Global-B2C-e-Commerce-Country-Report-2018

2018 Global Ecommerce Report

1

Thank you to our partners

Thank you for downloading this report. This report describes both the commercial opportunities, as well as its
challenges for the main ecommerce markets in the global ecommerce market. The growth and development seen in
almost all countries is having a huge impact for both international and domestic retailers, which makes
understanding the ecommerce landscape of each individual country, and how they relate across borders, even more
important. Surely, cross-border ecommerce is on the rise across the world, however there are still many barriers to
overcome. We hope this report will help with the challenges faced in selling online across the world, in the hopes of
expanding your market across borders.

The Ecommerce Foundation is an independent organization, initiated by worldwide national ecommerce
associations, as well as online and omnichannel companies. Our mission is to foster global digital trade, as
peace is the natural effect of trade. By facilitating digital commerce, we hope to make the world a better place.

We especially would like to thank our report partners; namely Awin, SAP, Mazars,
Teleperformance and Safe.Shop. Without their support, this report would not have been created.

If you would like to read more ecommerce reports, please visit: Jorij Abraham
ecommercefoundation.org/reports. Managing Director
Ecommerce Foundation
2
www.ecommercefoundation.org

Valued Report Partners

Teleperformance, global leader in outsourced omnichannel CX Mazars is an international, integrated and independent Part of the Axel Springer and United Internet Groups, Awin is
Management, serves as a strategic partner to the world’s organization, specializing in audit, accountancy, advisory, tax
largest companies cross-industry. Its customer care, technical and legal services. As of 1st January, 2018, Mazars operates a global affiliate network. With ShareASale, the Awin group is
support, customer acquisition, consulting & analytics, digital throughout the 86 countries and territories that make up its
integrated business service solutions and other high-value integrated partnership. Mazars draws upon the expertise of comprised of 15 offices worldwide, 1,000 employees, 100,000
specialized services ensure consistently positive customer 20,000 women and men led by 980 partners working from
interactions that are reliable, flexible and intelligent. 300 offices worldwide. We assist clients of all sizes, from contributing publishers and 13,000 advertisers, connecting
The Group’s 223,000 employees, operating from 350 contact SMEs to mid-caps and global players as well as start-ups and
centers in 80 countries, support billions of connections public organizations, at every stage of the development. customers with brands in over 180 countries around the
annually in 265 languages and enhance the customer globe. Operating across the retail, telecommunications, travel
experience with every interaction. and finance verticals, Awin generated €13.6 billion in revenue
for its advertisers and €607 million for its publishers in the last
financial year.

Safe.Shop is the global trust mark for online shopping, helping SAP Customer Experience is a business unit of SAP,
consumers and merchants shop & sell with confidence at home providing omnichannel customer engagement and commerce
& abroad. Safe.Shop checks if webshops are reliable by solutions that allow organizations to build up a contextual
verifying if they comply with national laws and/or the Global understanding of their customers in real-time, deliver a more
Ecommerce Code of Conduct. The Safe.Shop logo ensures impactful, relevant customer experience and sell more goods,
that consumers have the right to return the goods, privacy is services and digital content across every touch point, channel
protected, consumers will get the good(s) they paid for, the and device. Through its state-of-the-art customer data
payment is safe, consumer rights are protected, prices are management, context driven marketing tools and unified
clear and real, and any complaints will be listened to and commerce processes, SAP Customer Experience has helped
handled properly. Safe.Shop is issued by the Ecommerce some of the world’s leading organizations to attract, retain
Foundation. and grow a profitable customer base.

3
www.ecommercefoundation.org

Tell us what you think and get a full ecommerce report for free!

Help us make better ecommerce reports! Take our 3-minute YYY
survey and you’ll receive a discount code for a free full
ecommerce report from ecommercefoundation.org! Click on or scan the QR
code above to go to the
Thank you!
survey!
4
www.ecommercefoundation.org

“Trustmarks have the greatest effect on perceived trustworthiness, influencing respondents’ beliefs about
security and privacy, general beliefs about firm trustworthiness, and willingness to provide personal information.”

Of consumers who never
buy goods/services

online, the #1 reason is
trust (49%).

Jorij Abraham Currently, online shops have to Cheaper trust alternative for Free version available
Director, Ecommerce invest heavily in consumer trust. marketplace available: Trustmarks The free version of Safe.Shop is
People do business with those that Fortunately, cheaper alternatives for available for all online shops. It
Foundation they like, know, and trust. For online online shops are now available, such includes a consumer review system,
shops to instill trust fast in as trustmarks. A trust seal or badge on a trust score for the online shop and
“Our mission is to foster global consumers visiting their website is a site can mean that the company the the Safe.Shop badge.
digital trade as peace is the crucial. Entrepreneurs want to really consumer is buying from actually
natural effect of trade. We are distinguish themselves from “ghost exists, that consumer rights are Online shops receives three
convinced that introducing the shops”. That’s shops that collect protected, that the product is not fake Safe.Shop badges:
first global trust mark Safe.Shop your money but don’t deliver the and that consumer reviews are real.
will help reaching our goal.” product. Consumer review system
Safe.Shop, the first truly global trust
Currently merchants have to invest mark now available for free Trust score
heavily into making their website The Ecommerce Foundation
trusted. They do that by e.g. putting introduced Safe.Shop as a national and Safe.Shop Badge
their products on marketplaces such cross-border trustmark initiated by
as Amazon, eBay, or Alibaba. many national ecommerce associations Source(s): Aiken, K., Boush, D. (2006); CIGI-IPSOS (2017)
However, these marketplaces take worldwide. The Ecommerce
5-20% of their generated sales. Foundation offers this service as a
Also, using trusted payments like means for its purpose to foster global
PayPal come at high costs. digital trade.

5
www.ecommercefoundation.org

Canada United Kingdom China
United States France India
Mexico Germany Indonesia
Sweden Japan
Argentina Russia Malaysia
Dominican Romania South Korea
Republic Italy Vietnam
Brazil Spain Australia
Peru
Chile Turkey Kuwait
Colombia
Iran Qatar

Armenia Bahrain

Saudi Arabia UAE

Israel

Nigeria South Africa
Egypt Algeria
Morocco Kenya
Ghana Tanzania
Tunisia

6
www.ecommercefoundation.org

Table of Contents

8 16 33

141 147

7
www.ecommercefoundation.org

Introducing: The World

The global* population continues to increase (billions)

5.530

5.481

5.433

5.383

5.285

5.233

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Worldometers, 2018 *Countries incl. can be found on pg. 6

9
www.ecommercefoundation.org

Over ¾ of the population is between 25-54

Among the different age 77.88%
groups, Generation X
consumers (born 1966-1981) 25.06% 16.40% 10.23% 9.72%
made more online purchases 0-14 15-24 55-64 65+
in 2016/2017 than any other
age group, averaging nearly
19 transactions per year.
Generation X consumers in
fact made 20% more
purchases last year than their
younger counterparts
(Millennials).

-KPMG, 2017 Global Online Consumer Report

25-54

Source: Ecommerce Foundation; CIA World Factbook, 2018

10
www.ecommercefoundation.org

Global Internet penetration continues to increase steadily

8.62%

7.35%

6.70%

56.39% 59.9%

48.62% 52.71%

2015 2016 2017 2018(f)

Source(s): Statista; Internet World Stats; Ecommerce Foundation, 2018

11
www.ecommercefoundation.org

2.62 billion Internet users access social media once/month

SOCIAL MEDIA USE: GLOBAL Average share of the world population using each
of the different social media platforms:
Number of Internet users accessing a social network site via any device, in billions, 2013-2018(f)
60.6% 11.9%
2.62
2.46
2.28
2.14
1.91

1.59

8.6% 4.8%

2013 2014 2015 2016 2017 2018(f) 14.8% 1.0%

Source(s): Statcounter; Statista; eMarketer, 2018

12
www.ecommercefoundation.org

Desktop & mobile devices are used equally for Internet use

DEVICE USE FOR ONLINE: GLOBE

Share of the population using each device for Internet access

Desktop 40% 41% Most ecommerce
Tablet transactions are still taking
Mobile place on the PC, and a multi-
platform strategy is critical.
However, many marketers

and brands still treat the
desktop as the primary area
of focus, which is way out of

alignment with consumer
behavior.

-Marketing Land, All digital growth now coming from mobile
usage, 2016

Source(s): Statcounter; Statista; eMarketer, 2018 3%

13
www.ecommercefoundation.org

Germany, UK and Sweden boast highest rankings

The LPI overall score reflects perceptions of a country's logistics based on, The E-GDI presents an assessment of the website development patterns in a
among other things, efficiency of customs clearance process, quality of trade- and country, incorporates access characteristics, such as infrastructure and educational
transport-related infrastructure and ease quality of logistics services. levels, to reflect how a country is using information technologies to promote access
and inclusion of its people.
The Ease of Doing Business Index: Higher rankings (low numerical value)
indicate better, usually simpler, regulations for businesses and stronger protections The Internet Inclusivity Index is based on the affordability, availability, relevance,
of property rights. and readiness categories for Internet.

Country Logistics Ease of E-Government Internet Country Logistics Ease of E-Government Internet
Performance Doing Development Inclusivity Performance Doing Development Inclusivity
Business Business
Index Index Index Index Index Index Index Index

Argentina 61 117 43 78.6 Russia 99 35 35 23

Brazil 56 125 44 77.6 Romania 60 45 75 26

Chile 34 55 42 85.1 Italy 21 46 22 19

Colombia 58 59 61 75.9 Spain 23 28 17 12

Dominican Rep. 87 99 93 x Nigeria 110 145 143 x

Peru 83 58 77 68.9 South Africa 33 82 68 x

United Kingdom 8 7 1 7 Egypt 67 x 144 x

France 16 31 10 6 Algeria 117 166 130 x

Germany 1 20 15 12 Morocco 109 69 110 x

Sweden 3 10 6 1

Kenya 68 80 122 x

Source: The Economist Intelligence Unit; WorldBank; DoingBusiness; United Nations, 2018

14
www.ecommercefoundation.org

South Korea leads in the Ease of Doing Business Index

Country Logistics Ease of E-Government Internet Country Logistics Ease of E-Government Internet
Ghana Performance Doing Development Inclusivity China Performance Doing Development Inclusivity
Business Business
Index Index Index Index Index Index Index Index

106 120 101 x 26 78 65 x

Tanzania X 137 X x India 44 100 96 x
Tunisia 105 88 80
Turkey 34 60 68 x Indonesia 46 72 107 x
Iran 64 124 86
Armenia 92 47 87 41 5 34 10 x
Saudi Arabia 55 92 52 Japan
UAE 11 21 7 41 24 48 x
Israel 37 54 31 x
Kuwait 63 96 41 Malaysia 25 4 x x
Qatar 30 83 51
x 39 68 88 x
South Korea
18 14 2 x
x
Vietnam 51 49 64 74

x 14 6 11 x

Australia
x

x Mexico

x United States

Bahrain 59 66 26 x Canada 20 X 23 x

Source: The Economist Intelligence Unit; WorldBank; DoingBusiness; United Nations, 2018

15
www.ecommercefoundation.org

Global Ecommerce

eShoppers want clear info on delivery charges pre-purchase

ONLINE SHOPPING CART ABANDONMENT IMPORTANT ONLINE SHOPPING DELIVERY FACTORS

Global online shopping cart abandonment rate, 2013-2017 Most important online shopping delivery elements according to global online shoppers, 2017

71.16% Clear information abut delivery charges before 70%
purchase

Free returns 57%

Simple & reliable returns process 57%

Free delivery on purchases over a particular 54%
value

Landed cost calculator at check-out 51%

69.2% Full vivsisibiwbililteywtorwancd.kee&lcivtoerFarmuyceplmlraovvecaeerilsrcassbe,ilefocolenuaranlyvdaaitlaiobnle.oartg/repor4t9s%

68.5% 68.6% Possibility to select delivery location 47%

68.1% Receiving delivery within agreed time range 45%

Rapid response customer service 44%

Electronic notification of delivery 42%

2013 2014 2015 2016 2017 Knowing which company will deliver goods 35%

Source(s): Statista; Baymard Institute; IPC; Survey Sampling International, 2018

17
www.ecommercefoundation.org

Consumer still prefer to buy most products in-store

While online shopping isn’t killing traditional Category Online In-Store
retail, it is prompting the industry to rethink
the way it does business. Smaller stores Books, music, movies & video games 60% 28%
featuring a curated product selection Toys 39% 37%
capable of generating a higher profit per Consumer electronics & computers 43% 51%
square foot, events that keep the shopping Sports equipment/outdoor 36% 44%
experience fresh and highly personalized Health & beauty 37% 47%
service are making in-store shopping a Clothing & footwear 40% 51%
dynamic adventure. Jewelry/watches 32% 49%
As retailers race to delight customers with Household appliances 33% 56%
unique experiences, mobile continues to DIY/home improvement 30% 52%
power these critical personalized initiatives Furniture & homeware 30% 59%
in existing stores and new locations. Grocery 23% 70%

-Stratix Corp., Consumers still prefer to shop in-store, but expectations have
changed, 2018

Source(s): Statista; PwC; Stratix Corp, 2018

18
www.ecommercefoundation.org

Global* B2C ecommerce sales to hit over $2 trillion in 2018

15% 14.6% 14.3%
$2.124
12.3%

F8u.1ll%version available at $1.821
www.ecommercefoundation.org/reports
$1.253
$1.554

$1.363

$1.065

2013 2014 2015 2016 2017 2018(f)

*All countries included can be found on page 6, however the following countries were only included for certain years due to l ack of data (beginning data usage
Sources can be found in the ‘About the Report’ section. date listed in parentheses): Bahrain (2013), Kuwait (2014, 2015 & 2018), Armenia (2014-2016), Tunisia (2017), Tanzania (2016), Kenya (2014), Algeria (2017).

19
www.ecommercefoundation.org

Global* E-GDP to reach 3.68% in 2018

3.68%

Full version available at 3.25%
www.ecommercefoundation.2o.r8g9/%reports

2.55%

2.15%

1.90%

2013 2014 2015 2016 2017 2018(f)

Source(s): Ecommerce Foundation, 2018 *All countries included can be found on page 6, however the following countries were only included for certain years due to l ack of data (beginning data usage
date listed in parentheses): Bahrain (2013), Kuwait (2014, 2015 & 2018), Armenia (2014-2016), Tunisia (2017), Tanzania (2016), Kenya (2014), Algeria (2017).

20
www.ecommercefoundation.org

Case Study:
New Retail

21
www.ecommercefoundation.org

New Retail: Beyond omnichannel Case Study

Origins of New Retail

Traditionaly there has been a core divide in In 2016 Jack Ma foresaw a new era of Identify new governance principles
the retail space: ecommerce and the traditional retail, one dominated by the merging and for customer-centric model
brick-and-mortar stores. It was often seen as a integration of the offline and online worlds
zero-sum game, where the success of one together with logistics. This dynamic new Develop new flexibility and
meant the downfall of the other. future of retail he coined ‘New Retail’. efficiency in R&D and supply chains

Yet Jack Ma, the now legendary co-founder The relationship between consumers and Reimagine marketing and
of the Alibaba Group saw things differently. stores evolves, when looking through the consumer management for New
This philosophical difference can be seen in perspective of New Retail. Through the in-
the following statement: depth collection of data brands can now put Retail
forward methods to ‘stimulate consumer
“Pure ecommerce will be needs, identifying look-alike consumers and Modernize route-to-market and
reduced to a traditional turning consumers into brand ambassadors retail formats
business and replaced by the who effectively ‘cocreate the brand’.
concept of New Retail—the Transform the organisation and
integration of online, offline, By utilising technology and more operating model for digital
logistics and data across a comprehensive data collection, the core
elements of retail can be re-tooled and Invest in new technology
single value chain.” updated for the future development

- Jack Ma, Founder of Alibaba Group Brand Engagement

Bain & Company laid out six steps that brands
need to take in order to push forward into this
brave New Retail world:

22
www.ecommercefoundation.org

New Retail: Beyond retail’s comfort zone Case Study

‘Holy Trinity of Retail’

In a recent article, Chris Walton states that Online/digital commerce applications Cloud Commerce
there is ‘Holy Trinity’ when it comes to fully
taking advantage of the New Retail world. The This rather broad category encompasses Data is at the core of the new frontier of
core components of this triumvirate are: technology (software or hardware) applications retail. In order to be able to create the
that aid either consumers or employees in the consumer-centric model of New Retail this
• Data analysis based on location bid to create engaging New Retail vast amount of data collection taken from
• Online/digital commerce applications experiences. across the consumer journey needs to be
• Cloud commerce processed and organized near instantly. Why?
This could include developments such as Well in order to have the unique experiences
Data analysis based on location the shop-and-go model. This is where talked about previously in-store, brands must
consumers can enter a shop, use their be able to coordinate all this consumer
Brands need to understand the user not smartphone to scan and pay for goods and information and produce results in a seamless
only in their desires and needs, but how this leave without having to interact with an manner.
relates in the context of their physical world. employee.
Are consumers watching the most Legacy systems can no longer operate in
advertisements for their products on the Another example is the ‘magic mirror’ isolation when pushing forward into New
commute home? Do they decide to buy in the concept that is being trialled by multiple brands Retail. Areas such as transaction history,
comfort of their own home, or impulse buy on including Sephora, UniQlo and Tesco to name inventory information, payment details,
their phone whilst ‘showrooming’ in-store? just a few. consumer preferences can be coordinated to
create a brand that is aware in real-time of
At its core this kind of analysis needs to By utilizing applications that speak to the each and every of its consumers.
document a consumer across online and specific consumer base of a brand, they can
offline ‘touchpoints’, creating a cohesive breathe life into their consumer journey
picture of a consumer across their daily life. through both valuable and exciting consumer
experiences. The so-called death of the high
street is a misnomer in this reality.

23
www.ecommercefoundation.org

New Retail: China leading the way Case Study

China: perfect storm for m-commerce East vs. West Recent analysis has stated that there are
three main areas where the Chinese
China has been at the core of the New Chinese consumers shop online in a ecommerce landscape differs from the west:
Retail model for ecommerce. That is not only different way to the majority of Western
down to Alibaba, but the factors found within markets. The recent surge in consumer wealth Disposable income and time to shop
China itself. With its rapid development in within the middle-class in China has met the The Chinese consumer wants
recent time, developing markets such as China highly mobile-first internet infrastructure. These
are skipping the fixed broadband infrastructure new consumers are not attached to the brick- ‘entertainment, discovery and social
that propelled developing nations (such as the and-mortar retail experience and increasingly engagement’ whilst they shop whether that’s
UK and Japan) onto the internet. With cheap push for a mobile shopping experience. with their friends or influencers on social
mobile access leapfrogging fixed access in media. Not only this, but the Chinese
developing nations. consumer spends more time online shopping,
and their youth spend more than the average
China American counterpart.

United Innovation through brand competition
States Chinese brands are willing take risks when

Market share of leading mobile shopping companies in China, 2nd quarter, 2017 M-commmerce as share of total ecommerce (%), 2016-2020 (forecast figures), it comes to new products and will utilize
multiple channels to engage with their
consumer base. This is driven by a foundation
of data analytics and understanding consumer
behaviour. The consumer is at the center of
their thinking.

Integration makes shopping fun and easy
Super apps such as Taobao create an

experience including a variety of shopping,
entertainment and social activities providing
both offline and online experiences to users.

24
www.ecommercefoundation.org

New Retail: Transforming legacy models Case Study

The Grocery Store The Car Showroom The Convenience Store

The Old Way The Old Way The Old Way

Offline - A retail model that was designed a long time in - Traditional way of thinking based on an old
- Standing in queues the past and has failed to adapt model
- Slow or no delivery
- No extra consumer experiences in-store - Forces consumers to go from one dealer to - Not as convenient for modern shoppers
another
Online But, they are central to their communities, and
- Minimum order values - Based around paperwork and documentation therefore they are not obsolete!
- Delivery can be slow/finding a time slot that can slow the process down

- Sales pressure from the sales personnel

The New Retail Way The New Retail Way The New Retail Way
Hema Auto Vending Machine Local Store Digitised

Powered by a Scan in-store Powered by a Browse Models Powered by a Analytics: better
smart device and have it smart device through an app smart device understand

prepared and Test Drive? consumer needs and
delivered at Select on the app stock accordingly as

home! and try! well as gain
efficiency
Delivery at your
home in 30 Make ordering
minutes easy through an

app

Source: Alibaba - New Retail Explained, 2018.

25
www.ecommercefoundation.org

Eric Dupuy When looking at omnichannel, the type of We are already seeing a wave of Interview
device a consumer is using is crucial. automation as various Messenger tools offer
Chief Business Development & How do you see this differ across automated bots; meaning even very small “We are already seeing a wave
Marketing Officer, Continental Europe, different regions? organisations can deploy automation - it’s of automation… even very
not just for the major brands now.
Middle East & Africa As most people are aware, the main small organisations can deploy
devices used by consumers today are The next innovation in this space though automation - it’s not just for
Eric is a customer experience expert & smartphones or tablets. Although there are will be in the integration of voice-controlled the major brands now.”
business development executive engaging minor differences across regions, these are systems at home (Google Home, Amazon
with international organizations. His role more related to the ratio of desktop, Echo etc.) with consumer services. This
involves shaping Global Customer Experience smartphone, and tablet use. would mean having the ability to ask Alexa to
initiatives to enhance profitability, improve recommend a hotel in Paris for tomorrow
customer journey and to streamline It is in the more developed markets, such night, and Alexa having the intelligence to
operations. as North America, where desktop use know what my preferences are while being
remains more common whereas in Africa able to reserve a room just as if I were
Eric has over 20 years’ experience in and Asia the smartphone is much more talking to a human assistant.
outsourcing across multiple industries dominant as the primary device used.
including Retail & Ecommerce, FMCG, We will see more innovation in this area
Telecommunications, Technology & Consumer Where do you see the role of automated in future, but it’s important to remember that
Electronics, Financial Services. systems in the omnichannel experience? it remains extremely difficult to completely
Where do you see the next innovation in automate the customer experience and to
www.telepeformance.com this space? retain empathy with the customer at present.

You only need to skim through the I believe that this need for human
business media to see the influence empathy will be important for the foreseeable
technology is having on the customer future, so innovation right now will be about
experience (CX). It is easy to list many how the technologies can help human
emerging technologies having a major customer service agents, rather than
impact on CX, such as Machine Learning, replacing them.
Artificial Intelligence, Virtual Reality,
Augmented Reality, Big Data Analytics and
Decision Science, Digital Social Channels,
Digital Transformation and Robotic Process
Automation.

26
www.ecommercefoundation.org

Eric Dupuy How are different sized organisations the need of the customer, not historic Interview
adapting to the shift to Omnichannel? Do processes. In industries like this, we will see
Chief Business Development & you see that larger organisations have CX becoming the number one concern of the I believe these types of customer
Marketing Officer, Continental Europe, more resources to accomplish this, or is CEO – if it is not already. engagement will fundamentally redefine
the agility or smaller organisations what we mean by ecommerce.
Middle East & Africa pushing them ahead? Which category of products/services
(involving ecommerce) do you see “…some forms of ecommerce
Eric is a customer experience expert & There is an interesting divide taking pushing forward when it comes to are effectively bypassing the
business development executive engaging place. Traditionally it was only large omnichannel implementation?
with international organizations. His role organisations with the ability to engage CX traditional retail sector…
involves shaping Global Customer Experience experts that could consider an omnichannel What I think is extremely interesting in this building a relationship directly
initiatives to enhance profitability, improve strategy - but think about the tools a small space is how some forms of ecommerce are
customer journey and to streamline company has today. They can deploy a 24/7 effectively bypassing the traditional retail with customers through
operations. chatbot virtually free using Facebook sector - even online retail. For example, the constant engagement and a
Messenger and WhatsApp for Business is Unilever Dollar Shave Club is building a
Eric has over 20 years’ experience in free for small companies. relationship directly with customers through product subscription.”
outsourcing across multiple industries constant engagement and a product
including Retail & Ecommerce, FMCG, This means even your local florist can subscription. Likewise, the L’Oréal Makeup
Telecommunications, Technology & Consumer deploy an AI-powered CX strategy. The only Genius app has engaged millions of
Electronics, Financial Services. limit for small companies today is their customers through the interactivity of
imagination. In some cases, for simple virtually testing L’Oréal products, but critically
www.telepeformance.com questions, the bot will work well, but it’s anything the customer likes on the app can
always worth remembering these limitations be instantly ordered with a click.
and making it easy for a customer trapped in
a bot conversation to be able to transfer to a
human.

It’s worth adding that in many industries,
CX is becoming a critical business
differentiator, especially industries facing a
wave of digital disruption. Banks are one
good example where we can see a large
number of new challengers entering the
market and building their services around
building their services around the need of

27
www.ecommercefoundation.org

Eric Dupuy Where in the omnichannel experience can We still see enormous statistics around Interview
‘big data’ from consumers be best abandoned carts and enthusiastic executives
Chief Business Development & utilised? believing they can fix this by deploying a Big Western markets have developed payment
Marketing Officer, Continental Europe, Data solution to improve personalisation as a separate function and it will be
I am going to mention two elements in this when the reality is that most customers interesting to see if the experimental
Middle East & Africa respect: Personalisation and Intent. abandon a sale because of a surprise during payment services in apps such as
the final stages - such as shipping charges WhatsApp will take off and influence
Eric is a customer experience expert & If you can interpret customer preference that were not explained much earlier. Such ecommerce in the same way China has
business development executive engaging and behaviour data, then you can hurdles can be overcome with a human experienced.
with international organizations. His role personalise the service customers receive touch.
involves shaping Global Customer Experience during interactions. This might be during a “…if you can spot typical
initiatives to enhance profitability, improve customer service interaction where the agent The real weakness is just not knowing customer behaviour before a
customer journey and to streamline knows which channel the customer prefers your customer.
operations. to use, or it may be during the checkout cancellation then you can
process where additional products can be Looking to China, ‘New Retail’ is the buzz create interventions before it
Eric has over 20 years’ experience in suggested because they connect to the term. Do you see this as an evolution of
outsourcing across multiple industries content of current basket and what the omnichannel, or a completely different happens.”
including Retail & Ecommerce, FMCG, customer likes. beast?
Telecommunications, Technology & Consumer
Electronics, Financial Services. Managing intent is particularly useful for Jack Ma was really the visionary who
companies that use subscriptions for income created this idea where there is a complete
www.telepeformance.com - if you can spot typical customer behaviour blend of online, offline, logistics, and
before a cancellation then you can create payment. I certainly see it as an extension of
interventions before it happens. omnichannel retail, but I think the way that
the Chinese companies included payment is
What weaknesses do you think are most the biggest difference.
frequently made, when it comes to the
customer experience, in ecommerce? In omnichannel we are usually talking of
the online and offline blend in addition to the
Most ecommerce weakness is still communication channels, but when payment
incredibly simple; it’s about understanding is included in the same system then it can be
the customer journey and understanding a game-changer for ecommerce. For
what blocks customers from completing a example, Chinese shoppers pay using their
transaction. phone 60 times more than Americans do.
stern markets

28
www.ecommercefoundation.org

Case Study:
Global eRetail Events

29
www.ecommercefoundation.org

Black Friday

Borders are breaking down One of the consequences of the There are some other practical
influence and popularity of brands who considerations, the importance of time zones,
The globalization of retail through are exporting their retail presence to for example. When it’s midnight in the UK, it’s
ecommerce is aided by increasingly multiple markets is their power to harness 8am in China, so being aware that a 24-hour
standardized marketing methods. This is shopping events that may have shopping event locally is actually double that
reflected in the rapid adoption of global previously been limited to individual globally is imperative.
shopping events which enable brands to countries.
project their best deals to a worldwide Some retailers have already adapted their
audience. In 2017, Black Friday further For merchants who deliver to multiple affiliate campaigns from their regional base to
consolidated its position as an opportunity to territories, an interesting exercise is to tap into latent groups of publishers in markets
engage local consumers like no other ask your network or tracking provider across the world. One of the beauties of
shopping date. what the share of sales is between the affiliate marketing is the wealth of niche and
countries transactions are recorded in. By localized content that can be tapped into. With
In addition, the day acted as a lever for doing so, brands can start to understand networks taking a more globalized view, so
brands seeking to drive new customers how to offer more targeted the ability to create brand partnerships
overseas. This represents a huge communication. Additionally, lists of between countries is easier than ever.
opportunity for retailers with affiliate affiliates based outside the country of the
programs, but what are the practical retailer, can act as a useful way to start
considerations and challenges brands face building an international program without
in order to take full advantage of the event? needing a local presence.
Black Friday. Source: The Awin Report 2017/2018
This can be possible with dedicated
support that appreciates regional
variances. Media packs that are
translated into local languages, alongside
banner creative and the ability to pay
affiliates in their local currency all aid
cross-border collaboration. currencies all
aid cross-border

30
www.ecommercefoundation.org

Singles’ Day

Singles’ day: A window into the world’s biggest shopping event

Black Friday and the wider Cyber Since Alibaba picked up the event in Smart stores have been launched where
Weekend have quickly cemented themselves shoppers try on clothes virtually or pull up
as the most important calendar events for 2009, its reach and range have additional information on a product that can
online shopping in the affiliate industry. then be ordered online.
However, reach is only one measurement, broadened to include shoppers of all
and in actual fact another event has usurped Shopping basket limits have been set by
it in virtually every other meaningful way: genders and relationship status and it is some merchants in an attempt to prevent
China’s Singles’ Day. now the world’s biggest shopping event. overloading website servers on the day and
encouraging users to consolidate their
Alibaba, the Chinese ecommerce giant Given most activity occurs within purchases into as few transactions as
who have popularized the event, recorded possible.
sales amounting to a record $25bn from its China’s borders there have been some
customer base. More than 777m parcels Some businesses have incited greater
were shipped by retailers to customers who uniquely fascinating marketing spending from consumers by encouraging
bought something on the day. Almost 1.5bn them to take out loans with them ahead of
payments were processed through Alipay, the day.
the payment processing arm of Alibaba.
‘Retailtainment’ events, fusing shopping
Alipay, the payment processing arm of and entertainment experiences as a means
of attracting consumer attention, are taken to
Alibaba’s performance on Singles’ Day 2017 a whole new level in China on Singles’ Day.
Alibaba’s television spectacular was the
developments which are distinctly most prominent of a series of initiatives
launched as part of 2017’s Singles’ Day that
different to those we’ve seen deployed attempted to ‘gamify’ the shopping
experience.
traditionally in other parts of the world,

and which perhaps intimate possible

tactics that could be adopted by

advertisers and publishers elsewhere

soon.

Single’s Day. Source: The Awin Report 2017/2018

31
www.ecommercefoundation.org

Case Study

Client Case Study: Very and by offering specific rates for new And whilst the retailer’s strategic use of
customers with these affiliates, they were exposure with prominent incentive publishers
One of the patterns that emerged from able to support this objective effectively. such as Quidco, Topcashback,
Black Friday’s performance in 2017 was a New customer rates grew by 124% during Vouchercloud and Vouchercodes.co.uk
deliberate attempt from some retailers, to try Black Friday 2017 compared to the same drove the largest portion of activity over the
and steal market share from competitors by metric in 2016. sales period, collaborations with content
launching Black Friday discounts prior to the publishers like Future Publishing also reaped
official date of the event. One retailer who The brand’s performance over time valuable dividends for them.
benefitted significantly from this tactic was and specifically on the Black Friday period
the UK brand Very, a pure-play retailer saw a series of interesting trends that Future Publishing confirmed that the
selling a wider variety of consumer goods. highlight their successful approach. Black Friday partnership with Very had been
While in 2016 Very waited until late on the a huge success from their perspective too.
Generating new customers was a key Thursday evening (8pm) to launch their As a result of an established partnership,
objective for Very and again, their affiliates first official Black Friday promotion, in improved deals & rates and strong
exceeded expectation in this regard. The 2017 they activated their deals two hours conversions, as well as the support of the
retailer sought to develop partnerships with earlier (6pm) and saw immediate benefits Awin account team, the premium content
cashback publishers during 2017, from this. publisher was able to give Very more
and by offering specific rates for new prominence on site and drive more quality
Although revenue figures dropped off sales through to the retailer’s site.
Black Friday. Source: The Awin Report 2017/2018 in the early hours of the morning for Very,
their Average Order Value rate spiked
again during this period, in a large part
thanks to a targeted affiliate email sent at
3am, featuring deals tailored for a tech
audience, with larger ticket items being
promoted as part of this exposure.

32
www.ecommercefoundation.org

Regional & Country
Profiles

South America

Argentina
Brazil
Chile

Colombia
Dominican Republic

Peru

South America’s population* continues to increase (millions)

366.6

363.6

360.4

357.2

352.1

348.5

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Worldometers, 2018 *Argentina, Brazil, Chile, Colombia, Dominican Republic, Peru

35
www.ecommercefoundation.org

The 25-54 age group dominates in South America

42.56%

23.23%

16.10%

9.07% 8.63%
65+
0-14 15-24 25-54 55-64

Source: Ecommerce Foundation; CIA World Factbook, 2018

36
www.ecommercefoundation.org

Internet penetration in South America to reach 72%

72%

67%

58% 61%

2015 2016 2017 2018

Source(s): Statista; Internet World Stats; Ecommerce Foundation 2018 37
www.ecommercefoundation.org

Chile leads in social media penetration

SOCIAL MEDIA PENETRATION

Internet users who use a social media site via any device (at least once/month), 2017

Chile 71% Average share of the South American population
using each of the different social media platforms:

Argentina 70% 52.10% 10.48%
Peru 5.90% 4.96%
Brazil 63% 34.76% 0.42%

Source(s): Statcounter; Statista; We Are Social, 2018 58%

38
www.ecommercefoundation.org

63% of South Americans uses desktop for Internet use

The mass-market adoption of DEVICE USE FOR ONLINE: SOUTH AMERICA
smartphones is a relatively recent
phenomenon in Latin America. The Share of the population using each device for Internet access
declining handset prices and the
increasing availability of subsidies and 35% Desktop
finance offerings by mobile operators Tablet
has led to a surge in smartphone 2% Mobile
adoption in recent years.
Today, smartphones account for about 39 63%
more than 60% of the millions of www.ecommercefoundation.org
connections on Latin American mobile
networks. As a result of these trends,
Latin America’s mobile ecosystem will
be a growing contributor to the region’s
economy over the next few years.

-IDG Connect, A look at the mobile ecosystem in Latin America, 2018

Source(s): Statcounter; IDG Connect, 2018

2018 B2C online turnover to hit $39 billion in South America

21.9%

14.3% 16.4%

$38.9

Full version available at $32.5
www.ecommercefoundation.org/reports
$23.2
$27.8

$21.7

$18.6

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Statista, 2018

40
www.ecommercefoundation.org

South America: Top Shopping Websites

Country Ranking of Shopping websites (# of visitors)

Argentina First Second Third
Brazil
Chile Mercadolibre.com.ar Mercadolibre.com Olx.com.ar
Columbia
Peru Mercadolivre.com.br Olx.com.br Americana.com.br

Yapo.cl Mercadolibre.cl Falabella.com

Mercadolibre.com.co Olx.com.co Amazon.com

Mercadolibre.com.pe Olx.com.pe Falabella.com.pe

Source: SimilarWeb (ranked, # of visitors)

41
www.ecommercefoundation.org

Argentina Ecommerce Sales 2014 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 44 million • Internet penetration: 78%
• VAT: Peso
• Unemployment: 21% • % of e-Shoppers: 39.4%
8.5%
• E-GDP: 1.1% Full version available at
www.ecommercefoundation.org/reports
• % using Social Media: 70%

Ecommerce Environment:
• Teens with a higher socio-economic level use mobile channels more than those

from middle and low-socioeconomic levels. It is striking that 51% of those
surveyed reported being online “all the time” while 16% say they go online more

than once an hour and 20% more than once a day.

• Argentina is the 3rd largest mobile market in Latin America, with 61 million mobile Payment Method Major Buying Holidays Date
connections. Penetration on an unique subscriber (i.e. human user) basis is Preference/Use 2018-2019
mature at 90%. Supported by an improved outlook, mobile broadband Carnival
penetration will rise from 46% now to around 75% by 2020. This growth will be Mastercard Argentina Valentine’s Day Feb. 12
underpinned by nearly $9 billion in network investment by mobile operators. A Mother’s Day Feb. 14
similar shift is expected in device ownership; smartphone adoption is expected American Express Father’s Day Oct. 21
to increase to 71% of connections over the next 5 years. Argentina Independence Day Jun. 17
PayPal Argentina Black Friday Jul. 9
• 80% of Avenida’s orders are currently delivered overnight to its 11 pickup 2Checkout Cyber Monday Nov. 23
locations in Buenos Aires. These small storefronts are cheaper to run than retail Payu Argentina Nov. 26
stores, but still allow customers to interact with Avenida’s staff, which helps build
trust and brand loyalty.

Source(s): BBVA; GSMA; Tech Crunch; Statista; Kantar TNS; CACE, 2018

42
www.ecommercefoundation.org

Brazil Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 209 million • Internet penetration: 68%
• VAT: Real
• Unemployment: 17% • % of e-Shoppers: 38%
13.3%
• E-GDP: 0.92% Full version available at
www.ecommercefoundation.org/reports
• % using Social Media: 58%

Ecommerce Environment: Payment Method 62% Best selling online Share of
• Top leading categories of products purchased on international websites: Preference/Use retailer/marketplaces users
Credit Card 28% Mercado Livre
electronics (34%), software (25%), fashion & accessories (24%), Extra 77%
PayPal 9% Ponto Frio 38%
mobile/telephones (18%), toys & games (17%), cosmetics & personal care 50% Submarino 36%
Boleto 18.7% Walmart 34%
(17%), automotive accessories (13%), books (13%), home furnishings & Cash 31.5% OLX 28%
2-3 installments 10%
decoration (12%), sports & leisure products (11%). 4-12+ installments
• In 2016, Brazilian eshoppers spent $2.4 billion in cross-border websites,

representing an increase of 17% compared to 2015 & 38% compared to 2014.
• Businesses seeking to market in Brazil also may wish to consider registering

their trademark(s) as domain name(s) ending in ‘.br’ which is the country top-

level domain for Brazil.
• According to ABComm, roughly 30% of consumer goods purchased in 2016

were bought using mobile devices (smartphones and tablets).
• Brazilians tend to purchase through marketplaces and group buying websites.

Brazilians also like to take advantage of online discount websites and coupons.

Many middle-class consumers are aware that online prices for consumer goods

and customer service policies are better than in stores.

Source(s): ABComm; Export.gov; eBit; Worldometers; Statcounter, 2018

43
www.ecommercefoundation.org

Chile Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 18 million • Internet penetration: 80%
• VAT: Chilean Peso
• Unemployment: 19% • % of e-Shoppers: 35%
7%
• E-GDP: 1.37% Full version available at
www.ecommercefoundation.org/reports
• % using Social Media: 71%

Ecommerce Environment: Payment Method Best selling online Top International
• In the last five years, ecommerce has more than doubled in Chile. This increase Preference/Use retailer/marketplaces Webshops
2Checkout Alibaba
is a result of the country’s rapid technological infrastructural development. Mercado Livre
However, small- and medium-sized companies in Chile lag well behind large Payu LATAM Groupon Extra
companies in terms of ecommerce. Ponto Frio
• Chile, one of the region’s most developed markets, has a high level of credit card Mercado Pago Falabella Submarino
use and good quality of roads, but its package delivery industry to date has been WorldPay Walmart Walmart
largely focused on business-to-business transactions. OLX
• Swedish furniture store, IKEA, announced in May 2018 that it planned to open its
first stores in South America under a franchise agreement with the Chilean
retailer and online marketplace leader Falabella.
• Regarding ecommerce purchasing, according to a study by the Chamber of
Commerce of Santiago, consumer goods exceed 20% of purchases, whereas
food represented only 4% of B2C electronic sales registered in Chile, while
durable goods generated 27% of the transactions carried out. Regarding mobile
device purchases, users prefer to choose a product proposal where quality is
assured and therefore being able to touch and/or feel what they are buying.

Source(s): América Retail; Reuters; Shopify; SimilarWeb; Statcounter; Export.gov; Statista, 2018

44
www.ecommercefoundation.org

Colombia Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 18 million • Internet penetration: 58%
• VAT: Peso
• Unemployment: 19% • % of e-Shoppers: 10%
8.9%
• E-GDP: 1.63% Full version available at
www.ecommercefoundation.org/reports
• % using Social Media: 57%

Ecommerce Environment: Payment Method Preference/Use Top International Webshops
• Despite a general mistrust of ecommerce in Colombia, the growth of internet 2Checkout Mercadolibre.com.co
DineroMail
connections and use of smartphones are allowing for an increase in online Interpagos Olx.com.co
transactions. Colombians’ online purchases can be broken down as follows: MercadoPago
Ogone Amazon.com
Government (13%), Financial (17%), Communications and Technology (11%), PagosOnline Falabella.com.co
Payza Exito.com
Transport (9%), Other Services (3%), Commerce (15%), Education (6%), Public PayU LATAM

Services and TV Subscriptions (4%), Health and Beauty (4%), Housing (2%),

and Enterprise Services (7%).
• In Colombia, social media is used to promote ecommerce websites and is a

powerful tool of communication that some companies use to reach customers

and to position brands. Facebook, Twitter, Instagram, Pinterest and YouTube are

the most popular.
• Amazon expands its footprint in South America. The ecommerce giant last

opened its first customer service center in Colombia. The center, which will be

located in the Colombian capital, will begin operations at the end of October and

will provide service 24 hours a day, seven days a week.

Source(s): América Retail; PrestaShop; SimilarWeb; Export.gov; Statista; CCCE; KPMG; MINTIC; RENATA, 2018

45
www.ecommercefoundation.org

Dominican Republic Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 10.8 million • Internet penetration: 61%
• VAT: Peso
• Unemployment: 18% • E-GDP: 2.8%
5.50%
• Facebook Users: 43% Full version available at
www.ecommercefoundation.org/reports
• Online Sales Growth: 14.5%

Ecommerce Environment: Payment Method Major Buying Holidays 2018-2019
• Even under a favorable legal framework, Dominican businesses have been Preference/Use
PayPal Valentine’s Day Feb. 14
somewhat slow to integrate electronic commerce transactions into their Easter Apr. 21
2Checkout Mother’s Day May 26
operations. Currently, only a few industry sectors offer ecommerce capability, Back to School Aug. 20
Authorize.net Christmas Dec. 25
mostly business-to-consumer (B2C). Stripe
• There is a growing business-to-business (B2B) ecommerce market in the Amazon Payments

Dominican Republic. Main sectors include banking, telecommunications,

government transactions and consumer goods.
• The payment of services using ecommerce platforms have shown a remarkable

growth within the last three years, allowing customers to pay all utilities services,

official government transactions, such as taxes, certifications, business permits,

among other services.
• Mainland China’s significance has grown in recent years for the Dominican

government as bilateral trade with China reached US$2 billion a year, making it

the second-largest trading partner for China among the Caribbean and Central

American nations.

Source(s): South China Morning Post; ecommerce.com.do; Statcounter; UNCTAD; amcham, 2018

46
www.ecommercefoundation.org

Peru Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 32.5 million • Internet penetration: 45%
• VAT: Peso
• Unemployment: 18% • % of e-Shoppers: 6%
3.60%
• % Using Social Media: 63% Full version available at
www.ecommercefoundation.org/reports
• E-GDP: 1.35%

Ecommerce Environment: Payment Method Top selling online marketplaces/retailers
• Peru ranks sixth among Latin American countries in the e-Readiness Index, Preference/Use
2Checkout Mercado Libre
developed by Visa and Euromonitor, which measures the situation of electronic OLX
commerce in a country and the ability of its consumers and businesses to use it PayU LATAM Falabella
for their own benefit. Ripley
• Talking about young shoppers is important because they represent a high DineroMail Platanitos
percentage of population with particular preferences about internet and Payza Wong
ecommerce uses. Those under 30 prefer buying accessories and applications PayPal Rosatel
(38%), technology (30%) and clothing and footwear (30%) on the internet. FirstData
• Customers are becoming increasingly demanding and appreciate a wide range
of channels from which to make a purchase, or at least to make comparisons.
The increasing demand from customers to find information and availability of
products through the internet has encouraged companies to enter online
marketplaces more frequently, rather than to open their own ecommerce
platforms because the investment is lower, and the reach can be wider through
marketplaces.

Source(s): AmericanRetail; Euromonitor International; Export.gov; Statcounter; Worldline, 2018

47
www.ecommercefoundation.org

South America: Summary and Expert Thoughts

✓ Leading ecommerce sites in the region “For the ecommerce market, collecting
1. MercadoLibre and storing user logged session data
2. Olx helps to better understand the customer,
3. Yapo his/her experience on your site and

✓ Ecommerce Payment Methods Marc Atallah interaction with your products.”

“Plastic card usage has been growing; e-commerce is strong. Local fintech Co-founder of Mazars zettafox and Read the full interview on page 88
Co-leads the Data Exploration /
startups are disrupting incumbent financial systems and large numbers of mobile Advanced Analytics team “While the IoT generates a gargantuan
amount of data and creates exciting new
wallet launches demonstrate investor determination to bring in the next wave of solutions and innovations, it also creates
payment technology.” a lot of security holes and opens up many

✓ Top 3 countries ranked by B2C Turnover privacy concerns.”
1. Brazil
2. Argentina Read the full interview on page 145
3. Colombia

✓ Top ecommerce import destinations Kevin Cochrane
• United States
• China Chief Marketing Officer,
• Germany SAP Customer Experience

Source: Instapay, 2018

48
www.ecommercefoundation.org

North America

Canada
United States

Mexico

North America’s population* continues to grow (millions)

494.4

490.2

486.0

481.7

473.7 472.9

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Worldometers, 2018 *Canada, United States, Mexico

50
www.ecommercefoundation.org