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

African population* continues to grow (millions)

582.0

569.5

557.2

544.8

523.5

512.9

2013 2014 2015 2016 2017 2018(f)

Source(s): Ecommerce Foundation; Worldometers, 2018 *Nigeria, South Africa, Egypt, Algeria, Morocco, Kenya, Ghana, Tanzania, Tunisia

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Surprisingly, the majority in Africa are between 0-14

37% 36%

19%

0-14 15-24 25-54 6% 5%
55-64 65+
Source(s): Ecommerce Foundation; CIA World Factbook, 2018

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Internet penetration across Africa to reach 57% in 2018

57%
54%
45%
33%

2015 2016 2017 2018

Source(s): Statista; Internet World Stats; Ecommerce Foundation 2018 103
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The most used device is mobile for Internet access in Africa

DEVICE USE FOR ONLINE: AFRICA 60% In Africa, mobile phones have
transformed the lives of hundreds
Share of the population using each device for Internet access of millions for whom they were the

39% first, and often the only, way to
connect with the outside world.
2% They have made it possible for
poor countries to leapfrog much

more than landline telephony.
Mobile-money services, which

enable people to send cash
straight from their phones, have in

effect created personal bank
accounts that people can carry in

their pockets.

-The Economist, What technology can do for Africa, 2017

Desktop Tablet Mobile

Source(s): Statcounter; Statista; We Are Social; The Economist, 2018 104
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Majority of African population uses Facebook

SOCIAL MEDIA USAGE: AFRICA

Average share of the population in African countries using each of the different social media platforms

64%

20%

1% 1% 6% 9%

Source(s): Statcounter; Statista; We Are Social, 2018 105
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Estimated B2C online sales in Africa to be $17 billion in 2018

52%

29% 32% 31%

Full version available at 16%
www.ecommercefoundation.org/reports
$16.8

$14.1

$6.8
$4.7

$2.3 $3.2 2015 2016 2017 2018(f)
2013 2014

Source: Ecommerce Foundation; Statista, 2018 *All countries included can be found on page 6, however the following countries were only included for certain years due to
lack of data (beginning data usage date listed in parentheses): Tunisia (2017), Tanzania (2016), Kenya (2014), Algeria
(2017).
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Africa: Top Shopping Websites

Country Ranking of Shopping websites (# of visitors)

Egypt First Second Third
Morocco
South Africa Souq.com Olx.com.eg Jumia.com.eg

Avito.ma Aliexpress.com Jumia.ma

Gumtree.co.za Takealot.com Amazon.com

Source: SimilarWeb (ranked, # of visitors)

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Zodes Tawin How would you say the ecommerce Ecommerce start-ups are popping up in Interview
environment has grown in Cameroon? Cameroon/Africa at a rapid pace. What
President, are the biggest obstacles for business? “the vast majority of
Cameroon Federation of I would say that the environment of e- customers here want to touch
commerce has developed in Cameroon In my opinion, the main obstacles for
E-commerce because over the years, mentalities are business owners exercising in ecommerce the goods ordered before
changing and more and more consumers are: paying. This explains the fact
African Entrepreneur of Cameroonian origin. want things to be facilitated for their daily that the bulk (79.33%) of e-
He created in June 2011 a structure named shopping. mobile phone operators are also • Mistrust of consumers who have already commerce transactions, the
KEVINO COMPUTER SERVICES, specialized deploying to improve fiber optics. This been scammed by buying online payment is made in cash on
in IT Maintenance he resold in 2014, he is makes it possible to gradually stabilize the
since 2016 CEO & Founder of ZORICAM. internet connection in remote areas. • Administrative delays in the granting of delivery.”
Current Project Manager of the African Fair of authorizations by the public authorities
e-commerce, Project Manager of the National The arrival of electronic money in late
Forum of Entrepreneurship. He was also 2014 (Orange and MTN money) has since • The instability of the internet connection in
responsible for the communication unit for the helped to improve payment methods. To remote areas
Christmas Fair (2017 edition). date 18.2% of online transactions are settled
by electronic money mainly Orange and • The limits of the road network
MTN money.
How does your audience in
The gradual construction of the road Africa/Cameroon differ from your
network helps to efficiently facilitate audience in other parts of the world?
customer deliveries in remote areas. But it
must be remembered that much remains to Our audience in Africa / Cameroon differs
be done in this direction. from our audience in other parts of the world
in that: the vast majority of customers here
• interact with retailers and make their want to touch the goods ordered before
paying. This explains the fact that the bulk
(79.33%) of e-commerce transactions, the
payment is made in cash on delivery.

Customers prefer products imported from
Europe because here it is a luxury here to
buy items from Europe and those from Asia
are catalogued as products of bad qualities.

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Zodes Tawin Which areas do you feel could be • Administrative delays Interview
improved upon to help in • The almost inexistent internet connection
President, developing/growing the ecommerce Africanews.com states that “the lack of
Cameroon Federation of market? in the bottom of the country reliability of system of payment and
• Insecurity (deliverymen who transport further risks of fraudulent transactions”
E-commerce • Access to a more reliable internet are the main barriers when it comes to
connection valuable goods and cash) Cameroonians buying online*. Is this
African Entrepreneur of Cameroonian origin. • The difficult access in the remote areas something you agree with?
He created in June 2011 a structure named • Respect of delivery times
KEVINO COMPUTER SERVICES, specialized • The diversification of payment methods for the deliveries of the customers all this I fully agree with these statements.
in IT Maintenance he resold in 2014, he is • monitoring the quality of products due to the insufficiency of the routes According to our analysis based on our
since 2016 CEO & Founder of ZORICAM. current market research, the solutions to
Current Project Manager of the African Fair of delivered to consumers For Cameroonian ecommerce in these problems could be:
e-commerce, Project Manager of the National • Ensure satisfaction by efficiently particular, what aspects are most
Forum of Entrepreneurship. He was also important in retaining customers? • Diversification and reliability of payment
responsible for the communication unit for the managing customer returns for: methods
Christmas Fair (2017 edition). nonconformity of merchandise; color, size • Ensure a good customer service for the
or different characteristics compared to follow-up of the orders in time • The establishment of a regulatory
those presented on the website institution of the sector to highlight the
• Improve customer services and/or after • Develop a quality after-sales service marks of trust and list the impostors. (The
sales services • to control the quality of the products Cameroonian Federation of e-commerce
is trying to remedy this failure, studies are
What are the biggest opportunities and/or delivered to the customers underway in this area. meaning)
threats in the current ecommerce • Ensure the respect of delivery times
market? • The organization of events to allow
meetings between e-merchants,
In the current market, we do not find an consumers and other stakeholders to
operator who innovates every day in terms of create a climate of trust
quality products and services, hence the
constantly recurring complaints from “... ensure a good customer
consumers. This is a boon for any serious service for the follow-up of the
operator who wants to settle. Threats in the
current e-commerce market are: orders in time.”

• The approximate quality of the current
sales sites

*http://www.africanews.com/2016/05/17/development-of-e-commerce-in-cameroon
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Zodes Tawin Looking at different factors in a Trust in store Interview
consumer’s decision to buy, which play For the purchase, many consumers are
President, the most important role for your trying to change buying habits for the simple What impact do you feel trustmarks have
Cameroon Federation of consumer base? reason that they need to be reassured that on African/Cameroonian consumers
the items they order online will be the same when shopping online.
E-commerce Delivery speed that will be delivered.
This is a key factor in building customer Trust brands have a very positive impact
African Entrepreneur of Cameroonian origin. loyalty. As a result of our successful Website design on African/Cameroonian consumers. One of
He created in June 2011 a structure named consumer studies, we have been able to As for the websites, let's start with the the factors hindering the evolution of e-
KEVINO COMPUTER SERVICES, specialized identify a large number of complaints in this inventory of fixtures. In Central Africa at the commerce is the lack of trust. Consumers
in IT Maintenance he resold in 2014, he is direction, including the failure to meet moment, online sales sites for the most part are becoming more and
since 2016 CEO & Founder of ZORICAM. delivery deadlines. are not very dynamic sites, we just notice an trust. Consumers are becoming more and
Current Project Manager of the African Fair of operator that stands out in this sense it is more reluctant to shop online because they
e-commerce, Project Manager of the National Delivery methods particularly Jumia who has a website that s are wary of scams and looking for reputable
Forum of Entrepreneurship. He was also The most common modes of delivery with us approach to the international standard. sales sites. Hence the prominence of the
responsible for the communication unit for the are: home delivery, removal of the parcel at a labels of trust on the Cameroonian/African
Christmas Fair (2017 edition). relay point or agency. Product description market.
On this point, we have also been given to
Payment methods note the shortcomings; The actual Buea is known as the “Silicon Mountain”
In the case of Cameroon and Gabon, the characteristics of the products are not in Cameroon*. Do you see the potential
payment methods are as follows: always those stated. for young entrepreneurs pushing forward
the ecommerce sector?
• Cash payment on delivery (79.33%) Pictures
• Payment by electronic money (18.2%) Very often, the pictures published on the Young entrepreneurs can advance the e-
• Payment by credit card (2.47%) sites of sales are different from the articles commerce sector by creating advocacy
delivered to the customers and this strategies with the public authorities,
The price constitutes a real problem because this kind developing concepts to engage customers,
The question of price is a relative question of attitudes contributes to install a feeling of placing the customer at the center of the
since it may vary depending on the quality of doubt in the head of the consumers and interests, ensuring technology watch in sight
the products. Always is the margin between consequently, this all hinders the e- and finding customer loyalty means.
the product sold in stores and the price of commerce development.
online sale should not be large.

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 195.87 million • Internet penetration: 70%
• VAT: Naira
• Unemployment: 5% • % of e-Shoppers: 72%
13.40%
• E-GDP: 0.75% Full version available at
www.ecommercefoundation.org/reports
• % bought cross-border: 61%

Ecommerce Environment: Payment Methods 2017 Age Structure 2018
• 26% of the population bought something online via phone in the past month as used 43% 0-14 42.54%
27% 15-24 19.61%
of 3rd quarter 2017. Direct payment to 25-54 30.74%
• The reason pay on delivery or cash on delivery has become the most preferred seller’s account

method of payment is because it enables buyers to examine the item they Prepaid/debit card

receive before paying for it. If the item is good, the customer pays for it. If the

item is not the same thing seen on the website, the customer can reject the item

on delivery.
• The number of mobile phone users in Nigeria is continuously increasing. A

recent report by Twinpine describes Nigeria as officially the most “mobilized”
country in Africa – with 76% all internet traffic in Nigeria coming through mobile

devices.
• Black Friday is ecommerce’s biggest shopping day of the year.

Average spending per e-shopper 2016 2017 2018 Credit card 18% 54-64 3.98%

U.S. dollar spending/shopper $15.61 $23.20 $30.53 Other 10% 65+ 3.13%

Source(s): Jumia.com; Statcounter; CIA World Factbook; PayPal; Ipsos; guardian.ng; webcoupers.com; qz.com, 2018

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South Africa Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 57.4 million • Internet penetration: 65%
• VAT: S.A. Rand
• Unemployment: 15% • % of e-Shoppers: 57%
27.60%
• E-GDP: 0.91% Full version available at
www.ecommercefoundation.org/reports
• % bought cross-border: 50%

Ecommerce Environment:

• 18% of online consumers bought something online via phone in the past month as of 3rd

quarter 2017.
• South Africans spend mostly in the fast food category of online shopping, while groceries

are still purchased with greater frequency in-store than online. Research also shows that

cross-border online spending is increasingly common.

Average spending per e-shopper 2015 2016 2017 2018 Payment Method Top International Webshops
$143 $157 Preference Gumtree.co.za
U.S. dollar spending/shopper $78 $130 2017 Takealot.com
Credit card Amazon.com
Top 5 import countries (billions of USD): Debit card 45% Makro.co.za
Bank transfer 21% Bidorbuy.co.za
$15.5 $7.03 $5.47 Other 20%
PayPal 8% Cross-border Ecommerce
Source(s): SimilarWeb; PayPal; Ipsos; Statista; eShopWorld.com; Fin24.com; CIA World Factbook; Statcounter, 2018 7% Shop Domestically Only 2018
Shop Domestically & Cross-border 38%
Shop Cross-border only 50%
12%

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 99.38 million • Internet penetration: 48%
• VAT:
• Unemployment: Egyptian Pound • % of e-Shoppers: 22%

14% • E-GDP: 2.10% Full version available at
www.ecommercefoundation.org/reports
11.90% • % using mobile online: 46%

Ecommerce Environment: Top International Webshops Payment Methods Used 2018
• Payment card penetration is low, with only around 10 million credit or debit card Souq.com Cash 72%
Olx.com.eg Card 22%
holders in the country, representing a little more than 10% of the population. Roughly Jumia.com.eg Bank Transfer 2%

80% of ecommerce purchases are still paid for by COD.
• Important local payment methods: Bee Card; Fawry; Onecard; JumiaPay; Orange

Money.
• An –government initiative has been implemented to increase government efficiency,

reduce service-provision time, establish new service-delivery models, reduce

government expenses and encourage e-procurement. In 2009, the government

implemented the e-signature service, allowing public and private companies to offer e-

signature authentication.
• 38% of consumers paid for purchases while shopping online on smartphone in 2017,

and 14% of the population bought something online via phone in the past month as of
3rd quarter 2017.

Average spending per e-shopper 2016 2017 2018 Mawdoo3.com Other 3%

U.S. dollar spending/shopper $963.35 $555.87 $479.48 Amazon.com eWallet 1%

Source(s): PayPal; Ipsos; Statista; export.gov; PPRO; Payza; Statcounter; SimilarWeb, 2018

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Algeria Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 42 million • Internet penetration: 46.5%
• VAT: Dinar
• Unemployment: 19% • % Using Social Media: 39%
11.70%
• % using mobile online: 51.2%

• % of e-Shoppers (2017): 13%

Ecommerce Environment: Social Media Usage 2018 B2C Ecommerce 2017
• Under current law, Algerian citizens may not purchase items online from abroad. Facebook 42.11% Figures USD $5 billion
YouTube 51.45%
Businesses, however, may purchase items online from abroad for internal use. Pinterest 2.96% Market potential
American businesspeople interested in online sales should note that the use of private Twitter 2.64%
credit cares is extremely limited in Algeria. Only recently have Algerians gained the Instagram eShoppers 2,450,000
use of international credit cards (e.g. Mastercard and Visa) issued by some local .37% Kaymu
banks and accepted for use abroad. Top ecommerce 20%
• The Algerian Parliament passed a law in February 2018 establishing the country’s first website 2-day
regulation on ecommerce. As such, online marketplaces will have to host their Share of returns of
websites in Algeria and need to be listed in the country’s commercial register. The law online purchases
bans all online purchase of tobacco and alcoholic beverages as well as
pharmaceutical products and online betting and gambling services. The government Common delivery time
has recently declared that they do not intent to open their e-market to foreign
companies in order to preserve national economy and sovereignty.
• Algérie Poste (Algerian National Postal Services) is set to introduce an electronic
wallet in 2018 to facilitate online purchases, which should further boost ecommerce.
• Currently, cash on delivery is the preferred payment method among Algerians, as in
most countries in the Arab world and Northern Africa.

Source(s): Export.gov; Statcounter; Wamda.com; Santander Trade Portal; CIA World Factbook, 2018

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Morocco Ecommerce Sales 2013 – 2018(f) (millions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 36.19 million • Internet penetration: 65.5%
• VAT: Dirham
• Unemployment: 20% • % of e-Shoppers (2016): 12%
10%
• E-GDP: 2.7% Full version available at
www.ecommercefoundation.org/reports
• % using mobile online : 43.3%

Ecommerce Environment:

• In 2014, there were 2,419 retail websites, up from 1,320 in 2013, a growth of nearly 100%.
The retail websites were composed of SMBs (50%), very small businesses (14%),

associations (6%) and governments (20%). Purchases mainly concern services (49%),

consumer goods (34%), tourism (11%), and public services (5%).

Which of these items have you bought online in the 2017 Which of these statements on online shopping 2017
past 12 months? do you agree with? 57%
55%
Clothing 39% When I plan a major purchase, I always do some 54% Which of these types of online 2017 Top International Payment Method 2017
Consumer electronics research on the internet first. 46% shops have you bought Webshops Preference/Use 50%
Shoes 36% something from in the past 12 41% Cash on delivery 43%
Cosmetics & body care 38% 33% months? 32% Avito.ma Credit card 33%
24% Aliexpress.com Online payment
I want to see an item before I buy it. 18% Online Marketplace 21% Jumia.ma (PayPal, etc.) 13%
29% 14% eBay.com
Multi-brand platform 12% Amazon.com None of the above 12%
Customer reviews on the internet are very helpful. 23% 10%
19% Online boutique Prepaid 8%
cards/vouchers 8%
Bags & accessories 17% I prefer to use my smartphone or tablet to research Mono-brand stores Direct debit
Books/movies/music & games on products and make major new purchases. Cash in advance
Household appliances Mass merchants Invoice
Sports & outdoor 14%
Furniture & household goods Members-only store
Toys & baby products 14% I prefer express shipping.
None of the above
11% When I buy an item, I want to hold it in my hand the
same day.

8%
I usually manage habitual orders directly via

7% smartphone or tablet.

Source(s): CMI; Ipemed; Statista; A.T. Kearney; PayPal; Ipsos; Statcounter, 2018

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Kenya Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures:

• Population: 51 million • Internet penetration: 82.6%

• Currency: Kenyan Shilling • % of e-Shoppers: 60%

• VAT: 16% • E-GDP (2014): 0.08%

• B2C Ecom. Sales (2014): $47.5 million • % using mobile online : 75.5%

Ecommerce Environment: Social Media Usage 2018 Ecommerce Internet E-shopper
• Kenya National Chamber of Commerce (KNCCI) has agreed on a deal with Facebook Infrastructure Penetration Penetration
Pinterest
Chinese ecommerce service Amanbo. The main idea is to cut off the middlemen Twitter 68.14% 2015 21.2% 18%
and reduce the logistics costs that arise from exports and imports. According to YouTube
the agreement KNCCI will verify the quality and standards for Kenyans that are 15.25% 2016 28.7% 45%
interested in selling their products on the Chinese market. This will offer the local 8.35% 2017 60% 50%
traders larger options with more competitive prices. Cutting out the middlemen 5.56% 2018(f) 82.6% 60%
will also reduce risks of buying low quality goods in the trade process. 1.43%
• Kenya is home to M-Pesa, the mobile wallet provider started by mobile telecom
provider, Safaricom. The availability of a secure payment system encourages
Internet access and online buying. More than 45% of Kenyan adults use M-Pesa
according to Emergent Payments. Safaricom also recently established a
partnership with PayPal to enable Kenyan customers to easily transfer money
between PayPal and M-Pesa mobile wallets. This collaboration will open global
marketplaces to Kenyan entrepreneurs and businesses that wish to sell abroad.

Instagram

Source(s): PracticalEcommerce.com; Prisync.com; Statcounter; UNCTAD; EcommerceGuid.com; export.gov, 2018

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Ghana Ecommerce Sales 2013 – 2018(f) (millions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 29.46 million • Internet penetration: 45%
• VAT:
• % Facebook users: Ghanaian Cedi • % of e-Shoppers (2015): 8%

15% • E-GDP: 0.08% Full version available at
www.ecommercefoundation.org/reports
79.73% • % using mobile online : 75%

Ecommerce Environment: Social Media Usage 2018 Population Age 2018
Facebook 79.73% Structure 38%
• Ghana has a website dedicated specifically to ecommerce for SMEs: Twitter 18.63%
https://www.gepaghana.org/guide-to-export/e-commerce-for-smes/ Pinterest 0-14 34.14%
YouTube 4.97%
• Payment providers and platforms: Instagram 7.93% 15-24 4.25%
• In 2009, MTN Ghana was the first telecoms company to introduce a mobile payment 5.51% 25-54
system to help drive a ‘cash-lite’ economy. The service has approximately 10.2 million 3.74% 55-64
customers with more than 60,000 merchant outlets nationwide and 422 ATMs activated
for cash withdrawals (as of 2016). In 2016, the business recorded 485 million 0.52% 65+
transactions.
• Vodafone launched mobile money services in 2015. The mobile money platform was built

on the back of M-Pesa (Kenyan mobile wallet provider), and is currently available on
USSD and through third-party aggregators. It has 2 million registered subscribers, of with
85% are active.
• Airtel Money’s flagship mobile money product in Ghana has evolved to augment
traditional peer-to-peer transactions with complementary services such as bank account

linking, bill payments, merchant payments and international remittance. Subscribers are
able to send monies to friends and family in remote areas of the country to any network,
given national interoperability. The company also runs a payments aggregator (Zeepay),
which helps reduce the cost of receiving funds from abroad. Both products help improve
financial inclusion and participation in the formal economic sectors.

Source(s): gepaghana.org; GSM Association; Statcounter; CIA World Factbook, 2018

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Tanzania Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures:

• Population: 59.1 million • Internet penetration: 29%

• Currency: Tanzan. Shilling• % of e-Shoppers (2015): 19%

• VAT: 20% • E-GDP (2016): 0.05%

• B2C Ecom. Sales (2016): $22.86 million • % using mobile online : 75%

Ecommerce Environment: Social Media Usage 2018 Population Age 2018
• The launch of mobile payments, locally known as M-Pesa is pushing ecommerce Facebook 64.04% Structure 43.74%
Pinterest 13.32% 0-14 19.86%
mainstream. Not many Tanzanians have credit cards or a PayPal account, but YouTube 29.88%
almost every Tanzanian has an M-Pesa account or access to it. Twitter 15-24 3.51%
• Now, any business that wants to take payments directly online needs to simply Instagram 3.02%
build a website and integrate it with an M-Pesa provider from Tanzania. Easier 12.35% 25-54
payment management through M-Pesa solved one of the biggest hindrances of its
mainstream acceptance: convenience. Furthermore, Tanzania was the first country 5.84% 55-64
in the world to achieve full interoperability of mobile money payment providers.
• With over 44% of adults having access to M-Pesa and ability of users of different 3.41% 65+
mobile money services to transact directly with each other, ecommerce is a one of
the major beneficiaries.
• There are platforms that offer businesses solutions to advertise and promote
products online. These include ecommerce and online marketplaces like
ZoomTanzania, which features products ranging from fashion items, electronics, to
agricultural equipment from different sellers, be it individuals, small businesses or
big brands.

Source(s): lordeys.com; Statista; Statcounter; CIA World Factbook; ZoomTanzania, 2018

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Tunisia Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 11.7 million • Internet penetration: 61%
• VAT:
• Unemployment: Tunisian Dinar • % of e-Shoppers (2015): 2%

18% • E-GDP: 0.16%

16% • B2C Ecom. Sales (2017): $63 mill.

Ecommerce Environment: • There are around 1,423 ecommerce websites and the number of e-
• payment transactions was estimated at 2.4 million transactions during the
• Cash on delivery is the most common payment method in Tunisia (70%). past year. Domestic retailers dominate the ecommerce market, comprising
• Most Tunisian banks allow account holders to use bank-affiliated credit and debit cards to make 79% of all online transactions.
According to an IPSOS survey, the primary reason for Tunisian Internet
domestic online purchases denominated in dinars. The Tunisian dinar is a non-convertible currency, users who do not shop online is the lack of trust in online payment (71% as
however, so online purchases in foreign currency are now allowed, and few Tunisians make cross- opposed to the world average of 49%).
border purchases via ecommerce. In recognition of this limitation, the Ministry of Communication,
Technology and Digital Economy launched a Digital technology Charge Card in May 2015 for 83.4% 13.8% 1.3%
Tunisians with college degrees, which allows these card holders to make online purchases of
software, mobile applications, web services, and publications in support of entrepreneurial activities.
As of May 2017, the Ministry recorded approximately 8,500 active users of this program, with 70% of
user identified as individual college graduates and 30% identified as IT enterprises.
• Due to the general lack of credit cards and online payment systems, Tunisia’s domestic ecommerce
markets are underdeveloped. Most Tunisian banks offer account holders bank-affiliated credit and
debit cards which can be used on domestic websites only. General purpose ecommerce retail sites
similar to Amazon do not exist in Tunisia, but rather individual retailers and service providers offer
their own online checkout systems tailored to Tunisian credit and debit cards. According to media,
the Central Bank generally opposes allowing other online payment systems, which it views as a
threatening capital flight route from the country. The lack of government support for cross-border
flows in ecommerce also retards further development of the domestic ecommerce market.

Source(s): IPSOS; Statcounter; Lloyds Bank Trade, 2018

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Africa: Summary and Expert Thoughts

✓ Examples of leading ecommerce sites in the region Zodes Tawin “…the vast majority of customers here
1. Souq President, [Africa] want to touch the goods ordered
2. Avito before paying. This explains the fact that
3. Gumtree Cameroon Federation of
E-commerce the bulk (79.33%) of e-commerce
✓ Top Payment Method transactions, the payment is made in
Africa is a predominantly mobile commerce region Kevin Cochrane
market. Therefore mobile-payments are to core to cash on delivery.”
succeeding in the region. Chief Marketing Officer,
SAP Customer Experience Read the full interview on page 108
✓ Top 3 countries ranked by B2C Turnover
1. Egypt 120 “Ecommerce is about instant access
2. South Africa www.ecommercefoundation.org anywhere and anytime, and increasingly
3. Nigeria
using any connected device.”
✓ Top ecommerce import destinations
• China Read the full interview on page 145
• Germany
• United States

Source: PracticalEcommerce, 2018

Asia & Oceania

China
India
Indonesia
Japan
Malaysia
South Korea
Vietnam
Australia

Asia & Oceania population* growing (billions)

3.367

3.342

3.317

3.290

3.233

3.202

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Worldometers, 2018 *China, India, Indonesia, Japan, Malaysia, South Korea, Vietnam, Australia

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25-54 age range dominates in Asia & Oceania

50%

25%

17%

10% 10%

Source: Ecommerce Foundation; CIA World Factbook, 2018 0-14 15-24 25-54 55-64 65+

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Asia & Oceania internet penetration to hit 50% in 2018

50%
47%
44%
41%

2015 2016 2017 2018

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

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Majority of Asia & Oceania using Facebook for social media

SOCIAL MEDIA USAGE: ASIA & OCEANIA

Average share of the population in Asia & Oceania using each of the different social media platforms

52.79% People throughout Asia-Pacific
continue their love affair with
17.47%
social media, with more than 40%
of the region’s total population
using at least one social media
platform. As with internet user
growth, many of the strongest

gains in social media users came
from Pacific island states, which

accounted for many of the fastest-
growing user bases.

-KSeptioas,tiDsigtiatal,in2A0si1a-P8acific in 2017, 2017

11.36% 8.78%

4.05% 1.66%

Source(s): Statcounter; Statista; 2018

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Most used devices for Internet access in Asia and Oceania

DEVICE USAGE: ASIA & OCEANIA

Share of the population using each device for Internet access

50%

Mobile broadband networks have 46%
in most countries in Asia-Pacific
overtaken fixed broadband as the Desktop 3% Mobile
main mode of Internet access, Tablet
with more than a third of the 126
region’s population going online www.ecommercefoundation.org
using mobile networks and
devices.

Internet Society, Mobile Internet Usage Trends in Asia-Pacific,2016

Source(s): Statcounter, 2018

B2C online sales to hit $884 billion in Asia & Oceania in 2018

12% 13% 12% 16% 15%
$482.3 $750.2 $882.1
Full version available at
www.ecommercefoundation.org/reports

$627.9

$551.2

$425.9

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Statista, 2018

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Asia & Oceania: Top Shopping Websites

Country Ranking of Shopping websites (# of visitors)

Australia First Second Third
India
Indonesia eBay.com.au Gumtree.com.au Amazon.com
Japan
Malaysia Amazon.in Flipkart.com Amazon.com
Vietnam
Tokopedia.com Bukalaak.com Olx.co.id

Amazon.co.jp Rakuten.co.jp Kakaku.com

Lazada.com.my Shopee.com.my Mudah.my

Shopee.vn Lazada.vn Tit.vn

Source: SimilarWeb (ranked, # of visitors)

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Roland Palmer In your opinion what key aspects of What are the biggest challenges faced Interview
Alibaba’s ecommerce strategy drives its globally regarding ecommerce (For
Managing Director Alibaba Group continued success? example for consumers, retailers, “Data-driven technology will
and stakeholders etc.)? play a key role in streamlining
Alibaba was born as an enabler, a
Head of Alipay EMEA facilitator for businesses across the world to As we see the boundaries of the offline processes and make
connect, generate synergies and thrive. The and online retail experience blurring operations more efficient, and
Roland Palmer joined Alibaba in March 2016 centrality of the consumer is top of mind for furthermore, until disappearing completely, at the same time maintaining
and is responsible for managing the markets in us and greatly impacts on the way we the real challenge for businesses and
Netherlands and Belgium. Before starting at strategize and operate. No matter the nature companies will be to find the right blend of a cohesive omnichannel
Alibaba, Palmer spent six years in non-food of our investment, we always put our personalised service, relevant branding and shopping experience for
retail, the last four as CEO of Blokker Holding. customers first, striving to find innovative products to catch the attention of tomorrow’s
ways to make the life of our consumers, consumers. An additional challenge is how customers at every
Before his career in retail, Roland worked at merchants and partners easier and to manage this growth in a sustainable touchpoint.”
Bain & Company consultants as well as at ultimately improve their experience within manner.
Coca-Cola and at Unilever. Roland has an our ecosystem.
MBA from IMD in Switzerland and graduated What is your vision of the physical store
from Oxford University in England. Consumer expectations around the in relation to Ecommerce? Will trends
ecommerce experience are growing, such as ‘showrooming’ grow? Or do you
whether that be shopping experiences believe that this relationship for the
across devices or the delivery options consumer fundamentally change in the
offered to them. How can the ecommerce future?
ecosystem continue to drive this forward
without damaging their margins? We’re going through a very exciting time,
which sees the radical and rapid
Data-driven technology will play a key transformation of the retail industry
role in streamlining processes and make worldwide, but China’s dynamic and unique
operations more efficient, and at the same ecommerce market offers a glimpse into how
time maintaining a cohesive omnichannel the future of commerce might look like,
shopping experience for customers at every globally. This is driven, among other factors,
touchpoint. This no doubt will be one of the by the surge of a new consumer type:
main future challenges for ecommerce younger, internationally oriented, tech-savvy
players as they strengthen their investment and mobile-driven, and seeking high quality,
in R&D and technologies. original foreign products.

129
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Roland Palmer Alibaba Group has been a pioneer in this logistics and data across a single value Interview
sense, and since 2015 we have been chain, coupled with social media, interactive
Managing Director Alibaba Group responding to the changing retail world by content and entertainment on one platform. “New Retail sees ecommerce
and blending the online and offline spheres to and physical retail work
create seamless brand and customer This changing landscape has made it
Head of Alipay EMEA experience. This is the strategy we have necessary for brands to rethink their together with the ultimate aim
introduced as “New Retail”. strategies to engage with their consumers, of creating deeper brand
Roland Palmer joined Alibaba in March 2016 with data technology representing a crucial engagement and better
and is responsible for managing the markets in New Retail sees ecommerce and physical part of the equation. There are already shopping experiences for
Netherlands and Belgium. Before starting at retail work together with the ultimate aim of thousands of European and international consumers.”
Alibaba, Palmer spent six years in non-food creating deeper brand engagement and companies on our platforms that are
retail, the last four as CEO of Blokker Holding. better shopping experiences for consumers. successfully implementing their New Retail AR and VR are the big buzzwords in
strategy. Ultimately, we believe this will result ecommerce right now. What
Before his career in retail, Roland worked at In China, ecommerce currently accounts in better consumer experience and greater regions/countries do you believe will
Bain & Company consultants as well as at for approximately 18% of total retail and profits for the retailer. embrace this technology first?
Coca-Cola and at Unilever. Roland has an through New Retail we want to bring our
MBA from IMD in Switzerland and graduated data and technological capability to work New Alibaba is already using these techniques
from Oxford University in England. with and digitally transform the remaining Retail in China and in general, we see the country
82% of retail that is offline. This isn’t to get paving the way and successfully applying
into the bricks-and-mortar retail business, this technology in everyday life, including
but rather to empower bricks-and-mortar shopping.
operators to restructure and enhance their
operations, including customer experience, One of the ways in which we bring New
inventory management, logistics and retail Retail to life is through new innovative
spaces, to enable them to succeed in the technologies, some of which were
digital era. showcased at last year’s 11.11 Global

New Retail is completely redefining
commerce in China and it is a game-changer
for Alibaba and retail in the country. We are
anticipating a reimagined retail industry
driven by the integration of offline, online,
logistics

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Roland Palmer showcased at last year’s 11.11 Global • “Mobile-only”: China skipped the laptop Interview
Shopping Festival. These range from era altogether, with users moving from
Managing Director Alibaba Group augmented and virtual reality applications to zero to being constantly online and “Alibaba has its roots in China
and facial recognition and scan-and-deliver. For connected via their mobile devices. This but was created for the world.
example, we launched an augmented reality- massively influences the way they interact Every market we operate in is
Head of Alipay EMEA powered ‘magic mirror’ experience, where with retailers and make their purchases.
consumers were able to test different types There is only one truly mobile-centric different from the others…”
Roland Palmer joined Alibaba in March 2016 of make-up on screen. From the same nation: China. Chinese consumers
and is responsible for managing the markets in touchscreen, consumers could immediately account for 1.1 billion mobile internet
Netherlands and Belgium. Before starting at order products from the likes of Maybelline subscriptions – more than 2.5 times those
Alibaba, Palmer spent six years in non-food and L’Oréal and have them delivered. in the US, the next largest market. In fact,
retail, the last four as CEO of Blokker Holding. Chinese consumers were the first to make
Alibaba’s roots are in China. What more purchases through their mobile
Before his career in retail, Roland worked at lessons have you learnt that you have phones than with computers back in 2015.
Bain & Company consultants as well as at been able to successfully transfer to
Coca-Cola and at Unilever. Roland has an other markets? • Integration between online and offline,
MBA from IMD in Switzerland and graduated which work together as part of the same
from Oxford University in England. Alibaba has its roots in China but was continuum. Thanks to the massive
created for the world. Every market we adoption of mobile technology, consumers
operate in is different from the others so don’t make distinctions between different
instead of talking about strategies that can channels but they are comfortable moving
be “exported” elsewhere, it makes more from an online to an offline environment
sense to highlight a number of lessons that without even thinking about that. What
Western brands and businesses operating really counts is the experience, rather
on our platforms can learn from China and than the channel.
the local consumer context. In particular,
businesses and brands should consider the • As opposed to their Western peers who
following: mainly look for convenience, Chinese
make the shopping experience a “social”
• Speed and innovation: many Chinese and entertaining moment they can share
companies today are moving at a fast within their social network.
pace and are often very innovative at the
same time.

• interact with retailers and make their

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China Ecommerce Sales 2016 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 1.42 billion • Internet penetration: 55.7%
• VAT:
• Unemployment: Renminbi/Yuan • % of e-Shoppers: 73.7%

17% • E-GDP: 4.5% Full version available at
www.ecommercefoundation.org/reports
4% • % bought cross-border: 58%

Ecommerce Environment: Payment Methods Used 2017 Favorite free delivery services 2018
Online payments (PayPal, Same day delivery 34%
• Ecommerce as share of total retail turnover: 23.80% in 2017 and an expected 28.60% in 2018. Amazon payments, etc.) 80% Free return shipping 24%
• 39% of the population bought something via phone in the past month as of 3rd quarter 2017. Credit card Delivery at a specific time slot 19%
• More than three-quarters (76%) of all ecommerce in China occurs via mobile devices and Cash on delivery 53% Package tracking 13%
Direct debit 33% In-store pick-up 2.7%
mobile payments remain the most popular choice for online purchases with 80% of metro Prepaid cards/vouchers 24% Cross-border Ecommerce 2018
Chinese shoppers using Alipay and 66% using Tencent’s WeChatPay to pay for a product or Cash in advance 24% Shop Domestically Only 57%
Invoice 22% Shop Domestically & Cross-border 35%
service in the last three months. Other/none of the above 8% Shop Cross-border only 7%
• Internet giants Alibaba and JD.com continue to dominate the local market, together accounting 4%

for more than 85% of China’s ecommerce market.
• Pinduoduo is now the 3rd ecommerce platform in China. The number of products available on

the platform now exceeds 300,000 and the number of users exceeds 100 million.

Top 5 import countries (billions of USD):

$285 $124 $115 $113 $85.4

Source(s): Statista; eMarkerter; Inside Retail Hong Kong; PayPal; Ipsos; PwC; The Drum; MarketingtoChina.com; eShopWorld, 2018

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India Ecommerce Sales 2016 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 1.35 billion • Internet penetration: 40%
• VAT: Indian Rupee
• Unemployment: 18% • % of e-Shoppers: 48%
8.80%
• E-GDP: .90% Full version available at
www.ecommercefoundation.org/reports
• % bought cross-border: 74%

Ecommerce Environment: Best selling ecommerce Preferred Payment Method 2015
retailers/marketplaces, 2017 Cash on delivery 57%
• The top reasons Indian consumers buy online (consumer response survey): Convenience Flipkart.com Debit card 15%
Infibeam.com Credit card 11%
(40%), discounts and cheaper prices (61%), multiple product options, multiple payment modes, eBay.in Online banking 9%
Shopping.indiatimes.com M-wallet 8%
good return policies, preferred brand availability, timely delivery. Shopping.rediff.com
• Targeted media is needed for effective communication – online retailers must customize Futurebazaar.com
Homeshop18.com
communication and promotion strategies to fit targeted consumers’ patterns. These are the top 5 Yebhi.com

influential modes of communication/promotion: Television, family & friends, promotions & offers,

social media, other (e.g., email, SMS).
• 74% of consumers below the age of 21 said that social media influences their buying decisions.
• 20% of consumers bought something online via phone in the past month as of 3rd quarter 2017.

Top 5 import countries (billions of USD):

$40.4 $30.3 $12.2 $9.5 $8.9

Source(s): Statista; EY; eShopWorld; Internet World Stats; eMarketer; A.T. Kearney; GfK; Google; PayPal; Ipsos, 2018

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 266.8 million • Internet penetration: 35%
• VAT: Rupiah
• Unemployment: 10% • % of e-Shoppers: 12%
5.60%
• E-GDP: .82% Full version available at
www.ecommercefoundation.org/reports
• % using mobile online: 62.6%

Ecommerce Environment: Best selling ecommerce Preferred platforms for online transactions 2015
retailers/marketplaces, 2017
• 31% of the population bought something online via phone in the past month as of 3rd Lazada OLX 18.5%
quarter 2017. Bilbli Other 17.5%
Elevenia Tokopedia 14%
• In response to the fractured payments system in Indonesia, most direct sales sites push Shopee ID Lazada 14%
customers towards bayar-di-tempat (cash on delivery), both as a mechanism to enable Blanja Berniaga 12%
the 40% of Indonesians without bank accounts to shop online and improve online JD.id Bukalapak 11%
conversion rates. MatahariMall Zalora
Elevenia 7%
• Bank transfers remain the second highest payment method, either facilitated through Amazon 4%
online bank portals or via automated teller machine, with credit card transactions hovering 2%
around 10% due to low penetration rates.

Top 5 import countries (billions of USD):

$32.1 $25.8 $11.3 $6.67 $6.61

Source(s): Statista; Bain & Company; eShopWorld; Australia Unlimited; Australian Government Austrade, 2018

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

Introduction: Ecommerce Facts & Figures:

• Population: 127 million • Internet penetration: 95.3%

• Currency: Yen • % of e-Shoppers: 12%

• VAT: 8% • E-GDP: 2.45% Full version available at
• Unemployment: 2.90% • % using mobile online: 34.64% www.ecommercefoundation.org/reports

Ecommerce Environment:

• 24% of consumers bought something online via phone in the past month as of 3rd quarter 2017.

• One online purchasing trend that cannot be ignored is the rapid increase in ‘M-commerce’ –

mobile ecommerce transactions. Nearly 60% of all online transactions take place on mobile

platforms. Popular ecommerce platforms such as Amazon Japan, Rakuten, and Zozo have

readily available applications to facilitate mobile commerce setup.

• Japan has several ecommerce payment options. Credit card and debit card payments account

for 66% of payments for ecommerce transactions. A variety of other ‘eWallet’ and electronic Ecommerce Market Spending Best selling online retailers &
payment options are also popular. In addition, cash payments for online purchases are accepted Trends marketplaces, 2017

at convenience stores (konbini). About 17% of such payments are made in cash at konbini after (share of total ecommerce expenditure) Rakuten
Amazon Japan
products are delivered, a popular option for many teens without bank accounts or credit cards. Sale of goods (clothing) 52.1%

Service (travel, food & beverage) 35.4% Apple

Top 5 import countries (billions of USD): $30.7 $25.5 $21 Digital (online gaming, eBooks) 11.7% Yahoo! Japan Shopping
Device Use: Online 2018 Cross-border Ecommerce
$152 $63.5 2018

Source(s): Statista; eMarketer; Expert(s) (Chandler Nguyen); PayPal; Ipsos; Statcounter; Export.gov, 2018 Desktop/laptop 60.6% Shop Domestically Only 94%
Tablet 4.77% 5%
Mobile 34.64% Shop Domestically & Cross- 1%
border

Shop Cross-border only

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 32 million • Internet penetration: 82%
• VAT: Ringgit
• Unemployment: 10% • % of e-Shoppers: 70%
3.40%
• E-GDP: .90% Full version available at
www.ecommercefoundation.org/reports
• % using mobile online: 52.3%

Ecommerce Environment: Payment Method 2017 Best selling online retailers/marketplaces 2017
• 40% of consumers who bought something online did so via phone in the past Preference/Use Lazada
55% 11street
month as of 3rd quarter 2017. Credit Card 28% Zalora
• In 2016, the Malaysian Ministry of International Trade and Industry (MITI) launched Bank Transfer 5% Shopee
eWallet 4%
a new ecommerce initiative with the goal to bring roughly 80% of small- and Cash on delivery 3% Favorite overseas online shopping destinations
medium-sized enterprises into the world of ecommerce and to expand market Debit card Singapore
access for more than 87 million digital customers in the ASEAN region. Japan
• The Malaysian government has pledged to not censor the Internet, which bodes The United States
well for retailers looking to sell to Malaysian consumers from across the border. South Korea
• Popular cross-border online shopping categories include: daily supplies (39%),
fashion & accessories (23%), special/rare items (20%), home appliances (7%),
consumer electronics (7%) and food and health items (4%).
• Current challenges for the ecommerce industry include a lack of understanding,
limitations of competent personnel to conduct ecommerce activities, fear of cyber
security threats, lack of digital marketing skills, limited production capacity, high
fulfilment in logistics cost, lack of knowledge regarding market access and
regulations in cross-border ecommerce.

Source(s): eShopWorld; Statista; We Are Social; Statcounter; ecommerceiq.com; PayPal; Ipsos; export.gov, 2018

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South Korea Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 51.16 million • Internet penetration: 96.7%
• VAT: Won
• Unemployment: 10% • % of e-Shoppers: 63%
3.70%
• E-GDP: 4.86% Full version available at
www.ecommercefoundation.org/reports
• % using mobile online: 55.14%

Ecommerce Environment: Popular Shopping Holidays Most popular foreign sourced 2017
• Online purchases from foreign retailers have been rapidly increasing because Koreans Chu-seok (15th day of 8th lunar month) products from online retailers
Seollal (Lunar New Year’s Day) 16%
find less expensive prices on overseas websites even after adding in international Parents’ Day (May 8) Dietary supplements 14%
Children’s Day (May 5) Cosmetics 13%
shipping fees and import duties. Cross-border ecommerce has reached $2 billion in Food 12%
Social Media Usage 2018 Apparel 8%
2017. Facebook 19.26% Footwear 7%
• Under the KORUS FTA, express courier service mailed goods under $200 are duty Twitter 68.41% Electronics
YouTube
free when sourced from the U.S., and ‘made in the USA’ items under $1,000 are Pinterest 9%
2%
exempt from KORUS FTA documentation.
• The preferred payment method for PC and mobile shoppers is by credit card. The next

preferred method is by credit card and account transfer (for both internet and mobile

banking service).
• Mobile ecommerce is the main driver of the explosive ecommerce growth. While

online shopping grew by 19.2% in 2017, mobile ecommerce increased by 34.6%.

Purchases from mobile platforms make up 61.1% of the total market value.
• Ecommerce in Korea accounted for 10% of all retail sales in 2017.
• Many South Korean ecommerce companies offer same-day deliveries so international

merchants must offer better prices to compete. Studies indicate that South Korean

customers tend to accept a longer delivery time if it means getting a better price.

Source(s): Statistics Korea; export.gov; eShopWorld; SeoulSpace.com; Payza.eu; Statcounter, 2018

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 96.49 million • Internet penetration: 57.2%
• VAT: Dong
• Unemployment: 10% • % of e-Shoppers: 53%
2.20%
• E-GDP: 1.14% Full version available at
www.ecommercefoundation.org/reports
• # of B2C online shops: 505,000

Ecommerce Environment:

• 58% of consumers who bought something online did so via phone in the past month as of the 3rd

quarter 2017.
• At 82%, Vietnam has the highest number of merchants offering cash-on-delivery. Up to 60% of

merchants use self-delivery or hire shippers to handle cash-on-delivery payments instead of using

third-party logistics. Some downsides to CoD are high operation costs, late deliveries, and slow

transactions. 2018 Most popular online product
• Vietnamese merchants also offer more secure payment methods to consumers, such as bank Device Use: Online 43.8% categories

transfer (88% offer this method). However, Vietnam has the least number of merchants in Desktop/laptop 1% Tech & electronic equipment 2018
Southeast Asia offering credit card payment (67% offering method) due to low banking 55.1% Travel
Furniture & appliances $841 mill.
penetration (in 2016, only 15% of bank card users made an online purchase). Tablet 2015 Toys & hobbies $541 mill.
Fashion & beauty $368 mill.
• Price is the top concern for consumers when it comes to online shopping behavior, followed by Mobile 91% $86.3 mill.
the reputation of the seller and brand. Major issues remain unchanged, including customers’ low 48% $358 mill.
20%
trust in online shopping, unpopular online payment platforms, and quality of delivery and fulfillment Most popular payment 11%
methods
services.

• Vietnamese online shoppers favor U.S. products, especially technology and electronic equipment. Cash on delivery
Due to a lack of trust in local ecommerce platforms, Vietnamese prefer buying from trusted

ecommerce sites such as Amazon and Rakuten. However, cross-border regulation/policy is Bank Transfer

unclear, therefore consumers buy goods via intermediary services such as Weshop.com.vn and Payment Card
fado.vn.

E-Wallet
Source(s): techinasia.com; Statcounter; export.gov; Statista; VECITA; MOIT (Vietnam Ministry of Industry & Trade), 2018

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 24.77 million • Internet penetration: 88%
• VAT:
• Unemployment: Australian Dollar • % of e-Shoppers: 81%

13% • E-GDP: 3% Full version available at
www.ecommercefoundation.org/reports
5.30% • % using mobile online: 35.8%

Ecommerce Environment: Most popular payment methods 2015 Popular Shopping Holidays
Credit card 31.7% Boxing Day
• Discount department stores are not part of the online landscape. Three years ago, discount retailers had Debit card 13.3% Black Friday & Cyber Monday
very little presence online. After a 50.4% surge over the past twelve months, they have finally become an PayPal 13.2% Click Frenzy

integral part of online shopping.
• Competitive landscape and expanding product range: online retailers that were once focused on a

particular product or category are expanding to offer a broader range. Catch, for example, originally offered

just one product per day but now offer over 100,000 products. While well-known players such as Amazon

and eBay continue to expand their offerings, traditional retailers are placing more of their product range

online. This has created increase visibility of their products and has compelled retailers to be more price

competitive.
• While shoppers are content with browsing on their phones, they are more reserved in making a purchase.

This is starting to change, with purchases from mobile devices growing 58% in 2017, a six-percentage

point increase from the previous year. By contrast, transactions from desktops and laptops fell 11%.

Top 5 import countries (billions of USD): $17.2 Bank Transfer 8.2% Top 3 products bought online
Cross-border Ecommerce 2018 Consumer electronics
$52 $28.7 Shop Domestically Only 39%

Shop Domestically & Cross-border 53% Clothing

Source(s): eShopWorld; Statista; Australia Post; PayPal; Ipsos; eShopWorld; Statcounter; CIA World Factbook, 2018 Shop Cross-border only 8% Books

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Asia & Oceania: Summary and Expert Thoughts

✓ Examples of leading ecommerce sites in the region Roland Palmer “…through New Retail we want to bring
1. Amazon our data and technological capability to
2. eBay Managing Director Alibaba Group
3. Rakuten and work with and digitally transform the
remaining 82% of retail that is offline.”
✓ Top Payment Methods Head of Alipay EMEA
• Cash on delivery Read the full interview on page 129
• Credit/debit card Robert Davinson
• PayPal Content Analyst, “Its [China’s] ‘New Retail’ revolution is
forging ahead and major players like
✓ Top 3 countries ranked by B2C Turnover Awin Alibaba, WeChat, JD and Tencent are
1. China 140 breaking new ground with some of their
2. Japan www.ecommercefoundation.org current ecommerce developments.”
3. South Korea
Read the full interview on page 142
✓ Top ecommerce import destinations
• United States
• United Arab Emirates
• United Kingdom

Global Ecommerce
Recommendations

Robert Davinson What are your top 3 tips for localizing to a Which sectors do you find more loyalty Interview
new market in the most efficient manner? from online customers and why?
Content Analyst “The internet’s incredible
Awin a) Speak the local language: language The rise of online consumption has ability to provide shoppers
There’s nothing more off-putting for a arguably coincided with a decline in brand with a means of comparing
Robert Davinson is a Content Analyst in new customer who, having shown loyalty from consumers. The two phenomena prices and sharing feedback
Awin’s global strategy team where he interest in your product or service, clicks are undeniably linked. The internet’s has empowered them to shift
produces whitepapers, reports and research through to your website only to be incredible ability to provide shoppers with a their spend to competing
based on the insights gleaned from across the greeted in a foreign language that they means of comparing prices and sharing
network’s thousands of advertiser and don’t understand. Localization of your feedback has empowered them to shift their brands far more easily.”
publisher partners. He also hosts the monthly site is a must for anyone attempting to spend to competing brands far more easily.
Awin Talks podcast discussing the latest digital break into a new market. And that
marketing trends and is the editor of The Awin doesn’t mean just the language but also Instead, the advertisers that have seen
Report, the annual definitive guide to the the local idioms and vernacular that will most success in retaining their customers in
global affiliate industry. help your message reach this new this new world of ecommerce appear to be
audience effectively. those with the strongest brands which
www.awin.com individuals are keen to buy into in terms of
b) Provide local payment options: Provide If the status they project or the distinct
they’ve made it far enough through your identities that they’ve cultivated.
site to be considering payment then
you’ve managed the hard part, so don’t This is something that transcends all
make it difficult for them now. Providing sectors really. Whether it’s Apple from an
options for payment that are customary electronics perspective, Nike in sportswear
in the territory will ensure that the or even a less ‘premium’ brand like IKEA
transaction itself is seamless. who have developed a very clear identity.

c) Use affiliates! By tapping into the local
affiliate scene you’re effectively recruiting
a team of marketers with intimate
knowledge of this audience and what
makes them tick. Combined with a paid-
on-performance model you have a
hugely efficient tool for ensuring the best
chance of success.

142
www.ecommercefoundation.org

Robert Davinson Looking at the ecommerce environment What sectors do you believe have the Interview
across the world, what is the status of the biggest potential for worldwide growth?
Content Analyst digital transformation of businesses? “the rising popularity of the
Awin Which countries in your experience are Retail, in general, has seen huge growth subscription model is… well
racing ahead and which ones are lagging around the world recently with particular suited to online consumption
Robert Davinson is a Content Analyst in behind? (and why?) success seen in the sectors of ‘fast fashion’
Awin’s global strategy team where he and health & beauty. I’d expect this to patterns… an increasing
produces whitepapers, reports and research China, inevitably, has to be mentioned continue to grow with luxury fashion and amount of shoppers are
based on the insights gleaned from across the among those in the vanguard right now. Its retail brands also capitalizing on the growing committing to subscription-
network’s thousands of advertiser and ‘New Retail’ revolution is forging ahead and middle-class populations seen in places
publisher partners. He also hosts the monthly major players like Alibaba, WeChat, JD and such as China, India and Indonesia. based brands.”
Awin Talks podcast discussing the latest digital Tencent are breaking new ground with some
marketing trends and is the editor of The Awin of their current ecommerce developments. In addition, and although not limited to
Report, the annual definitive guide to the one specific sector, the rising popularity of
global affiliate industry. Having said that, the UK has an incredible the subscription model is one that is
culture of ‘early adoption’ in which users interesting and well suited to online
there are open to experimenting with new consumption patterns. Whether it be a
ecommerce forms and adapting quickly to streaming service like Netflix or Spotify, food
the fast-changing nature of the ecommerce (Blue Apron), shaving kits (Dollar Shave
industry which necessarily encourages Club) or any number of various goods and
businesses to constantly innovate. services, an increasing amount of shoppers
are committing to subscription-based brands.
While a country like India has massive
potential for ecommerce with its huge
population and rapidly growing middle class,
a lack of investment in fundamental
infrastructure has largely hampered its ability
to translate this into ecommerce success in
the manner that China has demonstrated so
spectacularly over the past decade.

www.awin.com

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Showing items ‘low in stock’ is most successful for shoppers

SUCCESSFUL ECOMMERCE PERSONALIZATION TECHNIQUES

Most successful ecommerce personalization techniques worldwide*, 2017

Scarcity 2.9% • Scarcity = highlighting items low in stock
• Social proof = leveraging the behavior of
Social proof 2.3%
other users to provide information about
Urgency 1.5% trending products and items currently
popular
Abandonment 1.1% • Urgency = using a time limit to promote
urgency to complete an action before a
Product 0.40% deadline
Recommendations • Abandonment = aiming to capture users
before they leave the site after indicating
purchase intention
• Product recommendation = recommending
alternative products to users

*Figures are based on average uplift in
revenue-per-visitor

Source(s): Statista; Qubit; MarketingCharts, 2018

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Kevin Cochrane E-commerce is on the rise globally. What for fulfillment and returns. If there is anything Interview
do you see as the top three drivers of that can limit ecommerce growth potential, it
Chief Marketing Officer, growth for ecommerce businesses is logistics. This is the primary reason IoT allows a much greater density and
SAP Customer Experience globally? Amazon and Alibaba are so dominating in granularity of data collection. How do you
their respective markets − they are able to see this evolving in the future to increase
Kevin Cochrane was named Chief Marketing We believe the top three drivers of global overcome this barrier, little by little, and efficiency in the ecommerce industry, and
Officer (CMO), SAP Customer Experience, in growth in ecommerce in the foreseeable differentiate on it. We expect investment and how will SMEs be able to take advantage
February 2018, bringing over 20 years’ future are: innovation in this area to continue driving of such advances in the coming years?
experience in the digital experience and digital ecommerce growth.
marketing space to the position. He started his a) Customer demand for convenience While the IoT generates a gargantuan
career as co-founder of Interwoven, and later and good experiences; And lastly, we believe cost efficiency will amount of data and creates exciting new
spent time in management positions at continue to drive growth, especially in the solutions and innovations, it also creates a
Alfresco, Day Software, and most recently, b) Logistics improvements in order B2B segment. It is well understood that lot of security holes and opens up many
Adobe Systems. Kevin is known as an fulfillment and returns; selling products and services to consumers privacy concerns. Going forward, IoT
executive who sees market opportunities and using ecommerce has a lower cost structure solutions will need to bulk up on security
executes quickly on his vision. As a long-time c) Cost efficiency, especially in the than physical channels. For B2B, it’s about before gaining more trust and adoption by
champion of SAP and SAP Customer business-to-business (B2B) segment. reducing the cost of sales by enabling customers.
Experience, Kevin is now committed to making customers to make simple and repeat orders
SAP the undisputed leader in the CRM and The demand for convenience and good via the digital channels. Doing so frees up Furthermore, a systematic approach to
customer experience space. experiences fueled ecommerce growth in the their sales representatives or resellers to managing consent and permission-based
last few years. We believe this trend will focus on more value-adding activities. The usage of data would be needed. For
continue in the foreseeable future. result is that their productivity increases, example, customers would demand that they
Ecommerce is about instant access driving down the cost of sales. control when and if data generated by
anywhere and anytime, and increasingly devices and machines is shared with
using any connected device. These are approach to managing consent and manufacturers and service providers. They
powerful lures for customers when they have would not agree with the assumption that
a need to fulfill. And with millennials just because they purchased a device from a
becoming a larger segment in the market manufacturer, they agreed to share data
and digital channels being their default generated by that device, even if it is used
channels for buying (and everything else), passively. Additionally, customers would
digital buying experiences will continue to want to know how that data is used and
improve, thus creating a virtuous cycle for what benefits they would receive in return.
growth.

Another trend that will drive growth in
ecommerce is the improvement in logistics
for fulfillment and returns. If there is

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Kevin Cochrane Another way IoT development can evolve deploy them. They should also partner with Interview
is the embedding of machine learning (ML) technology leaders instead of going at it
Chief Marketing Officer, and artificial intelligence (AI) into the alone, which gives them access to Augmented reality (AR) is another disruptive
SAP Customer Experience solution, especially in processing the data technologies, know-how, and best practices. technology that we believe has the potential
and finding patterns within those data And lastly, SMB should start with well- to transform ecommerce. Let’s face it, one of
Kevin Cochrane was named Chief Marketing streams. By embedding ML or AI into any IoT defined use cases that would yield the the key inhibitors to ecommerce growth is
Officer (CMO), SAP Customer Experience, in solution, companies can quickly realize biggest benefits and help differentiate them, the inability to see and feel the products
February 2018, bringing over 20 years’ value in the solution. For example, a positioning them to reap the most benefits before you buy. This is where AR can help.
experience in the digital experience and digital refrigerator with built-in sensors that can that IoT has to offer. We are already seeing some early success
marketing space to the position. He started his generate a lot of data can also embed an AI of the adoption of AR in leading sellers of
career as co-founder of Interwoven, and later engine to help the customer make sense of What disruptive technologies do you see furniture, eyewear, and fashion. When
spent time in management positions at that data, adding a lot more value to both the shaking up the ecommerce market combined with AI and ML, AR has the
Alfresco, Day Software, and most recently, customer and the manufacturer. With globally? potential to eliminate the see-and-feel
Adobe Systems. Kevin is known as an permission, the manufacturer can engage problem for ecommerce.
executive who sees market opportunities and with the customer using insights provided by The most obvious disruptive technologies
executes quickly on his vision. As a long-time AI and cross-sell them products and are machine learning (ML) and artificial The third disruptive technology that we
champion of SAP and SAP Customer services. Furthermore, it can also facilitate intelligence (AI), as they impact every aspect believe can change ecommerce is what the
Experience, Kevin is now committed to making machine-to-machine ecommerce with of business and even our way of life. For industry calls headless commerce. Unlike
SAP the undisputed leader in the CRM and grocery retailers. ecommerce, we are already seeing some ML, AI, and AR, this technology adoption is
customer experience space. early applications and their impact on driven more by customer demand − they
The IoT has a lot of promise in driving personalization, product recommendations, want to buy anywhere, and not necessarily
economic growth as well as better merchandising, chatbot assistants, and using a traditional storefront. Headless
experiences for customers. Many large promotion. We expect that ML and AI will commerce enables sellers to essentially
enterprises are investing heavily in this continue to increase penetration in many embed ecommerce anywhere that
technology. For small and medium aspects of ecommerce in the future, customers are, whether it is in a video,
businesses (SMB) to take advantage of it, including pricing optimization, fault-detection social media post, mobile game, car
the approach would need to be more (within the context of ecommerce), complex dashboard, or anywhere you can imagine.
pragmatic in order to manage costs. Our product configuration, image-based product The potential disruption is huge.
perspective is that SMBs should use search, product substitution (product
standards-based technologies, which would compatibility), and many others.
ensure they have access to the widest
solution options as well as the technical ecommerce growth is the inability to see
resources needed to build and
technology leaders instead of going at it

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About the Report

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About the Authors

Sara Lone Isabela Fávero Shaun Packiarajah
Researcher
Research Coordinator Researcher
Isabela holds a Master in
Sara holds a Master in Public Development Economics from Shaun graduated with a
Policy from the University of the University of Auvergne in Master’s degree in Victimology
California in the United States. France. and Criminal Justice from the
University of Tilburg.
Sara oversees the Ecommerce At Ecommerce Foundation, she
Foundation Research Team in is part of the Research Team He works for the Research
its creation of country reports, providing support in data Team at Ecommerce
custom research, content and analysis and the creation of Foundation in creating
webinars. Additionally, Sara country reports. Her interests research-related content and
presents on research around and experience include reports. His background is in
the world and advises analysing data as well as policy creation and analysis, in
stakeholders in furthering conducting policy evaluations. addition to practical knowledge
ecommerce globally. of business development.
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Definitions related to the Internet, e-commerce & e-tailing

• Broadband access: the availability of broadband is measured by the percentage • E-households: number of households that use the Internet for personal gain.

of households that are connectable to an exchange that has been converted to

support DSL technology, to a cable network upgraded for Internet traffic, or to • E-household expenditure: expenditure per household that bought goods or

other broadband technologies. It includes fixed and mobile connections (source: services in the past year.

Eurostat)

• Global Online Measurement Standard for B2C ecommerce (GOMSEC): aims to

• Cross-border ecommerce: percentage of ecommerce purchased at foreign provide guidelines to measure and monitor B2C ecommerce in order to enable all

sites European countries to provide data with respect to the penetration of B2C

ecommerce in a standardized way.

• Ease of Doing Business Index: The Ease of Doing Business Index is

developed by the World Bank, and averages the country's percentile rankings on • E-Government Index: The UN’s E-Government Index provides a comparative

nine topics. It is made up of a variety of indicators, giving equal weight to each assessment of the e-government development of UN Member States. One of the

topic. The rankings for all economies are benchmarked to June 2010. The Index primary factors contributing to a high level of e-government development is

covers 185 countries. concurrent past and present investment in telecommunication, human capital and

provision of online services.

• E-commerce (or electronic commerce), a subset of e-business: any B2C

contract on the sale of products or services fully or partly concluded by a • Gross Merchandise Volume: the total sales facilitated by a third party, such as a

technique for distance communication. market place.

• E-commerce GDP: total amount of goods and services online divided by the • E-services or electronic services: “Deeds, efforts or performances whose delivery

total Gross Domestic Product (GDP). is mediated by information technology. Such e-service includes the service element

of e-retailing, customer support, and service delivery.” This definition reflects three

• Economic Freedom Index: the Index of Economic Freedom is an annual guide main components: service providers, service receivers and the channels of service

published by The Wall Street Journal and The Heritage Foundation, Washington's delivery (i.e. technology). (Jennifer Rowley, Professor Information and

No. 1 think tank. For over a decade, the Wall Street Journal and The Heritage Communications, Manchester Metropolitan University, UK)

Foundation have tracked the march of economic freedom around the world with

the influential Index of Economic Freedom. There are 5 categories, ranking from • Inactive online population: users that have access to the Internet but have not (yet)

Free (with a score between 80 and 100) to Repressed (between 40 and 49.9). purchased goods or services online in the past year.

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Definitions related to the Internet, e-commerce & e-tailing

• Market place: online platform on which companies (and consumers) sell • Online expenditure: spending per user who purchased goods or services
goods and/or services. online.

• Logistics Performance Index (LPI): The Logistics Performance Index (LPI) • Online Retail (or e-retail, electronic retail or retailing or even e-tailing):
measures the “logistics friendliness” of 155 countries. It helps countries the selling of retail goods and services on the Internet. In the limited sense
identify the challenges and opportunities they face in their trade logistics of the word, sectors such as online leisure travel, event tickets, downloading
performance and what they can do to improve this. The Index is developed music or software are not included. Online-only retail shops are often
by the World Bank and is based on a worldwide survey of operators, such as referred to as pure players.
global freight forwarders and express carriers.
• Penetration levels: the percentage of a population using the Internet,
• Mobile commerce (or m-commerce): the ability to conduct commerce mobile phones, smartphones or tablet devices.
using a mobile device e.g. a mobile phone, a PDA, a smartphone, a tablet or
other (emerging) mobile equipment. • Real economic growth rate: a measure of economic growth from one
period to another expressed as a percentage and adjusted for inflation. The
• Mobile subscriptions: mobile cellular telephone subscriptions are real economic growth rate is a measure of the rate of change that a nation's
subscriptions to a public mobile telephone service using cellular technology, gross domestic product (GDP) experiences from one year to another.
which provide access to the public switched telephone network. Post-paid
and prepaid subscriptions are included (source: Eurostat). • Retail sales: the selling of mainly goods from businesses to individuals from
a traditional or so-called bricks-and-mortar shop.
• Networked Readiness Index (NRI): The NRI measures the tendency for
countries to exploit the opportunities offered by information and • Statcounter research method: Statcounter is a web analytics service and
communications technology (IT). The NRI comprises three components: the their tracking code is installed on more than three million sites globally.
environment for IT offered by a given country or community, the readiness of These sites cover various activities and geographic locations. Every month,
the country's key stakeholders to use IT, and the usage of IT among these Statcounter records billions of page views to these sites. For each page
stakeholders. view, they analyze the browser/operating system/screen resolution used and
they establish if the page view is from a mobile device. They calculate their
• Online buyer (or e-shopper, e-buyer): an individual who regularly bought Global Stats on the basis of more than fifteen billion page views per month,
or ordered goods or services through the Internet. by people from all over the world onto more than three million member sites.

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