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LIGHT REPORT

Ecommerce 
Report: 2019
Global
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LIGHT REPORT
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worldwide national ecommerce associations as well as online and
omnichannel companies from industries such as retail, travel and finance. Our
mission is to foster global digital trade, since peace is the natural effect of
trade. By facilitating digital commerce, we hope to make the world a slightly
better place.

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Valued Report Partners

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LIGHT REPORT
Table
of Contents

#1 GLOBAL OVERVIEW

#2 INFRASTRUCTURE & LOGISTICS

#3 ECOMMERCE LANDSCAPE
      CASE STUDY: THE MIDDLE EAST

#4 EXPERT OPINIONS AND ADVICE

#5 CASE STUDY: GLOBAL SHIPPING AND THE UPU

#6 ABOUT THE REPORT


LIGHT REPORT
#1 Global
Overview
LIGHT REPORT
Countries included in this report

South America Africa Asia & Oceania


Argentina Nigeria China
Brazil South Africa India
Chile Egypt Indonesia
Colombia Algeria Japan
Dominican Republic Morocco Malaysia
Peru Kenya South Korea
Ghana Vietnam
Tanzania Australia
Tunisia

Europe Middle East North America


United Kingdom Turkey Mexico
France Iran United States
Germany Armenia Canada
Sweden Saudi Arabia
Russia United Arab
Romania Emirates
Italy Israel
Spain Kuwait
Qatar
Bahrain *Not every dataset/indicator
includes every country listed here.
LIGHT REPORT
The global population continues to rise 
Global population Age structure, 2019 (f)
Total population (in billions) and Share of population in select age ranges
share of the population using the Internet 61%

59%

55%
51%

49%
LIGHT REPORT
Asia & Oceania region has the
largest population
Share of population, by region (2019)
LIGHT REPORT
Europe and North America have the
oldest population
LIGHT REPORT
#2 Infrastructure
& Logistics
LIGHT REPORT
Global GDP to reach over $60 trillion in 2019
GDP Global
2013-2019 (f) (USD, trillion)
LIGHT REPORT
The United States continue to rank high in all
ecommerce-related indices for 2019
LIGHT REPORT
#3 Ecommerce
Landscape
LIGHT REPORT
Europe has the highest Internet penetration
Global Internet penetration Internet penetration per region
2019 (f)

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LIGHT REPORT
The United Arab Emirates has the highest Internet
penetration, while Tanzania has the lowest
Country Internet penetration, 2019 (f)
LIGHT REPORT
Online shopping ranges from 13% to 89%
Country online shopping
Share of consumers using the internet who shopped online, 2019 (f)

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LIGHT REPORT
Global B2C ecommerce turnover forecasted
to reach over $2 trillion in 2019
Annual global B2C ecommerce turnover*
(USD, trillion)

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*Russia: 2016-2019 (f)


Algeria: 2017-2019 (f)
Tanzania: 2016-2019 (f)
Tunisia: 2017-2019 (f)
Armenia: 2014-2019 (f)
Kuwait: 2014-2019 (f)
LIGHT REPORT
Ecommerce turnover continues to grow
steadily at around 11%
Annual global B2C ecommerce growth rate*

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*Russia: 2016-2019 (f)


Algeria: 2017-2019 (f)
Tanzania: 2016-2019 (f)
Tunisia: 2017-2019 (f)
Armenia: 2014-2019 (f)
Kuwait: 2014-2019 (f)
LIGHT REPORT
Most B2C ecommerce turnover is concentrated
in the Asia & Oceania region (44%)
Regional ecommerce turnover Regional share of total ecommerce turnover
2019 (f), USD billion 2019 (f)

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LIGHT REPORT
Europe has the highest spending
per e-shopper
Global average e-shopper spending Average e-shopper spending per region
2015-2019 (f), USD 2019 (f), USD

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LIGHT REPORT
South America
LIGHT REPORT
South America
Argentina, Brazil, Chile, Colombia,
Dominican Republic, Peru

B2C ecommerce turnover and growth rate Ecommerce environment


2013-2019 (f), USD billion 2019 (f)
Internet penetration                   72%
% of e-shoppers                          46%
Average spending                       $445
Average spending growth         2.59%

This is the light version of


the report -- you can
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org/shop
LIGHT REPORT
Argentina
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              45 million Internet penetration        93%
Currency                                 Peso (ARS) % of e-shoppers               78%
Logistics performance          61st E-GDP                                 2.64%
Ease of Doing Business        117th Turnover growth              28.57%
E-Government Index             43rd
Internet inclusivity                 33rd
GDP per capita                      $10,595  

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover 
(USD, billion)
87.82%

This is the light version of


5.39% the report -- you can
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org/shop
2.76%
LIGHT REPORT
Brazil
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              212.8 million Internet penetration      70%
Currency                                 Real (BRL) % of e-shoppers             50.60%
Logistics performance          56th E-GDP                               1.08%
Ease of Doing Business        125th Turnover growth            9.42%
E-Government Index            44th
Internet inclusivity                31st
GDP per capita                      $8,909

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover 
(USD, billion)

47.88%
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26.69% purchase the full version at
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12.17%
LIGHT REPORT
Chile
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                            18.3 million Internet penetration        77%
Currency                                Peso (CLP) E-GDP                                 2.37%
Logistics performance        34th Turnover growth             28.77%
Ease of Doing Business      55th
E-Government Index          42nd
Internet inclusivity              16th
GDP per capita                    $16,149  

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover 
(USD, billion)
63.63%
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19.33% purchase the full version at
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9.94%
LIGHT REPORT
Colombia
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                            49.8 million Internet penetration      66%
Currency                               Peso (COP) E-GDP                               2.01%
Logistics performance        58th Turnover growth            28.11%
Ease of Doing Business      59th
E-Government Index          61st
Internet inclusivity              35th
GDP per capita                    $6,590

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover 
(USD, billion)
37.37%
This is the light version of
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35.55% purchase the full version at
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17.9%
LIGHT REPORT
Dominican Republic
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              10.96 million Internet penetration      70%
Currency                                 Peso (DOP) % of e-shoppers             13%
Logistics performance          87th E-GDP                               3.05%
Ease of Doing Business        99th Turnover growth            10%
E-Government Index            93rd
Internet inclusivity                61st
GDP per capita                       $7,720

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover 
(USD, billion)

42.53% This is the light version of


the report -- you can
purchase the full version at
34.76% www.ecommercefoundation.
org/shop

10.48%
LIGHT REPORT
Peru
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              32.9 million Internet penetration       65%
Currency                                 Sol (PEN) E-GDP                                1.67%
Logistics performance          83rd Turnover growth            14.29%
Ease of Doing Business        58th
E-Government Index            77th
Internet inclusivity                56th
GDP per capita                      $7,261
Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover 
(USD, billion)
61.66%

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26.42% the report -- you can
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7.17%
LIGHT REPORT
Europe
LIGHT REPORT
Europe
United Kingdom, France, Germany,
Sweden, Russia, Romania, Italy, Spain

B2C ecommerce turnover and growth rate Ecommerce environment


2013-2019 (f), USD billion 2019 (f)
Internet penetration               85.18%
% of e-shoppers                       72%
Average spending                    $1,715
Average spending growth       2.23%

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LIGHT REPORT
United Kingdom
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              66.8 million Internet penetration      96%
Currency                                 Pound (GBP) % of e-shoppers              87%
Logistics performance          9th E-GDP                                7.94%
Ease of Doing Business        9th Turnover growth             2%
E-Government Index            4th
Internet inclusivity                5th
GDP per capita                     $39,923

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
55.51%

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23.20% the report -- you can
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org/shop
12.54%
LIGHT REPORT
France
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                             65.4 million Internet penetration      90%
Currency                                Euro (EUR) % of e-shoppers              76%
Logistics performance        16th E-GDP                                4.31%
Ease of Doing Business      32nd Turnover growth            7.70%
E-Government Index           9th
Internet inclusivity              10th
GDP per capita                    $41,371

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
75.70%

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14.71% the report -- you can
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4.02%
LIGHT REPORT
Germany
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                             82.4 million Internet penetration      93%
Currency                                Euro (EUR) % of e-shoppers              83%
Logistics performance         1st E-GDP                                1.71%
Ease of Doing Business       24th Turnover growth             4 %
E-Government Index           12th
Internet inclusivity               18th
GDP per capita                     $46,352

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billions)
59.11%
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4.50%
LIGHT REPORT
Sweden
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              10 million Internet penetration      94%
Currency                                  krona (SEK) % of e-shoppers              84%
Logistics performance          2nd E-GDP                                3.55%
Ease of Doing Business        12th Turnover growth             7%
E-Government Index             5th
Internet inclusivity                 1st
GDP per capita                       $51,687

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
68.90%
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12.88%
LIGHT REPORT
 Russia
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              143 million Internet penetration       76%
Currency                                 Russian ruble % of e-shoppers               70%
(RUB) E-GDP                                1.32%
Logistics performance          75th Turnover growth             15%
Ease of Doing Business        31st
E-Government Index            32nd
Internet inclusivity                19th
GDP per capita                      $11,062
Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
21.86%
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17.01% purchase the full version at
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14.84%
LIGHT REPORT
Romania
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              19 million Internet penetration       74%
Currency                                  leu (RON) % of e-shoppers               27%
Logistics performance          48th E-GDP                                2.42%
Ease of Doing Business        52nd Turnover growth            24%
E-Government Index            67th
Internet inclusivity                26th
GDP per capita                      $11,188

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
91.34%
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1.59%
LIGHT REPORT
Italy
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              59 million Internet penetration       79%
Currency                                 Euro (EUR) % of e-shoppers              48%
Logistics performance          19th E-GDP                                2.01%
Ease of Doing Business        51st Turnover growth            24%
E-Government Index            24th
Internet inclusivity                20th
GDP per capita                      $33,510

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
66.80%
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5.56%
LIGHT REPORT
Spain
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              46 million Internet penetration       88%
Currency                                 Euro (EUR) % of e-shoppers              63%
Logistics performance          17th E-GDP                                2.69%
Ease of Doing Business        30th Turnover growth             15%
E-Government Index            17th
Internet inclusivity                12th
GDP per capita                      $30,026 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
65.19%
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7.95%
LIGHT REPORT
Africa
LIGHT REPORT
Africa Nigeria, South Africa, Egypt, Algeria, 
Morocco, Kenya, Ghana, Tanzania, Tunisia

B2C ecommerce turnover Ecommerce environment


and growth rate* 2019 (f)
2013-2019 (f), USD billion Internet penetration                 56.38%
% of e-shoppers                        43%
Average spending                     $205.97
Average spending growth        32.5%

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*Algeria: 2017-2019 (f)


Kenya: 2014-2019 (f)
Tanzania: 2016-2019 (f)
Tunisia: 2017-2019 (f)
LIGHT REPORT
Nigeria
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              202 million Internet penetration      56%
Currency                                  naira (NGN) % of e-shoppers               63%
Logistics performance          110th E-GDP                                2.70%
Ease of Doing Business        146th
E-Government Index            143rd
Internet inclusivity                 65th
GDP per capita                      $2,202 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, million)
66.67%
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12.40%
LIGHT REPORT
South Africa
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              58 million Internet penetration       67%
Currency                                 rand (ZAR) % of e-shoppers               63%
Logistics performance          33rd E-GDP                                1.12%
Ease of Doing Business        82nd Turnover growth            15%
E-Government Index            68th
Internet inclusivity                50th
GDP per capita                      $5,805 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, million)

43.65%
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8.26%
LIGHT REPORT
 Egypt
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              100 million Internet penetration       48%
Currency                                 pound (LE) % of e-shoppers              38%
Logistics performance          67th E-GDP                                1.92%
Ease of Doing Business        120th Turnover growth            15%
E-Government Index            114th
Internet inclusivity                 69th
GDP per capita                      $2,972 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)

75.18%
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3.34%
LIGHT REPORT
Algeria
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              43 million Internet penetration       49%
Currency                                  dinar (DA) E-GDP                                3%
Logistics performance          117th Turnover growth            10%
Ease of Doing Business        157th
E-Government Index            130th
Internet inclusivity                 73rd
GDP per capita                      $4,250 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
45.25%
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40.24% purchase the full version at
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8.73%
LIGHT REPORT
Morocco
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              36 million Internet penetration       68%
Currency                                 dirham (DH) E-GDP                                0.4%
Logistics performance          109th Turnover growth             28%
Ease of Doing Business        60th
E-Government Index            110th
Internet inclusivity                 62nd
GDP per capita                      $3,291 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, million)
44.36%
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43.97% purchase the full version at
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5.17%
LIGHT REPORT
Kenya
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              52 million Internet penetration       83%
Currency                                 shilling (KES) % of e-shoppers               65%
Logistics performance          68th E-GDP                                0.05%
Ease of Doing Business        61st Turnover growth             0%
E-Government Index            122nd
Internet inclusivity                 64th
GDP per capita                      $1,878 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2014-2019 (f) (USD, million)
56.74%

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22.92% the report -- you can
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org/shop
13.17%
LIGHT REPORT
Ghana
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                               30 million Internet penetration       44%
Currency                                  cedi (GHC) E-GDP                                0.09%
Logistics performance          106th Turnover growth            45%
Ease of Doing Business        114th
E-Government Index            101st
Internet inclusivity                 70th
GDP per capita                      $2,233 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
72.87%
This is the light version of
the report -- you can
11.75% purchase the full version at
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org/shop
11.56%
LIGHT REPORT
Tanzania
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              58 million Internet penetration       37%
Currency                                 shilling (TZS)
Logistics performance          ---
Ease of Doing Business        144th
E-Government Index            139th
Internet inclusivity                 79th
GDP per capita                      $1,045 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2014-2019 (f) (USD, million)
53.47%
This is the light version of
the report -- you can
21.16% purchase the full version at
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13.53%
LIGHT REPORT
Tunisia
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              11 million Internet penetration       67%
Currency                                  dinar (TND) E-GDP                                0.21%
Logistics performance          105th Turnover growth             20%
Ease of Doing Business         80th
E-Government Index             80th
Internet inclusivity                 60th
GDP per capita                      $3,088 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
80.91%
This is the light version of
the report -- you can
12.98% purchase the full version at
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2.89%
LIGHT REPORT
Middle East
LIGHT REPORT
Middle East Turkey, Iran, Armenia, Saudi Arabia, United
Arab Emirates, Israel, Kuwait, Qatar, Bahrain

B2C ecommerce turnover and growth rate Ecommerce environment


2013-2019 (f), USD billion 2019 (f)
Internet penetration                 78.64%
% of e-shoppers                        43%
Average spending                     $1,123
Average spending growth        97%

This is the light version of


the report -- you can
purchase the full version at
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org/shop
CASE STUDY Asendia and Oman Post have agreed on a Premium
Partnership to help their customers to deliver
success in Oman and across the Middle East.

Alex Borisov has worked in


international logistics for ten years,
gaining experience across the
Middle East.
He started at Oman Post in 2017. As 
director for international business
development, he has an excellent
The insight into the growing ecommerce
markets of the Middle East.

Middle East,
an exciting,  The Middle East presents a unique and exciting

emerging
opportunity for cross-border retailers who are The Middle East and North Africa regions are not yet
looking to tap into markets with huge potential. It is saturated markets and it is expected to be the next
a fascinating mix of renowned ecommerce
ecommerce destinations and emerging markets, each with their big growth markets for ecommerce. By 2022, the
own distinctive character and consumer preferences. forecast is a 28% increase of the overall ecommerce
across the regions, which is projected to reach a value
region From Saudi Arabia and Qatar to Egypt and UAE,
e-tailers are discovering great success in nations
of around $29 billion.

across this region. Many Middle East governments are heavily investing


in infrastructure and digital services to encourage
international ecommerce growth in their countries.
By promoting a “digital society”, the Omani
Read the interview from Asendia with Alex Borisov, government successfully doubled the number of
director for international business development of yearly electronic transactions in 2017, while Bahrain’s
Oman Post to find out more about this exciting and Electronic Transactions law protects payments and
emerging ecommerce region. gives shoppers greater confidence buying online.
CASE STUDY Currently, there are very few prominent ecommerce Tips to sell in the Middle East
marketplaces in the Middle East. While internet
penetration in the region is high, many local retailers The purchasing power of the Middle East region
aren’t fulfilling demand and so are driving online comes largely from an extremely young Internet-
shoppers to buy cross-border. savvy population that is enjoying the greater variety
and competitive pricing of shopping cross-border
The Middle East ccovers many different countries and is less afraid of international online shopping.
and, of course, they each have their own In Saudi Arabia, for example, more the 55% of the
characteristics, needs and expectations. population is under 30 and the smartphone use in
the region is more than 65%, resulting in a steady
General indicators of a market’s opportunity include growth of m-commerce.
the country’s GDP, Internet penetration and GDP per
capita, but it is important to not be put off if the
Most figures do not look overly appealing. Look at growth
trends and you will see that getting into these

interesting countries early could help you establish a market-


leading brand position before others join the market
later on.
countries For example, in UAE, 60% of e-shoppers buy cross-
border, while in Qatar it’s 67%. There’s a good reason
to believe that the less-established markets in
neighboring countries will follow suit.
It’s also important to look at shoppers from which
countries are most frequently buying from, but also
to take a deep dive into those figures. While many of Before selling to a new region or country, it's
the Middle East’s imports have historically come from important to do research to identify the market
China, increasing numbers of shoppers in the region demand for the product you want to sell.
are buying from further afield, with the USA and
Germany leading the way. “There's also a lot to learn about the culture
of each country, the legislation, marketing
platforms payment preferences and more”
Alex Borisov
CASE STUDY While under-30s in the Middle East are mostly Delivery and cross-border retailers
purchasing clothing, electronics and jewelry online,
'parents' represents the category driving the growth Many surveys have shown that a poor delivery
of cross-border ecommerce in the region. experience will cost you customers.
The largest online shopping for mothers, babies and Moreover, high delivery costs and slow delivery time
children is Mumzworld. won’t drive people to proceed to checkout. This is
no different in this region and, for the over 40s,
A key part of Mumzworld’s success is that it there are significant trust issues when it comes to
has English and Arabic websites. With over 250,000 delivery and security. The key to successfully selling
products currently listed, that’s quite a lot of work to the Middle East is fast and reliable delivery, at an
and something that retailers need to consider. affordable price, by a name they trust.

Delivery
Between 2011 and 2018, the number of employees
has exploded from four to 130 today. Mumzworld
is a great example of how this region can be
and challenging when it comes to marketing.

cross-border
retailers

This is why Oman Post and Asendia have come


together in order to offer retailers across the world
a delivery solution that shoppers in the Middle East
are familiar with, at a reasonable price.
LIGHT REPORT
Turkey
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              83 million Internet penetration       72%
Currency                                 lira (TRY) % of e-shoppers               61%
Logistics performance          34th E-GDP                                1.93%
Ease of Doing Business        43rd Turnover growth            10%
E-Government Index            53rd
Internet inclusivity                 40th
GDP per capita                      $8,445 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
54.47%
This is the light version of
the report -- you can
19.68% purchase the full version at
www.ecommercefoundation.
org/shop
10.79%
LIGHT REPORT
Iran
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              83 million Internet penetration      76%
Currency                                  rial (IRR) E-GDP                                6.56%
Logistics performance          96th Turnover growth             20%
Ease of Doing Business        128th
E-Government Index             86th
Internet inclusivity                 56th
GDP per capita                      $5,828 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
45.98%
This is the light version of
the report -- you can
9.69% purchase the full version at
www.ecommercefoundation.
org/shop
9.51%
LIGHT REPORT
Armenia
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              2 million Internet penetration      73%
Currency                                 dram (AMD) % of e-shoppers              15%
Logistics performance          141st E-GDP                                2.94%
Ease of Doing Business        41st Turnover growth            9.09%
E-Government Index            87th
Internet inclusivity                  ---
GDP per capita                      $2,227 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2014-2019 (f) (USD, million)
57.37%
This is the light version of
the report -- you can
21.08% purchase the full version at
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org/shop
12.44%
LIGHT REPORT
Saudi Arabia
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              34 million Internet penetration        88%
Currency                                 riyal (SAR) % of e-shoppers               66%
Logistics performance          52nd E-GDP                                 1.32%
Ease of Doing Business        92nd Turnover growth              10%
E-Government Index            52nd
Internet inclusivity                39th
GDP per capita                      $22,166 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
82.03%
This is the light version of
the report -- you can
9.16% purchase the full version at
www.ecommercefoundation.
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6.88%
LIGHT REPORT
United Arab Emirates
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              9 million Internet penetration      99%
Currency                                 dirham (AED) % of e-shoppers              89%
Logistics performance          13th E-GDP                                5.89%
Ease of Doing Business        11th Turnover growth             20%
E-Government Index            21st
Internet inclusivity                  ---
GDP per capita                      $43,676 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
80.5%
This is the light version of
the report -- you can
5.7% purchase the full version at
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4.6%
LIGHT REPORT
Israel
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              8 million Internet penetration       87%
Currency                                 new shekel (ILS) % of e-shoppers               69%
Logistics performance          28th E-GDP                                0.98%
Ease of Doing Business        49th Turnover growth            10.6%
E-Government Index            31st
Internet inclusivity                17th
GDP per capita                      $44,633 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
66.92%
This is the light version of
the report -- you can
17.79% purchase the full version at
www.ecommercefoundation.
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7.37%
LIGHT REPORT
Kuwait
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              4 million Internet penetration      99%
Currency                                 dinar (KWD) % of e-shoppers              67%
Logistics performance          63rd E-GDP                                0.72%
Ease of Doing Business        97th Turnover growth             8%
E-Government Index            41st
Internet inclusivity                 38th
GDP per capita                      $32,442 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2014-2019 (f) (USD, million)
71.6%
This is the light version of
the report -- you can
11% purchase the full version at
www.ecommercefoundation.
org/shop
8.9%
LIGHT REPORT
Qatar
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              2 million Internet penetration      99%
Currency                                 riyal (QAR) % of e-shoppers              81%
Logistics performance          30th E-GDP                                0.89%
Ease of Doing Business        83rd Turnover growth             8.59%
E-Government Index            51st
Internet inclusivity                37th
GDP per capita                      $68,067 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, million)
83.7%
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the report -- you can
5.3% purchase the full version at
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5.2%
LIGHT REPORT
Bahrain
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              1 million Internet penetration      98%
Currency                                  dinar (BHD) % of e-shoppers              83%
Logistics performance          59th E-GDP                                1.45%
Ease of Doing Business        62nd Turnover growth            13.23%
E-Government Index            26th
Internet inclusivity                  ---
GDP per capita                      $23,544 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, million)
81%
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the report -- you can
7% purchase the full version at
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5.5%
LIGHT REPORT
Asia & Oceania
LIGHT REPORT
Asia & Oceania China, India, Indonesia, Japan, Malaysia,
South Korea, Vietnam, Australia

B2C ecommerce turnover and growth rate Ecommerce environment


2013-2019 (f), USD billion 2019 (f)
Internet penetration                 53.4%
% of e-shoppers                        55.8%
Average spending                     $978
Average spending growth        2%

This is the light version of


the report -- you can
purchase the full version at
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org/shop
LIGHT REPORT
China
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              1 billion Internet penetration       61%
Currency                                  renminbi (CNY) % of e-shoppers              59%
Logistics performance          26th E-GDP                                5.1%
Ease of Doing Business        46th Turnover growth            14%
E-Government Index            65th
Internet inclusivity                 42nd
GDP per capita                      $9,909 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
35.01%
This is the light version of
the report -- you can
25.52% purchase the full version at
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17.65%
LIGHT REPORT
India
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              1 billion Internet penetration       41%
Currency                                  rupee (INR) % of e-shoppers              47%
Logistics performance          44th E-GDP                                1.09%
Ease of Doing Business        77th Turnover growth             28%
E-Government Index            96th
Internet inclusivity                47th
GDP per capita                      $2,170 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
89.79%
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the report -- you can
3.68% purchase the full version at
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3.11%
LIGHT REPORT
Indonesia
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              271 million Internet penetration       39%
Currency                                  rupiah (IDR) % of e-shoppers               62%
Logistics performance          46th E-GDP                                1.70%
Ease of Doing Business        73rd Turnover growth             56%
E-Government Index            107th
Internet inclusivity                 63rd
GDP per capita                      $4,058 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
51.60%
This is the light version of
the report -- you can
21.14% purchase the full version at
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11.66%
LIGHT REPORT
Japan
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              126 million Internet penetration       96%
Currency                                  yen (JPY) % of e-shoppers              71%
Logistics performance          5th E-GDP                                2.59%
Ease of Doing Business        39th Turnover growth            9.5%
E-Government Index            10th
Internet inclusivity                 12th
GDP per capita                      $40,829 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
44.29%
This is the light version of
the report -- you can
23.94% purchase the full version at
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20.86%
LIGHT REPORT
Malaysia
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              32 million Internet penetration       81%
Currency                                  ringgit (RM) % of e-shoppers               62%
Logistics performance          41st E-GDP                                0.99%
Ease of Doing Business        15th Turnover growth            15%
E-Government Index             48th
Internet inclusivity                 34th
GDP per capita                      $11,654 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
76.43%
This is the light version of
the report -- you can
7.58% purchase the full version at
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6.16%
LIGHT REPORT
South Korea
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              51 million Internet penetration       86%
Currency                                 won (KRW) % of e-shoppers              88%
Logistics performance          25th E-GDP                                3.95%
Ease of Doing Business        35th Turnover growth            5.82%
E-Government Index            3rd
Internet inclusivity                 9th
GDP per capita                      $32,334 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
67.91%
This is the light version of
the report -- you can
23.05% purchase the full version at
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4.58%
LIGHT REPORT
Vietnam
Quick introduction (2019) Ecommerce facts & figures (2019)

Population                              96 million Internet penetration       61%


Currency                                  dong (VND) % of e-shoppers              56%
Logistics performance          39th E-GDP                                1.04%
Ease of Doing Business        69th Turnover growth            19.9%
E-Government Index            88th
Internet inclusivity                44th
GDP per capita                      $2,698 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
59.30%
This is the light version of
the report -- you can
14.85% purchase the full version at
www.ecommercefoundation.
org/shop
12.25%
LIGHT REPORT
Australia
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              25 million Internet penetration       88%
Currency                                  dollar (AUD) % of e-shoppers              84%
Logistics performance          18th E-GDP                                3.24%
Ease of Doing Business        18th Turnover growth            10%
E-Government Index             2nd
Internet inclusivity                 15th
GDP per capita                       $56,078 

Device usage for online (2019) Top 3 social media usage (2019) B2C ecommerce turnover
2013-2019 (f) (USD, billion)
63.4%
This is the light version of
the report -- you can
24.9% purchase the full version at
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5.6%
LIGHT REPORT
North America
LIGHT REPORT
North America Mexico, United States, Canada

B2C ecommerce turnover and growth rate Ecommerce environment


2013-2019 (f), USD billion 2019 (f)
Internet penetration                84%
% of e-shoppers                        79.8%
Average spending                     $1,791
Average spending growth        -7%

This is the light version of


the report -- you can
purchase the full version at
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org/shop
LIGHT REPORT
Mexico
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              132.3 million Internet penetration      68%
Currency                                 peso (MXN) % of e-shoppers              75%
Logistics performance          51st E-GDP                               2.22%
Ease of Doing Business        49th Turnover growth            16.30%
E-Government Index            64th
Internet inclusivity                45th
GDP per capita                      $9,804

Device usage for online (2019) Top 3 social media usage (2019) B2C Ecommerce Turnover 
(USD, billion)
68.46%

This is the light version of


the report -- you can
14.06% purchase the full version at
www.ecommercefoundation.
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11.26%
LIGHT REPORT
United Satets of America
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              329 million Internet penetration        90%
Currency                                 dollar (USD) % of e-shoppers                82%
Logistics performance          14th E-GDP                                 2.57%
Ease of Doing Business        8th Turnover growth              5.01%
E-Government Index            11th
Internet inclusivity                 3rd
GDP per capita                      $64,805 

Device usage for online (2019) Top 3 social media usage (2019) B2C Ecommerce Turnover 
(USD, billion)
53.60%

This is the light version of


the report -- you can
34.55% purchase the full version at
www.ecommercefoundation.
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7.11%
LIGHT REPORT
Canada
Quick introduction (2019) Ecommerce facts & figures (2019)
Population                              37 million Internet penetration      92%
Currency                                 dollar (CAD) % of e-shoppers              73%
Logistics performance          20th E-GDP                                1.50%
Ease of Doing Business        22nd Turnover growth            8%
E-Government Index            23rd
Internet inclusivity                6th
GDP per capita                      $46,286 

Device usage for online (2019) Top 3 social media usage (2019) B2C Ecommerce Turnover 
(USD, billion)
54.7%

This is the light version of


the report -- you can
32.4% purchase the full version at
www.ecommercefoundation.
org/shop
7.6%
LIGHT REPORT
#4 Expert Opinions
& Advice
INTERVIEW Q: What disruptive technologies do you see interactions and behavior, and also calculate
shaking up the ecommerce market globally? metrics and affinities in real-time to make data
actionable for personalization. That way, you sell
A: Many different engagement models have more and drive more profit at a TCO.
evolved over the past months and years,
especially on the mobile with conversion still Open APIs are a crucial ingredient for any
rising at a fast pace. It is no longer the commerce platform to not only connect the back-
traditional website approach but commerce end with the front-end but also embed
is everywhere. everywhere in your environment and link with
third-party applications. That way, technology
That is why technologies like Progressive Web enables every interaction across the entire
Chris Hauca Apps (PWA) and headless commerce, Artificial customer journey and delivers the seamless
General manager, SAP Commerce Cloud Intelligence (AI), and microservices are so shopping experience customer are expecting.
Chris Hauca is general manager of SAP important. A PWA lets you deploy an out-of-the-
Commerce Cloud and has overall
responsibility for the commerce offering of
box store in days rather than weeks or months,
SAP C/4HANA, the leading cloud customer using just what you need, while at the same time
experience suite.
extending it at speed with microservices. This
He joined SAP in August 2018 as head allows the innovation necessary to differentiate
of strategy and GTM for SAP Enterprise
Commerce within the SAP Customer
from the competition and be successful.
Experience business unit. Prior to joining SAP,
Chris was managing director and partner in
the Commerce practice at Accenture. He
AI helps to streamline formerly manual (and
covered many industries including retail, therefore slow) processes. For example, with AI-
CPG, discrete manufacturing and chemicals,
delivering commerce insights and capabilities
powered merchandising, you can enrich
in B2B, B2C and B2B2C business models. customer information based on their
INTERVIEW Q: What are the main characteristics you see A cloud-native approach supports scaling up and
around the world concerning ecommerce? down and, with modular microservices, you can
continuously innovate and differentiate from the
A: Ecommerce is an integral part of the everyday competition. Headless commerce adds to that
lives of global consumers and businesses. flexibility by allowing you to make rapid changes
to the front-end without disturbing the back-end,
Companies are extending their market reach and vice versa.
by going global and targeting international
audiences. With that, new challenges arise, such Moreover, it is crucial to select a vendor that not
as rebuilding brand and trust in that region, only has a global presence but also has regional
different delivery and payment preferences, or service delivery capabilities that provide support in
Chris Hauca setting up new distribution channels and various countries. That is one of the reasons SAP
General manager, SAP Commerce Cloud applying to new data privacy rules. For example, launched a new Commerce Cloud Data Center in
Chris Hauca is general manager of SAP in some countries like China, certain customer China – to be able to do business in one of the
Commerce Cloud and has overall
data must reside within country borders. With world's fastest-growing markets.
responsibility for the commerce offering of
SAP C/4HANA, the leading cloud customer that come new requirements, not only for the
experience suite.
ecommerce platform, but also for the vendor of
He joined SAP in August 2018 as head the platform.
of strategy and GTM for SAP Enterprise
Commerce within the SAP Customer
“Companies are extending
Experience business unit. Prior to joining SAP, The platform must be flexible to meet different their market, going
Chris was managing director and partner in
the Commerce practice at Accenture. He
customer requirements, from small to large global and targeting
covered many industries including retail,
CPG, discrete manufacturing and chemicals,
enterprises across the globe and for different
business models, including marketplaces.
international audiences”
delivering commerce insights and capabilities
in B2B, B2C and B2B2C business models.
INTERVIEW Q: What has been the most exciting recent In order not only to comply with the multi-fold
development in ecommerce for you? data protection rights but also build trusted
relationships with your customers for more
A: Maybe not the most exciting but the largest conversion and profits, companies must 
impact has been the changing attitude in  incorporate new business processes into their
customers towards data privacy and consent. organizations and especially the ecommerce
Customers want to oversee their data, to know channel. Before using customer data, you need to
how it is used and for which purpose. They are make sure customers consent. At the same time,
tired of creepy experiences where they don't you must provide value to your customers with
know what's happening to their data, or if individually relevant, in-the-moment experiences
they're being tracked without their knowledge.  for the exchange of information.
Chris Hauca
General manager, SAP Commerce Cloud Legislation such as the European GDPR is With SAP Commerce Cloud, you can securely
Chris Hauca is general manager of SAP accommodating that, which is spurring other identify and engage with consumers across
Commerce Cloud and has overall
countries to follow. In the US alone, there are channels, manage customers’ profiles, preferences
responsibility for the commerce offering of
SAP C/4HANA, the leading cloud customer “hundreds of bills that address privacy, and consent settings throughout their relationship
experience suite.
cybersecurity and data breaches… pending with your business, and transform permission-
He joined SAP in August 2018 as head across the 50 states, territories and the District based consumer data into unified profiles that
of strategy and GTM for SAP Enterprise
of Columbia”*.  provide value to your customers and your
Commerce within the SAP Customer
Experience business unit. Prior to joining SAP, business at the same time.
Chris was managing director and partner in
the Commerce practice at Accenture. He
covered many industries including retail,
“Before using customer data,
CPG, discrete manufacturing and chemicals,
delivering commerce insights and capabilities
you need to make sure
in B2B, B2C and B2B2C business models.
* https://tinyurl.com/y3kncokv
customers consent”
INTERVIEW Q: What are the main characteristics you see Over the last few years, there’s been a shift in
around the world? customer expectations. While shoppers
understand that next-day delivery is often not
A: The development of cross-border activities is possible when they place an order from abroad,
still very strong and intra-Europe and they won’t accept being treated like secondary or
transcontinental shipping are continually low-priority customers.
increasing. This is being driven by the growing
number of shoppers placing orders on foreign Shoppers expect to pay in their currency, including
websites. It’s interesting to think that a couple of customs costs at checkout, fast delivery (2-4 days),
Renaud Marlière years ago, customers accepted a longer delivery a return solution and customer service with
Chief business development officer time and basic service, while today they are support in their language.
at Asendia demanding that packages are delivered in
Renaud Marlière is a senior business leader. shorter timeframes. When it comes to orders placed from Chinese
As chief marketing & sales officer and
marketplaces, shoppers demonstrate growing
member of the global management board of
Asendia, he is responsible for the business expectations, even for low-value orders. Shoppers
development in ecommerce and mail across
will not accept a 3-week delivery time and poor
16 countries in Europe, Asia, the USA and
Oceania. customer service.

In the past 20 years, Renaud held several


management positions in leading global
logistics and postal companies such as La
Poste, Spring and Royal Mail. “Over the last few years,
Since the foundation of Asendia in 2012, he
has been part of the management board,
there's been a shift
driving growth and supporting the in customer expectations”
transformation from a mail-driven logistics
company into a global ecommerce player.
INTERVIEW Q: What has been the most exciting recent There is a need to further develop a frictionless
development in ecommerce for you? cross-border shopping experience that improves
the whole process, from customer acquisition to
A: Something I’ve noticed recently is an increase in check out and from distribution to returns.
the choice and variety of products being offered to
end customers by online retailers. The topic of customs is going to become more and
more sensitive in the coming months with the
For us, more choice means more retailers selling possibility of a no-deal Brexit and with the
online and this is, of course, an opportunity to evolution of the EU’s rules on inbound trade.
Renaud Marlière expand. It’s also important for retailers to
Chief business development officer differentiate the services they offer and invest in As a last key point, I think it is important to
at Asendia improving the customer journey. develop further creative solutions to ensure that
Renaud Marlière is a senior business leader. borders are not a barrier to shoppers but instead
As chief marketing & sales officer and
member of the global management board of Q: Which areas do you feel could be improved a source of opportunity.
Asendia, he is responsible for the business upon to help in developing/growing the
development in ecommerce and mail across
16 countries in Europe, Asia, the USA and ecommerce market?
Oceania.
“It is important to develop
A: Firstly, cross-border ecommerce offers huge
In the past 20 years, Renaud held several
management positions in leading global potential but to harness it, the whole industry still
further creative solutions
logistics and postal companies such as La
Poste, Spring and Royal Mail. needs to adapt its services. to ensure that borders are
Since the foundation of Asendia in 2012, he
not a barrier to shoppers
has been part of the management board, but instead a source
driving growth and supporting the
transformation from a mail-driven logistics of opportunity”
company into a global ecommerce player.
INTERVIEW Q: How does .shop help to differentiate an Your domain name is your business identity. A short,
ecommerce business from the competition? meaningful and brandable domain name can
differentiate you from your competitors by clearly
A: The word “shop” is consistently among the identifying what it is that your business does and
top three most registered keywords in .com and making it easy for customers to remember where
.net domains every day (see graph below from they can find you online.
https://www.domainscope.com/). For example,
domain names like myflowershop.com or Q: China, Germany and the Netherlands make up
brandxshop.net. the top three locations for the .shop domain
globally. Why do you think these particular
Many businesses are still not aware that .shop countries are most on the lookout for a TLD, and
Hiro Tsukahara can be used for shorter, more memorable what product type/category of ecommerce have
CEO, GMO Registry Inc.
domain names that allow customers to more you seen been most popular with the brand?
Born in Tokyo, Japan, Hiro was educated easily find them. A domain is an important
in Boston, Massachusetts, and holds a
BA in Economics. marketing tool for any ecommerce business. A: I think there are different reasons why .shop has
been successful in different markets.
Hiro was one of the founding members
of GMO Registry, Inc. and has served as
the CEO since October 2012. Based in
Tokyo, Japan, GMO Registry was
established in 2009 with the vision of
building a secure, meaningful and
trusted namespace for ecommerce.
Today, the company operates more than
40 top-level domains, including .tokyo
and other Japanese geo domains, as well
as dedicated brand domains for some of
Japan's largest corporate brands.
Source: Domainscope (https://www.domainscope.com/)
INTERVIEW China is the world’s biggest ecommerce market
by far, with over $1.5 trillion in retail ecommerce
sales last year alone
(https://www.emarketer.com/content/global-
ecommerce-2019), which was almost three
times that of its next competitor, the USA. 

With a huge market and dominant ecommerce


players like Alibaba that are helping to drive our
The Netherlands, on the other hand, has an
growth, China has naturally and expectedly
exceptionally high percentage of online shoppers, who
become our biggest market.
Hiro Tsukahara account for 82% of the total population. On top of
CEO, GMO Registry Inc. that, in both of these countries and most other
Germany is one of the biggest ecommerce
European countries, there is a higher awareness of
Born in Tokyo, Japan, Hiro was educated markets in Europe in terms of total sales, as well
in Boston, Massachusetts, and holds a new domains, and a willingness to use different
BA in Economics. as annual online spend per user.
domain extensions.
Hiro was one of the founding members
of GMO Registry, Inc. and has served as
I think that comes from Europeans being used to
the CEO since October 2012. Based in
Tokyo, Japan, GMO Registry was seeing different country-code extensions (eg .de for
established in 2009 with the vision of
building a secure, meaningful and
“Keep your domain Germany or .fr for France), whereas for example in the
trusted namespace for ecommerce.
Today, the company operates more than
name simple, intuitive US, Internet users have traditionally been very much

40 top-level domains, including .tokyo and memorable” limited to .com domains.


and other Japanese geo domains, as well
as dedicated brand domains for some of
Japan's largest corporate brands.
INTERVIEW Q: What are your top three tips for creating a In most regions, including English-speaking markets, it
domain name for your brand in a foreign is generally recommended to avoid hyphens although,
country you’re planning to expand to? in some markets such as Japan, hyphenated names
are quite common.
A: My number one tip would be to keep your
domain name simple, intuitive and memorable Secondly, use keywords! Using relevant keywords in
to the audiences of your target markets. Choose a domain name can boost the SEO ranking of your
a name that is easy to read and avoid any domain name. It also helps the user to immediately
unusual or 'creative' spellings. understand the purpose of your website.

Before new domain extensions were introduced, Lastly, choose a relevant domain extension to identify
Hiro Tsukahara
many businesses were tempted to use your business. If you are targeting specific geography
CEO, GMO Registry Inc.
derivative spellings of common words to be able then you may consider a geographic domain such as
Born in Tokyo, Japan, Hiro was educated .nyc, .miami or .tokyo. Or choose a domain name that
to have a short .com name.
in Boston, Massachusetts, and holds a
BA in Economics. describes the function of your website like .shop, .blog
Now that there are so many domain extensions or .app.
Hiro was one of the founding members
of GMO Registry, Inc. and has served as available, there is no need to make sacrifices like
the CEO since October 2012. Based in
Tokyo, Japan, GMO Registry was
established in 2009 with the vision of
this to acquire a good domain name as there are
so many available choices. Does your domain
“Will listeners be able to
building a secure, meaningful and
name withstand the radio test? Meaning, will
understand and locate your
trusted namespace for ecommerce.
Today, the company operates more than listeners be able to understand and locate your domain name if they hear
40 top-level domains, including .tokyo
and other Japanese geo domains, as well
domain name if they hear it on the radio? it on the radio?”
as dedicated brand domains for some of
Japan's largest corporate brands.
INTERVIEW Q: When looking at domain names globally, The second reason is that the new generation is born
.com is still by far the most popular domain into a world where the Internet is diverse and offers
name to utilize. Why should ecommerce various choices.
businesses thinking of going cross-border
consider alternative TLDs? The Internet today is nothing like how most of us first
encountered it in the early 1990s. While many Internet
A: For two reasons: One, most ecommerce users of a certain age will instinctively expect a
businesses outside of the US are more than website address to end in .com, younger internet
likely to be using a local TLD like .jp or .uk. This is users will have no such preconceptions and will
still a great choice for a local ecommerce choose the extension that best fits their purpose.
business as it is generally trusted in the local
Hiro Tsukahara
market and it will also be familiar to the local
CEO, GMO Registry Inc.
online shopper.
Born in Tokyo, Japan, Hiro was educated
in Boston, Massachusetts, and holds a
BA in Economics. However, an ecommerce business planning to “An ecommerce business
go cross border will need to consider different
Hiro was one of the founding members planning to go cross border,
of GMO Registry, Inc. and has served as currencies, different payment methods and
the CEO since October 2012. Based in
different languages. It may make sense to
will need to consider different
Tokyo, Japan, GMO Registry was
established in 2009 with the vision of separate these out under a different domain currencies, payment methods
building a secure, meaningful and
trusted namespace for ecommerce.
name that is more recognizable to an and languages”
Today, the company operates more than international audience. Nowadays, there are
40 top-level domains, including .tokyo
many options that can add meaning to your
and other Japanese geo domains, as well
as dedicated brand domains for some of domain name while also providing a strong
Japan's largest corporate brands.
global identity.
LIGHT REPORT
#5 Case-study: Global
shipping and the UPU
CASE STUDY Introduction Navarro also told journalists after the meeting, “In an
age of ecommerce, the United States is being forced to
As always, there are some integral background heavily subsidize small parcels coming into our country.
players in the world of ecommerce that we tend to Many are from China but this is not strictly a China
forget about, particularly if you are an SME owner or problem…”
selling your own creations on a marketplace. In
recent news (September 2019), the Universal Postal Clearly, ecommerce is on the minds of international
Union (UPU) was put under the spotlight after US organizations, unions, governmental bodies and
trade advisor Peter Navarro implied the United many other stakeholders. As ecommerce continues to
States would remove itself from the UPU if they expand globally to all parts of the world, more of a
did not reconsider China’s status as a ‘developing focus is being put on market leaders.
country’.

Global Navarro claimed China continues to receive UPU


benefits for developing countries while in reality not
In this short piece, we’re focusing on explaining the
role of the UPU and how it impacts the global
ecommerce market, particularly SMEs. This is one
shipping actually being a developing country, putting a
burden on countries like the United States in many
stakeholder everyone in the ecommerce world can
and should pay some attention to if they want to
and the ways. The main issue, of course, being that the
criteria a country must meet to qualify as a
either become, or remain, a market leader.

UPU
‘developing country’ should be reconsidered in light
of globalized ecommerce markets.
During the Geneva meeting on September 24,
Navarro stated, “The original intention of the Universal
Postal Union was to create a mutually beneficial system
that would distribute international mail around the
world in a fair and equitable way. The mission here
today is to retool this system for the brave new world
of ecommerce.”
CASE STUDY The Universal Postal Union To be sure, this would have massive impacts on
who SMEs in the US are able to sell to, since the
The UPU was established as a special agency of cost of shipping and receiving goods will increase
the United Nations in 1874 to facilitate and substantially. Although this seems like a new issue,
coordinate postal policies among the nations. in reality the US has been considering China’s
There are currently 192 members, virtually every status since at least 2015. 
country in the world, meaning every ecommerce
stakeholder is impacted by the UPU. There are Ecommerce and the UPU
three main points to the UPU Treaty of Bern:
The UPU has been looking into ecommerce since
1) There should be a uniform flat rate to mail a approximately 2010, and in 2014 launched the
letter anywhere in the world eCommerce Program, with five main categories

Global 2) Postal authorities should give equal treatment


to foreign and domestic mail
3) Each country should retain all money it has
of action to focus on: market development, postal
electronic services, logistics, interoperability
and payment.
shipping collected for international postage

and the Moreover, stamps from member nations are


accepted along the entire route of a letter, making

UPU
sending and receiving significantly easier and
cheaper. There are five ‘Group’ classifications for
the UPU, determining their terminal dues. Those
in the lower categories are essentially subsidized
by those in the higher categories to help
developing countries compete.
Most of the countries in Group 1.1
(industrialized/developed countries) are those you
would expect: Australia, Japan, Norway, the United
States, Switzerland. However, China has been
categorized in Group 3. This is the crux of the
debate, and one that SMEs will hear more about
should the United States ever decide that it is
going to quit the UPU.
CASE STUDY -The market development projects are geared To conclude, the UPU is focusing more and more
towards small to medium sized businesses in on ecommerce, which would make it quite
developing economies, working towards security disastrous if the United States decided to become
and standards. Although this may not seem like it one of the only countries in the world to exit the
could benefit SMEs in other countries, in fact most UPU, as that would have ripple effects negatively
ecommerce that occurs today is B2B, making a impacting everyone shipping from/to as well as
more secure and standardized framework better receiving in the United States. As this global
for everyone trading with each other. ecommerce report shows, the United States is
typically the second-largest ecommerce market in
-The postal electronic services will be for the world, which could drastically change.
authenticating online retailers and buyers, creating
a safer environment for everyone participating in In light of the above, other countries, including

Global ecommerce. This project will also mainly focus on


a global track-and-trace which has obvious
benefits in ecommerce.
Germany, have begun to agree with the US stance
on China’s placing in Group 3. Perhaps the terms
will change for what qualified a country as
shipping -Regarding payments, many countries still have
developing, which will certainly change the
ecommerce landscape yet again. To be sure, this is
and the high cash-on-delivery (COD) payments being made,
which increases risk for everyone, namely SMEs.
an international body SMEs should continue to pay
attention to and be mindful of.

UPU
The UPU is considering more how to create a
framework for countries favoring COD, and is
considering an 'escrow service' to lessen the risks,
yet still keep consumers purchasing.
LIGHT REPORT
#6 About the
Report
About the authors

Sara holds a Master in Public Ludovica is pursuing a Masters in


Policy from the University Environmental Economics at
of California in the United States.  Wageningen University and
Research, The Netherlands.
Sara oversees the
Ecommerce Foundation Research At Ecommerce Foundation, she is
Team in its creation of country part of the Research Team collecting
reports, custom research, content data and supporting the creation of
and webinars. Sara also presents reports. She is interested in
on research around the world sustainability and data analysis.
and advises stakeholders in
furthering ecommerce globally.
Sara Lone  Ludovica Quaglieri
Research Director Research Analyst
Sources used in the report
OUR SOURCES

Worldoeters ITU

The report could only be realized by consulting a great number of


valuable sources. These were available in various countries and Quandl The Inclusive Internet
regions in Europe and around the globe. The wide variety of
sources includes public domain publications, blogs, websites,
industry and financial specialist publications, regional and local
news, annual reports and press releases. XE Currency Doing Business

Sometimes, these information sources are contradictory and other


times, different figures and data were given by varying sources Statcounter E-Government
within the same country, for example, due to different definitions. Development Index
In our reports we have mentioned the different sources, definitions
and outcomes of such reports, studies and interpretations.
Logistics Performance Global Report Sources
While the report is based on information that we consider Index
reliable, we cannot vouch for it being completely accurate or
complete, nor should it be relied upon as such. Opinions expressed
are our current opinions as of the date of this report. Eurostat
More about the reports and
where to find them
The National Ecommerce Reports are published by
Ecommerce Foundation. They provide overviews of the mature OVERVIEW REPORTS 2019
and emerging markets in the field of ecommerce. European Report 
Global Report
In total, Ecommerce Foundation publishes multiple country Latin America Report
reports and three overview reports per year, covering the
most important ecommerce markets worldwide.
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