Global B2C e Commerce Country Report 2018

2018 Global Ecommerce Report
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Thank you to our partners
Thank you for downloading this report. This report describes both the commercial opportunities, as well as its
challenges for the main ecommerce markets in the global ecommerce market. The growth and development seen in
almost all countries is having a huge impact for both international and domestic retailers, which makes
understanding the ecommerce landscape of each individual country, and how they relate across borders, even more
important. Surely, cross-border ecommerce is on the rise across the world, however there are still many barriers to
overcome. We hope this report will help with the challenges faced in selling online across the world, in the hopes of
expanding your market across borders.
The Ecommerce Foundation is an independent organization, initiated by worldwide national ecommerce

associations, as well as online and omnichannel companies. Our mission is to foster global digital trade, as
peace is the natural effect of trade. By facilitating digital commerce, we hope to make the world a better place.
We especially would like to thank our report partners; namely Awin, SAP, Mazars,
Teleperformance and Safe.Shop. Without their support, this report would not have been created.
If you would like to read more ecommerce reports, please visit:

ecommercefoundation.org/reports. Jorij Abraham
Managing Director
Ecommerce Foundation
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www.ecommercefoundation.org
Valued Report Partners
Teleperformance, global leader in outsourced omnichannel CX Mazars is an international, integrated and independent Part of the Axel Springer and United Internet Groups, Awin is
Management, serves as a strategic partner to the world’s organization, specializing in audit, accountancy, advisory, tax a global affiliate network. With ShareASale, the Awin group is
largest companies cross-industry. Its customer care, technical and legal services. As of 1st January, 2018, Mazars operates comprised of 15 offices worldwide, 1,000 employees, 100,000
support, customer acquisition, consulting & analytics, digital throughout the 86 countries and territories that make up its contributing publishers and 13,000 advertisers, connecting
integrated business service solutions and other high-value integrated partnership. Mazars draws upon the expertise of customers with brands in over 180 countries around the
specialized services ensure consistently positive customer 20,000 women and men led by 980 partners working from globe. Operating across the retail, telecommunications, travel
interactions that are reliable, flexible and intelligent. 300 offices worldwide. We assist clients of all sizes, from and finance verticals, Awin generated €13.6 billion in revenue
The Group’s 223,000 employees, operating from 350 contact SMEs to mid-caps and global players as well as start-ups and for its advertisers and €607 million for its publishers in the last
centers in 80 countries, support billions of connections public organizations, at every stage of the development. financial year.
annually in 265 languages and enhance the customer
experience with every interaction.
Safe.Shop is the global trust mark for online shopping, helping SAP Customer Experience is a business unit of SAP,
consumers and merchants shop & sell with confidence at home providing omnichannel customer engagement and commerce
& abroad. Safe.Shop checks if webshops are reliable by solutions that allow organizations to build up a contextual
verifying if they comply with national laws and/or the Global understanding of their customers in real-time, deliver a more
Ecommerce Code of Conduct. The Safe.Shop logo ensures impactful, relevant customer experience and sell more goods,
that consumers have the right to return the goods, privacy is services and digital content across every touch point, channel
protected, consumers will get the good(s) they paid for, the and device. Through its state-of-the-art customer data
payment is safe, consumer rights are protected, prices are management, context driven marketing tools and unified
clear and real, and any complaints will be listened to and commerce processes, SAP Customer Experience has helped
handled properly. Safe.Shop is issued by the Ecommerce some of the world’s leading organizations to attract, retain
Foundation. and grow a profitable customer base.
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“Trustmarks have the greatest effect on perceived trustworthiness, influencing respondents’ beliefs about
security and privacy, general beliefs about firm trustworthiness, and willingness to provide personal information.”
Of consumers who never

buy goods/services
online, the #1 reason is
trust (49%).
Jorij Abraham
Director, Ecommerce Cheaper trust alternative for Free version available
Currently, online shops have to marketplace available: Trustmarks
Foundation invest heavily in consumer trust. The free version of Safe.Shop is
Fortunately, cheaper alternatives for available for all online shops. It
People do business with those that online shops are now available, such includes a consumer review system,
“Our mission is to foster global they like, know, and trust. For online as trustmarks. A trust seal or badge on
shops to instill trust fast in a trust score for the online shop and
digital trade as peace is the a site can mean that the company the the Safe.Shop badge.
consumers visiting their website is consumer is buying from actually
natural effect of trade. We are crucial. Entrepreneurs want to really
convinced that introducing the exists, that consumer rights are
distinguish themselves from “ghost protected, that the product is not fake
first global trust mark Safe.Shop Online shops receives three
shops”. That’s shops that collect and that consumer reviews are real. Safe.Shop badges:
will help reaching our goal.” your money but don’t deliver the
product. Safe.Shop, the first truly global trust
Currently merchants have to invest mark now available for free
heavily into making their website The Ecommerce Foundation Consumer review system
trusted. They do that by e.g. putting introduced Safe.Shop as a national and
their products on marketplaces such cross-border trustmark initiated by
many national ecommerce associations Trust score
as Amazon, eBay, or Alibaba.
However, these marketplaces take worldwide. The Ecommerce
5-20% of their generated sales. Foundation offers this service as a
Safe.Shop Badge
Also, using trusted payments like means for its purpose to foster global
PayPal come at high costs. digital trade.
Source(s): Aiken, K., Boush, D. (2006); CIGI-IPSOS (2017)
United Kingdom
France
Germany
Sweden
Russia
Romania
Canada Italy
China
United States Spain
India
Mexico
Indonesia
Japan
Malaysia
South Korea
Vietnam
Australia
Argentina Turkey Kuwait

Dominican Iran Qatar
Republic Armenia Bahrain
Brazil Saudi Arabia UAE
Peru Israel
Chile
Colombia
Nigeria South Africa
Egypt Algeria
Morocco Kenya
Ghana Tanzania
Tunisia
Table of Contents
8 16 33
141 147
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Introducing: The World
The global* population continues to increase (billions)
5.530
5.481
5.433
5.383
5.285
5.233
2013 2014 2015 2016 2017 2018(f)
Source: Ecommerce Foundation; Worldometers, 2018 *Countries incl. can be found on pg. 6
Over ¾ of the population is between 25-54
Among the different age

groups, Generation X
77.88%
consumers (born 1966-1981)
made more online purchases
in 2016/2017 than any other
age group, averaging nearly
19 transactions per year.
Generation X consumers in
fact made 20% more
purchases last year than their
younger counterparts 25.06%
(Millennials). 16.40%
-KPMG, 2017 Global Online Consumer Report
10.23% 9.72%
0-14 15-24 25-54 55-64 65+
Source: Ecommerce Foundation; CIA World Factbook, 2018
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Global Internet penetration continues to increase steadily
8.62%
7.35%
6.70%
59.9%
56.39%
52.71%
48.62%
2015 2016 2017 2018(f)

Source(s): Statista; Internet World Stats; Ecommerce Foundation, 2018
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2.62 billion Internet users access social media once/month
SOCIAL MEDIA USE: GLOBAL

Number of Internet users accessing a social network site via any device, in billions, 2013-2018(f)
Average share of the world population using each

of the different social media platforms:
2.62
2.46
2.28
2.14
1.91
60.6% 11.9%
1.59
8.6% 4.8%
2013 2014 2015 2016 2017 2018(f) 14.8% 1.0%
Source(s): Statcounter; Statista; eMarketer, 2018
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Desktop & mobile devices are used equally for Internet use
DEVICE USE FOR ONLINE: GLOBE

Share of the population using each device for Internet access
Most ecommerce
transactions are still taking
place on the PC, and a multi-
platform strategy is critical.
40% However, many marketers
Desktop 41%
and brands still treat the
Tablet desktop as the primary area
Mobile of focus, which is way out of
alignment with consumer
behavior.
-Marketing Land, All digital growth now coming from mobile

usage, 2016
3%
Source(s): Statcounter; Statista; eMarketer, 2018
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Germany, UK and Sweden boast highest rankings
The LPI overall score reflects perceptions of a country's logistics based on, The E-GDI presents an assessment of the website development patterns in a
among other things, efficiency of customs clearance process, quality of trade- and country, incorporates access characteristics, such as infrastructure and educational
transport-related infrastructure and ease quality of logistics services. levels, to reflect how a country is using information technologies to promote access
and inclusion of its people.
The Ease of Doing Business Index: Higher rankings (low numerical value)
indicate better, usually simpler, regulations for businesses and stronger protections The Internet Inclusivity Index is based on the affordability, availability, relevance,
of property rights. and readiness categories for Internet.
Ease of Ease of
Logistics E-Government Internet Logistics E-Government Internet
Doing Doing
Country Performance Development Inclusivity Country Performance Development Inclusivity
Business Business
Index Index Index Index Index Index
Index Index
Argentina 61 117 43 78.6 Russia 99 35 35 23
Brazil 56 125 44 77.6 Romania 60 45 75 26
Chile 34 55 42 85.1 Italy 21 46 22 19
Colombia 58 59 61 75.9 Spain 23 28 17 12
Dominican Rep. 87 99 93 x Nigeria 110 145 143 x
Peru 83 58 77 68.9
South Africa 33 82 68 x
United Kingdom 8 7 1 7
Egypt 67 x 144 x
France 16 31 10 6
Algeria 117 166 130 x
Germany 1 20 15 12
Morocco 109 69 110 x
Sweden 3 10 6 1
Kenya 68 80 122 x
Source: The Economist Intelligence Unit; WorldBank; DoingBusiness; United Nations, 2018
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South Korea leads in the Ease of Doing Business Index
Ease of Ease of
Logistics E-Government Internet Logistics E-Government Internet
Doing Doing
Country Performance Development Inclusivity Country Performance Development Inclusivity
Business Business
Index Index Index Index Index Index
Index Index
Ghana 106 120 101 x China 26 78 65 x
Tanzania X 137 X x India 44 100 96 x
Tunisia 105 88 80 x
Indonesia 46 72 107 x
Turkey 34 60 68 41
Japan 5 34 10 x
Iran 64 124 86 x
Malaysia 41 24 48 x
Armenia 92 47 87 x
South Korea 25 4 x x
Saudi Arabia 55 92 52 x
Vietnam 39 68 88 x
UAE 11 21 7 x
Australia 18 14 2 x
Israel 37 54 31 x
Kuwait 63 96 41 x Mexico 51 49 64 74
Qatar 30 83 51 x United States 14 6 11 x
Bahrain 59 66 26 x Canada 20 X 23 x
Source: The Economist Intelligence Unit; WorldBank; DoingBusiness; United Nations, 2018
15
Global Ecommerce
eShoppers want clear info on delivery charges pre-purchase
ONLINE SHOPPING CART ABANDONMENT IMPORTANT ONLINE SHOPPING DELIVERY FACTORS
Global online shopping cart abandonment rate, 2013-2017 Most important online shopping delivery elements according to global online shoppers, 2017
Clear information abut delivery charges before
purchase 70%
71.16%
Free returns 57%
Simple & reliable returns process 57%

Free delivery on purchases over a particular
value 54%
Landed cost calculator at check-out 51%

69.2%
Fullprocess,
Full visibility on delivery version
at available
clearly
49%
visible track & trace available
68.6%
www.ecommercefoundation.org/reports
68.5% Possibility to select delivery location 47%
68.1% Receiving delivery within agreed time range 45%
Rapid response customer service 44%
Electronic notification of delivery 42%
2013 2014 2015 2016 2017

Knowing which company will deliver goods 35%
Source(s): Statista; Baymard Institute; IPC; Survey Sampling International, 2018
17
Consumer still prefer to buy most products in-store
Category Online In-Store

While online shopping isn’t killing traditional
retail, it is prompting the industry to rethink
Books, music, movies & video games 60% 28%
the way it does business. Smaller stores
featuring a curated product selection Toys 39% 37%
capable of generating a higher profit per Consumer electronics & computers 43% 51%
square foot, events that keep the shopping
experience fresh and highly personalized Sports equipment/outdoor 36% 44%
service are making in-store shopping a Health & beauty 37% 47%
dynamic adventure.
As retailers race to delight customers with Clothing & footwear 40% 51%
unique experiences, mobile continues to Jewelry/watches 32% 49%
power these critical personalized initiatives
Household appliances 33% 56%
in existing stores and new locations.
DIY/home improvement 30% 52%
-Stratix Corp., Consumers still prefer to shop in-store, but expectations have
changed, 2018 Furniture & homeware 30% 59%
Grocery 23% 70%
Source(s): Statista; PwC; Stratix Corp, 2018
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Global* B2C ecommerce sales to hit over $2 trillion in 2018
15% 14.6% 14.3%
12.3%
$2.124
Full
8.1%version available at
$1.821
$1.554
$1.363
$1.253
$1.065
2013 2014 2015 2016 2017 2018(f)

*All countries included can be found on page 6, however the following countries were only included for certain years due to l ack of data (beginning data usage
Sources can be found in the ‘About the Report’ section. date listed in parentheses): Bahrain (2013), Kuwait (2014, 2015 & 2018), Armenia (2014-2016), Tunisia (2017), Tanzania (2016), Kenya (2014), Algeria (2017).
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Global* E-GDP to reach 3.68% in 2018
3.68%
Full version available at 3.25%
2.89%
2.55%
2.15%
1.90%
2013 2014 2015 2016 2017 2018(f)

*All countries included can be found on page 6, however the following countries were only included for certain years due to l ack of data (beginning data usage
Source(s): Ecommerce Foundation, 2018 date listed in parentheses): Bahrain (2013), Kuwait (2014, 2015 & 2018), Armenia (2014-2016), Tunisia (2017), Tanzania (2016), Kenya (2014), Algeria (2017).
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Case Study:
New Retail
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Case Study
New Retail: Beyond omnichannel
Origins of New Retail
Traditionaly there has been a core divide in In 2016 Jack Ma foresaw a new era of
the retail space: ecommerce and the traditional retail, one dominated by the merging and Identify new governance principles
brick-and-mortar stores. It was often seen as a integration of the offline and online worlds for customer-centric model
zero-sum game, where the success of one together with logistics. This dynamic new
meant the downfall of the other. future of retail he coined ‘New Retail’.
Develop new flexibility and
Yet Jack Ma, the now legendary co-founder The relationship between consumers and efficiency in R&D and supply chains
of the Alibaba Group saw things differently. stores evolves, when looking through the
This philosophical difference can be seen in perspective of New Retail. Through the in-
the following statement: depth collection of data brands can now put Reimagine marketing and
forward methods to ‘stimulate consumer consumer management for New
“Pure ecommerce will be needs, identifying look-alike consumers and
turning consumers into brand ambassadors
Retail
reduced to a traditional who effectively ‘cocreate the brand’.

Modernize route-to-market and
business and replaced by the By utilising technology and more retail formats
concept of New Retail—the comprehensive data collection, the core
elements of retail can be re-tooled and
integration of online, offline, updated for the future Transform the organisation and
operating model for digital
logistics and data across a Brand Engagement
single value chain.” Invest in new technology
Bain & Company laid out six steps that brands
- Jack Ma, Founder of Alibaba Group need to take in order to push forward into this development
brave New Retail world:
22
Case Study
New Retail: Beyond retail’s comfort zone
‘Holy Trinity of Retail’
In a recent article, Chris Walton states that Online/digital commerce applications Cloud Commerce
there is ‘Holy Trinity’ when it comes to fully
taking advantage of the New Retail world. The This rather broad category encompasses Data is at the core of the new frontier of
core components of this triumvirate are: technology (software or hardware) applications retail. In order to be able to create the
that aid either consumers or employees in the consumer-centric model of New Retail this
• Data analysis based on location bid to create engaging New Retail vast amount of data collection taken from
experiences. across the consumer journey needs to be
• Online/digital commerce applications
processed and organized near instantly. Why?
• Cloud commerce This could include developments such as Well in order to have the unique experiences
the shop-and-go model. This is where talked about previously in-store, brands must
consumers can enter a shop, use their be able to coordinate all this consumer
Data analysis based on location smartphone to scan and pay for goods and information and produce results in a seamless
leave without having to interact with an manner.
Brands need to understand the user not employee.
only in their desires and needs, but how this Legacy systems can no longer operate in
relates in the context of their physical world. Another example is the ‘magic mirror’ isolation when pushing forward into New
Are consumers watching the most concept that is being trialled by multiple brands Retail. Areas such as transaction history,
advertisements for their products on the including Sephora, UniQlo and Tesco to name inventory information, payment details,
commute home? Do they decide to buy in the just a few. consumer preferences can be coordinated to
comfort of their own home, or impulse buy on create a brand that is aware in real-time of
their phone whilst ‘showrooming’ in-store? By utilizing applications that speak to the each and every of its consumers.
specific consumer base of a brand, they can
At its core this kind of analysis needs to breathe life into their consumer journey
document a consumer across online and through both valuable and exciting consumer
offline ‘touchpoints’, creating a cohesive experiences. The so-called death of the high
picture of a consumer across their daily life. street is a misnomer in this reality.
23
Case Study
New Retail: China leading the way
China: perfect storm for m-commerce East vs. West Recent analysis has stated that there are
three main areas where the Chinese
China has been at the core of the New Chinese consumers shop online in a ecommerce landscape differs from the west:
Retail model for ecommerce. That is not only different way to the majority of Western
down to Alibaba, but the factors found within markets. The recent surge in consumer wealth Disposable income and time to shop
China itself. With its rapid development in within the middle-class in China has met the The Chinese consumer wants
recent time, developing markets such as China highly mobile-first internet infrastructure. These ‘entertainment, discovery and social
are skipping the fixed broadband infrastructure new consumers are not attached to the brick- engagement’ whilst they shop whether that’s
that propelled developing nations (such as the and-mortar retail experience and increasingly with their friends or influencers on social
UK and Japan) onto the internet. With cheap push for a mobile shopping experience. media. Not only this, but the Chinese
mobile access leapfrogging fixed access in consumer spends more time online shopping,
developing nations. and their youth spend more than the average
American counterpart.
Innovation through brand competition

Chinese brands are willing take risks when
China it comes to new products and will utilize
multiple channels to engage with their
consumer base. This is driven by a foundation
of data analytics and understanding consumer
United behaviour. The consumer is at the center of
States their thinking.
Integration makes shopping fun and easy

Super apps such as Taobao create an
experience including a variety of shopping,
entertainment and social activities providing
Market share of leading mobile shopping companies in China, 2nd quarter, 2017 M-commmerce as share of total ecommerce (%), 2016-2020 (forecast figures), both offline and online experiences to users.
24
Case Study
New Retail: Transforming legacy models
The Grocery Store The Car Showroom The Convenience Store
The Old Way The Old Way The Old Way
Offline - A retail model that was designed a long time in - Traditional way of thinking based on an old
- Standing in queues the past and has failed to adapt model
- Slow or no delivery - Forces consumers to go from one dealer to - Not as convenient for modern shoppers
- No extra consumer experiences in-store another
- Based around paperwork and documentation But, they are central to their communities, and
Online that can slow the process down therefore they are not obsolete!
- Minimum order values - Sales pressure from the sales personnel
- Delivery can be slow/finding a time slot
The New Retail Way The New Retail Way The New Retail Way
Hema Auto Vending Machine Local Store Digitised
Scan in-store Analytics: better
understand
and have it Browse Models consumer needs and
prepared and through an app stock accordingly as
delivered at well as gain
home! efficiency
Powered by a Powered by a Powered by a
smart device Delivery at your smart device Test Drive?
smart device Make ordering
home in 30 Select on the app
easy through an
minutes and try!
app
Source: Alibaba - New Retail Explained, 2018.
25
When looking at omnichannel, the type of We are already seeing a wave of Interview
device a consumer is using is crucial. automation as various Messenger tools offer
How do you see this differ across automated bots; meaning even very small
different regions? organisations can deploy automation - it’s
not just for the major brands now.
As most people are aware, the main
devices used by consumers today are The next innovation in this space though
smartphones or tablets. Although there are will be in the integration of voice-controlled
minor differences across regions, these are systems at home (Google Home, Amazon
more related to the ratio of desktop, Echo etc.) with consumer services. This
Eric Dupuy smartphone, and tablet use. would mean having the ability to ask Alexa to
Chief Business Development & recommend a hotel in Paris for tomorrow
Marketing Officer, Continental Europe, It is in the more developed markets, such night, and Alexa having the intelligence to
Middle East & Africa as North America, where desktop use know what my preferences are while being
remains more common whereas in Africa able to reserve a room just as if I were
and Asia the smartphone is much more talking to a human assistant.
dominant as the primary device used.
We will see more innovation in this area
Where do you see the role of automated in future, but it’s important to remember that
systems in the omnichannel experience? it remains extremely difficult to completely
Where do you see the next innovation in automate the customer experience and to
Eric is a customer experience expert & this space? retain empathy with the customer at present.
business development executive engaging
with international organizations. His role You only need to skim through the I believe that this need for human
“We are already seeing a wave
involves shaping Global Customer Experience
initiatives to enhance profitability, improve
business media to see the influence empathy will be important for the foreseeable of automation… even very
technology is having on the customer future, so innovation right now will be about
customer journey and to streamline experience (CX). It is easy to list many how the technologies can help human small organisations can deploy
operations.
emerging technologies having a major
impact on CX, such as Machine Learning,
customer service agents, rather than
replacing them.
automation - it’s not just for
Eric has over 20 years’ experience in
outsourcing across multiple industries Artificial Intelligence, Virtual Reality, the major brands now.”
including Retail & Ecommerce, FMCG, Augmented Reality, Big Data Analytics and
Telecommunications, Technology & Consumer Decision Science, Digital Social Channels,
Electronics, Financial Services. Digital Transformation and Robotic Process
Automation.
www.telepeformance.com
26
How are different sized organisations the need of the customer, not historic Interview
adapting to the shift to Omnichannel? Do processes. In industries like this, we will see
you see that larger organisations have CX becoming the number one concern of the
more resources to accomplish this, or is CEO – if it is not already. I believe these types of customer
the agility or smaller organisations engagement will fundamentally redefine
pushing them ahead? Which category of products/services what we mean by ecommerce.
(involving ecommerce) do you see
There is an interesting divide taking pushing forward when it comes to
place. Traditionally it was only large omnichannel implementation?
organisations with the ability to engage CX
Eric Dupuy experts that could consider an omnichannel What I think is extremely interesting in this
Chief Business Development & strategy - but think about the tools a small space is how some forms of ecommerce are “…some forms of ecommerce
Marketing Officer, Continental Europe,
Middle East & Africa
company has today. They can deploy a 24/7 effectively bypassing the traditional retail are effectively bypassing the
chatbot virtually free using Facebook sector - even online retail. For example, the
Messenger and WhatsApp for Business is Unilever Dollar Shave Club is building a traditional retail sector…
free for small companies. relationship directly with customers through
constant engagement and a product
building a relationship directly
This means even your local florist can subscription. Likewise, the L’Oréal Makeup with customers through
deploy an AI-powered CX strategy. The only Genius app has engaged millions of
limit for small companies today is their customers through the interactivity of constant engagement and a
imagination. In some cases, for simple virtually testing L’Oréal products, but critically
Eric is a customer experience expert & questions, the bot will work well, but it’s anything the customer likes on the app can
product subscription.”
business development executive engaging always worth remembering these limitations be instantly ordered with a click.
with international organizations. His role and making it easy for a customer trapped in
involves shaping Global Customer Experience a bot conversation to be able to transfer to a
initiatives to enhance profitability, improve human.
customer journey and to streamline
operations.
It’s worth adding that in many industries,
CX is becoming a critical business
outsourcing across multiple industries differentiator, especially industries facing a
including Retail & Ecommerce, FMCG, wave of digital disruption. Banks are one
Telecommunications, Technology & Consumer good example where we can see a large
Electronics, Financial Services. number of new challengers entering the
market and building their services around
www.telepeformance.com building their services around the need of
27
Where in the omnichannel experience can We still see enormous statistics around Interview
‘big data’ from consumers be best abandoned carts and enthusiastic executives
utilised? believing they can fix this by deploying a Big Western markets have developed payment
Data solution to improve personalisation as a separate function and it will be
I am going to mention two elements in this when the reality is that most customers interesting to see if the experimental
respect: Personalisation and Intent. abandon a sale because of a surprise during payment services in apps such as
the final stages - such as shipping charges WhatsApp will take off and influence
If you can interpret customer preference that were not explained much earlier. Such ecommerce in the same way China has
and behaviour data, then you can hurdles can be overcome with a human experienced.
personalise the service customers receive touch.
Eric Dupuy during interactions. This might be during a
Chief Business Development & customer service interaction where the agent The real weakness is just not knowing
Marketing Officer, Continental Europe, knows which channel the customer prefers your customer.
Middle East & Africa to use, or it may be during the checkout
process where additional products can be Looking to China, ‘New Retail’ is the buzz
suggested because they connect to the term. Do you see this as an evolution of
content of current basket and what the omnichannel, or a completely different
customer likes. beast?
Managing intent is particularly useful for Jack Ma was really the visionary who
companies that use subscriptions for income created this idea where there is a complete
Eric is a customer experience expert & - if you can spot typical customer behaviour blend of online, offline, logistics, and
business development executive engaging before a cancellation then you can create payment. I certainly see it as an extension of
with international organizations. His role interventions before it happens. omnichannel retail, but I think the way that
involves shaping Global Customer Experience the Chinese companies included payment is “…if you can spot typical
initiatives to enhance profitability, improve What weaknesses do you think are most the biggest difference.
customer journey and to streamline frequently made, when it comes to the customer behaviour before a
operations.
customer experience, in ecommerce? In omnichannel we are usually talking of cancellation then you can
the online and offline blend in addition to the
outsourcing across multiple industries Most ecommerce weakness is still communication channels, but when payment create interventions before it
incredibly simple; it’s about understanding is included in the same system then it can be
including Retail & Ecommerce, FMCG,
Telecommunications, Technology & Consumer the customer journey and understanding a game-changer for ecommerce. For happens.”
Electronics, Financial Services. what blocks customers from completing a example, Chinese shoppers pay using their
transaction. phone 60 times more than Americans do.
www.telepeformance.com stern markets
28
Case Study:
Global eRetail Events
29
Black Friday
Borders are breaking down

The globalization of retail through One of the consequences of the There are some other practical
ecommerce is aided by increasingly influence and popularity of brands who considerations, the importance of time zones,
standardized marketing methods. This is are exporting their retail presence to for example. When it’s midnight in the UK, it’s
reflected in the rapid adoption of global multiple markets is their power to harness 8am in China, so being aware that a 24-hour
shopping events which enable brands to shopping events that may have shopping event locally is actually double that
project their best deals to a worldwide previously been limited to individual globally is imperative.
audience. In 2017, Black Friday further countries.
consolidated its position as an opportunity to
engage local consumers like no other For merchants who deliver to multiple
shopping date. territories, an interesting exercise is to
ask your network or tracking provider
what the share of sales is between the
countries transactions are recorded in. By
doing so, brands can start to understand
how to offer more targeted
communication. Additionally, lists of
affiliates based outside the country of the
retailer, can act as a useful way to start
building an international program without
needing a local presence. Some retailers have already adapted their
affiliate campaigns from their regional base to
In addition, the day acted as a lever for This can be possible with dedicated tap into latent groups of publishers in markets
brands seeking to drive new customers support that appreciates regional across the world. One of the beauties of
overseas. This represents a huge variances. Media packs that are affiliate marketing is the wealth of niche and
opportunity for retailers with affiliate translated into local languages, alongside localized content that can be tapped into. With
programs, but what are the practical banner creative and the ability to pay networks taking a more globalized view, so
considerations and challenges brands face affiliates in their local currency all aid the ability to create brand partnerships
in order to take full advantage of the event? cross-border collaboration. currencies all between countries is easier than ever.
aid cross-border
Black Friday. Source: The Awin Report 2017/2018
30
Singles’ Day
Singles’ day: A window into the world’s biggest shopping event

Black Friday and the wider Cyber Since Alibaba picked up the event in Smart stores have been launched where
Weekend have quickly cemented themselves 2009, its reach and range have shoppers try on clothes virtually or pull up
as the most important calendar events for broadened to include shoppers of all additional information on a product that can
online shopping in the affiliate industry. genders and relationship status and it is then be ordered online.
However, reach is only one measurement, now the world’s biggest shopping event.
and in actual fact another event has usurped Shopping basket limits have been set by
it in virtually every other meaningful way: some merchants in an attempt to prevent
China’s Singles’ Day. overloading website servers on the day and
encouraging users to consolidate their
Alibaba, the Chinese ecommerce giant purchases into as few transactions as
who have popularized the event, recorded possible.
sales amounting to a record $25bn from its
customer base. More than 777m parcels Some businesses have incited greater
were shipped by retailers to customers who spending from consumers by encouraging
bought something on the day. Almost 1.5bn them to take out loans with them ahead of
payments were processed through Alipay, the day.
the payment processing arm of Alibaba. Given most activity occurs within
Alipay, the payment processing arm of China’s borders there have been some ‘Retailtainment’ events, fusing shopping
Alibaba’s performance on Singles’ Day 2017 uniquely fascinating marketing and entertainment experiences as a means
developments which are distinctly of attracting consumer attention, are taken to
different to those we’ve seen deployed a whole new level in China on Singles’ Day.
traditionally in other parts of the world, Alibaba’s television spectacular was the
and which perhaps intimate possible most prominent of a series of initiatives
tactics that could be adopted by launched as part of 2017’s Singles’ Day that
advertisers and publishers elsewhere attempted to ‘gamify’ the shopping
soon. experience.
Single’s Day. Source: The Awin Report 2017/2018
31
Case Study
Client Case Study: Very

One of the patterns that emerged from and by offering specific rates for new And whilst the retailer’s strategic use of
Black Friday’s performance in 2017 was a customers with these affiliates, they were exposure with prominent incentive publishers
deliberate attempt from some retailers, to try able to support this objective effectively. such as Quidco, Topcashback,
and steal market share from competitors by New customer rates grew by 124% during Vouchercloud and Vouchercodes.co.uk
launching Black Friday discounts prior to the Black Friday 2017 compared to the same drove the largest portion of activity over the
official date of the event. One retailer who metric in 2016. sales period, collaborations with content
benefitted significantly from this tactic was publishers like Future Publishing also reaped
the UK brand Very, a pure-play retailer The brand’s performance over time valuable dividends for them.
selling a wider variety of consumer goods. and specifically on the Black Friday period
saw a series of interesting trends that
highlight their successful approach.
While in 2016 Very waited until late on the
Thursday evening (8pm) to launch their
first official Black Friday promotion, in
2017 they activated their deals two hours
earlier (6pm) and saw immediate benefits
from this. Future Publishing confirmed that the
Black Friday partnership with Very had been
Although revenue figures dropped off a huge success from their perspective too.
in the early hours of the morning for Very, As a result of an established partnership,
their Average Order Value rate spiked improved deals & rates and strong
Generating new customers was a key again during this period, in a large part conversions, as well as the support of the
objective for Very and again, their affiliates thanks to a targeted affiliate email sent at Awin account team, the premium content
exceeded expectation in this regard. The 3am, featuring deals tailored for a tech publisher was able to give Very more
retailer sought to develop partnerships with audience, with larger ticket items being prominence on site and drive more quality
cashback publishers during 2017, promoted as part of this exposure. sales through to the retailer’s site.
and by offering specific rates for new
Black Friday. Source: The Awin Report 2017/2018
32
Regional & Country
Profiles
South America
Argentina
Brazil
Chile
Colombia
Dominican Republic
Peru
South America’s population* continues to increase (millions)
366.6
363.6
360.4
357.2
352.1
348.5
2013 2014 2015 2016 2017 2018(f)
Source: Ecommerce Foundation; Worldometers, 2018 *Argentina, Brazil, Chile, Colombia, Dominican Republic, Peru
35
The 25-54 age group dominates in South America
42.56%
23.23%
16.10%
9.07% 8.63%
0-14 15-24 25-54 55-64 65+
36
Internet penetration in South America to reach 72%
72%
67%
61%
58%
2015 2016 2017 2018

Source(s): Statista; Internet World Stats; Ecommerce Foundation 2018
37
Chile leads in social media penetration
SOCIAL MEDIA PENETRATION

Internet users who use a social media site via any device (at least once/month), 2017
Average share of the South American population

Chile 71% using each of the different social media platforms:
Argentina 70%
52.10% 10.48%
Peru 63%
5.90% 4.96%
Brazil 58%
34.76% 0.42%
Source(s): Statcounter; Statista; We Are Social, 2018
38
63% of South Americans uses desktop for Internet use
DEVICE USE FOR ONLINE: SOUTH AMERICA

The mass-market adoption of Share of the population using each device for Internet access
smartphones is a relatively recent

phenomenon in Latin America. The
declining handset prices and the
increasing availability of subsidies and 35%
finance offerings by mobile operators
has led to a surge in smartphone
adoption in recent years. Desktop
Today, smartphones account for about
more than 60% of the millions of Tablet
connections on Latin American mobile Mobile
networks. As a result of these trends, 63%
Latin America’s mobile ecosystem will
be a growing contributor to the region’s 2%
economy over the next few years.
-IDG Connect, A look at the mobile ecosystem in Latin America, 2018
Source(s): Statcounter; IDG Connect, 2018
39
2018 B2C online turnover to hit $39 billion in South America
21.9%
16.4%
14.3%
$38.9
Full version available at $32.5

$27.8
$23.2
$21.7
$18.6
2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Statista, 2018
40
South America: Top Shopping Websites
Country Ranking of Shopping websites (# of visitors)
First Second Third
Argentina Mercadolibre.com.ar Mercadolibre.com Olx.com.ar
Brazil Mercadolivre.com.br Olx.com.br Americana.com.br
Chile Yapo.cl Mercadolibre.cl Falabella.com
Columbia Mercadolibre.com.co Olx.com.co Amazon.com
Peru Mercadolibre.com.pe Olx.com.pe Falabella.com.pe
Source: SimilarWeb (ranked, # of visitors)
41
Ecommerce Sales 2014 – 2018(f) (billions of USD)
Argentina
Introduction: Ecommerce Facts & Figures:
• Population: 44 million • Internet penetration: 78%
• Currency: Peso • % of e-Shoppers: 39.4%
• VAT: 21% • E-GDP: 1.1%
• Unemployment: 8.5% • % using Social Media: 70%
Full version available at
Ecommerce Environment:
• Teens with a higher socio-economic level use mobile channels more than those
from middle and low-socioeconomic levels. It is striking that 51% of those
surveyed reported being online “all the time” while 16% say they go online more
than once an hour and 20% more than once a day.
• Argentina is the 3rd largest mobile market in Latin America, with 61 million mobile
connections. Penetration on an unique subscriber (i.e. human user) basis is Payment Method Date
Major Buying Holidays
mature at 90%. Supported by an improved outlook, mobile broadband Preference/Use 2018-2019
penetration will rise from 46% now to around 75% by 2020. This growth will be Carnival Feb. 12
Mastercard Argentina
underpinned by nearly $9 billion in network investment by mobile operators. A Valentine’s Day Feb. 14
similar shift is expected in device ownership; smartphone adoption is expected American Express Mother’s Day Oct. 21
to increase to 71% of connections over the next 5 years. Argentina
Father’s Day Jun. 17
• 80% of Avenida’s orders are currently delivered overnight to its 11 pickup PayPal Argentina
locations in Buenos Aires. These small storefronts are cheaper to run than retail Independence Day Jul. 9
stores, but still allow customers to interact with Avenida’s staff, which helps build 2Checkout Black Friday Nov. 23
trust and brand loyalty. Payu Argentina Cyber Monday Nov. 26
Source(s): BBVA; GSMA; Tech Crunch; Statista; Kantar TNS; CACE, 2018
42
Brazil
• Currency: Real • % of e-Shoppers: 38%
• VAT: 17% • E-GDP: 0.92%
• Top leading categories of products purchased on international websites:
electronics (34%), software (25%), fashion & accessories (24%),
mobile/telephones (18%), toys & games (17%), cosmetics & personal care
(17%), automotive accessories (13%), books (13%), home furnishings &
decoration (12%), sports & leisure products (11%).
• In 2016, Brazilian eshoppers spent $2.4 billion in cross-border websites, Payment Method Best selling online Share of
representing an increase of 17% compared to 2015 & 38% compared to 2014. Preference/Use retailer/marketplaces users
• Businesses seeking to market in Brazil also may wish to consider registering Credit Card 62% Mercado Livre 77%
their trademark(s) as domain name(s) ending in ‘.br’ which is the country top-
level domain for Brazil. PayPal 28% Extra 38%
• According to ABComm, roughly 30% of consumer goods purchased in 2016
Ponto Frio 36%
were bought using mobile devices (smartphones and tablets). Boleto 9%
• Brazilians tend to purchase through marketplaces and group buying websites. Submarino 34%
Cash 50%
Brazilians also like to take advantage of online discount websites and coupons.
2-3 installments 18.7% Walmart 28%
Many middle-class consumers are aware that online prices for consumer goods
and customer service policies are better than in stores. 4-12+ installments 31.5% OLX 10%
Source(s): ABComm; Export.gov; eBit; Worldometers; Statcounter, 2018
43
Chile
• Currency: Chilean Peso • % of e-Shoppers: 35%
• VAT: 19% • E-GDP: 1.37%
• Unemployment: 7% • % using Social Media: 71%
• In the last five years, ecommerce has more than doubled in Chile. This increase
is a result of the country’s rapid technological infrastructural development.
However, small- and medium-sized companies in Chile lag well behind large
companies in terms of ecommerce.
• Chile, one of the region’s most developed markets, has a high level of credit card
use and good quality of roads, but its package delivery industry to date has been Top International
Payment Method Best selling online
largely focused on business-to-business transactions. Preference/Use retailer/marketplaces Webshops
• Swedish furniture store, IKEA, announced in May 2018 that it planned to open its
first stores in South America under a franchise agreement with the Chilean Mercado Livre
2Checkout Alibaba
retailer and online marketplace leader Falabella. Extra
• Regarding ecommerce purchasing, according to a study by the Chamber of
Payu LATAM Groupon Ponto Frio
Commerce of Santiago, consumer goods exceed 20% of purchases, whereas
food represented only 4% of B2C electronic sales registered in Chile, while Submarino
durable goods generated 27% of the transactions carried out. Regarding mobile Mercado Pago Falabella
Walmart
device purchases, users prefer to choose a product proposal where quality is
assured and therefore being able to touch and/or feel what they are buying. WorldPay Walmart OLX
Source(s): América Retail; Reuters; Shopify; SimilarWeb; Statcounter; Export.gov; Statista, 2018
44
Colombia
• Currency: Peso • % of e-Shoppers: 10%
• VAT: 19% • E-GDP: 1.63% Full version available at
• Despite a general mistrust of ecommerce in Colombia, the growth of internet
connections and use of smartphones are allowing for an increase in online
transactions. Colombians’ online purchases can be broken down as follows:
Government (13%), Financial (17%), Communications and Technology (11%),
Transport (9%), Other Services (3%), Commerce (15%), Education (6%), Public
Services and TV Subscriptions (4%), Health and Beauty (4%), Housing (2%), Payment Method Preference/Use Top International Webshops
and Enterprise Services (7%). 2Checkout
• In Colombia, social media is used to promote ecommerce websites and is a Mercadolibre.com.co
DineroMail
powerful tool of communication that some companies use to reach customers
and to position brands. Facebook, Twitter, Instagram, Pinterest and YouTube are Interpagos Olx.com.co
the most popular. MercadoPago
• Amazon expands its footprint in South America. The ecommerce giant last Ogone Amazon.com
opened its first customer service center in Colombia. The center, which will be
located in the Colombian capital, will begin operations at the end of October and PagosOnline
Falabella.com.co
will provide service 24 hours a day, seven days a week. Payza
PayU LATAM Exito.com
Source(s): América Retail; PrestaShop; SimilarWeb; Export.gov; Statista; CCCE; KPMG; MINTIC; RENATA, 2018
45
Dominican Republic
• Population: 10.8 million • Internet penetration: 61%
• Currency: Peso • E-GDP: 2.8%
• VAT: 18% • Facebook Users: 43%
• Unemployment: 5.50% • Online Sales Growth: 14.5%
• Even under a favorable legal framework, Dominican businesses have been
somewhat slow to integrate electronic commerce transactions into their
operations. Currently, only a few industry sectors offer ecommerce capability,
mostly business-to-consumer (B2C).
• There is a growing business-to-business (B2B) ecommerce market in the
Dominican Republic. Main sectors include banking, telecommunications, Payment Method
government transactions and consumer goods. Major Buying Holidays 2018-2019
Preference/Use
• The payment of services using ecommerce platforms have shown a remarkable
growth within the last three years, allowing customers to pay all utilities services, PayPal Valentine’s Day Feb. 14
official government transactions, such as taxes, certifications, business permits,
among other services. Easter Apr. 21
2Checkout
• Mainland China’s significance has grown in recent years for the Dominican Mother’s Day May 26
government as bilateral trade with China reached US$2 billion a year, making it Authorize.net
the second-largest trading partner for China among the Caribbean and Central Back to School Aug. 20
Stripe
American nations.
Amazon Payments Christmas Dec. 25
Source(s): South China Morning Post; ecommerce.com.do; Statcounter; UNCTAD; amcham, 2018
46
Peru
• Currency: Peso • % of e-Shoppers: 6%
• VAT: 18% • % Using Social Media: 63%
• Unemployment: 3.60% • E-GDP: 1.35%
• Peru ranks sixth among Latin American countries in the e-Readiness Index,
developed by Visa and Euromonitor, which measures the situation of electronic
commerce in a country and the ability of its consumers and businesses to use it
for their own benefit.
• Talking about young shoppers is important because they represent a high
percentage of population with particular preferences about internet and Payment Method
ecommerce uses. Those under 30 prefer buying accessories and applications Top selling online marketplaces/retailers
Preference/Use
(38%), technology (30%) and clothing and footwear (30%) on the internet. Mercado Libre
2Checkout
• Customers are becoming increasingly demanding and appreciate a wide range
OLX
of channels from which to make a purchase, or at least to make comparisons.
PayU LATAM
The increasing demand from customers to find information and availability of Falabella
products through the internet has encouraged companies to enter online DineroMail Ripley
marketplaces more frequently, rather than to open their own ecommerce
Payza Platanitos
platforms because the investment is lower, and the reach can be wider through
marketplaces. PayPal Wong
FirstData Rosatel
Source(s): AmericanRetail; Euromonitor International; Export.gov; Statcounter; Worldline, 2018
47
South America: Summary and Expert Thoughts
✓ Leading ecommerce sites in the region
1. MercadoLibre
“For the ecommerce market, collecting
2. Olx
and storing user logged session data
3. Yapo
helps to better understand the customer,
his/her experience on your site and
✓ Ecommerce Payment Methods
“Plastic card usage has been growing; e-commerce is strong. Local fintech Marc Atallah interaction with your products.”
Co-founder of Mazars zettafox and Read the full interview on page 88
startups are disrupting incumbent financial systems and large numbers of mobile
Co-leads the Data Exploration /
wallet launches demonstrate investor determination to bring in the next wave of Advanced Analytics team
payment technology.”
✓ Top 3 countries ranked by B2C Turnover

1. Brazil
2. Argentina “While the IoT generates a gargantuan
3. Colombia amount of data and creates exciting new
solutions and innovations, it also creates
✓ Top ecommerce import destinations a lot of security holes and opens up many
• United States privacy concerns.”
• China Kevin Cochrane
Read the full interview on page 145
• Germany Chief Marketing Officer,
SAP Customer Experience
Source: Instapay, 2018
48
North America
Canada
United States
Mexico
North America’s population* continues to grow (millions)
494.4
490.2
486.0
481.7
473.7 472.9
2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Worldometers, 2018 *Canada, United States, Mexico
50
25-54 age range dominates in North America
40%
21%
14% 14%
12%
0-14 15-24 25-54 55-64 65+
51
North American internet penetration to reach 90% in 2018
90%
83%
81%
79%
2015 2016 2017 2018
52
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.
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.
20% -Statista, Social media usage in the United States - Statistics and Facts,2018
10%
5% 2% 2%
Source(s): Statcounter; Statista; 2018
53
Almost 58% of North America uses desktop for Internet use
DEVICE USE FOR ONLINE: NORTH AMERICA
38.9%
Desktop
Tablet
Mobile 57.7%
3.4%
Source(s): Statcounter 2018
54
North American B2C ecommerce sales to reach $570 billion
13.2% 13.5% 13.1%

12%
10.5%

www.ecommercefoundation.org/reports $495.7
$429.1
$377.7
$327.8
$293.5
2013 2014 2015 2016 2017 2018(f)

55
North America: Top Shopping Websites
First Second Third
Canada Amazon.ca Kijiji.ca Amazon.com
Mexico Mercadolibre.com.mx Amazon.com.mx Amazon.com
United States Amazon.com eBay.com Craigslist.org
56
Canada
• Currency: Canadian Dollar • % e-shopping: 25.2%
• VAT: 7% • E-GDP: 1.33%
• Unemployment: 6% • Avg. e-spending: $6,933
• 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 Payment Method
March 2017 2017
especially for small routine orders. Bought Preference/Use
• Devices preferred for online shopping in 2017 were: Laptop/desktop, 67.2%; Clothing & apparel 56% Credit Card 61%
Mobile phone, 2.6%; Tablet, 6%; No preference, 24.2%. Household goods 41% PayPal 21%
• Favorite cross-border shopping destinations:
Books 40% Debit Card 5%
56% 18% 7% 3% 2% Show/game tickets 40%
May
Cross-border Ecommerce
Electronics 34% 2018
Shop Domestically Only 37%
Gov. Services 34%
Shop Domestically & Cross-border 56%
Other goods/products 31% Shop Cross-border only 8%
Source(s): Statista; NLogic; Numeris; TSYS; PayPal; Ipsos; eMarketer; Export.gov, 2018
57
United States
• Currency: U.S. Dollar • % of e-Shoppers: 80%
• Ages 25-54: 39.45% • % bought cross-border: 28%
• 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.
Payment Method Delivery Method/Preference 2016
2017
Average spending per e-shopper 2015 2016 2017 2018 Preference/Use
Economy ground 42%
Credit Card 62%
Ground, 3-5 days 20%
U.S. dollar spending/shopper $1,630 $1,791 $2,013 $2,089
Online Payment (PayPal, Amazon, 2-day 20%
58%
etc.)
Top 5 import countries (billions of USD): Ship to store/in-store pickup 9%
Direct Debit 47%
Next-day, 1-day 6%
$457 $291 $288 $128 $122 Prepaid cards/vouchers 17% Same day 3%
Cash on Delivery 12% May

Cross-border Ecommerce
2018
Cash in Advance 12%
Invoice 12% Shop Domestically & Cross-border 27%
None of the above 9% Shop Cross-border only 7%
Source(s): eShopWorld; ATKearny; Statista; eMarketer; PayPal; Ipsos, 2018
58
Mexico $24.8
Introduction: Ecommerce Facts & Figures: $21.0
• Population: 130.8 million • Internet penetration: 70%𝑒 $17.9
• Currency: Peso • % of e-Shoppers: 31% $16.3
• VAT: 16% • E-shopper growth: 7.5% $12.5 Full version available at
$9.4 www.ecommercefoundation.org/reports
• The market will continue growing as a result of improvements in connectivity, enhanced financial
inclusion, more streamlined logistics and increased digital literacy. Multichannel brick-and-mortar
(brick-and-click) retailers have reportedly seen their online sales grow to account for 25% of
overall sales.
• Mexico has a number of shopping events where retailers push special offers and promotions. For
example, Hot Sale Event runs from May 29th to June 1st and encourages online shopping. Similar
to Black Friday in the U.S. – Major eRetailers offer slashed prices and deals across electronics Payment Method Major Buying Holidays 2018-2019
and clothing goods. Preference/Use
Valentine’s Day Feb. 14
• By 2021, Fashion will still be the most purchased online category, with a value of 4.16 billion USD,
and second favorite, Electronics & Media will have an expected worth of 3.89 billion USD$. Independence Day Sep. 16
PayPal 70%
• The top international eRetailers/marketplaces include Mercadolibre.com.mx, amazon.com.mx, Black Friday Nov. 23
amazon.com, Liverpool.com.mx and eBay. Mercado Pago 18% Cyber Monday Nov. 26
• Social Media Usage, 2018:
Cinco de Mayo May 5
Visa Checkout 12%
68.5% 14.1% 11.3% 5.3% .4% Cross-border Ecommerce May 2018
Pay Mobile 7%
Masterpass 7%
Safety Pay 7% Shop Cross-border only 10%
Source(s): InboundLogistics.com; Asociaciondeinternet.mx; Export.gov; eshopworld.com; SimilarWeb; Statista, 2018 𝑒=Estimate
59
North America: Summary and Expert Thoughts
✓ Leading ecommerce sites in the region
1. Amazon
2. MercadoLibre “…the real challenge for businesses and
3. eBay companies will be to find the right blend
of personalised service, relevant branding
and products to catch the attention of
✓ Top Payment Methods Roland Palmer tomorrow’s consumers.”
Managing Director Alibaba Group
• PayPal and
• Credit card Head of Alipay EMEA
• Debit card

1. United States “…with millennials becoming a larger
2. Mexico segment in the market and digital
3. Canada channels being their default channels for
buying (and everything else), digital
✓ Top ecommerce import destinations buying experiences will continue to
• China improve.”
• Japan Kevin Cochrane
Chief Marketing Officer, Read the full interview on page 145
• United States SAP Customer Experience
60
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,
62
25-54 age range dominates in Europe
42%
18%
15%
13%
10%
0-14 15-24 25-54 55-64 65+
63
Internet penetration across Europe to reach 83% in 2018
83%
82%
81%
80%
2015 2016 2017 2018
64
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%
64.6% 11.15%
France 58%
Italy 57%
6.96% 2.3%
Romania 51%
Russia 47% 6.39% 2%
65
58% of the European population uses desktop for Internet
DEVICE USE FOR ONLINE: EUROPE

2017 was a milestone year for the mobile

industry: the number of people connected 36.2%
to mobile services surpassed 5 billion
globally. As such, two out of three people
in the world had a mobile subscription at Desktop
the end of 2017. Looking out to 2025, the Tablet
mobile industry will reach new major
57.6% Mobile
milestones across key indicators – unique
subscribers, internet users and 4G/5G
connections.
-GSM Association, The Mobile Economy 2018, 2018
6.2%
Source(s): Statcounter 2018
66
European B2C online sales to reach over $535 billion in 2018
13.1%
13%
11%
$535.4
$407.2
$379.5 $361.4
$303.9
2013 2014 2015 2016 2017 2018(f)

67
Europe: Top Shopping Websites
First Second Third
France Amazon.fr Leboncoin.fr Cdiscount.com
Germany Amazon.de eBay.de Otto.de
Italy Amazon.it Subito.it eBay.it
Romania Olx.ro Emag.ro Aliexpress.com
Russia Avito.ru Aliexpress.com Market.yandex.ru
Spain Amazon.es Milanuncios.com Aliexpress.com
Sweden Blocket.se Tradera.com Prisjakt.nu
United
Amazon.co.uk eBay.co.uk Argos.co.uk
Kingdom
68
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
impacted by Brexit, both in the near could be quite disruptive.
future, as well as in the longer-term?
What are some of the challenges and
The most immediate impact so far has proposed solutions, particularly for
been on the availability of labour: the Brexit business, regarding the logistics issues
vote has already made the UK a less that Brexit will bring about?
attractive place for EU citizens, even though
free movement continues for now. This has The immediate concern is obviously
Professor Jonathan Portes affected a number of sectors, from the NHS customs controls and checks, which –
Senior Fellow, to agriculture. assuming we leave the customs union and
The UK in a Changing Europe Single Market, as is current UK government “In the short term, business is
In the short term, business is most policy, will be necessary at the UK border most concerned about the risk
concerned about the risk of a “No Deal” with the EU. This will be the case even if the
which would be extremely disruptive to trade. UK concludes a relatively ambitious free of a “No Deal” which would be
Assuming, however, that a transition period trade agreement with the UK. This will
is agreed until at least 2021, attention will obviously impose new costs, including the
extremely disruptive to trade…
shift to the longer-term relationship between need to fill in new forms, the risk of delays at There will be complex issues
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 relating, for example, to data
zero, but the impact of customs controls and Given goodwill and investment on both
Jonathan Portes is a senior fellow of The UK in
non-tariff barriers. sides, some of these costs could be
protection and data handling.”
a Changing Europe – an independent,
impartial non-partisan organization providing mitigated – although not eliminated – by new
authoritative information on UK-EU issues. He The UK’s insistence that it should have technology and ambitious customs
is also Professor of Economics and Public the option of regulatory divergence after cooperation agreements.
Policy in the Department of Political Economy Brexit means significant negative impacts
at King’s College London. are likely here. There will be complex issues
relating, for example, to data protection and approach to managing consent and
Previously, he was principal research fellow of
data handling: although the UK will probably
the National Institute of Economic & Social
Research. Before that, he was chief economist
do its best to continue to follow EU
at the Cabinet Office, and previous to that, standards, the UK decision to leave ECJ
chief economist at the Deparment of Work and jurisdiction means that this may get steadily
Pensions. more difficult over time. At best,
best, this will lead to some manageable
69
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,
larger companies they often lack the HR or the Netherlands and Belgium would all see
Professor Jonathan Portes 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
movement and introduces a new more global trade (including ecommerce)?
bureaucratic and restrictive system this will
be a major headache for many SMEs. Overall, the impact outside the EU is
likely to be limited, although some firms (for
For SMEs who do not export to the EU – example Japanese car firms with major UK
for example, restaurants - this is likely to be operations) may be adversely affected. UK
the main impact. For SMEs which do export e-commerce companies may find it more
Jonathan Portes is a senior fellow of The UK in to the EU (either goods or services) it will difficult to operate in the EU and vice-versa,
a Changing Europe – an independent, very much depend both on the sector and on although it will depend very much on the
impartial non-partisan organization providing the nature of the future relationship. For regulatory regime in each sector.
authoritative information on UK-EU issues. He example, service providers who rely on the
is also Professor of Economics and Public mutual recognition of professional
Policy in the Department of Political Economy qualifications and relatively easy business
“…a new more bureaucratic
at King’s College London. travel (perhaps in law and related and restrictive system… will be
professions) may see difficulties; others
Previously, he was principal research fellow of
(perhaps marketing or research and a major headache for many
the National Institute of Economic & Social
Research. Before that, he was chief economist
consultancy) may find that new barriers are
an irritant but not a disaster.
SMEs”
at the Cabinet Office, and previous to that,
chief economist at the Deparment of Work and
Pensions.
70
United Kingdom
• Currency: Pound Sterling • % of e-shoppers: 81%
• VAT: 20% • % bought cross-border: 33% Full version available at
• Unemployment (2018): 5.05% • Social media users: 66% www.ecommercefoundation.org/reports
• Amazon has launched its latest in ecommerce endeavors: Amazon Storefronts, a new store for customer to
shop from small and medium-sized businesses that sell on Amazon and learn more about them through
videos and stories. Amazon Storefront is now active in the UK (as well as the US and Germany)
(September 2018).
• HubBox, which runs a network of shops that operate as parcel collection points across the UK, to add
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. Payment Method Preference/Use 2017 Delivery method preference/use 2017
Shopping Online Payment (PayPal, Amazon) 71%

Cross-Border Shopping Shopping cross- Home delivery during day 72%
domestically & cross-
Shopping domestically only border only
border Direct debit 68% Home delivery during evening 30%
Share of Population 62% 34% 4% Credit card 50% Delivered to mailbox 28%
Prepaid cards/vouchers 17%
Collect from online store’s physical
13%
58.9% 15.8% 4.05% 12.9% 3.4% Cash on delivery 10% store
Invoice 10% Collect from distribution point 11%
Other/none of the above 10% Delivery to workplace 8%
Cash in advance 8% Collect from parcel machine 5%

Source(s): ecommercenews.eu; Eurostat; Statista; PostNord; WeAreSocial; PayPal; Ipsos, 2018
71
France
• Currency: Euro • % of e-Shoppers: 68%
• VAT: 20% • E-GDP: 4.22%
• In 2016, 9.3 million French consumers made a purchase through their mobile phone,
representing a total market of $12 billion. Sales on mobile phones and tablets continue to
grow very fast and they already account for 11.2% of total ecommerce sales.
• Popular ecommerce sites and marketplaces include amazon.fr, leboncoin.fr, cdiscount.com,
ebay.fr and aliexpress.com.
• On average, 27—28% of online shoppers ordered goods/services cross-border in 2016 and
2017. Delivery method preference/use 2017
Payment Method Preference/Use 2017
Home/workplace delivery 85%
Average spending per e-shopper 2015 2016 2017 2018 Credit card 62% Shipping to pick-up & go location 85%
Online payment (PayPal, Amazon) 58% Delivery in-store 36%

U.S. dollar spending/shopper $1,912 $2,118 $2,436 $2,759
Delivery in deposits 11%
Direct debit 22%
Collect from distribution point 11%
70.9% 3.35% 3.27% 20.2% .8% Delivery to workplace 8%
Invoice 8%
Cross-border Ecommerce 2018
Cash on delivery 4%
Cash in advance 4% Shop Domestically & Cross-border 56%
Source(s): ecommercenews.eu; Eurostat; Statista; PostNord; WeAreSocial; PayPal; Ipsos; Export.gov, 2018 Other/none of the above 11% Shop Cross-border only 10%
72
Germany
• VAT: 19% • E-GDP: 3.11%
• An average of 20% of German consumers purchased online cross-border in 2017.
• Germany is the third most active country worldwide both in import and export
ecommerce, third to only the US and the UK,
• Estonia has developed a trade route with Germany; the largest proportion of cross-
border purchases arrive from Germany. As a result, Eesti Post and Deutsche Post
DHL have agreed to develop additional services to facilitate and develop cross-border Top International Websites
Payment Method Preference/Use
ecommerce.
PayPal Amazon.de
Average spending per e-shopper 2015 2016 2017 2018 Advance Payment Ebay.de
Ebay-kleinanzeigen.de
Credit card
U.S. dollar spending/shopper $1,417 $1,532 $1,732 $1,945 Otto.de
Purchase on account
Idealo.de
Sofortüberweisung/instant transfer
70.8% 3.77% 2.1% 14.8% 1.9% Cross-border Ecommerce 2018
Direct debit
Amazon Pay Shop Domestically Only 66%
Cash on delivery Shop Domestically & Cross-border 27%
Installment purchase Shop Cross-border only 5%

Source(s): ecommercenews.eu; Eurostat; Statista; PostNord; WeAreSocial; PayPal; Ipsos; Export.gov, 2018
73
Sweden
• Population: 10 million • Internet penetration: 99.7%
• Currency: Swedish Krone • % of e-Shoppers: 86%
• VAT: 25% • % bought cross-border: 33%
• 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:
Payment Method Delivery method preference/use 2017

2017
Preference/Use Pickup Location 36%
Average spending per e-shopper 2015 2016 2017 2018 Invoice 37% Home delivery in postbox (no receipt) 30%
Home delivery in evening (receipt) 11%

Debit/credit card 26%
U.S. dollar spending/shopper $941 $966 $1,020 $1,007
Home delivery outside door (no receipt) 9%
Direct payment via bank 17%
Parcel Machine 4%
68.2% 8.1% 5.3% 8.6% 5.4% Paypal, Payson or similar 8%
Swish 8%
Other 3%
Unsure 1% Shop Cross-border only 8%
Source(s): Statista; export.gov; PostNord; Svensk Digital Handel; HUI Research; PayPal; Ipsos; DIBS; YouGov, 2018
74
Russia
• Currency: Russian Ruble • % of e-Shoppers: 48%
• VAT: 18% • E-GDP: 2.5%
• The cross-border market in Russia increased by 25% from 2015 to 2016.
• For new retailers establishing themselves in the Russian market, it is highly recommended to translate
their web sites into Russian.
• Russian online consumers still prefer cash on delivery, which in most other markets is very unusual
today.
• Over 60% of Russian online buyers state that they regard high delivery costs as an obstacle for their
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. Top International Websites
Payment Methods Used 2017
Avito.ru
Average spending per e-shopper 2015 2016 2017 2018 Online payment (PayPal, Aliexpress.com
59%
Amazon)
Market.Yandex.ru
U.S. dollar spending/shopper $589 $647 $712 $741 Credit card 39%
Wildberries.ru
Cash in advance 35% Dns-shop.ru
23.9% 10.6% 18.5% 7.72% Invoice 35%
Cash on delivery 24%
Prepaid cards/vouchers 23% Shop Domestically & Cross-border 56%
Direct debit 20% Shop Cross-border only 14%
Source(s): Statista; Eurostat; EastWest Digital News; Statcounter; DirectLink.com; PayPal; Ipsos, 2018
75
Romania
• Currency: New Leu • % of e-Shoppers: 18%
• VAT: 19% • E-GDP: 2.55%
• Unemployment: 5.2% • % bought cross-border: 3%
• DHL has further expanded its European parcel network. The postal company is now
able to offer its cross-border services for online customers in Ireland and Romania,
while Croatia and Bulgaria joined the network in November (2017).
• Romania has approximately 7,000 online stores, up from 5,000 in 2016. Pundits
expect it to double, to some 14,000 online shops in 2018.
• Cash on delivery is the most offered payment method, followed by bank transfer and Top International Websites
cash payment in-store/ at site/ in an office. Payment Method
2017 Olx.ro
Preference/Use
Emag.ro
Average spending per e-shopper 2015 2016 2017 2018
Aliexpress.com
U.S. dollar spending/shopper $1,218 $1,280 $1,452 $1,757 Cash on Delivery 70% Amazon.com
Altex.ro
87.5% 1.2% 5.1% 4.5% Card 25% Delivery Method Preference/Use
Fan Courier
Urgen Cargus
Bank payment/
5% Posta Romana (Romanian Post)
internet banking
Source(s): Export.gov; Statista; Ecommercenews.eu; Eurostat; Romania-Insider.com; enet.hu; Statcounter, 2018 Same-day
76
Italy
• VAT: 22% • E-GDP: 1.43%
• Unemployment: 11% • % bought cross-border: 15%
• 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 2017
Preference/Use
Home delivery during day 77%
U.S. dollar spending/shopper $1,229 $1,423 $1,715 $1,916 Online payment (PayPal, Delivered to mailbox 23%
73%
Amazon)
Home delivery during evening 17%
Top 5 import countries (billions of USD): Prepaid cards/vouchers 45%
Delivery to workplace 13%
Credit card 43%
$67.2 $35.7 $26.4 $22.5 $20.8 Collect from distribution point 8%
Cash in advance 14%
Direct debit 13% Shop Domestically & Cross-border 45%
Invoice 5% Shop Cross-border only 9%
Source(s): eshopworld.com; Eurostat; Statista; export.gov; Osservatorio eCommerce B2C Netcomm-School of management del Politecnico di Milano; PayPal, Ipsos, 2018
77
Spain
• VAT: 21% • E-GDP: 2.4%
• 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 2017
Preference/Use
Home delivery during day 53%
U.S. dollar spending/shopper $922 $1,149 $1,224 $1,342 Online payment (PayPal,
77% Home delivery during evening 46%
Amazon)
Delivered to mailbox by mail carrier 30%
Top 5 import countries (billions of USD): Direct debit 50%
Collect from online store’s physical store 16%
Credit card 48%
$44.5 $36.6 $23.2 $21.3 $14.6 Collect from distribution point 15%
Cash in advance 7% Shop Domestically & Cross-border 54%
Invoice 6% Shop Cross-border only 7%
Source(s): eShopWorld; Statista; Eurostat; export.gov; PayPal; Ipsos; Statcounter, 2018
78
Europe: Summary and Expert Thoughts
✓ Examples of leading ecommerce sites in the region
1. Amazon “In the short term, business is most
2. eBay concerned about the risk of a “No Deal”
3. Aliexpress which would be extremely disruptive to
trade… There will be complex issues
✓ Top Payment Method relating, for example, to data protection
• PayPal Professor Jonathan Portes
and data handling.”
Senior Fellow,
• Debit/credit card
The UK in a Changing Europe Read the full interview on page 69
• Cash on delivery

1. United Kingdom
2. France “The internet’s incredible ability to
3. Germany provide shoppers with a means of
comparing prices and sharing feedback
✓ Top ecommerce import destinations has empowered them to shift their spend
• Germany to competing brands far more easily.”
• France Read the full interview on page 142
• China Robert Davinson
Content Analyst,
Awin
79
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
81
25-54 age range dominates in Middle East
47%
Demographic development in the

Middle East has recently changed
from high birth and death rates to 25%
lower birth and death rates thanks
to the modernization of the region,
which includes educational and 16%
economic growth.
8%
6%
0-14 15-24 25-54 55-64 65+
82
Internet penetration in Middle East to reach 74% in 2018
74%
69%
62%
57%
2015 2016 2017 2018

83
Mobile is the go-to device for Internet use in the Middle East
DEVICE USE FOR ONLINE: MIDDLE EAST
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
84
B2C online sales to reach $80+ billion in Middle East in 2018
19.7% 21.8%
17%
11%
$80.4

$62.9
$55.9
$46.5
$37.4
$20.8
2013 2014 2015 2016 2017 2018(f)

*All countries included can be found on page 6, however the following countries were only included for certain years due to l ack of
Source: Ecommerce Foundation; Statista, 2018 data (beginning data usage date listed in parentheses): Bahrain (2013), Kuwait (2014), Armenia (2014).
85
Middle East: Top Shopping Websites
First Second Third
Armenia Amazon.com AliExpress eBay
Bahrain Amazon.com eBay Aliexpress
Israel Aliexpress.com Amazon.com Yad2.co.il
Kuwait Amazon.com eBay.com Aliexpress.com
Qatar Amazon.com eBay.com Aliexpress.com
Saudi Arabia Haraj.com.sa Amazon.com Souq.com
Turkey Sahibinden.com Hepsiburada.com N11.com
United Arab
Souq.com Dubizzle.com Amazon.com
Emirates
86
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
consumer trust and awareness issues;
Delivery issues 21% shortcomings in the payments, distribution,
and logistics infrastructure; as well as
government policies in infant stages.
Size issues 15%
Concerns about data security and fraud
compound consumer trust issues. According
Addiction 12% to a recent Norton study, 40% of mobile
shoppers in the Middle East and North Africa
have been victims of cybercrime, and 71%
Website or app
6% say they observed cyber attacks in the
issues region.
-A.T. Kearney, Getting in on the GCC E-Commerce Game, 2016
Payment Issues 4%
Source(s): Statista; Crimson Hexagon; HOS; A.T. Kearney, 2018
87
Could you explain a bit why data Interview
management is so important in the global
ecommerce market?
Where and how do ethics and data
Data is the raw material used for data management coincide (or collide) in the
analysis today and is considered in the tech global ecommerce market? What does
world as a valuable resource. The goal is to ‘ethical data management’ look like?
meet ongoing information lifecycle needs. To
be exploitable, data must be technically The major focus point around this is not
accessible, legally usable (e.g. CNIL, GDPR) selling the data to a third party. The data
Marc Atallah and statistically coherent to be of any collected through user consent can only be
Co-founder of Mazars zettafox and interest. Therefore, a data strategy used by the ecommerce site and if they
Co-leads the Data Exploration / supported by a clear data management indeed have a data breach they must block
Advanced Analytics team process (including systems) is necessary all accounts and ask us to change our
and goes through a clear cycle: password. This is usually integrated into the
data governance part.
• Data creation/collection;
Storing non-logged information helps to What is the future of data and ecommerce
• Storage;
understand a user experience from a larger and what does that landscape look like?
• Processing; point of view; e.g. Are potential clients not Additionally, how can SMEs who sell
registering because the product does not online utilize data in a financially feasible
Marc is co-founder of Mazars zettafox and co- • Archiving;
leads the Data Exploration/Advanced Analytics appeal to them (which could be an answer in and manageable way to compete with
team focusing on Machine Learning and Big • and sometimes data destruction. itself) or because they do not like the massive retailers like Amazon and
Data. He previously founded Caritat Strategic eCommerce site and experience? In this Alibaba?
Analytics Group (CSAG) - an innovative leader For the ecommerce market, collecting and case, data would be used to enhance
in knowledge discovery and predictive storing user logged session data helps to conversion or at the very least push the user The best way to answer this is to look
analytics acquired by Deloitte in 2012 to better understand the customer, his/her to subscribe and log into the site to get to back at the history of data. What has made it
structure and reinforce its analytics platform. experience on your site and interaction with know the customer. so valuable today?
your products. In this case the data would be
He has more than 18 years of experience in
used to increase basket size, up-sell, cross- Technologies are disseminating on the It is the convergence of three trends:
data analysis/exploration 10 of which were
dedicated to knowledge discovery in Data
sell etc. This type of data will be used to websites, such as tracking mouse movement
Science since its industrial inception as well as explain conversion on specific products, (is the person going to close the window -> a) Computing power and storage
11 years of academic contributions. bundling, user checkout patterns, promotions suggest a message to keep them from b) Algorithms
impact, couponing impact etc. leaving for example). c) Data – a lot of it…
88
Interview
The massive growth in data followed offerings can be considered as SMEs so the
naturally the evolution of the internet latter can use their data approaches to hit
including ecommerce sites but exploded with the ground running. In the future, SMEs should be able to use
mobile applications. more advanced techniques such as biometric
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
the following trends in data: Google, Amazon and Microsoft there are manufacturers have implemented this on their
more and more options giving SMEs the mobile phones); why not iris or voice
• New sources of data (IoT, sensors and possibility to crunch data. Their only problem recognition, or even palm vein authentication
Marc Atallah things of the sort – machine to machine may be to get a hold of good data. one day? Depending on the hardware, voice
Co-founder of Mazars zettafox and type of data, voice data) or palm vein authentication may be the most
Co-leads the Data Exploration / • New tools used to discover trends in data We see significant amounts of online interesting for accuracy, ease of use and user
Advanced Analytics team making it easier to access and more fraud occurring in some parts of Africa as acceptance.
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
companies and not just in specific fraud, risk, etc.? What approach should common and more difficult to hack.
departments this be and how can they create that
approach?
Marc is co-founder of Mazars zettafox and co- Fraud has always been around. It usually
leads the Data Exploration/Advanced Analytics comes from ill-designed IT/IS architectures “People, internet and mobile
team focusing on Machine Learning and Big and bad technology implementation. Part of
Data. He previously founded Caritat Strategic the answer to this lays therefore on the users must be aware of
Analytics Group (CSAG) - an innovative leader cyber-security front being an issue in itself.
in knowledge discovery and predictive phishing techniques, properly
analytics acquired by Deloitte in 2012 to
structure and reinforce its analytics platform.
The other part today comes from good using and recording their
data practices from people using the
He has more than 18 years of experience in
internet. People, the internet and mobile login/passwords etc.”
data analysis/exploration 10 of which were SMEs may have an issue with data. users must be aware of phishing techniques,
dedicated to knowledge discovery in Data However, most start-ups specialized in data properly using and recording their
Science since its industrial inception as well as apps using digital to provide new login/passwords etc.
11 years of academic contributions. offerings can be considered as SMEs so
89
Turkey
• Currency: Turkish Lira • % of e-Shoppers: 55%
• VAT: 18% • E-GDP: 3.33%
• 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.
Payment Method
Average spending per e-shopper 2015 2016 2017 2018 2017 Top International Websites
Preference/Use
U.S. dollar spending/shopper $144.57 $126.08 $87.89 $84.53 Credit card 82% Sahibinden.com
Top 5 import countries (billions of USD): Cash in advance 50%

Hepsiburada.com
$24.4 $22.5 $12.2 $10.8 $10.4
Direct debit 38% N11.com
Invoice 22%
Gittigidiyor.com
Online payment (PayPal,
18%
Amazon)
Trendyol.com
Source(s): export.gov; eshopworld.com; Statista; The Paypers, 2018 Prepaid cards/vouchers 9%
90
Iran
• Currency: Rial • % of e-Shoppers: 55%
• VAT: 9% • E-GDP: 6.5%
• On average, every Iranian above 14 has made 207 online purchases in the past Persian year
(2017). In fact, since the young and middle-aged are more interested in online purchases, they as
a result, hold a larger share of this number. To be more specific, each individual has made 5
transactions on the internet, 22 on mobile phones and 179 using POS devices in the past year.
The average sum of electronic transactions in a year was $28.
• The rate of mobile phone penetration in Iran is 94.46%. This degree of internet penetration sets
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 Payment Method Share of online transactions,
2018 2016
never a simple task, and the online shops such as Digi-kala, Bamilo, and Zan-bil have been the Preference/Use by province
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 Facebook 44.5% Tehran 80%
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 Razavi Khorasan 2.7%
she or he has sent and keep up-to-date with the latest processing status simply by visiting the Instagram 25.4%
website of Iran’s national post company. It has been years now that Iranian banks have developed Gilan 2.1%
the required infrastructure for online payments despite the sanctions. When it comes to online Pinterest 12.6%
shopping, cyber police plays a key factor to curb criminal activities. The police deal with crimes Isfahan 1.7%
like fraud, libeling people, hacking and intrusion to servers. In effect, the police have defined 80 Twitter 10.2%
cybercrimes to consider. Shiraz 1.5%
YouTube 2.53%
Source(s): The Iran Project; Statcounter; Tehrantimes.com; Unescap; CIA World Factbook; United Nations, 2018
91
Ecommerce Sales 2014 – 2016 (millions of USD)
Armenia
• Currency: Dram • % of e-Shoppers: 4%
• VAT: 20% • % bought cross-border: 16%
• Unemployment: 18.9% • Ecommerce growth: 76%
• Ecommerce is developing in Yerevan because of the expanded use of the Internet,
credit cards and online banking. Use of email for business communication is
increasingly common in Yerevan although the telephone remains the primary method
of business communication.
• Cash payment upon delivery still remains the predominant method of payment during
local e-purchases.
Device usage for online 2018 Top International Websites
• Visa and Mastercard are the most popular international payment methods.
• The ArCa card unified payment system was introduced by the Armenian commercial Desktop/Laptop 76.88%
Amazon
banks and Central Bank in 2001. The owner and operator of the system is ‘Armenian Tablet 1.8%
Card’ CJSC which, at the same time, oversees and regulates the activity of the Alibaba Express
Mobile 21.32%
system, formulates the system’s development policy and ensures its implementation.
eBay
Financial organizations operating in or outside the Republic of Armenia and/or other Payment Method
2018
organizations specialized in the area of banking/payment cards can be members of Preference/Use
the ArCa system. Payment method preference/use, 2017
Facebook 88.7%
• Idram system allows users to make purchases online or pay for public services, taxes
YouTube 4.84% Cash on delivery
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. Pinterest 3.1%
Visa/Mastercard
Source(s): export.gov; Statcounter; Statista; A.T. Kearny; Statcounter; Twitter 1.32%
92
Saudi Arabia
• Currency: Saudi Riyal • % of e-Shoppers: 79.9%
• VAT: 5% • E-GDP: 1.41%
• Unemployment: 5.8% • % bought via phone*: 37%
• 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
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
alternatives to cash and consumer’s low satisfaction with existing payment methods. The payment
gateways that encourage electronic payments are still under threat of cyber theft. Moreover, Saudi
Arabia is considered to be the 2nd largest global market for spam email. Therefore, improved cyber
Payment Method
security is necessary to generate greater consumer trust in ecommerce transactions. 2017 Social Media Usage 2018
Preference/Use
• Currently, delivery companies regularly ask for landmarks rather than addresses, with drivers often
requesting WhatsApped locations. Cash on delivery 59%
Facebook 54.3%
Top International Websites
Top 5 import countries (billions of USD):
Haraj.com.sa YouTube 27.71%
$23.4 $18.8 $11 $8.5
Amazon.com
Twitter 15.6%
Souq.com
Pinterest 1.06%
Mawdoo3.com
Larir.com Instagram 1%
Source(s): export.gov; Statista; We Are Social; GlobalWebIndex; eShopWorld; Forbes; Reuters; Statcounter, 2018 *In the past month as of 3rd quarter 2017
93
United Arab Emirates
• Currency: UAE Dirham • % of e-Shoppers (2016): 42%
• VAT: 5% • E-GDP: 4.8%
• Unemployment: 1.60% • % bought via phone*: 45%
• The majority of UAE shoppers buy from other countries online (60%).
• The top countries the UAE online shoppers opt to buy from are the US (30%),
the UK (18%) and India (18%).
• Amazon acquired Dubai-based Souq.com in 2017, which had over 50 million
customers and operations in all GCC states, positioning itself as a major
ecommerce player in the region. With the Amazon Prime membership in place, Top International Webshops
Payment Method
the company is looking to attract more customers in the future. Souq.com Preference/Use
2013
• Over 70% of online purchases are made by the generation under 31 years old, Dubizzle.com
and they are not spending lightly, as many are spending upwards of 3x more on Credit Card 40%
Amazon.com
single orders. Cash on delivery 29%
Awok.com
• UAE online shoppers purchase from international webshops for better pricing,
product availability, and the wide range of goods they can find there. Clothing Sharafdg.com Debit card 15%
and footwear, electronics, watches, jewelry and airplane tickets are purchased Cross-border Ecommerce 2018 PayPal 13%
the most. Shop Domestically Only 39%
Prepaid cards 3%
Wire transfers 1%
Shop Cross-border only 12%
Source(s): Deloitte; Tahawultech.com; Statista; PayPal; Ipsos, 2018 *In the past month as of 3rd quarter 2017
94
Israel
• Population: 8.45 million • Internet penetration: 83.5%
• Currency: New Shekel • % of e-Shoppers: 67.4%
• VAT: 18% • E-GDP: 0.94%
• Unemployment: 4.3% • % using mobile online: 44.75%
• While Israel is known for innovation and sophisticated technology, its consumer goods
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. Delivery methods 2015
Payment Method
• Physical goods worth up to $75 are exempt from all taxes and purchases of up to 2015
Preference/Use Collected from store 66%
$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. Visa 31% Delivered domestically 18%
Top 5 import countries (billions of USD): Delivered internationally 8%

Mastercard 21%
Other 7%
$13.2 $8.17 $4.58 $2.96 $2.91 IsraCard 19%
PayPal 16%
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
95
Kuwait Devices used to access the Internet, since January 2018

• Currency: Kuwaiti dinar • % of e-Shoppers (2016): 36%
• VAT: 5% • E-GDP: 0.60%
• Savvy online customers prefer international online platforms, which offer more
choices and easier shopping.
• 97% of Kuwait’s four million inhabitants use credit/debit cards.
• DHL has recently launched the EasyShop service and is providing a 50%
discount for clearance and customs fees on the first shipment.
• The top countries from which Kuwait makes online purchases are the United Top International Websites Age Structure
States and the United Kingdom. Amazon.com
• For launching, promoting or advertising a product or a service, Instagram and eBay.com
0-14 25.02%
Snapchat are the best platforms to reach the Kuwaiti population. Aliexpress.com
15-24 15.1%
Ku.edu.kw
Opensooq.com
53.4% 11.3% 28% 4.1% 2.3% 25-54 27%
B2C Ecommerce Turnover $USD
2014 $600 million 55-64 5.07%
www.ecommercefoundation
2015 $648 million
Source(s): Export.gov; Statista; Statcounter; A.T. Kearney; Chalboub Group; Ardent; PayFort; eShopWorld.com, 2018 2018(f) .org/reports $1 billion 65+ 2.54%
96
Qatar
• Currency: Riyal • % of e-Shoppers (2016): 43%
• VAT: none • E-GDP: 1.55%
• Unemployment: 0.70% • % using mobile online: 67%
• Cash on delivery is the most popular payment method in Qatar, with 80% of online
purchases being cash on delivery.
• 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 Device usage for
Top International Websites 2018
companies that offer special services such as door-to-door delivery. The MoTC is online
also offering local businessmen workshops on ecommerce, training programmes,
and initiatives that would provide them web presence. Amazon.com
Desktop/Laptop 76.88%
• The average ecommerce transaction value in Qatar is $260.
Ebay.com
72.4% 6% 14.5% 4.93% 1% Aliexpress.com Tablet 1.8%
Amazon.in
Mobile 21.32%
Mzadqatar.com
Source(s): eShopWorld.com; Statcounter; SimilarWeb; gulf-times.com; Statista; CIA World Factbook, 2018
97
Bahrain Devices used to access the Internet, since January 2018

• Currency: Bahraini dinar • % of e-Shoppers (2016): 35%
• VAT: none • E-GDP (2013): 0.77%
• Unemployment: 10% • % using mobile online: 52%
• Not all payment methods/providers are available in Bahrain, however these are the
options for SMEs:
• PayPal: In Bahrain, it is not possible to redraw money from a PayPal account to a
local bank account, Bahrain is however on the list of countries where PayPal can
be used. You will need a foreign bank account or Visa card to wire money to.
• 2Checkout
• Merchant Account Providers: (1) BENEFIT Bahrain, national gateway that handles Top International Websites
Age Structure
electronic money transfers and is at the top of the financial wires food chain in
Bahrain and handles debit card payments; (2) Credimax, the first card acquirer that Amazon
introduced state-of-the-art Point of sales (POS) machines that are well equipped to 0-14 22.50%
accept Smart Card including Visa, Mastercard, JCB products, Benefits, and GCC eBay
Net. 15-24 16.40%
• Payza (former AlertPay) Aliexpress
• Recognition of Bahrain’s Instagram Entrepreneurs (’Instapreneurs’) has come from 25-54 44.14%
both the government, through awards such as the egovawards and local franchises B2C
of international brands such as TCBY, who launched unique flavours of their frozen 54-64 9.16% FullEcommerce
version available
$USD at
Turnover
yoghurt developed in collaboration with Baked By T for Ramadan last year. www.ecommercefoundat
65+ 7.75% 2013 ion.org/reports
$250 million
Source(s): Statcounter; CIA World Factbook; Statista; Tradearabia.com; imwz.io; Markwarman.com; SimialrWeb, 2018
98
Middle East : Summary and Expert Thoughts

1. Amazon “We are already seeing a wave of
2. Aliexpress automation… even very small
3. eBay organisations can deploy automation -
it’s not just for the major brands now.”
✓ Top Payment Methods Read the full interview on page 26
Card based payment are prevalent in the majority of Middle Eastern Eric Dupuy
countries. However cash-on-delivery is still a popular option in Chief Business Development &
countries such as Qatar and Saudi Arabia. Marketing Officer, Continental Europe,
Middle East & Africa
Teleperformance
1. Iran
2. United Arab Emirates
3. Turkey
“Providing options for payment that are
customary in the territory will ensure that
✓ Top ecommerce import destinations
the transaction itself is seamless.”
• China
• United States
• Germany Robert Davinson
Content Analyst,
Awin
99
Africa
Nigeria
South Africa
Egypt
Algeria
Morocco
Kenya
Ghana
Tanzania
Tunisia
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
101
Surprisingly, the majority in Africa are between 0-14
37% 36%
19%
6% 5%
0-14 15-24 25-54 55-64 65+
Source(s): Ecommerce Foundation; CIA World Factbook, 2018
102
Internet penetration across Africa to reach 57% in 2018
57%
54%
45%
33%
2015 2016 2017 2018

103
The most used device is mobile for Internet access in Africa
DEVICE USE FOR ONLINE: AFRICA

In Africa, mobile phones have
transformed the lives of hundreds
of millions for whom they were the
60% first, and often the only, way to
connect with the outside world.
They have made it possible for
poor countries to leapfrog much
39% 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.
2%
-The Economist, What technology can do for Africa, 2017
Source(s): Statcounter; Statista; We Are Social; The Economist, 2018
104
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% 9%
6%
105
Estimated B2C online sales in Africa to be $17 billion in 2018
52%
29% 32% 31%

16%

$14.1
$6.8
$4.7
$3.2
$2.3
2013 2014 2015 2016 2017 2018(f)
*All countries included can be found on page 6, however the following countries were only included for certain years due to
Source: Ecommerce Foundation; Statista, 2018 lack of data (beginning data usage date listed in parentheses): Tunisia (2017), Tanzania (2016), Kenya (2014), Algeria
(2017).
106
Africa: Top Shopping Websites
First Second Third
Egypt Souq.com Olx.com.eg Jumia.com.eg
Morocco Avito.ma Aliexpress.com Jumia.ma
South Africa Gumtree.co.za Takealot.com Amazon.com
107
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
are the biggest obstacles for business?
I would say that the environment of e-
commerce has developed in Cameroon In my opinion, the main obstacles for
because over the years, mentalities are business owners exercising in ecommerce
changing and more and more consumers are:
want things to be facilitated for their daily
shopping. mobile phone operators are also • Mistrust of consumers who have already
deploying to improve fiber optics. This been scammed by buying online
Zodes Tawin makes it possible to gradually stabilize the
President, internet connection in remote areas. • Administrative delays in the granting of
Cameroon Federation of authorizations by the public authorities “the vast majority of
E-commerce The arrival of electronic money in late • The instability of the internet connection in customers here want to touch
2014 (Orange and MTN money) has since remote areas
helped to improve payment methods. To the goods ordered before
• The limits of the road network
date 18.2% of online transactions are settled
by electronic money mainly Orange and
paying. This explains the fact
MTN money. How does your audience in that the bulk (79.33%) of e-
Africa/Cameroon differ from your
The gradual construction of the road audience in other parts of the world? commerce transactions, the
network helps to efficiently facilitate
Our audience in Africa / Cameroon differs
payment is made in cash on
customer deliveries in remote areas. But it
must be remembered that much remains to from our audience in other parts of the world delivery.”
African Entrepreneur of Cameroonian origin. be done in this direction. in that: the vast majority of customers here
He created in June 2011 a structure named want to touch the goods ordered before
KEVINO COMPUTER SERVICES, specialized
in IT Maintenance he resold in 2014, he is • interact with retailers and make their paying. This explains the fact that the bulk
since 2016 CEO & Founder of ZORICAM. (79.33%) of e-commerce transactions, the
Current Project Manager of the African Fair of payment is made in cash on delivery.
e-commerce, Project Manager of the National
Forum of Entrepreneurship. He was also Customers prefer products imported from
responsible for the communication unit for the Europe because here it is a luxury here to
Christmas Fair (2017 edition). buy items from Europe and those from Asia
are catalogued as products of bad qualities.
108
Which areas do you feel could be • Administrative delays Interview
improved upon to help in • The almost inexistent internet connection
developing/growing the ecommerce in the bottom of the country
market? • Insecurity (deliverymen who transport Africanews.com states that “the lack of
valuable goods and cash) reliability of system of payment and
• Access to a more reliable internet • The difficult access in the remote areas further risks of fraudulent transactions”
connection for the deliveries of the customers all this are the main barriers when it comes to
• Respect of delivery times due to the insufficiency of the routes Cameroonians buying online*. Is this
• The diversification of payment methods something you agree with?
• monitoring the quality of products For Cameroonian ecommerce in
Zodes Tawin delivered to consumers particular, what aspects are most I fully agree with these statements.
President, • Ensure satisfaction by efficiently important in retaining customers? According to our analysis based on our
Cameroon Federation of managing customer returns for: current market research, the solutions to
E-commerce nonconformity of merchandise; color, size • Ensure a good customer service for the these problems could be:
or different characteristics compared to follow-up of the orders in time
those presented on the website • Develop a quality after-sales service • Diversification and reliability of payment
• Improve customer services and/or after • to control the quality of the products methods
sales services delivered to the customers • The establishment of a regulatory
• Ensure the respect of delivery times institution of the sector to highlight the
What are the biggest opportunities and/or marks of trust and list the impostors. (The
threats in the current ecommerce Cameroonian Federation of e-commerce
market? is trying to remedy this failure, studies are
underway in this area. meaning)
In the current market, we do not find an • The organization of events to allow
African Entrepreneur of Cameroonian origin. operator who innovates every day in terms of meetings between e-merchants,
He created in June 2011 a structure named
quality products and services, hence the consumers and other stakeholders to
in IT Maintenance he resold in 2014, he is constantly recurring complaints from create a climate of trust
since 2016 CEO & Founder of ZORICAM. consumers. This is a boon for any serious
operator who wants to settle. Threats in the
Current Project Manager of the African Fair of
e-commerce, Project Manager of the National current e-commerce market are:
“... ensure a good customer
Forum of Entrepreneurship. He was also service for the follow-up of the
responsible for the communication unit for the • The approximate quality of the current
Christmas Fair (2017 edition). sales sites orders in time.”
*http://www.africanews.com/2016/05/17/development-of-e-commerce-in-cameroon
109
Looking at different factors in a Trust in store Interview
consumer’s decision to buy, which play For the purchase, many consumers are
the most important role for your trying to change buying habits for the simple
consumer base? reason that they need to be reassured that What impact do you feel trustmarks have
the items they order online will be the same on African/Cameroonian consumers
Delivery speed that will be delivered. when shopping online.
This is a key factor in building customer
loyalty. As a result of our successful Website design Trust brands have a very positive impact
consumer studies, we have been able to As for the websites, let's start with the on African/Cameroonian consumers. One of
identify a large number of complaints in this inventory of fixtures. In Central Africa at the the factors hindering the evolution of e-
Zodes Tawin direction, including the failure to meet moment, online sales sites for the most part commerce is the lack of trust. Consumers
President, delivery deadlines. are not very dynamic sites, we just notice an are becoming more and
Cameroon Federation of operator that stands out in this sense it is trust. Consumers are becoming more and
E-commerce Delivery methods particularly Jumia who has a website that s more reluctant to shop online because they
The most common modes of delivery with us approach to the international standard. are wary of scams and looking for reputable
are: home delivery, removal of the parcel at a sales sites. Hence the prominence of the
relay point or agency. Product description labels of trust on the Cameroonian/African
On this point, we have also been given to market.
Payment methods note the shortcomings; The actual
In the case of Cameroon and Gabon, the characteristics of the products are not Buea is known as the “Silicon Mountain”
payment methods are as follows: always those stated. in Cameroon*. Do you see the potential
for young entrepreneurs pushing forward
• Cash payment on delivery (79.33%)
Pictures the ecommerce sector?
• Payment by electronic money (18.2%)
Very often, the pictures published on the
African Entrepreneur of Cameroonian origin. • Payment by credit card (2.47%)
sites of sales are different from the articles Young entrepreneurs can advance the e-
He created in June 2011 a structure named The price delivered to the customers and this commerce sector by creating advocacy
The question of price is a relative question constitutes a real problem because this kind strategies with the public authorities,
in IT Maintenance he resold in 2014, he is
since 2016 CEO & Founder of ZORICAM. since it may vary depending on the quality of of attitudes contributes to install a feeling of developing concepts to engage customers,
Current Project Manager of the African Fair of the products. Always is the margin between doubt in the head of the consumers and placing the customer at the center of the
e-commerce, Project Manager of the National the product sold in stores and the price of consequently, this all hinders the e- interests, ensuring technology watch in sight
Forum of Entrepreneurship. He was also online sale should not be large. commerce development. and finding customer loyalty means.
responsible for the communication unit for the
Christmas Fair (2017 edition).
110
Nigeria
• Currency: Naira • % of e-Shoppers: 72%
• VAT: 5% • E-GDP: 0.75%
• 26% of the population bought something online via phone in the past month as
of 3rd quarter 2017.
• The reason pay on delivery or cash on delivery has become the most preferred
method of payment is because it enables buyers to examine the item they
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 Payment Methods
2017 Age Structure 2018
on delivery. used
• The number of mobile phone users in Nigeria is continuously increasing. A
recent report by Twinpine describes Nigeria as officially the most “mobilized” Direct payment to 0-14 42.54%
43%
country in Africa – with 76% all internet traffic in Nigeria coming through mobile seller’s account
devices. 15-24 19.61%

• Black Friday is ecommerce’s biggest shopping day of the year. Prepaid/debit card 27%
25-54 30.74%
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
111
South Africa
• Currency: S.A. Rand • % of e-Shoppers: 57%
• VAT: 15% • E-GDP: 0.91%
• 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 Top International Webshops
Payment Method
2017 Gumtree.co.za
Preference
U.S. dollar spending/shopper $78 $130 $143 $157
Takealot.com
Top 5 import countries (billions of USD): Credit card 45% Amazon.com

Makro.co.za
$15.5 $7.03 $5.47 Debit card 21%
Bidorbuy.co.za
Bank transfer 20% Cross-border Ecommerce 2018

Other 8%
PayPal 7% Shop Cross-border only 12%
Source(s): SimilarWeb; PayPal; Ipsos; Statista; eShopWorld.com; Fin24.com; CIA World Factbook; Statcounter, 2018
112
Egypt
• Currency: Egyptian Pound • % of e-Shoppers: 22%
• VAT: 14% • E-GDP: 2.10%
• Unemployment: 11.90% • % using mobile online: 46%
• Payment card penetration is low, with only around 10 million credit or debit card
holders in the country, representing a little more than 10% of the population. Roughly
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 Top International Webshops Payment Methods Used 2018
government expenses and encourage e-procurement. In 2009, the government
Souq.com Cash 72%
implemented the e-signature service, allowing public and private companies to offer e-
signature authentication.
Card 22%
• 38% of consumers paid for purchases while shopping online on smartphone in 2017, Olx.com.eg
and 14% of the population bought something online via phone in the past month as of
3rd quarter 2017. Jumia.com.eg Bank Transfer 2%
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
113
Algeria Devices used to access the Internet, since January 2018

• Currency: Dinar • % Using Social Media: 39%
• VAT: 19% • % using mobile online: 51.2%
• Unemployment: 11.70% • % of e-Shoppers (2017): 13%
• Under current law, Algerian citizens may not purchase items online from abroad.
Businesses, however, may purchase items online from abroad for internal use.
American businesspeople interested in online sales should note that the use of private
credit cares is extremely limited in Algeria. Only recently have Algerians gained the
use of international credit cards (e.g. Mastercard and Visa) issued by some local
banks and accepted for use abroad.
B2C Ecommerce
• The Algerian Parliament passed a law in February 2018 establishing the country’s first Social Media Usage 2018 2017
Figures
regulation on ecommerce. As such, online marketplaces will have to host their
websites in Algeria and need to be listed in the country’s commercial register. The law Facebook 42.11% Market potential USD $5 billion
bans all online purchase of tobacco and alcoholic beverages as well as
pharmaceutical products and online betting and gambling services. The government eShoppers 2,450,000
YouTube 51.45%
has recently declared that they do not intent to open their e-market to foreign
companies in order to preserve national economy and sovereignty. Top ecommerce
Kaymu
• Algérie Poste (Algerian National Postal Services) is set to introduce an electronic Pinterest 2.96% website
wallet in 2018 to facilitate online purchases, which should further boost ecommerce. Share of returns of
Twitter 2.64% 20%
• Currently, cash on delivery is the preferred payment method among Algerians, as in online purchases
most countries in the Arab world and Northern Africa.
Instagram .37% Common delivery time 2-day
Source(s): Export.gov; Statcounter; Wamda.com; Santander Trade Portal; CIA World Factbook, 2018
114
Ecommerce Sales 2013 – 2018(f) (millions of USD)
Morocco
• Currency: Dirham • % of e-Shoppers (2016): 12%
• VAT: 20% • E-GDP: 2.7%
• Unemployment: 10% • % using mobile online : 43.3%
• 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 Which of these statements on online shopping
2017 2017
past 12 months? do you agree with?
Which of these types of online Payment Method
Clothing 39% When I plan a major purchase, I always do some 2017
57% shops have you bought Top International Preference/Use
research on the internet first. 2017
something from in the past 12 Webshops
Consumer electronics 38% months? Cash on delivery 50%
I want to see an item before I buy it. 55%
Shoes 29% Credit card 43%
Online Marketplace 41%
Customer reviews on the internet are very helpful. 54% Avito.ma
Cosmetics & body care 19% Online payment
Multi-brand platform 32% 33%
(PayPal, etc.)
Bags & accessories 17% I prefer to use my smartphone or tablet to research
46% Aliexpress.com
on products and make major new purchases.
Books/movies/music & games 14% Online boutique 24% None of the above 13%
I prefer express shipping. 36%
Household appliances 14% Mono-brand stores 21% Jumia.ma
Prepaid
When I buy an item, I want to hold it in my hand the 12%
Sports & outdoor 11% 33% cards/vouchers
same day. Mass merchants 14%
eBay.com Direct debit 10%
Furniture & household goods 8%
I usually manage habitual orders directly via Members-only store 12%
18% Cash in advance 8%
Toys & baby products 7% smartphone or tablet.
Amazon.com
None of the above 23% Invoice 8%
Source(s): CMI; Ipemed; Statista; A.T. Kearney; PayPal; Ipsos; Statcounter, 2018
115
Kenya Devices used to access the Internet, since January 2018

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

Source(s): PracticalEcommerce.com; Prisync.com; Statcounter; UNCTAD; EcommerceGuid.com; export.gov, 2018
116
Ecommerce Sales 2013 – 2018(f) (millions of USD)
Ghana
• Currency: Ghanaian Cedi • % of e-Shoppers (2015): 8%
• VAT: 15% • E-GDP: 0.08% Full version available at
• % Facebook users: 79.73% • % using mobile online : 75% www.ecommercefoundation.org/reports
• Ghana has a website dedicated specifically to ecommerce for SMEs:
https://www.gepaghana.org/guide-to-export/e-commerce-for-smes/
• Payment providers and platforms:
• In 2009, MTN Ghana was the first telecoms company to introduce a mobile payment
system to help drive a ‘cash-lite’ economy. The service has approximately 10.2 million
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 Population Age
transactions. Social Media Usage 2018 2018
Structure
• 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 Facebook 79.73% 0-14 38%
USSD and through third-party aggregators. It has 2 million registered subscribers, of with
85% are active. 15-24 18.63%
• Airtel Money’s flagship mobile money product in Ghana has evolved to augment Twitter 7.93%
traditional peer-to-peer transactions with complementary services such as bank account
linking, bill payments, merchant payments and international remittance. Subscribers are 25-54 34.14%
Pinterest 5.51%
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), YouTube 3.74% 55-64 4.97%
which helps reduce the cost of receiving funds from abroad. Both products help improve
financial inclusion and participation in the formal economic sectors. Instagram 0.52% 65+ 4.25%
Source(s): gepaghana.org; GSM Association; Statcounter; CIA World Factbook, 2018
117
Tanzania Devices used to access the Internet, since January 2018

• 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%
• The launch of mobile payments, locally known as M-Pesa is pushing ecommerce
mainstream. Not many Tanzanians have credit cards or a PayPal account, but
almost every Tanzanian has an M-Pesa account or access to it.
• Now, any business that wants to take payments directly online needs to simply
build a website and integrate it with an M-Pesa provider from Tanzania. Easier
payment management through M-Pesa solved one of the biggest hindrances of its Population Age
mainstream acceptance: convenience. Furthermore, Tanzania was the first country Social Media Usage 2018 2018
Structure
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 Facebook 64.04% 0-14 43.74%
mobile money services to transact directly with each other, ecommerce is a one of
the major beneficiaries. Pinterest 13.32% 15-24 19.86%
• There are platforms that offer businesses solutions to advertise and promote
products online. These include ecommerce and online marketplaces like YouTube 12.35% 25-54 29.88%
ZoomTanzania, which features products ranging from fashion items, electronics, to
agricultural equipment from different sellers, be it individuals, small businesses or Twitter 5.84% 55-64 3.51%
big brands.
Instagram 3.41% 65+ 3.02%
Source(s): lordeys.com; Statista; Statcounter; CIA World Factbook; ZoomTanzania, 2018
118
Tunisia Devices used to access the Internet, since January 2018

• Currency: Tunisian Dinar • % of e-Shoppers (2015): 2%
• VAT: 18% • E-GDP: 0.16%
• Unemployment: 16% • B2C Ecom. Sales (2017): $63 mill.
• Cash on delivery is the most common payment method in Tunisia (70%).
• Most Tunisian banks allow account holders to use bank-affiliated credit and debit cards to make
domestic online purchases denominated in dinars. The Tunisian dinar is a non-convertible currency,
however, so online purchases in foreign currency are now allowed, and few Tunisians make cross-
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
Tunisians with college degrees, which allows these card holders to make online purchases of • There are around 1,423 ecommerce websites and the number of e-
software, mobile applications, web services, and publications in support of entrepreneurial activities. payment transactions was estimated at 2.4 million transactions during the
As of May 2017, the Ministry recorded approximately 8,500 active users of this program, with 70% of past year. Domestic retailers dominate the ecommerce market, comprising
user identified as individual college graduates and 30% identified as IT enterprises. 79% of all online transactions.
• Due to the general lack of credit cards and online payment systems, Tunisia’s domestic ecommerce • According to an IPSOS survey, the primary reason for Tunisian Internet
markets are underdeveloped. Most Tunisian banks offer account holders bank-affiliated credit and users who do not shop online is the lack of trust in online payment (71% as
debit cards which can be used on domestic websites only. General purpose ecommerce retail sites opposed to the world average of 49%).
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 83.4% 13.8% 1.3%
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
119
Africa: Summary and Expert Thoughts
1. Souq “…the vast majority of customers here
2. Avito [Africa] want to touch the goods ordered
3. Gumtree before paying. This explains the fact that
the bulk (79.33%) of e-commerce
✓ Top Payment Method transactions, the payment is made in
Zodes Tawin
Africa is a predominantly mobile commerce region President, cash on delivery.”
market. Therefore mobile-payments are to core to Cameroon Federation of
succeeding in the region. E-commerce

1. Egypt
2. South Africa
3. Nigeria “Ecommerce is about instant access
anywhere and anytime, and increasingly
✓ Top ecommerce import destinations using any connected device.”
• China Read the full interview on page 145
• Germany Kevin Cochrane
• United States Chief Marketing Officer,
SAP Customer Experience
Source: PracticalEcommerce, 2018
120
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
122
25-54 age range dominates in Asia & Oceania
50%
25%
17%
10% 10%
0-14 15-24 25-54 55-64 65+
123
Asia & Oceania internet penetration to hit 50% in 2018
50%
47%
44%
41%
2015 2016 2017 2018

124
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
People throughout Asia-Pacific

continue their love affair with
52.79% 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.
17.47%
Statista, 2018
-Kepios, Digital in Asia-Pacific in 2017, 2017
11.36%
8.78%
4.05% 1.66%
Source(s): Statcounter; Statista; 2018
125
Most used devices for Internet access in Asia and Oceania
DEVICE USAGE: ASIA & OCEANIA

50%
Mobile broadband networks have 46%
in most countries in Asia-Pacific
overtaken fixed broadband as the
main mode of Internet access,
with more than a third of the
region’s population going online
using mobile networks and
devices.
Internet Society, Mobile Internet Usage Trends in Asia-Pacific,2016
3%

Source(s): Statcounter, 2018
126
B2C online sales to hit $884 billion in Asia & Oceania in 2018
16%
15%
13% 12%
12%
$882.1
www.ecommercefoundation.org/reports $750.2
$627.9
$551.2
$482.3
$425.9
2013 2014 2015 2016 2017 2018(f)
127
Asia & Oceania: Top Shopping Websites
First Second Third
Australia eBay.com.au Gumtree.com.au Amazon.com
India Amazon.in Flipkart.com Amazon.com
Indonesia Tokopedia.com Bukalaak.com Olx.co.id
Japan Amazon.co.jp Rakuten.co.jp Kakaku.com
Malaysia Lazada.com.my Shopee.com.my Mudah.my
Vietnam Shopee.vn Lazada.vn Tit.vn
128
In your opinion what key aspects of What are the biggest challenges faced Interview
Alibaba’s ecommerce strategy drives its globally regarding ecommerce (For
continued success? example for consumers, retailers,
stakeholders etc.)?
Alibaba was born as an enabler, a
facilitator for businesses across the world to As we see the boundaries of the offline
connect, generate synergies and thrive. The and online retail experience blurring
centrality of the consumer is top of mind for furthermore, until disappearing completely,
us and greatly impacts on the way we the real challenge for businesses and
strategize and operate. No matter the nature companies will be to find the right blend of
Roland Palmer of our investment, we always put our personalised service, relevant branding and
Managing Director Alibaba Group customers first, striving to find innovative products to catch the attention of tomorrow’s
“Data-driven technology will
and ways to make the life of our consumers, consumers. An additional challenge is how play a key role in streamlining
Head of Alipay EMEA merchants and partners easier and to manage this growth in a sustainable
ultimately improve their experience within manner. processes and make
our ecosystem.
What is your vision of the physical store
operations more efficient, and
Consumer expectations around the in relation to Ecommerce? Will trends at the same time maintaining
ecommerce experience are growing, such as ‘showrooming’ grow? Or do you
whether that be shopping experiences believe that this relationship for the a cohesive omnichannel
across devices or the delivery options consumer fundamentally change in the shopping experience for
offered to them. How can the ecommerce future?
Roland Palmer joined Alibaba in March 2016
and is responsible for managing the markets in
ecosystem continue to drive this forward customers at every
without damaging their margins? We’re going through a very exciting time,
Netherlands and Belgium. Before starting at
which sees the radical and rapid
touchpoint.”
Alibaba, Palmer spent six years in non-food
retail, the last four as CEO of Blokker Holding. 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
Before his career in retail, Roland worked at operations more efficient, and at the same ecommerce market offers a glimpse into how
Bain & Company consultants as well as at time maintaining a cohesive omnichannel the future of commerce might look like,
Coca-Cola and at Unilever. Roland has an shopping experience for customers at every globally. This is driven, among other factors,
MBA from IMD in Switzerland and graduated touchpoint. This no doubt will be one of the by the surge of a new consumer type:
from Oxford University in England.
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
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
responding to the changing retail world by content and entertainment on one platform.
blending the online and offline spheres to
create seamless brand and customer This changing landscape has made it
experience. This is the strategy we have necessary for brands to rethink their
“New Retail sees ecommerce
introduced as “New Retail”. strategies to engage with their consumers, and physical retail work
with data technology representing a crucial
New Retail sees ecommerce and physical part of the equation. There are already together with the ultimate aim
Roland Palmer
retail work together with the ultimate aim of
creating deeper brand engagement and
thousands of European and international
companies on our platforms that are
of creating deeper brand
Managing Director Alibaba Group better shopping experiences for consumers. successfully implementing their New Retail engagement and better
and strategy. Ultimately, we believe this will result
Head of Alipay EMEA In China, ecommerce currently accounts in better consumer experience and greater shopping experiences for
for approximately 18% of total retail and profits for the retailer. consumers.”
through New Retail we want to bring our
data and technological capability to work
with and digitally transform the remaining
82% of retail that is offline. This isn’t to get AR and VR are the big buzzwords in
into the bricks-and-mortar retail business, ecommerce right now. What
but rather to empower bricks-and-mortar regions/countries do you believe will
New embrace this technology first?
operators to restructure and enhance their
operations, including customer experience, R e t a i l
and is responsible for managing the markets in
Netherlands and Belgium. Before starting at inventory management, logistics and retail Alibaba is already using these techniques
Alibaba, Palmer spent six years in non-food spaces, to enable them to succeed in the in China and in general, we see the country
retail, the last four as CEO of Blokker Holding. digital era. paving the way and successfully applying
this technology in everyday life, including
Before his career in retail, Roland worked at New Retail is completely redefining shopping.
Bain & Company consultants as well as at commerce in China and it is a game-changer
Coca-Cola and at Unilever. Roland has an for Alibaba and retail in the country. We are One of the ways in which we bring New
MBA from IMD in Switzerland and graduated anticipating a reimagined retail industry Retail to life is through new innovative
from Oxford University in England. technologies, some of which were
driven by the integration of offline, online,
logistics showcased at last year’s 11.11 Global
130
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
augmented and virtual reality applications to zero to being constantly online and
facial recognition and scan-and-deliver. For connected via their mobile devices. This
example, we launched an augmented reality- massively influences the way they interact
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
of make-up on screen. From the same nation: China. Chinese consumers
touchscreen, consumers could immediately account for 1.1 billion mobile internet
order products from the likes of Maybelline subscriptions – more than 2.5 times those
Roland Palmer and L’Oréal and have them delivered. in the US, the next largest market. In fact,
Managing Director Alibaba Group Chinese consumers were the first to make
and Alibaba’s roots are in China. What more purchases through their mobile
lessons have you learnt that you have phones than with computers back in 2015.
Head of Alipay EMEA
been able to successfully transfer to “Alibaba has its roots in China
other markets? • Integration between online and offline, but was created for the world.
which work together as part of the same
Alibaba has its roots in China but was
created for the world. Every market we continuum. Thanks to the massive Every market we operate in is
operate in is different from the others so adoption of mobile technology, consumers different from the others…”
instead of talking about strategies that can don’t make distinctions between different
be “exported” elsewhere, it makes more channels but they are comfortable moving
sense to highlight a number of lessons that from an online to an offline environment
and is responsible for managing the markets in Western brands and businesses operating without even thinking about that. What
Netherlands and Belgium. Before starting at on our platforms can learn from China and really counts is the experience, rather
Alibaba, Palmer spent six years in non-food the local consumer context. In particular, than the channel.
retail, the last four as CEO of Blokker Holding. businesses and brands should consider the
following: • As opposed to their Western peers who
Before his career in retail, Roland worked at mainly look for convenience, Chinese
Bain & Company consultants as well as at • Speed and innovation: many Chinese make the shopping experience a “social”
Coca-Cola and at Unilever. Roland has an and entertaining moment they can share
companies today are moving at a fast
MBA from IMD in Switzerland and graduated
pace and are often very innovative at the within their social network.
from Oxford University in England.
same time.
• interact with retailers and make their
131
China
• Population: 1.42 billion • Internet penetration: 55.7%
• Currency: Renminbi/Yuan • % of e-Shoppers: 73.7%
• VAT: 17% • E-GDP: 4.5%
• Ecommerce as share of total retail turnover: 23.80% in 2017 and an expected 28.60% in 2018.
• 39% of the population bought something via phone in the past month as of 3rd quarter 2017.
• More than three-quarters (76%) of all ecommerce in China occurs via mobile devices and
mobile payments remain the most popular choice for online purchases with 80% of metro
Chinese shoppers using Alipay and 66% using Tencent’s WeChatPay to pay for a product or
service in the last three months.
• Internet giants Alibaba and JD.com continue to dominate the local market, together accounting Payment Methods Used 2017 Favorite free delivery services 2018
for more than 85% of China’s ecommerce market. Online payments (PayPal, Same day delivery 34%
• Pinduoduo is now the 3rd ecommerce platform in China. The number of products available on Amazon payments, etc.)
80%
the platform now exceeds 300,000 and the number of users exceeds 100 million. Free return shipping 24%
Credit card 53%
Top 5 import countries (billions of USD): Delivery at a specific time slot 19%
Package tracking 13%
$285 $124 $115 $113 $85.4 Direct debit 24%
In-store pick-up 2.7%
Cash in advance 22% Shop Domestically Only 57%
Invoice 8% Shop Domestically & Cross-border 35%
Other/none of the above 4% Shop Cross-border only 7%
Source(s): Statista; eMarkerter; Inside Retail Hong Kong; PayPal; Ipsos; PwC; The Drum; MarketingtoChina.com; eShopWorld, 2018
132
India
• Population: 1.35 billion • Internet penetration: 40%
• Currency: Indian Rupee • % of e-Shoppers: 48%
• VAT: 18% • E-GDP: .90%
• The top reasons Indian consumers buy online (consumer response survey): Convenience
(40%), discounts and cheaper prices (61%), multiple product options, multiple payment modes,
good return policies, preferred brand availability, timely delivery.
• Targeted media is needed for effective communication – online retailers must customize
communication and promotion strategies to fit targeted consumers’ patterns. These are the top 5
influential modes of communication/promotion: Television, family & friends, promotions & offers,
social media, other (e.g., email, SMS). Best selling ecommerce
• 74% of consumers below the age of 21 said that social media influences their buying decisions. retailers/marketplaces, 2017
Preferred Payment Method 2015
• 20% of consumers bought something online via phone in the past month as of 3rd quarter 2017.
Flipkart.com
Infibeam.com
Top 5 import countries (billions of USD): eBay.in Debit card 15%
$40.4 $30.3 $12.2 $9.5 $8.9 Shopping.indiatimes.com
Credit card 11%
Shopping.rediff.com
Futurebazaar.com Online banking 9%

Homeshop18.com
M-wallet 8%
Yebhi.com
Source(s): Statista; EY; eShopWorld; Internet World Stats; eMarketer; A.T. Kearney; GfK; Google; PayPal; Ipsos, 2018
133
Indonesia
• Currency: Rupiah • % of e-Shoppers: 12%
• VAT: 10% • E-GDP: .82%
• 31% of the population bought something online via phone in the past month as of 3rd
quarter 2017.
• In response to the fractured payments system in Indonesia, most direct sales sites push
customers towards bayar-di-tempat (cash on delivery), both as a mechanism to enable
the 40% of Indonesians without bank accounts to shop online and improve online
conversion rates.
Best selling ecommerce
• Bank transfers remain the second highest payment method, either facilitated through retailers/marketplaces, 2017
Preferred platforms for online transactions 2015
online bank portals or via automated teller machine, with credit card transactions hovering
Lazada OLX 18.5%
around 10% due to low penetration rates.
Other 17.5%
Top 5 import countries (billions of USD): Bilbli
Tokopedia 14%
Elevenia Lazada 14%
$32.1 $25.8 $11.3 $6.67 $6.61
Shopee ID Berniaga 12%
Bukalapak 11%
Blanja
Zalora 7%
JD.id
Elevenia 4%
MatahariMall Amazon 2%
Source(s): Statista; Bain & Company; eShopWorld; Australia Unlimited; Australian Government Austrade, 2018
134
Japan
• Currency: Yen • % of e-Shoppers: 12%
• VAT: 8% • E-GDP: 2.45%
• 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
products are delivered, a popular option for many teens without bank accounts or credit cards. Sale of goods (clothing) 52.1% Amazon Japan
Service (travel, food & beverage) 35.4% Apple
Top 5 import countries (billions of USD): Digital (online gaming, eBooks) 11.7% Yahoo! Japan Shopping
$30.7 $25.5 $21
$152 $63.5 Device Use: Online 2018 Cross-border Ecommerce 2018
Desktop/laptop 60.6% Shop Domestically Only 94%
Shop Domestically & Cross-

Tablet 4.77% 5%
border
Mobile 34.64% Shop Cross-border only 1%
Source(s): Statista; eMarketer; Expert(s) (Chandler Nguyen); PayPal; Ipsos; Statcounter; Export.gov, 2018
135
Malaysia
• Currency: Ringgit • % of e-Shoppers: 70%
• VAT: 10% • E-GDP: .90%
• 40% of consumers who bought something online did so via phone in the past
month as of 3rd quarter 2017.
• In 2016, the Malaysian Ministry of International Trade and Industry (MITI) launched
a new ecommerce initiative with the goal to bring roughly 80% of small- and
medium-sized enterprises into the world of ecommerce and to expand market
access for more than 87 million digital customers in the ASEAN region. Best selling online retailers/marketplaces 2017
Payment Method
• The Malaysian government has pledged to not censor the Internet, which bodes Preference/Use
2017 Lazada
well for retailers looking to sell to Malaysian consumers from across the border. 11street
• Popular cross-border online shopping categories include: daily supplies (39%), Credit Card 55% Zalora
fashion & accessories (23%), special/rare items (20%), home appliances (7%),
consumer electronics (7%) and food and health items (4%). Shopee
Bank Transfer 28%
• Current challenges for the ecommerce industry include a lack of understanding, Favorite overseas online shopping destinations
limitations of competent personnel to conduct ecommerce activities, fear of cyber eWallet 5%
Singapore
security threats, lack of digital marketing skills, limited production capacity, high
Japan
fulfilment in logistics cost, lack of knowledge regarding market access and Cash on delivery 4%
regulations in cross-border ecommerce. The United States
Debit card 3%
Source(s): eShopWorld; Statista; We Are Social; Statcounter; ecommerceiq.com; PayPal; Ipsos; export.gov, 2018 South Korea
136
South Korea
• Currency: Won • % of e-Shoppers: 63%
• VAT: 10% • E-GDP: 4.86%
• Online purchases from foreign retailers have been rapidly increasing because Koreans
find less expensive prices on overseas websites even after adding in international
shipping fees and import duties. Cross-border ecommerce has reached $2 billion in
2017.
• Under the KORUS FTA, express courier service mailed goods under $200 are duty
free when sourced from the U.S., and ‘made in the USA’ items under $1,000 are Popular Shopping Holidays
exempt from KORUS FTA documentation. Most popular foreign sourced
Chu-seok (15th day of 8th lunar month)
2017
products from online retailers
• The preferred payment method for PC and mobile shoppers is by credit card. The next
Seollal (Lunar New Year’s Day)
preferred method is by credit card and account transfer (for both internet and mobile Dietary supplements 16%
Parents’ Day (May 8)
banking service).
• Mobile ecommerce is the main driver of the explosive ecommerce growth. While Children’s Day (May 5) Cosmetics 14%
online shopping grew by 19.2% in 2017, mobile ecommerce increased by 34.6%. Social Media Usage 2018
Purchases from mobile platforms make up 61.1% of the total market value. Food 13%
• Ecommerce in Korea accounted for 10% of all retail sales in 2017. Facebook 19.26%
Apparel 12%
• Many South Korean ecommerce companies offer same-day deliveries so international Twitter 68.41%
merchants must offer better prices to compete. Studies indicate that South Korean Footwear 8%
YouTube 9%
customers tend to accept a longer delivery time if it means getting a better price.
Pinterest 2% Electronics 7%
Source(s): Statistics Korea; export.gov; eShopWorld; SeoulSpace.com; Payza.eu; Statcounter, 2018
137
Vietnam
• Currency: Dong • % of e-Shoppers: 53%
• VAT: 10% • E-GDP: 1.14%
• Unemployment: 2.20% • # of B2C online shops: 505,000
• 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.
• Vietnamese merchants also offer more secure payment methods to consumers, such as bank Device Use: Online 2018
transfer (88% offer this method). However, Vietnam has the least number of merchants in Most popular online product
Desktop/laptop 43.8% 2018
Southeast Asia offering credit card payment (67% offering method) due to low banking categories
penetration (in 2016, only 15% of bank card users made an online purchase). Tablet 1%
• Price is the top concern for consumers when it comes to online shopping behavior, followed by Mobile 55.1% Tech & electronic equipment $841 mill.
the reputation of the seller and brand. Major issues remain unchanged, including customers’ low
trust in online shopping, unpopular online payment platforms, and quality of delivery and fulfillment Most popular payment
2015 Travel $541 mill.
methods
services.
• Vietnamese online shoppers favor U.S. products, especially technology and electronic equipment. Cash on delivery 91% Furniture & appliances $368 mill.
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 48%
Toys & hobbies $86.3 mill.
unclear, therefore consumers buy goods via intermediary services such as Weshop.com.vn and Payment Card 20%
fado.vn.
E-Wallet 11% Fashion & beauty $358 mill.
Source(s): techinasia.com; Statcounter; export.gov; Statista; VECITA; MOIT (Vietnam Ministry of Industry & Trade), 2018
138
Australia
• Currency: Australian Dollar • % of e-Shoppers: 81%
• VAT: 13% • E-GDP: 3% Full version available at
• Discount department stores are not part of the online landscape. Three years ago, discount retailers had
very little presence online. After a 50.4% surge over the past twelve months, they have finally become an
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 Most popular payment methods 2015 Popular Shopping Holidays
competitive. Credit card 31.7% Boxing Day
• 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 Debit card 13.3% Black Friday & Cyber Monday
point increase from the previous year. By contrast, transactions from desktops and laptops fell 11%. PayPal 13.2% Click Frenzy
Top 5 import countries (billions of USD): Bank Transfer 8.2%
Top 3 products bought online
$52 $28.7 $17.2 Cross-border Ecommerce 2018
Consumer electronics
Clothing
Shop Cross-border only 8% Books

Source(s): eShopWorld; Statista; Australia Post; PayPal; Ipsos; eShopWorld; Statcounter; CIA World Factbook, 2018
139
Asia & Oceania: Summary and Expert Thoughts
1. Amazon “…through New Retail we want to bring
2. eBay our data and technological capability to
3. Rakuten work with and digitally transform the
remaining 82% of retail that is offline.”
✓ Top Payment Methods Roland Palmer Read the full interview on page 129
• Cash on delivery Managing Director Alibaba Group
• Credit/debit card and
Head of Alipay EMEA
• PayPal

1. China
2. Japan “Its [China’s] ‘New Retail’ revolution is
3. South Korea forging ahead and major players like
Alibaba, WeChat, JD and Tencent are
✓ Top ecommerce import destinations breaking new ground with some of their
• United States current ecommerce developments.”
• United Arab Emirates Read the full interview on page 142
• United Kingdom Robert Davinson
Content Analyst,
Awin
140
Global Ecommerce
Recommendations
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?
a) Speak the local language: language The rise of online consumption has
There’s nothing more off-putting for a arguably coincided with a decline in brand
new customer who, having shown loyalty from consumers. The two phenomena
interest in your product or service, clicks are undeniably linked. The internet’s
through to your website only to be incredible ability to provide shoppers with a
greeted in a foreign language that they means of comparing prices and sharing
don’t understand. Localization of your feedback has empowered them to shift their
Robert Davinson site is a must for anyone attempting to spend to competing brands far more easily.
Content Analyst break into a new market. And that “The internet’s incredible
Awin doesn’t mean just the language but also Instead, the advertisers that have seen ability to provide shoppers
the local idioms and vernacular that will most success in retaining their customers in
help your message reach this new this new world of ecommerce appear to be with a means of comparing
audience effectively. those with the strongest brands which
individuals are keen to buy into in terms of
prices and sharing feedback
b) Provide local payment options: Provide If the status they project or the distinct has empowered them to shift
they’ve made it far enough through your identities that they’ve cultivated.
Robert Davinson is a Content Analyst in site to be considering payment then their spend to competing
you’ve managed the hard part, so don’t This is something that transcends all
Awin’s global strategy team where he
produces whitepapers, reports and research make it difficult for them now. Providing sectors really. Whether it’s Apple from an
brands far more easily.”
based on the insights gleaned from across the options for payment that are customary electronics perspective, Nike in sportswear
network’s thousands of advertiser and in the territory will ensure that the or even a less ‘premium’ brand like IKEA
publisher partners. He also hosts the monthly transaction itself is seamless. who have developed a very clear identity.
Awin Talks podcast discussing the latest digital
marketing trends and is the editor of The Awin c) Use affiliates! By tapping into the local
Report, the annual definitive guide to the
affiliate scene you’re effectively recruiting
global affiliate industry.
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
www.awin.com hugely efficient tool for ensuring the best
chance of success.
142
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?
digital transformation of businesses?
Which countries in your experience are Retail, in general, has seen huge growth
racing ahead and which ones are lagging around the world recently with particular
behind? (and why?) success seen in the sectors of ‘fast fashion’
and health & beauty. I’d expect this to
China, inevitably, has to be mentioned continue to grow with luxury fashion and
among those in the vanguard right now. Its retail brands also capitalizing on the growing
‘New Retail’ revolution is forging ahead and middle-class populations seen in places
Robert Davinson major players like Alibaba, WeChat, JD and such as China, India and Indonesia.
Content Analyst Tencent are breaking new ground with some
Awin of their current ecommerce developments. In addition, and although not limited to “the rising popularity of the
one specific sector, the rising popularity of
Having said that, the UK has an incredible the subscription model is one that is subscription model is… well
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
suited to online consumption
ecommerce forms and adapting quickly to streaming service like Netflix or Spotify, food patterns… an increasing
the fast-changing nature of the ecommerce (Blue Apron), shaving kits (Dollar Shave
Robert Davinson is a Content Analyst in industry which necessarily encourages Club) or any number of various goods and amount of shoppers are
businesses to constantly innovate. services, an increasing amount of shoppers
Awin’s global strategy team where he
are committing to subscription-based brands.
committing to subscription-
produces whitepapers, reports and research
based on the insights gleaned from across the While a country like India has massive based brands.”
network’s thousands of advertiser and potential for ecommerce with its huge
publisher partners. He also hosts the monthly population and rapidly growing middle class,
Awin Talks podcast discussing the latest digital a lack of investment in fundamental
marketing trends and is the editor of The Awin infrastructure has largely hampered its ability
Report, the annual definitive guide to the
to translate this into ecommerce success in
global affiliate industry.
the manner that China has demonstrated so
spectacularly over the past decade.
www.awin.com
143
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
other users to provide information about
Social proof 2.3% trending products and items currently
popular
• Urgency = using a time limit to promote
urgency to complete an action before a
Urgency 1.5% deadline
• Abandonment = aiming to capture users
before they leave the site after indicating
purchase intention
Abandonment 1.1% • Product recommendation = recommending
alternative products to users
Product *Figures are based on average uplift in

0.40% revenue-per-visitor
Recommendations
Source(s): Statista; Qubit; MarketingCharts, 2018
144
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
growth for ecommerce businesses is logistics. This is the primary reason
globally? Amazon and Alibaba are so dominating in IoT allows a much greater density and
their respective markets − they are able to granularity of data collection. How do you
We believe the top three drivers of global overcome this barrier, little by little, and see this evolving in the future to increase
growth in ecommerce in the foreseeable differentiate on it. We expect investment and efficiency in the ecommerce industry, and
future are: innovation in this area to continue driving how will SMEs be able to take advantage
ecommerce growth. of such advances in the coming years?
a) Customer demand for convenience
Kevin Cochrane and good experiences; And lastly, we believe cost efficiency will While the IoT generates a gargantuan
Chief Marketing Officer, b) Logistics improvements in order continue to drive growth, especially in the amount of data and creates exciting new
SAP Customer Experience fulfillment and returns; B2B segment. It is well understood that solutions and innovations, it also creates a
c) Cost efficiency, especially in the selling products and services to consumers lot of security holes and opens up many
business-to-business (B2B) segment. using ecommerce has a lower cost structure privacy concerns. Going forward, IoT
than physical channels. For B2B, it’s about solutions will need to bulk up on security
The demand for convenience and good reducing the cost of sales by enabling before gaining more trust and adoption by
experiences fueled ecommerce growth in the customers to make simple and repeat orders customers.
last few years. We believe this trend will via the digital channels. Doing so frees up
Kevin Cochrane was named Chief Marketing continue in the foreseeable future. their sales representatives or resellers to Furthermore, a systematic approach to
Officer (CMO), SAP Customer Experience, in Ecommerce is about instant access focus on more value-adding activities. The managing consent and permission-based
February 2018, bringing over 20 years’ anywhere and anytime, and increasingly result is that their productivity increases, usage of data would be needed. For
experience in the digital experience and digital using any connected device. These are driving down the cost of sales. example, customers would demand that they
marketing space to the position. He started his powerful lures for customers when they have control when and if data generated by
career as co-founder of Interwoven, and later a need to fulfill. And with millennials devices and machines is shared with
spent time in management positions at becoming a larger segment in the market manufacturers and service providers. They
Alfresco, Day Software, and most recently,
approach to managing consent and
and digital channels being their default would not agree with the assumption that
Adobe Systems. Kevin is known as an
channels for buying (and everything else), just because they purchased a device from a
executive who sees market opportunities and
executes quickly on his vision. As a long-time
digital buying experiences will continue to manufacturer, they agreed to share data
champion of SAP and SAP Customer improve, thus creating a virtuous cycle for generated by that device, even if it is used
Experience, Kevin is now committed to making growth. passively. Additionally, customers would
SAP the undisputed leader in the CRM and want to know how that data is used and
customer experience space. Another trend that will drive growth in what benefits they would receive in return.
ecommerce is the improvement in logistics
for fulfillment and returns. If there is
145
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
and artificial intelligence (AI) into the alone, which gives them access to Augmented reality (AR) is another disruptive
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
streams. By embedding ML or AI into any IoT defined use cases that would yield the the key inhibitors to ecommerce growth is
solution, companies can quickly realize biggest benefits and help differentiate them, the inability to see and feel the products
value in the solution. For example, a positioning them to reap the most benefits before you buy. This is where AR can help.
refrigerator with built-in sensors that can that IoT has to offer. We are already seeing some early success
generate a lot of data can also embed an AI of the adoption of AR in leading sellers of
Kevin Cochrane engine to help the customer make sense of What disruptive technologies do you see furniture, eyewear, and fashion. When
Chief Marketing Officer, that data, adding a lot more value to both the shaking up the ecommerce market combined with AI and ML, AR has the
SAP Customer Experience customer and the manufacturer. With globally? potential to eliminate the see-and-feel
permission, the manufacturer can engage problem for ecommerce.
with the customer using insights provided by The most obvious disruptive technologies
AI and cross-sell them products and are machine learning (ML) and artificial
services. Furthermore, it can also facilitate intelligence (AI), as they impact every aspect
machine-to-machine ecommerce with of business and even our way of life. For
grocery retailers. ecommerce, we are already seeing some
Kevin Cochrane was named Chief Marketing early applications and their impact on
Officer (CMO), SAP Customer Experience, in The IoT has a lot of promise in driving personalization, product recommendations, The third disruptive technology that we
February 2018, bringing over 20 years’ economic growth as well as better merchandising, chatbot assistants, and believe can change ecommerce is what the
experience in the digital experience and digital experiences for customers. Many large promotion. We expect that ML and AI will industry calls headless commerce. Unlike
marketing space to the position. He started his enterprises are investing heavily in this continue to increase penetration in many ML, AI, and AR, this technology adoption is
career as co-founder of Interwoven, and later technology. For small and medium aspects of ecommerce in the future, driven more by customer demand − they
spent time in management positions at businesses (SMB) to take advantage of it, including pricing optimization, fault-detection want to buy anywhere, and not necessarily
Alfresco, Day Software, and most recently, (within the context of ecommerce), complex
the approach would need to be more using a traditional storefront. Headless
Adobe Systems. Kevin is known as an
pragmatic in order to manage costs. Our product configuration, image-based product commerce enables sellers to essentially
executive who sees market opportunities and
executes quickly on his vision. As a long-time perspective is that SMBs should use search, product substitution (product embed ecommerce anywhere that
champion of SAP and SAP Customer standards-based technologies, which would compatibility), and many others. customers are, whether it is in a video,
Experience, Kevin is now committed to making ensure they have access to the widest ecommerce growth is the inability to see social media post, mobile game, car
SAP the undisputed leader in the CRM and solution options as well as the technical dashboard, or anywhere you can imagine.
customer experience space. resources needed to build and The potential disruption is huge.
technology leaders instead of going at it
146
About the Report
147
About the Authors
Sara Lone Isabela Fávero Shaun Packiarajah

Research Coordinator Researcher Researcher
Sara holds a Master in Public Isabela holds a Master in Shaun graduated with a
Policy from the University of Development Economics from Master’s degree in Victimology
California in the United States. the University of Auvergne in and Criminal Justice from the
France. University of Tilburg.
Sara oversees the Ecommerce
Foundation Research Team in At Ecommerce Foundation, she He works for the Research
its creation of country reports, is part of the Research Team Team at Ecommerce
custom research, content and providing support in data Foundation in creating
webinars. Additionally, Sara analysis and the creation of research-related content and
presents on research around country reports. Her interests reports. His background is in
the world and advises and experience include policy creation and analysis, in
stakeholders in furthering analysing data as well as addition to practical knowledge
ecommerce globally. conducting policy evaluations. of business development.
148
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.
149
• 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.
150
GOMSEC aims to provide guidelines for measuring Definition of B2C ecommerce sales Online purchases of the following items are excluded
and monitoring B2C ecommerce. As a result, all from GOMSEC:
countries worldwide are able to provide data with “Any B2C contract regarding the sale of goods • Transactions between private
respect to the penetration of B2C ecommerce in a and/or services, fully or partly concluded by a individuals/consumers (C2C), such as auctions
standardized way. All Ecommerce Foundation figures technique for distance communication.” and marketplaces, and between businesses
and estimates are based on GOMSEC, unless stated (B2B)
otherwise. Technique for distance communication: means • Online gambling and gaming
that can be used for communication regarding the • Cars and other motor vehicles
The GOMSEC reports on sales figures for the total offer made by the trader and the conclusion of a • Houses and real estate
B2C ecommerce worldwide and for each country contract, without the necessity of the consumer and • Utilities (e.g. water, heating and electricity)
separate in the country profiles, based on total sales trader being in the same place at the same time. • Mortgages, loans, credit cards and overdrafts
of goods and services. • Savings accounts, funds, stocks & shares and
Contract: a contract whereby use is made, either bonds
These total sales of goods and services are based on solely or in part, of one or more techniques for
the areas/sectors/classification of areas and distance communication within the framework of a B2C ecommerce therefore includes all online
sectors, as stated on the next few pages. system organized by the trader for the distance sale transactions between businesses and consumers
of goods and/or services, up to and including the using desktop computers, laptops, tablets,
All data reported in the national currency of the moment that the contract is concluded. smartphones, point-of-sales and smart-wearables, for
country involved is converted into euros according to instance through online shops, physical stores
the average (annual) rate of exchange as provided Classification of B2C ecommerce (“online instore”), email, QR codes, catalogs, etc. B2C
by, preferably, the European Central Bank (ECB) or ecommerce includes Value Added Tax (VAT) or other
the national bank of the particular country. The The following classification on the next few pages sales tax, delivery costs and apps, but excludes
reference period that is used for this was from 1 provides an overview of areas and sectors included returns.
January to 31 December of each report year. in GOMSEC.
Growth rates are calculated and measured by the B2C
ecommerce sales in the national currency.
151
Global Online Measurement Standard for B2C ecommerce
(GOMSEC)
Media & Entertainment Electronics
Music (physical, download & streaming)/Spotify based on new subscriptions Consumer Electronics Information Technology (IT) Household Electronics
Video (DVD, Blu-ray, downloads) Photo equipment IT hardware (PCs, laptops, MDA:
Games hardware & games software tablets, etc.) air-conditioning,
Books & e-books Audio equipment Computer Software dishwashers, wash
machines and other
Apps white goods
New subscriptions newspapers ands magazines (no single copy sales) TV/video equipment Music instruments
Car electronics USB sticks, DVD/CD- SDA: equipment for

Fashion (navigation, audio, recordable, ink cartridges, personal care, home
Clothing Shoes & Personal lifestyle etc.) computer accessories comfort, kitchen
appliances
Underwear & Upperwear Shoes
Children's wear
Swimwear & Sportswear Jewelry, Bijoux, Watches & others
fashion accessories (e.g. sunglasses)
Nightwear & legwear Bags, wallets, suitcases
Sports & Recreation
Sports hardware (e.g. soccer shoes, tennis rackets)
Toys
Bicycles & accessories
Indoor and outdoor toys
Articles for camping and recreation
152
(GOMSEC)
Home & Garden Food/Nearfood/Health
Furniture and kitchens Food/Nearfood Health & Beauty
Food & Beverages Personal care & Hygiene
Floor and window coverings (e.g. curtains and blinds) Fresh produce Baby care
Home textiles Packaged consumer goods Perfume
Cookware (sets), kettles and oven equipment Detergents/household cleaning OTC
Table and kitchen articles
Animal feed
Articles for cleaning, wash and store
Decoration Tobacco
Lamps and fixtures
DIY-articles
Garden articles
Flowers and plants (in home)
Other: Products
Cars components
Telecom Glasses and contact lenses
Smartphones, mobile phones & mobile devices Stationery
Telefax and answering machines
Pictures and photo albums
Headsets & Accessories (mobile) phones Pet supplies
Prepaid cards and tariffs of new phone subscriptions Erotica
153
(GOMSEC)
Travel
Package Travel Flight Tickets & Accommodations
Insurance Package travel Flight Tickets
New indemnity, Life and Health Insurances Hotel stays
Private transport if booked through a
Liability insurance ANW-gap insurance Health Insurance – tour operator Apartment/bungalow/camping site
Car insurance (insurance for receiving a Base -> all of the above not booked in
Fire and theft insurance payment in addition to a Health insurance – combination with other travel-parts
survivor's allowance) additional
Bike/caravan/motorbike/ Annuity insurance Disability insurance –

Scooter insurance Pension entrepreneurs Event Tickets
Accident insurance Life insurance Disability insurance – Tickets for concerts and festivals
Boat insurance Funeral insurance private Tickets for (movie) theaters
Legal assistance insurance Endowment insurance Mortgage-related Tickets for zoos and amusement parks
Home insurance based on savings disability insurance Tickets for museums
Travel insurance Endowment insurance Mixed insurance Tickets for sports games
(continuous/annual + short based on investments (=endowment
term) insurance + life
Insurance package insurance) Other: Services
New subscriptions to dating service
Other services
154
A.T. Kearney GlobalWebIndex Quandl
Sources used in the report ABComm

Adyen
Aiken, K., Boush, D. (2006)
Alibaba
Google
GSM Association
GSMA
guardian.ng
Qubit
qz.com
RENATA
Retail innovation
amcham gulf-times.com Reuters
América Retail HOS Reuters Institute
arabnews.com howwemadeitinafrica.com Romania-Insider.com
Ardent HUI Research Santander Trade Portal
Asociaciondeinternet.mx IDG Connect SeoulSpace.com
Australia Post IMF Shopify
Australia Unlimited import-export.societegenerale SimilarWeb
Australian Government Austrade imwz.io Slideshare
The report could only be realized by consulting a great number of valuable Awin
Bain & Company
InboundLogistics.com
indexmundi.com
South China Morning Post
standardmedia.co.ke
Banco Bilbao Vizcaya Argentaria Inside Retail Hong Kong Statcounter
sources. These were available in various countries and regions in Europe and Baymard Institute Instapay Statista
Boston Consulting Group Internet World Stats Statistics Korea
around the globe. The wide variety of sources include public domain publications, CACE IPC Stratix Corp
Chalboub Group ipemed.coop Survey Sampling International
blogs, websites, industry and financial specialist publications, regional and local CIA World Factbook Ipsos Svensk Digital Handel
CIGI-IPSOS (2017) iResearch Tahawultech.com
news, annual reports, and press releases. Citeseerx.is
CMI
Jumia.com
Kantar TNS
Tech Crunch
techinasia.com
Crimson Hexagon KPMG Tehrantimes.com
Deloitte Lloyds Bank Trade The Drum
Deloitte lordeys.com The Economist
Sometimes the information sources are contradictory and sometimes different DIBS MarketingCharts The Economist Intelligence Unit
DirectLink.com MarketingtoChina.com The Guardian
figures and data were given by varying sources within the same country, for EastWest Digital News
eBit
Markwarman.com
MinTIC
The Iran Project
The Paypers
example due to different definitions. In our reports we have mentioned the different Ecommerce Foundation
ecommerce.com.do
MOIT
NLogic
Total Retail
Tradearabia.com
EcommerceGuide.com Numeris TSYS
sources, definitions and outcomes of such reports, studies and interpretations. ecommerceiq.com Osservatorio eCommerce B2C UNCTAD
eMarketer Netcomm-School of management Unescap
enet.hu del Politecnico di Milano United Nations
Ernst & Young PayFort VECITA
The report is based on information that we consider reliable, but we cannot vouch eShopWorld
Euromonitor International
Paypal
Payza
Wamda.com
We Are Social
Eurostat Payza.eu webcoupers.com
for it being completely accurate or complete, nor should it be relied upon as such. Expert(s): (Chandler Nguyen) Population Reference Bureau WorldBank
Export.gov PostNord Worldline
Opinions expressed are our current opinions as of the date of this report. Fin24.com PPRO Worldometers
Forbes PracticalEcommerce.com Worldpay
gepaghana.org PrestaShop YouGov
GfK Prisync.com ZoomTanzania
PwC Pixabay Pexels
155
About Ecommerce Foundation
Our History
Ecommerce Foundation is an independent organization, initiated by worldwide national ecommerce associations and online and
omnichannel selling companies from industries such as retail, travel & finance.
Why Ecommerce Foundation?

Our mission is to foster global digital trade as peace is the natural effect of trade. By facilitating digital commerce we hope to
make the world a slightly better place.
How does Ecommerce Foundation help?

We facilitate the development of practical knowledge, insights and services for which individual institutions, retail and ecommerce
associations and B2C selling companies do not have the (financial) resources and/or capabilities. By combining collective goals
and efforts, Ecommerce Foundation is able to realize projects which could not have been realized on an individual basis.
What does Ecommerce Foundation do?

Ecommerce Foundation has developed and offers several services such as the Ecommerce Benchmark, the EcommerceWiki and
the National Ecommerce Reports.
156
Ecommerce Foundation Services
20+ National Every year a C-level The EcommerceWiki
Ecommerce Reports study delegation is Week brings digital
supporting retailers travels to an inspiring end-reponsibles back
going cross border. location. Previous trips to school to update
include Silicon Valley, their knowledge on
Seattle and China. everything ecommerce.
Our Ecommerce The EcommerceWiki EcommerceReports

Webinars zoom in on is the online guide for curates all e-commerce
country-specific facts by ecommerce managers related reseach
pairing up with experts with templates, process accross the globe by
and getting on-the- descriptions, etc. adding an editorial
ground advice. board and peer review.
Lectures & Custom research is

presentations are done for a diverse set
offered to help of topics both co-
members look into the branded as well as
future of shopping. white labeled.
157
About our Ecommerce Reports and where to find them…
The National Ecommerce Reports are published by Ecommerce Foundation. Overview reports 2018
They provide overviews of the mature and emerging markets in the field of • European overview report
ecommerce. • Latin America overview report
• Global overview report
In total, Ecommerce Foundation publishes multiple country reports and two • Africa overview report
overview reports per year, covering the most important ecommerce markets
worldwide. 2018 Country Reports
To have a tailor-made ecommerce report made, • Netherlands Switzerland
completely based on your wishes and requirements, please contact us via • United Kingdom Spain
info@ecommercefoundation.org. • Italy Belgium
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The full reports can be online purchased via: • Germany Poland
http://www.ecommercefoundation.org/reports. • Czech Republic Bulgaria
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Your feedback is very much appreciated. If you would like to help us make the
• India Russia
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Also, consider becoming a member of Ecommerce Foundation for • United States Brazil
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All reports can be found at:
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Website: www.ecommercefoundation.org
Contact: info@ecommercefoundation.org
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Disclaimer
The National Ecommerce Reports are publications by Ecommerce Foundation, which also owns the copyright for these reports.
Although the utmost care has been taken in the construction of these reports, there is always the possibility that some information
is inaccurate. No liability is accepted by Ecommerce Foundation for direct or indirect damage arising pursuant to the use of the
report.
Copyright ©
It is not allowed to use information published in this report without the Ecommerce Operation’s prior consent. Any violation in this
regard will be charged a legal fine of € 25,000 (twenty-five thousand euros), as well as a further penalty of € 2,500 (two
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Of consumers who never

Argentina Turkey Kuwait

2013 2014 2015 2016 2017 2018(f)

Among the different age

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

Source: Ecommerce Foundation; CIA World Factbook, 2018

2015 2016 2017 2018(f)

SOCIAL MEDIA USE: GLOBAL

Average share of the world population using each

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

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

DEVICE USE FOR ONLINE: GLOBE

-Marketing Land, All digital growth now coming from mobile

Ghana 106 120 101 x China 26 78 65 x

Tanzania X 137 X x India 44 100 96 x

Qatar 30 83 51 x United States 14 6 11 x

Simple & reliable returns process 57%

Landed cost calculator at check-out 51%

Rapid response customer service 44%

Electronic notification of delivery 42%

2013 2014 2015 2016 2017

Category Online In-Store

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

2013 2014 2015 2016 2017 2018(f)

2013 2014 2015 2016 2017 2018(f)

reduced to a traditional who effectively ‘cocreate the brand’.

Innovation through brand competition

Integration makes shopping fun and easy

Source: Alibaba - New Retail Explained, 2018.

Borders are breaking down

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

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

Client Case Study: Very

Black Friday. Source: The Awin Report 2017/2018

2013 2014 2015 2016 2017 2018(f)

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

Source: Ecommerce Foundation; CIA World Factbook, 2018

2015 2016 2017 2018

SOCIAL MEDIA PENETRATION

Average share of the South American population

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

DEVICE USE FOR ONLINE: SOUTH AMERICA

smartphones is a relatively recent

Source(s): Statcounter; IDG Connect, 2018

Full version available at $32.5

2013 2014 2015 2016 2017 2018(f)

Country Ranking of Shopping websites (# of visitors)

First Second Third

Argentina Mercadolibre.com.ar Mercadolibre.com Olx.com.ar

Brazil Mercadolivre.com.br Olx.com.br Americana.com.br

Chile Yapo.cl Mercadolibre.cl Falabella.com

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

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

Source: SimilarWeb (ranked, # of visitors)

✓ Top 3 countries ranked by B2C Turnover

2013 2014 2015 2016 2017 2018(f)

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

Source: Ecommerce Foundation; CIA World Factbook, 2018

2015 2016 2017 2018

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

61% North America has the highest social