has a significant youth population – more than 8 million young people – who typically embrace online shopping more readily than older generations.

However, the urban-rural divide also impacts shopping behaviors. Urban centers like Almaty and Astana show much higher e-commerce adoption compared to rural areas. This geographic variation requires tailored marketing and delivery strategies to effectively reach different population segments.

Kazakhs' mobile-first behavior has shaped how we at Filuet approach digital store setup for our clients entering Kazakhstan. Smartphone penetration is remarkably high, making mobile optimization not just important but essential.

How Kazakhs prefer to pay online

Payment preferences in Kazakhstan have evolved dramatically in recent years. Once heavily cash-based, the country has embraced digital payments with remarkable speed.

Trust factors also play a crucial role in payment adoption.

System reliability, transaction speed, and concerns about product authenticity all influence consumer confidence. When we set up payment systems for our clients entering Kazakhstan, we pay special attention to these trust elements.

Our team has seen firsthand how properly implemented payment systems dramatically impact conversion rates. We work with businesses to implement payment gateways that balance local preferences with global standards, ensuring smooth transactions for Kazakhstan consumers.

Legal Steps for Kazakhstan Expansion

Breaking into the Kazakhstani market comes with legal hurdles, but they're far from insurmountable.

The regulatory framework is becoming more favorable to e-commerce, though foreign businesses still need to deal with specific requirements. Having guided companies through this process hundreds of times, we've mapped out the critical legal steps for a smooth entry.

Furthermore, recent regulatory changes, particularly around foreign marketplace registration, highlight why professional guidance is more valuable than ever. 

Setting up your business

When it comes to company registration process, foreign businesses typically have four main options when establishing a presence in Kazakhstan:

The document requirements vary by entity type, but generally include:

• Decision to establish an entity from the parent company
• Extract from the commercial register for the parent entity
• Power of attorney for the legal representative in Kazakhstan
• Company charter in three languages (English, Russian, and Kazakh)
• Lease agreement for local premises

Insider Tip: Unlike many countries with digitized business registration, Kazakhstan still requires paper documents to be physically shipped and processed.

Timeline-wise, expect about 14 weeks for the full process:

• Engagement planning: 3 weeks
• Company incorporation: 3 weeks
• Bank account approval: 4 weeks
• Internet banking setup: 3 weeks
• Completion: 1 week

Tax rules you need to know

Kazakhstan's tax system underwent significant changes for e-commerce businesses in 2022, with these rules still applying in 2025. Foreign companies selling to individuals in Kazakhstan must now pay 12% Value Added Tax (VAT).

You'll need to register with Kazakh tax authorities if your customers:

• Live in Kazakhstan
• Use a Kazakhstani bank account or e-money operator
• Shop from a Kazakhstan-registered IP address
• Use a phone with a Kazakhstan country code

The good news? Foreign e-commerce businesses face simpler VAT requirements than domestic ones – no regular VAT reports or electronic invoices needed for transactions with individuals.

Payment schedules are quarterly, with payments due by the 25th day of the second month following each quarter.

Getting your products certified

Kazakhstan belongs to the Eurasian Economic Union (EAEU), so products certified for one member country can generally circulate throughout the union. This creates a valuable opportunity to access multiple markets with a single certification.

The primary certification required is the EAC (Eurasian Conformity) certification, which confirms products meet mandatory safety and quality standards across all EAEU countries.

Depending on the product type, certification validity ranges from 1-5 years.

Foreign approval documents typically aren't recognized in Kazakhstan, so testing is usually required even if your products already hold certifications from other countries. At Filuet, we handle the entire certification process for our clients, working with accredited labs and regulatory bodies to ensure full compliance with both EAEU and Kazakhstan-specific requirements.

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Master Logistics When Expanding to Kazakhstan

Getting products to Kazakh customers presents unique challenges. The country's vast size (the ninth-largest globally) means smart logistics planning makes a huge difference in customer satisfaction and operational costs.

Every shipment to Kazakhstan requires proper documentation, including:

• English-language invoice confirming value and volume
• Detailed packing list with quantity, weight, and contents
• Export license (for restricted goods)
• Export declaration from the country of origin
• Safety data sheets for hazardous materials

Pro Tip: All goods crossing Kazakhstan's border need customs clearance – even those sent via courier or express delivery.

For foreign e-commerce businesses, it’s important to note that VAT must be calculated and paid on services where the place of supply is Kazakhstan. This can impact your cash flow, so consider it carefully when setting pricing strategies.

However, customs clearance tends to move quickly – for example DHL EXPRESS follows procedures where goods may be returned after just 14 calendar days if the receiver hasn't collected documents or provided feedback. This makes working with experts who know the process crucial for smooth operations.

Warehousing: Where to store your products

Kazakhstan is investing heavily in its logistics infrastructure, with five cross-border logistics hubs planned for completion by 2026. These include:

• An industrial trade complex in Zhambyl (Kyrgyzstan border)
• An international cooperation center in Turkistan (Uzbekistan border)
• A cross-border trade center in West Kazakhstan (Russia border)
• A container hub in Mangistau
• A Khorgos border complex (China border)

These hubs will offer short-term storage, pre-sale preparation, and load/unload services while supporting transcontinental cargo transportation.

Currently, the major logistics operations center on Almaty, Atyrau, and Astana. These cities serve as the primary gateways for international e-commerce shipments entering Kazakhstan.

When setting up warehouse operations, consider these factors:

• Warehouse rental rates in Almaty exceed $150 per square meter annually (higher than Dubai)
• Advanced inventory management systems are essential for real-time stock visibility
• Safety protocols must meet local regulations
• Environmental sustainability practices appeal to growing numbers of eco-conscious consumers

Solving last-mile delivery challenges

Kazakhstan's massive size (2.725 million square kilometers) creates unique last-mile delivery challenges. Urban areas like Almaty and Astana have well-developed delivery networks with multiple courier services, but rural areas face significant infrastructure gaps.

This urban-rural divide means different strategies work best for different market segments:

• Urban customers expect same-day or next-day delivery
• Rural deliveries often require partnerships with local services or alternative delivery methods
• Infrastructure development isn't keeping pace with e-commerce demand, particularly in remote regions

Interesting fact: 7% of Kazakhstani consumers will pay extra for next-day delivery, while a whopping 23% will pay significantly more for same-day delivery.

Traffic congestion in urban areas frequently causes delivery delays, making route planning tricky. Seasonal variations add another layer of complexity – harsh winter conditions in northern regions can dramatically impact transportation capabilities.

Making Your Store Feel Local

Kazakhstani shoppers, like customers everywhere, prefer buying from sites that feel familiar and trustworthy. We've seen countless examples where small localization touches dramatically improved conversion rates and customer loyalty. 

So consider the following:

1. Language matters tremendously

Language localization requires attention to both Kazakh and Russian languages. To reach the broadest audience, translate all website content into both languages. The quality of translation matters enormously – we've seen poorly translated sites drive potential customers away in droves.

2. Domain strategy affects credibility 

While not required, using a .kz domain gives you immediate local credibility. Registering a .kz domain may require meeting specific residency requirements, but the SEO and trust benefits often justify the extra effort.

3. Mobile optimization is non-negotiable

By the end of 2025, over 70% of all online transactions globally will happen on mobile devices. In Kazakhstan, this trend is already pronounced. Kaspi.kz's Super-App is used by over 75% of the population, showing how mobile-centric Kazakh consumers have become.

4. Local hosting improves performance

If your domain is registered and managed outside the country, requests will cross national boundaries, increasing latency. Implement a cloud DNS service with

Setting up payments that work

When it comes to payments, the country has gone through a remarkable payment transformation in recent years, moving from cash-heavy to digital-first.

The most significant development is Kaspi.kz, which has changed how Kazakhs pay online since 2014. With over 75% of the Kazakh population using the Kaspi.kz Super App in 2024, integrating with this platform gives you immediate access to millions of potential customers.

Beyond Kaspi, your payment strategy should include:

• Bank cards (still widely used)
• Local payment services
• QR-code payment options (extremely popular in Kazakhstan)
• Mobile wallet compatibility
• Cash on delivery (important in rural areas)

Run Your Business Across Borders

Managing operations between your home country and Kazakhstan presents unique challenges. Our clients often ask whether they should build local teams or run everything remotely.

The answer? It depends on your business model, budget, and growth stage.

Local hiring vs. remote team

For local hiring, Kazakhstan offers access to a growing talent pool familiar with local market nuances. The legally compliant way to hire employees is to set up a sub-corporation in the country, which becomes economically viable only for substantial teams.

Did you know? Kazakhstan has local content requirements where Kazakhstani citizens must comprise 70-90% of your workforce for certain employee categories.

Meanwhile, remote work has gained traction globally, and Kazakhstan's Labour Code specifically addresses it as work performed using information communication technology. Written agreements can outline compensation for employees' remote work costs.

For companies seeking a more flexible approach, many opt for Employer of Record (EOR) services. We've seen businesses use this model quite often.

This approach lets you bring on full-time employees who are legally employed through our entity while working exclusively for your business - giving you the benefits of local expertise without the administrative complexity.

Handle money matters

Banking is a key part of running a successful e-commerce business in Kazakhstan. 

The banking sector is undergoing significant transformation, with 2025 reforms introducing two distinct license categories:

• Universal Licenses for large/medium banks
• Basic Licenses for smaller institutions serving microbusinesses and SMEs.

In addition, foreign banks now enjoy simplified procedures for establishing subsidiaries, with expanded operations permitted for foreign branches. This creates more options for international companies that prefer maintaining relationships with familiar financial institutions.

When managing treasury functions, pay special attention to currency exchange. As of January 2025, Kazakhstan implemented amendments to currency transaction rules. Banks now monitor the total amount of foreign currency purchased by legal entities within one operational day.

Mastering Your Kazakhstan Market Entry

Kazakhstan offers a unique opportunity for e-commerce businesses ready to explore new horizons. With the market growing fivefold since 2020 and projected to reach over $5 billion by 2025, timing is perfect for strategic entry.

We recommend a phased approach to market entry:

1. Start with research and product selection
2. Test the market through cross-border e-commerce
3. Establish legal presence when volumes justify local operations
4. Scale gradually with carefully planned logistics and marketing

Throughout your Kazakhstan journey, remember that local knowledge makes all the difference. Small cultural nuances, regulatory changes, and market shifts can significantly impact your success.

So whether you're eyeing Kazakhstan as a standalone market or as your gateway to broader Central Asian opportunities, the time to make your move is now – before competition intensifies and early-mover advantages disappear.

Kazakhstan E-Commerce Made Simple

From company registration to payment processing, we've got your expansion covered.

Get Expert Support