Describes how widely e-Commerce is used, the primary sectors that sell through ecommerce, and how much product/service in each sector is sold through ecommerce versus brick-and-mortar retail. Includes what a company needs to know to take advantage of e-commerce in the local market and, reputable, prominent B2B websites.
In 2019, eCommerce accounted for $4 billion in purchases, with 65 percent concentrated in Lima. ECommerce opportunities have significantly increased through the use of the internet and smartphones. Although Peru is a small market in the eCommerce industry, ranking sixth in Latin America, it has taken a significant leap in the last decade. Peru grew from 1.27 percent of the value of electronic commerce in the region in 2009 to 5 percent in 2019.
Peruvian consumers prefer to use cash for transactions, which limits the penetration of eCommerce in the country. However, according to AMI analysis, the market for eCommerce in Peru could reach $14 billion by 2022. eCommerce transactions that are carried out from mobile devices, smartphones and tablets have been grown significantly. Of the total of eCommerce transactions, $1.7 billion were completed through mobile devices, while $2.3 billion were from desktops.
Current Market Trends
Thousands of companies have been adversly affected by the sudden slowdown prompted by the COVID-19 pandemic. Consumers have had to adapt to new processes for purchasing products and services in order to satisfy their needs and safeguard their health. Faced with this, eCommerce has become an indispensable tool for small, medium and large companies as they have found it necessary to adopt this channel in order to leverage the recovery of their businesses.
In Peru, the number of eCommerce transactions grew by 120 percent between February and March 2020. ECommerce accounted for 12.5 percent of credit card transactions between January and March 2020, growing to 45 percent by June 2020. Likewise, the average customer ticket has increased by 48 percent, currently standing at an average $67 per transaction.
Domestic eCommerce (B2C)
Several domestic e-marketplaces are taking advantage of eCommerce opportunities in Peru. Some of the most popular sites being those that follow:
Mercado Libre: Online platform in Latin America and Portugal for buying and selling a wide range of items. It has two types of accounts: free and paid.
OLX: Classified ad platform present in 114 countries, especially in emerging markets, which puts buyers in contact with sellers.
Linio: A platform where many different suppliers sell a wide range of products. Available in Mexico, Chile, Argentina, Peru, Ecuador, Colombia, Venezuela and Panama.
Falabella: Department store with a presence in Chile, Argentina, Peru, Colombia, Uruguay, and Brazil. Belongs to the SACI Falabella group and their main business areas are clothing, accessories, and homeware retail.
Ripley: Chilean chain of department stores, with presence in Chile, Colombia and Peru. Its main businesses are clothing, accessories, and homeware retail.
Platanitos: A group that sells fashion, especially footwear and accessories, by Platanitos Boutique and other brands. Available in Peru.
Wong: Peru’s largest supermarket chain. This website allows for ordering via internet from local and foreign-based consumers for local delivery.
Rosatel: Rosatel allows online orders of flowers and gift baskets.
For B2B eCommerce, businesses are beginning to use their own custom email domain servers instead of using an informal personal email address (Hotmail or Gmail) to conduct business. This new trend of owning one’s own email domain servers allows Peruvian businesses to legitimize their online presence.
There have been advances in the use of the internet in several Peruvian government institutions, including the tax collection agency, SUNAT, the public registry, SUNARP, and the Peruvian state-owned bank, Banco de la Nación (which handles the Treasury accounts). Additionally, the National Elections Bureau, ONPE, is testing electronic voting and improving internet usage.
The Peruvian consumer generally expects different prices and offers as opposed to promotions created to deplete a stock. Consumers are starting to prefer making purchases electronically over visiting the store. At the same time, they expect variety and simplicity, as navigation can be a barrier at the time of purchase. Additionally, it is important to highlight other benefits that promote online access and electronic commerce purchases. For example, delivery companies or taxi services have managed to convey differential advantages that have quickly resulted in their growth. These changes are a reality and growth is usually exponential once technological adoption occurs. Companies should be looking at how to take advantage and strengthen this channel.