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

25-54 age range dominates in North America

40%

21%

14% 12% 14%
65+
0-14 15-24 25-54 55-64

Source: Ecommerce Foundation; CIA World Factbook, 2018

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North American internet penetration to reach 90% in 2018

90%

83%

81%

79%

2015 2016 2017 2018

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

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Social media usage in North America

SOCIAL NETWORK PENETRATION

Share of the population using each social media platform, 2018

61% North America has the highest social
network penetration rate in the world.
20% While the global average penetration rate
stood at 37% in 2017, North America’s
social network penetration rate was at
around 66%. Despite Facebook’s ubiquity,
other social networking sites are gaining
space amongst teenagers and young

adults.

-Statista, Social media usage in the United States - Statistics and Facts,2018

10% 5% 2% 2%

Source(s): Statcounter; Statista; 2018

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Almost 58% of North America uses desktop for Internet use

DEVICE USE FOR ONLINE: NORTH AMERICA

Share of the population using each device for Internet access

“

38.9%

Desktop 57.7%
Tablet
Mobile

Source(s): Statcounter 2018 3.4%

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North American B2C ecommerce sales to reach $570 billion

13.2% 13.5% 13.1%
$495.7 $570.3
12%

10.5% Full version available at
$327.8 www.ecommercefoundation.org/reports

$429.1

$377.7

$293.5

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Statista, 2018

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North America: Top Shopping Websites

Country Ranking of Shopping websites (# of visitors)
Canada
First Second Third

Amazon.ca Kijiji.ca Amazon.com

Mexico Mercadolibre.com.mx Amazon.com.mx Amazon.com

United States Amazon.com eBay.com Craigslist.org

Source: SimilarWeb (ranked, # of visitors)

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 36.9 million • Internet penetration: 91%
• VAT:
• Unemployment: Canadian Dollar • % e-shopping: 25.2%

7% • E-GDP: 1.33% Full version available at
www.ecommercefoundation.org/reports
6% • Avg. e-spending: $6,933

Ecommerce Environment:
• Canadian consumers increasingly rely upon the internet to place orders. For the

past decade, internet consumer sales have risen at a far higher rate than

traditional retail sales. Most Canadian retail firms have adopted wireless

technologies and internet-based systems to improve business-to-business and

business-to-consumer relations. Manufacturing firms and government

organizations are also increasingly likely to use the internet for purchases, Product Categories March 2017 Payment Method 2017
56% Preference/Use
especially for small routine orders. Bought 41% 61%
40% Credit Card 21%
• Devices preferred for online shopping in 2017 were: Laptop/desktop, 67.2%; Clothing & apparel 5%
PayPal
Mobile phone, 2.6%; Tablet, 6%; No preference, 24.2%. Household goods May
• Favorite cross-border shopping destinations: Debit Card 2018
37%
Books 56%
8%
56% 18% 7% 3% 2% Show/game tickets 40%

Cross-border Ecommerce

Electronics 34%

Gov. Services 34% Shop Domestically Only
Shop Domestically & Cross-border

Other goods/products 31% Shop Cross-border only

Source(s): Statista; NLogic; Numeris; TSYS; PayPal; Ipsos; eMarketer; Export.gov, 2018

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United States Ecommerce Sales 2014 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 326.8 million • Internet penetration: 89%
• Unemployment: U.S. Dollar
• Ages 25-54: 3.9% • % of e-Shoppers: 80%
39.45%
• E-GDP: 2.56% Full version available at
www.ecommercefoundation.org/reports
• % bought cross-border: 28%

Ecommerce Environment:

• According to UPS, 50% of its domestic parcel deliveries are the last-mile portion for ecommerce orders.
• The big three national [delivery] carriers account for 85% of the last-mile market today, about $30 billion of

spending. UPS has the largest share and generated about $17 billion in ecommerce deliveries. It is
estimated that DTC sales will account for nearly half of the UPS’s $35 billion in US domestic parcel

revenue in 2016. FedEx drove an estimated $7 to $9 billion in ecommerce deliveries, accounting for

approximately 35 to 40% of its total ground business. Same-day delivery has also grown rapidly in recent

years.

Average spending per e-shopper 2015 2016 2017 2018 Payment Method 2017 Delivery Method/Preference 2016
Preference/Use Economy ground
U.S. dollar spending/shopper $1,630 $1,791 $2,013 $2,089 Credit Card 62% Ground, 3-5 days 42%
2-day 20%
Top 5 import countries (billions of USD): Online Payment (PayPal, Amazon, 58% Ship to store/in-store pickup 20%
etc.) Next-day, 1-day 9%
$457 $291 $288 $128 $122 47% Same day 6%
Direct Debit 17% 3%
Source(s): eShopWorld; ATKearny; Statista; eMarketer; PayPal; Ipsos, 2018 12% Cross-border Ecommerce
Prepaid cards/vouchers 12% May
12% Shop Domestically Only 2018
Cash on Delivery 9% Shop Domestically & Cross-border 66%
Cash in Advance Shop Cross-border only 27%
Invoice 7%
None of the above

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

$24.8

Introduction: Ecommerce Facts & Figures: $21.0
• Population:
• Currency: 130.8 million • Internet penetration: 70% $16.3 $17.9
• VAT: Peso
• Unemployment: 16% • % of e-Shoppers: 31%
3.40%
• E-shopper growth: 7.5% $12.5 Full version available at
$9.4 www.ecommercefoundation.org/reports
• E-GDP: 2.22%

Ecommerce Environment: Payment Method 70% Major Buying Holidays 2018-2019
Preference/Use 18% Valentine’s Day Feb. 14
• The market will continue growing as a result of improvements in connectivity, enhanced financial PayPal 12% Independence Day Sep. 16
7% Black Friday Nov. 23
inclusion, more streamlined logistics and increased digital literacy. Multichannel brick-and-mortar Mercado Pago 7% Cyber Monday Nov. 26
7% Cinco de Mayo May 5
(brick-and-click) retailers have reportedly seen their online sales grow to account for 25% of Visa Checkout
Pay Mobile Cross-border Ecommerce May 2018
overall sales. Masterpass
• Mexico has a number of shopping events where retailers push special offers and promotions. For Safety Pay Shop Domestically Only 34%
Shop Domestically & Cross-border 56%
example, Hot Sale Event runs from May 29th to June 1st and encourages online shopping. Similar Shop Cross-border only 10%
to Black Friday in the U.S. – Major eRetailers offer slashed prices and deals across electronics
=Estimate
and clothing goods.
• By 2021, Fashion will still be the most purchased online category, with a value of 4.16 billion USD,

and second favorite, Electronics & Media will have an expected worth of 3.89 billion USD$.
• The top international eRetailers/marketplaces include Mercadolibre.com.mx, amazon.com.mx,

amazon.com, Liverpool.com.mx and eBay.
• Social Media Usage, 2018:

68.5% 14.1% 11.3% 5.3% .4%

Source(s): InboundLogistics.com; Asociaciondeinternet.mx; Export.gov; eshopworld.com; SimilarWeb; Statista, 2018

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North America: Summary and Expert Thoughts

✓ Leading ecommerce sites in the region Roland Palmer “…the real challenge for businesses and
1. Amazon companies will be to find the right blend
2. MercadoLibre Managing Director Alibaba Group of personalised service, relevant branding
3. eBay and and products to catch the attention of

✓ Top Payment Methods Head of Alipay EMEA tomorrow’s consumers.”
• PayPal
• Credit card Read the full interview on page 129
• Debit card
Kevin Cochrane “…with millennials becoming a larger
✓ Top 3 countries ranked by B2C Turnover segment in the market and digital
1. United States Chief Marketing Officer,
2. Mexico SAP Customer Experience channels being their default channels for
3. Canada buying (and everything else), digital
60 buying experiences will continue to
✓ Top ecommerce import destinations www.ecommercefoundation.org improve.”
• China
• Japan Read the full interview on page 145
• United States

Europe

United Kingdom
France
Germany
Sweden
Russia
Romania
Italy
Spain

Europe’s population* continues to grow

493.3

492.2

491.4

490.7

489.4

488.1

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Worldometers, 2018 *United Kingdom, France, Germany, Sweden, Russia, Romania, Italy, Spain,

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25-54 age range dominates in Europe

42%

15% 13% 18%
65+
10%

0-14 15-24 25-54 55-64

Source: Ecommerce Foundation; CIA World Factbook, 2018

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Internet penetration across Europe to reach 83% in 2018

82% 83%
2018
81%

80%

2015 2016 2017

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

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Sweden leads in social media penetration

SOCIAL MEDIA PENETRATION

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

Sweden 73% Average share of the European population using
each of the different social media platforms:

UK 66%

Spain 58%

France 58% 64.6% 11.15%
6.96% 2.3%
Italy 57% 6.39% 2%

Romania 51%

Russia 47%

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

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58% of the European population uses desktop for Internet

DEVICE USE FOR ONLINE: EUROPE

Share of the population using each device for Internet access

2017 was a milestone year for the mobile 36.2% 57.6% Desktop
industry: the number of people connected 6.2% Tablet
to mobile services surpassed 5 billion Mobile
globally. As such, two out of three people
in the world had a mobile subscription at
the end of 2017. Looking out to 2025, the
mobile industry will reach new major
milestones across key indicators – unique
subscribers, internet users and 4G/5G
connections.

-GSM Association, The Mobile Economy 2018, 2018

Source(s): Statcounter 2018

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European B2C online sales to reach over $535 billion in 2018

13% 13.1%
11%
$535.4

Full version available at $465.5
www.ecommercefoundation$.4o0rg7/.2reports
$379.5
$361.4

$303.9

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Statista, 2018

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Europe: Top Shopping Websites

Country Ranking of Shopping websites (# of visitors)

France First Second Third
Germany
Italy Amazon.fr Leboncoin.fr Cdiscount.com
Romania
Russia Amazon.de eBay.de Otto.de

Spain Amazon.it Subito.it eBay.it
Sweden
United Olx.ro Emag.ro Aliexpress.com
Kingdom
Avito.ru Aliexpress.com Market.yandex.ru
68
www.ecommercefoundation.org Amazon.es Milanuncios.com Aliexpress.com
Blocket.se
Amazon.co.uk Tradera.com Prisjakt.nu

eBay.co.uk Argos.co.uk

Source: SimilarWeb (ranked, # of visitors)

Professor Jonathan Portes What are the most important points you this will lead to some manageable increase Interview
think business in the U.K. will be most in costs and bureaucracy, but at worse it
Senior Fellow, impacted by Brexit, both in the near could be quite disruptive. “In the short term, business is
The UK in a Changing Europe future, as well as in the longer-term? most concerned about the risk
What are some of the challenges and of a “No Deal” which would be
Jonathan Portes is a senior fellow of The UK in The most immediate impact so far has proposed solutions, particularly for extremely disruptive to trade…
a Changing Europe – an independent, been on the availability of labour: the Brexit business, regarding the logistics issues There will be complex issues
impartial non-partisan organization providing vote has already made the UK a less that Brexit will bring about? relating, for example, to data
authoritative information on UK-EU issues. He attractive place for EU citizens, even though protection and data handling.”
is also Professor of Economics and Public free movement continues for now. This has The immediate concern is obviously
Policy in the Department of Political Economy affected a number of sectors, from the NHS customs controls and checks, which –
at King’s College London. to agriculture. assuming we leave the customs union and
Single Market, as is current UK government
Previously, he was principal research fellow of In the short term, business is most policy, will be necessary at the UK border
the National Institute of Economic & Social concerned about the risk of a “No Deal” with the EU. This will be the case even if the
Research. Before that, he was chief economist which would be extremely disruptive to trade. UK concludes a relatively ambitious free
at the Cabinet Office, and previous to that, Assuming, however, that a transition period trade agreement with the UK. This will
chief economist at the Deparment of Work and is agreed until at least 2021, attention will obviously impose new costs, including the
Pensions. shift to the longer-term relationship between need to fill in new forms, the risk of delays at
the UK and the EU. Here the risk is not so borders, disruption of supply chains etc.
much tariffs, which are likely to be low or
zero, but the impact of customs controls and Given goodwill and investment on both
non-tariff barriers. sides, some of these costs could be
mitigated – although not eliminated – by new
The UK’s insistence that it should have technology and ambitious customs
the option of regulatory divergence after cooperation agreements.
Brexit means significant negative impacts
are likely here. There will be complex issues approach to managing consent and
relating, for example, to data protection and
data handling: although the UK will probably
do its best to continue to follow EU
standards, the UK decision to leave ECJ
jurisdiction means that this may get steadily
more difficult over time. At best,
best, this will lead to some manageable

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In what ways do you think business in the For SMEs that produce goods, it will Interview
UK for small- to mid-sized companies will depend on whether they are part of large
be impacted by Brexit, both in the near complex supply chains, which may be Which countries would be most affected
future, as well as in the long-term ? disrupted; if they are simply producing goods internationally from a no-deal Brexit?
for export, then given that tariffs are likely to
Many SMEs, particularly in London, and be low they may not face too much in the Apart from the UK, the country most
particularly in certain sectors including tech way of additional costs, although there will directly affected would be Ireland (even
and e-commerce, are very reliant on EU be some. leaving aside the Irish border issue) since
national workers, particularly because unlike the UK is a major trading partner. France,
Professor Jonathan Portes larger companies they often lack the HR or the Netherlands and Belgium would all see
legal requirements needed to process visas significant disruption to their trade. Other
Senior Fellow, for non-EU workers. The Brexit vote has EU countries would suffer to a lesser extent.
The UK in a Changing Europe already made the UK less attractive to EU
citizens, and if and when the UK ends free ‘What would the potential impacts on
Jonathan Portes is a senior fellow of The UK in movement and introduces a new more global trade (including ecommerce)?
a Changing Europe – an independent, bureaucratic and restrictive system this will
impartial non-partisan organization providing be a major headache for many SMEs. Overall, the impact outside the EU is
authoritative information on UK-EU issues. He likely to be limited, although some firms (for
is also Professor of Economics and Public For SMEs who do not export to the EU – example Japanese car firms with major UK
Policy in the Department of Political Economy for example, restaurants - this is likely to be operations) may be adversely affected. UK
at King’s College London. the main impact. For SMEs which do export e-commerce companies may find it more
to the EU (either goods or services) it will difficult to operate in the EU and vice-versa,
Previously, he was principal research fellow of very much depend both on the sector and on although it will depend very much on the
the National Institute of Economic & Social the nature of the future relationship. For regulatory regime in each sector.
Research. Before that, he was chief economist example, service providers who rely on the
at the Cabinet Office, and previous to that, mutual recognition of professional “…a new more bureaucratic
chief economist at the Deparment of Work and qualifications and relatively easy business and restrictive system… will be
Pensions. travel (perhaps in law and related
professions) may see difficulties; others a major headache for many
(perhaps marketing or research and SMEs”
consultancy) may find that new barriers are
an irritant but not a disaster.

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United Kingdom Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 66.5 million • Internet penetration: 96%
• VAT:
• Unemployment (2018): Pound Sterling • % of e-shoppers: 81%

20% • % bought cross-border: 33% Full version available at
www.ecommercefoundation.org/reports
5.05% • Social media users: 66%

Ecommerce Environment: Payment Method Preference/Use 2017 Delivery method preference/use 2017

• Amazon has launched its latest in ecommerce endeavors: Amazon Storefronts, a new store for customer to Home delivery during day 72%
Home delivery during evening 30%
shop from small and medium-sized businesses that sell on Amazon and learn more about them through Delivered to mailbox 28%
Collect from online store’s physical
videos and stories. Amazon Storefront is now active in the UK (as well as the US and Germany) store 13%
Collect from distribution point
(September 2018). Delivery to workplace 11%
• HubBox, which runs a network of shops that operate as parcel collection points across the UK, to add Collect from parcel machine 8%
5%
2,000 extra click-&-collect locations across the country (on top of its 4,500 current collect points)

(September 2018).
• Over one in four consumers (27.4%) is currently signed up to a subscription box services, with over half of

25-34-year-olds having signed up to at least one.

Cross-Border Shopping Shopping Shopping cross- Online Payment (PayPal, Amazon) 71%
Shopping domestically only domestically & cross- border only Direct debit 68%
Credit card 50%
border Prepaid cards/vouchers 17%
Cash on delivery 10%
Share of Population 62% 34% 4% Invoice 10%
Other/none of the above 10%
58.9% 15.8% 4.05% 12.9% 3.4% Cash in advance 8%

Source(s): ecommercenews.eu; Eurostat; Statista; PostNord; WeAreSocial; PayPal; Ipsos, 2018

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 65.2 million • Internet penetration: 89%
• VAT: Euro
• Unemployment: 20% • % of e-Shoppers: 68%
9.3%
• E-GDP: 4.22% Full version available at
www.ecommercefoundation.org/reports
• % using Social Media: 58%

Ecommerce Environment: Payment Method Preference/Use 2017 Delivery method preference/use 2017
Home/workplace delivery 85%
• In 2016, 9.3 million French consumers made a purchase through their mobile phone, Shipping to pick-up & go location 85%
Delivery in-store 36%
representing a total market of $12 billion. Sales on mobile phones and tablets continue to Delivery in deposits 11%
Collect from distribution point 11%
grow very fast and they already account for 11.2% of total ecommerce sales. Delivery to workplace 8%
• Popular ecommerce sites and marketplaces include amazon.fr, leboncoin.fr, cdiscount.com,
Cross-border Ecommerce 2018
ebay.fr and aliexpress.com. Shop Domestically Only 34%
• On average, 27—28% of online shoppers ordered goods/services cross-border in 2016 and Shop Domestically & Cross-border 56%
Shop Cross-border only 10%
2017.

Average spending per e-shopper 2015 2016 2017 2018 Credit card 62%
U.S. dollar spending/shopper $1,912 $2,118 $2,436 $2,759 Online payment (PayPal, Amazon) 58%
Direct debit 22%
70.9% 3.35% 3.27% 20.2% .8% Prepaid cards/vouchers 15%
Invoice 8%
Source(s): ecommercenews.eu; Eurostat; Statista; PostNord; WeAreSocial; PayPal; Ipsos; Export.gov, 2018 Cash on delivery 4%
Cash in advance 4%
Other/none of the above 11%

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 82.3 million • Internet penetration: 91%
• VAT: Euro
• Unemployment: 19% • % of e-Shoppers: 79%
4.23%
• E-GDP: 3.11% Full version available at
www.ecommercefoundation.org/reports
• % using Social Media: 75%

Ecommerce Environment: Payment Method Preference/Use Top International Websites
• An average of 20% of German consumers purchased online cross-border in 2017. PayPal Amazon.de
• Germany is the third most active country worldwide both in import and export Advance Payment Ebay.de
Credit card Ebay-kleinanzeigen.de
ecommerce, third to only the US and the UK, Purchase on account Otto.de
• Estonia has developed a trade route with Germany; the largest proportion of cross- Sofortüberweisung/instant transfer Idealo.de
Direct debit
border purchases arrive from Germany. As a result, Eesti Post and Deutsche Post Amazon Pay Cross-border Ecommerce
Cash on delivery Shop Domestically Only
DHL have agreed to develop additional services to facilitate and develop cross-border Installment purchase Shop Domestically & Cross-border
Shop Cross-border only
ecommerce.

Average spending per e-shopper 2015 2016 2017 2018
U.S. dollar spending/shopper $1,417 $1,532 $1,732 $1,945

70.8% 3.77% 2.1% 14.8% 1.9% 2018
66%
Source(s): ecommercenews.eu; Eurostat; Statista; PostNord; WeAreSocial; PayPal; Ipsos; Export.gov, 2018 27%
5%

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 10 million • Internet penetration: 99.7%
• VAT:
• Unemployment: Swedish Krone • % of e-Shoppers: 86%

25% • % bought cross-border: 33% Full version available at
www.ecommercefoundation.org/reports
6.70% • % using Social Media: 73%

Ecommerce Environment:

• Like other Nordic residents, Swedes bought mostly clothing and footwear online in 2017. After

clothing and footwear, home electronics, media, sporting goods, and beauty and healthcare

were the most popular cross-border product categories.
• Popular Cross-Border Destinations:

Average spending per e-shopper 2015 2016 2017 2018 Payment Method 2017 Delivery method preference/use 2017
U.S. dollar spending/shopper $941 $966 $1,020 $1,007 Preference/Use Pickup Location 36%
Invoice 37% Home delivery in postbox (no receipt) 30%
5.3% 8.6% 5.4% Debit/credit card 26% Home delivery in evening (receipt) 11%
Direct payment via bank 17% Home delivery outside door (no receipt) 9%
Paypal, Payson or similar 8% Parcel Machine 4%
Swish 8%
68.2% 8.1% Other 3%
Unsure 1%
Cross-border Ecommerce 2018
Shop Domestically Only 44%
Shop Domestically & Cross-border 47%
Shop Cross-border only 8%

Source(s): Statista; export.gov; PostNord; Svensk Digital Handel; HUI Research; PayPal; Ipsos; DIBS; YouGov, 2018

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 144 million • Internet penetration: 73%
• VAT:
• Unemployment: Russian Ruble • % of e-Shoppers: 48%

18% • E-GDP: 2.5% Full version available at
www.ecommercefoundation.org/reports
5.5% • % using Social Media: 47%

Ecommerce Environment: Payment Methods Used 2017 Top International Websites
Avito.ru
• The cross-border market in Russia increased by 25% from 2015 to 2016. Online payment (PayPal, 59% Aliexpress.com
• For new retailers establishing themselves in the Russian market, it is highly recommended to translate Amazon) 39% Market.Yandex.ru
Credit card 35% Wildberries.ru
their web sites into Russian. Cash in advance 35% Dns-shop.ru
• Russian online consumers still prefer cash on delivery, which in most other markets is very unusual Invoice 24%
Cash on delivery 23% Cross-border Ecommerce
today. Prepaid cards/vouchers 20% Shop Domestically Only
• Over 60% of Russian online buyers state that they regard high delivery costs as an obstacle for their Direct debit Shop Domestically & Cross-border
Shop Cross-border only
online purchases. A low price, or better yet, free delivery, would be an effective argument for cross-

border retailers to use in order for the purchase to go through.

Average spending per e-shopper 2015 2016 2017 2018
U.S. dollar spending/shopper $589 $647 $712 $741

23.9% 10.6% 18.5% 7.72%

2018
30%
56%
14%

Source(s): Statista; Eurostat; EastWest Digital News; Statcounter; DirectLink.com; PayPal; Ipsos, 2018

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 19.6 million • Internet penetration: 74%
• VAT: New Leu
• Unemployment: 19% • % of e-Shoppers: 18%
5.2%
• E-GDP: 2.55% Full version available at
www.ecommercefoundation.org/reports
• % bought cross-border: 3%

Ecommerce Environment: Payment Method 2017 Top International Websites
• DHL has further expanded its European parcel network. The postal company is now Preference/Use 70% Olx.ro
25% Emag.ro
able to offer its cross-border services for online customers in Ireland and Romania, Cash on Delivery 5% Aliexpress.com
Amazon.com
while Croatia and Bulgaria joined the network in November (2017). Card Altex.ro
• Romania has approximately 7,000 online stores, up from 5,000 in 2016. Pundits
Bank payment/ Delivery Method Preference/Use
expect it to double, to some 14,000 online shops in 2018. internet banking Fan Courier
• Cash on delivery is the most offered payment method, followed by bank transfer and Urgen Cargus
Posta Romana (Romanian Post)
cash payment in-store/ at site/ in an office. Same-day

Average spending per e-shopper 2015 2016 2017 2018

U.S. dollar spending/shopper $1,218 $1,280 $1,452 $1,757

87.5% 1.2% 5.1% 4.5%

Source(s): Export.gov; Statista; Ecommercenews.eu; Eurostat; Romania-Insider.com; enet.hu; Statcounter, 2018

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 59.3 million • Internet penetration: 71%
• VAT: Euro
• Unemployment: 22% • % of e-Shoppers: 35%
11%
• E-GDP: 1.43% Full version available at
www.ecommercefoundation.org/reports
• % bought cross-border: 15%

Ecommerce Environment:
• Contrary to other major European countries, where sales of products account for

65%-80% of the overall ecommerce market, the services sector in Italy totaled 54%

in comparison to 46% for products.
• Tourism is still the most popular ecommerce category in Italy, followed by insurance

services and ticketing for events.

Average spending per e-shopper 2015 2016 2017 2018 Payment Method 2017 Delivery method preference/use 2017
$1,715 $1,916 Preference/Use Home delivery during day 77%
U.S. dollar spending/shopper $1,229 $1,423 73% Delivered to mailbox 23%
$22.5 $20.8 Online payment (PayPal, 45% Home delivery during evening 17%
Top 5 import countries (billions of USD): Amazon) 43% Delivery to workplace 13%
Prepaid cards/vouchers 22% Collect from distribution point 8%
$67.2 $35.7 $26.4 14%
Credit card 13% Cross-border Ecommerce 2018
Shop Domestically Only 46%
Cash on delivery Shop Domestically & Cross-border 45%
9%
Cash in advance

Direct debit

Invoice 5% Shop Cross-border only

Source(s): eshopworld.com; Eurostat; Statista; export.gov; Osservatorio eCommerce B2C Netcomm-School of management del Politecnico di Milano; PayPal, Ipsos, 2018

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 46.4 million • Internet penetration: 87%
• VAT: Euro
• Unemployment: 21% • % of e-Shoppers: 60%
16.61%
• E-GDP: 2.4% Full version available at
www.ecommercefoundation.org/reports
• % bought cross-border: 27%

Ecommerce Environment:
• The growth of Mobile ecommerce is significant in Spain, and most retailers are

adapting their online presence to this segment, not only because of the change in
the ranking algorithms at search engines, but because it is a well adopted trend by
end users. The estimation is that nearly 15% of sales at online stores were
generated through smartphones/tablets in 2016.

Average spending per e-shopper 2015 2016 2017 2018 Payment Method 2017 Delivery method preference/use 2017
$1,224 $1,342 Preference/Use
77% Home delivery during day 53%
$21.3 $14.6 Online payment (PayPal, 50%
U.S. dollar spending/shopper $922 $1,149 Amazon) 48% Home delivery during evening 46%
Direct debit 18%
Top 5 import countries (billions of USD): 18% Delivered to mailbox by mail carrier 30%
Credit card 7%
6% Collect from online store’s physical store 16%
Cash on delivery
$44.5 $36.6 $23.2 Collect from distribution point 15%
Prepaid cards/vouchers
Cross-border Ecommerce 2018
Cash in advance
Shop Domestically Only 40%
Invoice
Shop Domestically & Cross-border 54%

Shop Cross-border only 7%

Source(s): eShopWorld; Statista; Eurostat; export.gov; PayPal; Ipsos; Statcounter, 2018

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Europe: Summary and Expert Thoughts

✓ Examples of leading ecommerce sites in the region Professor Jonathan Portes “In the short term, business is most
1. Amazon Senior Fellow, concerned about the risk of a “No Deal”
2. eBay which would be extremely disruptive to
3. Aliexpress The UK in a Changing Europe
trade… There will be complex issues
✓ Top Payment Method Robert Davinson relating, for example, to data protection
• PayPal Content Analyst,
• Debit/credit card and data handling.”
• Cash on delivery Awin
79 Read the full interview on page 69
✓ Top 3 countries ranked by B2C Turnover www.ecommercefoundation.org
1. United Kingdom “The internet’s incredible ability to
2. France provide shoppers with a means of
3. Germany comparing prices and sharing feedback
has empowered them to shift their spend
✓ Top ecommerce import destinations to competing brands far more easily.”
• Germany
• France Read the full interview on page 142
• China

Middle East

Turkey
Iran

Armenia
Saudi Arabia
United Arab Emirates

Israel
Kuwait
Qatar
Bahrain

Population of the Middle East* continues to grow (millions)

226.8

223.4

220.6

217.5

213.6

207.3

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Worldometers, 2018 ,
*Turkey, Iran, Armenia, Saudi Arabia, United Arab Emirates, Israel, Kuwait, Qatar, Bahrain

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25-54 age range dominates in Middle East

47%

Demographic development in the 25%
Middle East has recently changed
from high birth and death rates to 16%
lower birth and death rates thanks
to the modernization of the region, 8% 6%
which includes educational and
economic growth. 0-14 15-24 25-54 55-64 65+

Source: Ecommerce Foundation; CIA World Factbook, 2018

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Internet penetration in Middle East to reach 74% in 2018

74%

69%

62%

57%

2015 2016 2017 2018

Source(s): Statista; Internet World Stats; Ecommerce Foundation 2018 83
www.ecommercefoundation.org

Mobile is the go-to device for Internet use in the Middle East

DEVICE USE FOR ONLINE: MIDDLE EAST

Share of the population using each device for Internet access

Average share of the Middle Eastern population
using each of the different social media platforms:

60%

38% 68.7% 11.33%
5.53% 15.22%
2% 11.7% 0.85%

Desktop Tablet Mobile

Source(s): Statcounter; Statista; We Are Social, 2018 84
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B2C online sales to reach $80+ billion in Middle East in 2018

19.7% 17% 21.8%
$80.4
11%
Full version available at $62.9
www.ecommercefoundation$.o5r5g./9reports

$46.5

$37.4

$20.8

2013 2014 2015 2016 2017 2018(f)

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 l ack of
data (beginning data usage date listed in parentheses): Bahrain (2013), Kuwait (2014), Armenia (2014).

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Middle East: Top Shopping Websites

Country Ranking of Shopping websites (# of visitors)

Armenia First Second Third
Bahrain
Israel Amazon.com AliExpress eBay
Kuwait
Qatar Amazon.com eBay Aliexpress
Saudi Arabia
Turkey Aliexpress.com Amazon.com Yad2.co.il
United Arab
Emirates Amazon.com eBay.com Aliexpress.com

Amazon.com eBay.com Aliexpress.com

Haraj.com.sa Amazon.com Souq.com

Sahibinden.com Hepsiburada.com N11.com

Souq.com Dubizzle.com Amazon.com

Source: SimilarWeb (ranked, # of visitors)

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Lack of trust is main ecommerce barrier in Middle East (& Africa)

MENA: ECOMMERCE ISSUES

Most common ecommerce issues discussed by consumers across the Middle East & North Africa, 2014 & 2016

Lack of trust 42% Several obstacles are preventing this market
from reaching its full potential, including
Delivery issues 21% consumer trust and awareness issues;
shortcomings in the payments, distribution,
Size issues 15% and logistics infrastructure; as well as
government policies in infant stages.
Addiction 12%
6% Concerns about data security and fraud
Website or app 4% compound consumer trust issues. According
issues to a recent Norton study, 40% of mobile
shoppers in the Middle East and North Africa
Payment Issues have been victims of cybercrime, and 71%
say they observed cyber attacks in the
region.

-A.T. Kearney, Getting in on the GCC E-Commerce Game, 2016

Source(s): Statista; Crimson Hexagon; HOS; A.T. Kearney, 2018

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Marc Atallah Could you explain a bit why data Storing non-logged information helps to Interview
management is so important in the global understand a user experience from a larger
Co-founder of Mazars zettafox and ecommerce market? point of view; e.g. Are potential clients not Where and how do ethics and data
Co-leads the Data Exploration / registering because the product does not management coincide (or collide) in the
Advanced Analytics team Data is the raw material used for data appeal to them (which could be an answer in global ecommerce market? What does
analysis today and is considered in the tech itself) or because they do not like the ‘ethical data management’ look like?
Marc is co-founder of Mazars zettafox and co- world as a valuable resource. The goal is to eCommerce site and experience? In this
leads the Data Exploration/Advanced Analytics meet ongoing information lifecycle needs. To case, data would be used to enhance The major focus point around this is not
team focusing on Machine Learning and Big be exploitable, data must be technically conversion or at the very least push the user selling the data to a third party. The data
Data. He previously founded Caritat Strategic accessible, legally usable (e.g. CNIL, GDPR) to subscribe and log into the site to get to collected through user consent can only be
Analytics Group (CSAG) - an innovative leader and statistically coherent to be of any know the customer. used by the ecommerce site and if they
in knowledge discovery and predictive interest. Therefore, a data strategy indeed have a data breach they must block
analytics acquired by Deloitte in 2012 to supported by a clear data management Technologies are disseminating on the all accounts and ask us to change our
structure and reinforce its analytics platform. process (including systems) is necessary websites, such as tracking mouse movement password. This is usually integrated into the
and goes through a clear cycle: (is the person going to close the window -> data governance part.
He has more than 18 years of experience in suggest a message to keep them from
data analysis/exploration 10 of which were • Data creation/collection; leaving for example). What is the future of data and ecommerce
dedicated to knowledge discovery in Data and what does that landscape look like?
Science since its industrial inception as well as • Storage; Additionally, how can SMEs who sell
11 years of academic contributions. online utilize data in a financially feasible
• Processing; and manageable way to compete with
massive retailers like Amazon and
• Archiving; Alibaba?

• and sometimes data destruction. The best way to answer this is to look
back at the history of data. What has made it
For the ecommerce market, collecting and so valuable today?
storing user logged session data helps to
better understand the customer, his/her It is the convergence of three trends:
experience on your site and interaction with
your products. In this case the data would be a) Computing power and storage
used to increase basket size, up-sell, cross- b) Algorithms
sell etc. This type of data will be used to c) Data – a lot of it…
explain conversion on specific products,
bundling, user checkout patterns, promotions
impact, couponing impact etc.

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Marc Atallah The massive growth in data followed offerings can be considered as SMEs so the Interview
naturally the evolution of the internet latter can use their data approaches to hit
Co-founder of Mazars zettafox and including ecommerce sites but exploded with the ground running. In the future, SMEs should be able to use
Co-leads the Data Exploration / mobile applications. more advanced techniques such as biometric
Advanced Analytics team There is a cost to using the data. modalities for user authentication - fingerprint,
For the future we will probably be seeing However with cloud capabilities pushed by facial recognition (Apple and other
Marc is co-founder of Mazars zettafox and co- the following trends in data: Google, Amazon and Microsoft there are manufacturers have implemented this on their
leads the Data Exploration/Advanced Analytics • New sources of data (IoT, sensors and more and more options giving SMEs the mobile phones); why not iris or voice
team focusing on Machine Learning and Big possibility to crunch data. Their only problem recognition, or even palm vein authentication
Data. He previously founded Caritat Strategic things of the sort – machine to machine may be to get a hold of good data. one day? Depending on the hardware, voice
Analytics Group (CSAG) - an innovative leader type of data, voice data) or palm vein authentication may be the most
in knowledge discovery and predictive • New tools used to discover trends in data We see significant amounts of online interesting for accuracy, ease of use and user
analytics acquired by Deloitte in 2012 to making it easier to access and more fraud occurring in some parts of Africa as acceptance.
structure and reinforce its analytics platform. powerful well as Latin America; how can the data
• Data capabilities disseminating within the management approach of SMEs help in Techniques like these will become more
He has more than 18 years of experience in companies and not just in specific fraud, risk, etc.? What approach should common and more difficult to hack.
data analysis/exploration 10 of which were departments this be and how can they create that
dedicated to knowledge discovery in Data approach? “People, internet and mobile
Science since its industrial inception as well as SMEs may have an issue with data. users must be aware of
11 years of academic contributions. However, most start-ups specialized in data Fraud has always been around. It usually
apps using digital to provide new comes from ill-designed IT/IS architectures phishing techniques, properly
offerings can be considered as SMEs so and bad technology implementation. Part of using and recording their
the answer to this lays therefore on the login/passwords etc.”
cyber-security front being an issue in itself.

The other part today comes from good
data practices from people using the
internet. People, the internet and mobile
users must be aware of phishing techniques,
properly using and recording their
login/passwords etc.

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 82 million • Internet penetration: 72%
• VAT: Turkish Lira
• Unemployment: 18% • % of e-Shoppers: 55%
11%
• E-GDP: 3.33% Full version available at
www.ecommercefoundation.org/reports
• % bought cross-border: 2%

Ecommerce Environment:
• Online orders are still very focused on the domestic market. Only 1 in 5 has ever

considered cross-border shopping. However, there is a high future interest for

cross-border shopping.
• 22% of distance selling consumers in Turkey returned ordered goods, a figure

below the global average.

Average spending per e-shopper 2015 2016 2017 2018 Payment Method 2017 Top International Websites
Preference/Use

U.S. dollar spending/shopper $144.57 $126.08 $87.89 $84.53 Credit card 82% Sahibinden.com
$10.8 $10.4 50% Hepsiburada.com
Top 5 import countries (billions of USD): Cash in advance 40% N11.com
Cash on delivery 38% Gittigidiyor.com
$24.4 $22.5 $12.2 Direct debit 22% Trendyol.com
Invoice 18%
Source(s): export.gov; eshopworld.com; Statista; The Paypers, 2018 Online payment (PayPal, 9%
Amazon)
Prepaid cards/vouchers

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 82 million • Internet penetration: 60.5%
• VAT: Rial
• Unemployment: 9% • % of e-Shoppers: 55%
12.4%
• E-GDP: 6.5% Full version available at
www.ecommercefoundation.org/reports
• % bought cross-border: 2%

Ecommerce Environment: Payment Method 2018 Share of online transactions, 2016
Preference/Use by province
• On average, every Iranian above 14 has made 207 online purchases in the past Persian year Facebook 44.5% 80%
(2017). In fact, since the young and middle-aged are more interested in online purchases, they as Tehran 2.7%
a result, hold a larger share of this number. To be more specific, each individual has made 5 Instagram 25.4% Razavi Khorasan 2.1%
transactions on the internet, 22 on mobile phones and 179 using POS devices in the past year. 12.6% Gilan 1.7%
The average sum of electronic transactions in a year was $28. Pinterest 10.2% Isfahan 1.5%
Twitter 2.53% Shiraz
• The rate of mobile phone penetration in Iran is 94.46%. This degree of internet penetration sets YouTube
the ground for development of e-trade. Ordering a product online in Iran is not different from
other developed countries. Creating the culture of trust and e-shopping among the Iranians was
never a simple task, and the online shops such as Digi-kala, Bamilo, and Zan-bil have been the
main hubs of such activities. Online shops have a close cooperation with Iran’s National Post
Company. Iran’s national post company strives to bring itself up to speed using the latest
technologies. One of these technologies is the tracking services of postal consignments.

• With the “track consignments” service, both the sender and receiver can track the consignments
she or he has sent and keep up-to-date with the latest processing status simply by visiting the
website of Iran’s national post company. It has been years now that Iranian banks have developed
the required infrastructure for online payments despite the sanctions. When it comes to online
shopping, cyber police plays a key factor to curb criminal activities. The police deal with crimes
like fraud, libeling people, hacking and intrusion to servers. In effect, the police have defined 80
cybercrimes to consider.

Source(s): The Iran Project; Statcounter; Tehrantimes.com; Unescap; CIA World Factbook; United Nations, 2018

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Armenia Ecommerce Sales 2014 – 2016 (millions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 2.93 million • Internet penetration: 72%
• VAT: Dram
• Unemployment: 20% • % of e-Shoppers: 4%
18.9%
• % bought cross-border: 16% Full version available at
www.ecommercefoundation.org/reports
• Ecommerce growth: 76%

Ecommerce Environment: Device usage for online 2018 Top International Websites
• Ecommerce is developing in Yerevan because of the expanded use of the Internet, Desktop/Laptop 76.88% Amazon
Tablet Alibaba Express
credit cards and online banking. Use of email for business communication is Mobile 1.8% eBay
21.32%
increasingly common in Yerevan although the telephone remains the primary method Payment Method Payment method preference/use, 2017
Preference/Use 2018 Cash on delivery
of business communication. Facebook Visa/Mastercard
• Cash payment upon delivery still remains the predominant method of payment during YouTube 88.7%
Pinterest 4.84%
local e-purchases. Twitter 3.1%
• Visa and Mastercard are the most popular international payment methods. 1.32%
• The ArCa card unified payment system was introduced by the Armenian commercial

banks and Central Bank in 2001. The owner and operator of the system is ‘Armenian
Card’ CJSC which, at the same time, oversees and regulates the activity of the
system, formulates the system’s development policy and ensures its implementation.

Financial organizations operating in or outside the Republic of Armenia and/or other

organizations specialized in the area of banking/payment cards can be members of

the ArCa system.
• Idram system allows users to make purchases online or pay for public services, taxes

and fees, loan payments, buy plane tickets, etc. Idram is the first company in Armenia

to get permission to issue electronic money from the Central Bank.

Source(s): export.gov; Statcounter; Statista; A.T. Kearny; Statcounter;

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Saudi Arabia Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 33.55 million • Internet penetration: 85%
• VAT: Saudi Riyal
• Unemployment: 5% • % of e-Shoppers: 79.9%
5.8%
• E-GDP: 1.41% Full version available at
www.ecommercefoundation.org/reports
• % bought via phone*: 37%

Ecommerce Environment: Payment Method 2017 Social Media Usage 2018
Preference/Use 59% Facebook 54.3%
• Online shopping is not left untouched in presence of cybercrime, which is the biggest concern of the
payment channels and online shoppers. Saudi consumers prefer cash on delivery rather than credit Cash on delivery
card payments at the time of delivery of product. About 85% of all payments in Saudi Arabia are
cash on delivery based and the main factor influencing this high use of cash is the limited Top International Websites
alternatives to cash and consumer’s low satisfaction with existing payment methods. The payment Haraj.com.sa
gateways that encourage electronic payments are still under threat of cyber theft. Moreover, Saudi Amazon.com
Arabia is considered to be the 2nd largest global market for spam email. Therefore, improved cyber Souq.com
security is necessary to generate greater consumer trust in ecommerce transactions. Mawdoo3.com
Larir.com
• Currently, delivery companies regularly ask for landmarks rather than addresses, with drivers often
requesting WhatsApped locations.

Top 5 import countries (billions of USD):

$23.4 $18.8 $11 $8.5 YouTube 27.71%
Twitter
Pinterest 15.6%
Instagram 1.06%

Source(s): export.gov; Statista; We Are Social; GlobalWebIndex; eShopWorld; Forbes; Reuters; Statcounter, 2018 1%

*In the past month as of 3rd quarter 2017

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United Arab Emirates Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 9.54 million • Internet penetration: 96%
• VAT: UAE Dirham
• Unemployment: 5% • % of e-Shoppers (2016): 42%
1.60%
• E-GDP: 4.8% Full version available at
www.ecommercefoundation.org/reports
• % bought via phone*: 45%

Ecommerce Environment: Top International Webshops Payment Method 2013
• The majority of UAE shoppers buy from other countries online (60%). Souq.com Preference/Use
• The top countries the UAE online shoppers opt to buy from are the US (30%), Dubizzle.com
Amazon.com Credit Card 40%
the UK (18%) and India (18%). Awok.com
• Amazon acquired Dubai-based Souq.com in 2017, which had over 50 million Sharafdg.com Cash on delivery 29%

customers and operations in all GCC states, positioning itself as a major Cross-border Ecommerce Debit card 15%
Shop Domestically Only
ecommerce player in the region. With the Amazon Prime membership in place, Shop Domestically & Cross-border 2018 PayPal 13%
Shop Cross-border only 39%
the company is looking to attract more customers in the future. 49%
• Over 70% of online purchases are made by the generation under 31 years old, 12%

and they are not spending lightly, as many are spending upwards of 3x more on

single orders.
• UAE online shoppers purchase from international webshops for better pricing,

product availability, and the wide range of goods they can find there. Clothing

and footwear, electronics, watches, jewelry and airplane tickets are purchased

the most.

Prepaid cards 3%

Wire transfers 1%

Source(s): Deloitte; Tahawultech.com; Statista; PayPal; Ipsos, 2018 *In the past month as of 3rd quarter 2017

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 8.45 million • Internet penetration: 83.5%
• VAT: New Shekel
• Unemployment: 18% • % of e-Shoppers: 67.4%
4.3%
• E-GDP: 0.94% Full version available at
www.ecommercefoundation.org/reports
• % using mobile online: 44.75%

Ecommerce Environment: Payment Method 2015 Delivery methods 2015
Preference/Use 31% Collected from store 66%
• While Israel is known for innovation and sophisticated technology, its consumer goods Delivered domestically 18%
Visa
are often inferior in quality to those made in foreign countries and more expensive.

Residents are eager to purchase everything from jeans to shoes to kitchen gadgets

from foreign countries.
• Israelis like to purchase goods from Alibaba, which contributes to Chinese companies

collectively, being the top ecommerce destination for Israelis.
• Physical goods worth up to $75 are exempt from all taxes and purchases of up to

$500 are exempt from VAT. For example, Amazon must charge VAT on virtual products
like ebooks, but not on physical books costing less than $75.

Top 5 import countries (billions of USD): Mastercard 21% Delivered internationally 8%
IsraCard 19% Other 7%
$13.2 $8.17 $4.58 $2.96 $2.91 PayPal 16%
Cross-border Ecommerce 2018
Shop Domestically Only 21%

Other Wallets 4% Shop Domestically & Cross-border 64%

American Express 3% Shop Cross-border only 16%

Source(s): PayPal; Ipsos; Statista; TNS Infratest; Google; Adyen; eShopWorld.com; export.gov, 2018

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Kuwait Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 4.2 million • Internet penetration: 98%
• VAT: Kuwaiti dinar
• Unemployment: 5% • % of e-Shoppers (2016): 36%
2.1%
• E-GDP: 0.60%

• % using mobile online: 67.2%

Ecommerce Environment: Top International Websites Age Structure 25.02%
• Savvy online customers prefer international online platforms, which offer more Amazon.com 0-14 15.1%
eBay.com 15-24 27%
choices and easier shopping. Aliexpress.com 25-54 5.07%
• 97% of Kuwait’s four million inhabitants use credit/debit cards. Ku.edu.kw 55-64 2.54%
• DHL has recently launched the EasyShop service and is providing a 50% Opensooq.com 65+

discount for clearance and customs fees on the first shipment.
• The top countries from which Kuwait makes online purchases are the United

States and the United Kingdom.
• For launching, promoting or advertising a product or a service, Instagram and

Snapchat are the best platforms to reach the Kuwaiti population.

53.4% 11.3% 28% 4.1% 2.3%

B2CFEucolml mveercresiTournnoavevrailable$UaStD
2w01w4 w.ecommercefoun$6d00amtiilolionn
2015 $648 million
.org/reports $1 billion
Source(s): Export.gov; Statista; Statcounter; A.T. Kearney; Chalboub Group; Ardent; PayFort; eShopWorld.com, 2018 2018(f)

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

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 2.69 million • Internet penetration: 95%
• VAT: Riyal
• Unemployment: none • % of e-Shoppers (2016): 43%
0.70%
• E-GDP: 1.55% Full version available at
www.ecommercefoundation.org/reports
• % using mobile online: 67%

Ecommerce Environment: Top International Websites Device usage for 2018
• Cash on delivery is the most popular payment method in Qatar, with 80% of online Amazon.com online 76.88%
Ebay.com
purchases being cash on delivery. Desktop/Laptop
• A survey on the shopping habits of online consumers conducted by the Ministry of

Transport and Communications (MoTC) in 2017 revealed that 67% of the products

ordered were purchased outside Qatar.
• The MoTC has plans to boost services of local merchants and provide incentives to

companies that offer special services such as door-to-door delivery. The MoTC is

also offering local businessmen workshops on ecommerce, training programmes,

and initiatives that would provide them web presence.
• The average ecommerce transaction value in Qatar is $260.

72.4% 6% 14.5% 4.93% 1% Aliexpress.com Tablet 1.8%
Mobile 21.32%
Amazon.in

Mzadqatar.com

Source(s): eShopWorld.com; Statcounter; SimilarWeb; gulf-times.com; Statista; CIA World Factbook, 2018

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Bahrain Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures:
• Population:
• Currency: 1.57 million • Internet penetration: 96.5%
• VAT: Bahraini dinar
• Unemployment: none • % of e-Shoppers (2016): 35%
10%
• E-GDP (2013): 0.77%

• % using mobile online: 52%

Ecommerce Environment: Age Structure 22.50% Top International Websites
0-14 16.40%
• Not all payment methods/providers are available in Bahrain, however these are the 15-24 44.14% Amazon
options for SMEs: 25-54 9.16%
• PayPal: In Bahrain, it is not possible to redraw money from a PayPal account to a 54-64 7.75% eBay
local bank account, Bahrain is however on the list of countries where PayPal can 65+
be used. You will need a foreign bank account or Visa card to wire money to. Aliexpress
• 2Checkout
• Merchant Account Providers: (1) BENEFIT Bahrain, national gateway that handles TBwuF2wrCunloEwlvcv.eoeremcrmosiemorcnme aevraceilfa$oUbuSleDndaatt
electronic money transfers and is at the top of the financial wires food chain in 2013 ion.org/rep$2o5r0tsmillion
Bahrain and handles debit card payments; (2) Credimax, the first card acquirer that
introduced state-of-the-art Point of sales (POS) machines that are well equipped to
accept Smart Card including Visa, Mastercard, JCB products, Benefits, and GCC
Net.
• Payza (former AlertPay)
• Recognition of Bahrain’s Instagram Entrepreneurs (’Instapreneurs’) has come from
both the government, through awards such as the egovawards and local franchises
of international brands such as TCBY, who launched unique flavours of their frozen
yoghurt developed in collaboration with Baked By T for Ramadan last year.

Source(s): Statcounter; CIA World Factbook; Statista; Tradearabia.com; imwz.io; Markwarman.com; SimialrWeb, 2018

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Middle East : Summary and Expert Thoughts

✓ Examples of leading ecommerce sites in the region “We are already seeing a wave of
1. Amazon automation… even very small
2. Aliexpress
3. eBay organisations can deploy automation -
it’s not just for the major brands now.”
✓ Top Payment Methods
Card based payment are prevalent in the majority of Middle Eastern Read the full interview on page 26
countries. However cash-on-delivery is still a popular option in
countries such as Qatar and Saudi Arabia. Eric Dupuy

✓ Top 3 countries ranked by B2C Turnover Chief Business Development &
1. Iran Marketing Officer, Continental Europe,
2. United Arab Emirates
3. Turkey Middle East & Africa
Teleperformance
✓ Top ecommerce import destinations
• China “Providing options for payment that are
• United States customary in the territory will ensure that
• Germany
the transaction itself is seamless.”

Read the full interview on page 142

Robert Davinson
Content Analyst,

Awin

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Africa

Nigeria
South Africa

Egypt
Algeria
Morocco
Kenya
Ghana
Tanzania
Tunisia