Despite the progress, there are still issues to be resolved, says the Peruvian Chamber of Electronic Commerce.
In a world where e-commerce is advancing by leaps and bounds, Peru faces a reality that reveals profound barriers to its economic development.
The strong influence of cash, informality and distrust of the online channel are factors that prevent the full expansion of this service in the Andean country.
According to the Peruvian Chamber of Electronic Commerce (Capece), this sector registered a 17% expansion in the first half of 2024 compared to the same period last year.
However, behind these positive figures lies a complex reality: the preference for cash on delivery in Peru is higher than in many other countries in the region, according to a report published in the newspaper El Peruano.
With 10% of e-commerce transactions carried out using the Cash on Delivery (COD) method, Peru occupies the second position in Latin America, only behind Colombia, and significantly surpasses countries such as Argentina with 4%, Mexico with 3% and Chile with only 2%, according to data from the Ecommerce 2024 Observatory, prepared by Capece.
Furthermore, the Andean country ranks ninth in the world behind Vietnam (18%), Nigeria (17%), the Philippines (15%), Indonesia (14%) and Thailand (13%), Saudi Arabia (11%) and Egypt (11%). These data not only highlight a technological lag, but also reveal a structural problem that affects the entire Peruvian economy.
OBSTACLE
Capece President Helmut Cáceda said that the persistence of cash in digital purchases is a critical obstacle in the goal of promoting the digitalization of money, a transformation that should be a priority issue on the Peruvian agenda.
“Behind this dependence on cash lies one of the roots of the problem, since 95.7% of unbanked people in Peru are informal workers,” he said.
He added that as long as physical money remains the main means of payment, economic informality will remain untraceable in the country, keeping the country anchored in financial opacity and limiting its capacity for inclusive growth.
“The digitalisation of money is not only a matter of modernisation, but also a fundamental tool to combat informality, promote transparency and make the leap towards a more formal and fair economy,” he said.
For this reason, he said, in Peru 30% of last mile companies have the COD service available.
PAYMENT AGAINST DELIVERY
For the executive, although cash on delivery payments decreased during the quarantine due to the cash restriction and the risk that this modality represented for e-commerce , since 2023 it has resumed its growth rate.
“In addition, around 10% of all shipments processed by logistics operators include the cash on delivery service. We generally see that this payment method is used, to a greater extent, by entrepreneurs and micro and small businesses. Some large marketplaces have it implemented,” he noted.
He said it is also true that there is a considerable percentage of COD payments that are not tracked due to informality.
CITIES
According to the Capece study, Lima is among the cities with the highest traffic with this payment method, accounting for 45% of deliveries. Next are Arequipa with 12%, Trujillo with 10%, Chiclayo with 8%, Huancayo with 6%, Ica with 5%, among others.
“Generally, buyers who order cash on delivery are those who are going to make their first online purchases, such as exploring the channel, or are going to buy certain categories such as clothing, footwear, accessories or sports,” said Cáceda.
CONSTANT EVOLUTION
Despite the economic contraction in several Latin American countries, e-commerce in Peru grew by 7% in 2023 compared to the previous year, which means a total online sales volume of US$ 13 billion. According to Capece, we have gone from being a small sector to being an industry that represents 5.4% of the national gross domestic product (GDP).
“However, there is still much work to be done, as e-commerce still accounts for 5% of overall trade, while countries in the Organization for Economic Cooperation and Development (OECD) exceed 9%,” he said. The e-commerce offer was 332,000 stores in 2023, while demand rose to 16.8 million buyers.
DATA
- The level of e-commerce penetration in the retail market stood at 8.6% in 2023 compared to 8% recorded in 2022.
- Between 50% and 70% of the total online sales volume in Peru is carried out through marketplace platforms.
- The third edition of the Epayment Summit 2024, the most important international congress on payment methods in the Andean country, organized by Capece, Niubiz and Izipay, will be held on November 18 and 19.
