Global Ecommerce Report 2017

Report partners Executed by

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www.ecommercefoundation.org | www.ecommerce-europe.eu All reports can be found at: www.ecommercefoundation.org/reports

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www.ecommercefoundation.org | www.ecommerce-europe.eu About the Global Ecommerce Association (GEA) Ecommerce is, by nature, a global game. Consumers and companies are selling and buying across all borders. This process will increase in the upcoming decades and will raise opportunities and challenges for all parties involved.

The Global Ecommerce Association (GEA) provides a platform for companies and representative bodies to face the global opportunities and challenges in retail and trade. Our mission is to foster digital global commerce and consumer trust through dialogue, collaboration, information exchange, studies and networking.

One of our first initiatives is to support the launch of an overarching global trust mark: Safe.Shop. Nearly every country has reliable organizations which validate the trustworthiness of local web shops. These organization can issue the Safe.Shop trust mark based on the Global Ecommerce Code of Conduct to help consumers and merchants shop and sell easier with more confidence worldwide.

Our association is open to all stakeholders, be they associations, NGO’s, (web)merchants, and/or suppliers who support our mission. For more information, please visit www.globalecommerceassociation.org.

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www.ecommercefoundation.org | www.ecommerce-europe.eu And a big “Thank you” to you…

Thank you for downloading this report. This report describes both the commercial opportunities, as well as its challenges for the main global ecommerce markets. While Asia (20%+) is booming, North America (9%+) is slowing down. South America (16.5%+) and the Middle East & Africa (11%+) are growing strongly but surprisingly not as quickly as Europe (19%+).

The Ecommerce Foundation is an independent non-profit organization, initiated by worldwide national ecommerce associations, as well as online and omnichannel selling 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 slightly better place.

We especially would like to thank our Report Partners; namely Awin, Ingenico, Salesforce, Mazars and Webhelp. Without their support, this report would not have been created. Moreover, a great amount of gratitude is extended to the Global Ecommerce Association and the 40+ individual ecommerce associations who have helped us create this report.

If you like our reports, please visit www.ecommercefoundation.org/reports to download our free reports about ecommerce in more than 30 countries. Your feedback is also very much appreciated. Please feel free to contact us at [email protected]. Jorij Abraham MD Ecommerce Foundation

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www.ecommercefoundation.org | www.ecommerce-europe.eu A big “Thank You” to our supporting Ecommerce Associations

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www.ecommercefoundation.org | www.ecommerce-europe.eu A big “Thank You” to our Report Partners

Awin connects advertisers and publishers of all sizes to help their businesses grow online. Awin is committed to creating the most diverse, connected and effective affiliate network. Awin’s experienced team builds powerful technology, uncovers new insights and invests in service to deliver the best results for clients big and small.

Ingenico ePayments is the online and mobile commerce division of Ingenico Group. We are the trusted partner of over 65,000 small and large merchants who rely on us to make payments easy and secure for their customers. With advanced data analytics, fraud management solutions and cross-border commerce expertise, we help merchants optimize their business and grow into new markets around the world.

Mazars is an international, integrated and independent organization, specializing in audit, , and advisory services. Mazars can rely on the skills of 18,000 professionals operating in 79 countries. As the market challenger, Mazars is fully able to provide large corporate multinational firms with seamless tailored solutions. Its complete, adaptable and flexible range of services also makes Mazars perfectly able to serve smaller companies and owner-managed businesses as well as high-net worth individuals.

Salesforce Commerce Cloud was founded as Demandware in 2004 and acquired by Salesforce in July 2016. A cloud-based ecommerce pioneer, our vision is to enable retailers and brands to break free of the shackles of traditional, legacy platforms and truly focus on what they do best – deliver great products and a great brand experience to its customers. Today, Salesforce Commerce Cloud’s industry-leading cloud platform is the digital backbone for hundreds of retail brands, and thousands of commerce web sites around the world.

Webhelp is a global business process outsourcer (BPO), specializing in customer experience in addition to sales and marketing services across voice, social and digital channels. From 26 countries with a 35,000-strong team, our focus is on engineering performance improvements and delivering a real and lasting transformation in our clients’ operating models to generate financial advantage. In the last 4 years we have grown by more than 250% supporting some of the world’s most progressive brands including Sky, Shop Direct, Bouygues, Direct Energie, KPN, Vodafone, La Redoute, Michael Kors and Valentino.

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www.ecommercefoundation.org | www.ecommerce-europe.eu A Brief Introduction to the 2017 Global Ecommerce Report Within the world of ecommerce, oceans and borders do not necessarily hamper the trading experience between regions. However, the lack of essential information, as well as trust, has a measurable effect on trade consistency and efficiency. In this ever-evolving and highly connected world, certain regions have experienced more growth in terms of e-commerce share of total global retail sales in 2016. Although the ecommerce sales growth rate is forecasted to decline, ecommerce is still growing in all regions with growth rates in 2016 (local currency) ranging from 1.45% to 39% . As a result, having a clear overview of the regions covered in this report is essential for those hoping to penetrate the global ecommerce market, as well as those hoping to improve their current ecommerce ventures.

The following countries were selected for the report because they are influential in their regions and are all briefly discussed in this report. For the purposes of this specific report, when referring to statistics involving population, GDP, etc., only the countries listed below are included. Additionally, mathematical notations in the report are in the United States decimal mark format as opposed to the European comma format.

North America Europe South America Asia Pacific Middle East & United States Argentina Australia Africa Canada United Kingdom Brazil China Israel Mexico Germany Chile India Saudi Arabia Russia Indonesia South Africa Italy Japan Spain South Korea Turkey

For more detailed information on a number of these countries, we kindly refer you to the full country reports: ecommercefoundation.org/reports.

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www.ecommercefoundation.orgwww.ecommercefoundation.org | www.ecommercewww.ecommerce-europe.eueurope.eu Table of Contents

9 18 55

80 93 102

110 122 128

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www.ecommercefoundation.org | www.ecommerce-europe.eu Global Perspective

https://www.pexels.com/photo/holidays-car-travel-adventure-21014

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www.ecommercefoundation.org | www.ecommerce-europe.eu World population for selected countries continues to grow

TOTAL POPULATION1 Population of selected report countries, 2010– 2017(f)

4.60 4.57 4.53 4.49

4.41 4.38 4.35 4.34

2010 2011 2012 2013 2014 2015 2016 2017(f)

1Total Population. Source: Worldometers, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Asia Pacific region has the largest population among selected countries

TOTAL REGIONAL POPULATION1 Total regional population of selected report countries, in millions, 2017(f)

3,196 70%

493 541 11% 12% 274 97 2% 6%

Middle East & Africa South America North America Europe Asia Pacific

1Total Regional Population. Source: Worldometers, 2017

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www.ecommercefoundation.org | www.ecommerce-europe.eu 25-54 is largest age group in all regions

AGE STRUCTURE: REGIONAL1 Age structure, by region, 2016 0-14 15-24 25-54 55-64 65+

8.77% 5.29% 9.04% 16.4% 13.28% 6.17% 9.04% 9.29% 11.5% 12.5% 42.74% 43.05% 44.26% 39.94% 42.56%

18.11% 14.48% 16.2% 15.41% 11.27% 27.69% 17.3% 20.8% 22.93% 22.01%

Europe North America South America Middle East & Africa Asia Pacific

1Age Structure: Regional. Source: CIA World Factbook, 2016.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Total unemployment increasing only slightly for selected countries

UNEMPLOYMENT1 Unemployment of selected report countries, regionally & total, share of population, 2015 & 2016

2015 2016 19.66% 18.94%

10.87%

8.66% 8.35% 8.52% 5.68% 5.18% 4.53% 5.51% 4.59% 4.36%

Europe North America South America Asia & Southeast Asia Middle East & Africa Overall 1Unemployment. Source: CIA World Factbook, 2016.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Total inflation has increased from 2015 to 2016

AVERAGE INFLATION1 Average inflation rate for selected report countries, regionally and total, 2015 & 2016

2015 2016 17.87%

13.70%

5.65% 4.23% 4.62% 3.30% 2.16% 2.13% 2.08% 2.65% 1.30% 1.90%

Europe North America South America Pacific Asia Middle East & Africa Overall 1Average Inflation. Source: CIA World Factbook, 2016.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Total GDP continues to increase

GROSS DOMESTIC PRODUCT: REGIONAL1 GROSS DOMESTIC PRODUCT: TOTAL2 GDP, total ($USD, trillions); GDP per capita ($USD), 2017(f) GDP, total ($USD, trillions), 2017(f) GDP, trillions GDP per capita Region $USD $USD 2017(f) 2017(f) $62.56 $63.12 $61.69 Europe $13.734 $29,065 $60.95 $59.58 $59.69 North $22.004 $37,071 America $58.14

South $3.021 $12,746 America $52.71 Asia Pacific $22.994 $22,806

Middle East $1.364 $18,038 & Africa 2010 2011 2012 2013 2014 2015 2016 2017(f)

1Gross Domestic Product: Regional. Source: Quandl, 2017. | 2Gross Domestic Product: Total. Source: Quandl, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu The Logistical Performance differs significantly per country

LOGISTICAL PERFORMANCE INDICATOR1 Logistical Performance Indicator, per country, 2016

4.23 3.93 3.90 3.97 4.07 3.99 3.79 3.66 3.66 3.76 3.78 3.72 3.73 3.42 3.42 3.25 3.16 2.96 3.09 2.98 3.11 2.57

The LPI overall score reflects perceptions of a country's logistics based on, among other things, efficiency of customs 1Logistical Performance Indicator. Source: Worldbank, 2016. clearance process, quality of trade- and transport-related infrastructure and ease quality of logistics services.

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www.ecommercefoundation.org | www.ecommerce-europe.eu The Ease of Doing Business Index is highest in emerging markets

EASE OF DOING BUSINESS INDEX1 The Ease of Doing Business index, per country, 2016 130 123 116 91 94 78 74 69 57 52 50 47 40 29 34 32 22 15 17 5 7 8

A high ease of doing business ranking means the regulatory environment is more favorable for the starting and operation 1Ease of Doing Business Index. Source: Worldbank, 2016. of a local firm. The rankings are determined by sorting the aggregate distance to frontier scores on 10 equal topics.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Ecommerce Facts & Figures

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www.ecommercefoundation.org | www.ecommerce-europe.eu Tracking is as crucial to the shopper as the seller

How will the retail market develop in 2017 - 2018? Retail will continue to grow strongly. Ecommerce, combined with geographic expansion, have been the primary drivers for growth in retail. Internationalization is to a large extent made possible by the rise of online shopping. In the early years of the internet, it was primarily local domestic champions who grew strongly online, like Best Buy in the US and Marks & Spencers in the UK. But now, consumer brands that traditionally sold through retail channels are now finding new and significant sources of growth by selling directly online and expanding their business globally.

Is Amazon eating Retail? Yes and no. Amazon has done a tremendous job. They saw the opportunity and the potential for online commerce in 1994 and they are absolutely setting the pace and disrupting retail on a large scale. Over the past few years, digital has been the bigger growth driver for many retailers, and in fact many global brands on our platform are even growing faster than Amazon. Those who do not focus on being digital brands are, of course, struggling. Many brands are wary of selling on Amazon, fearful of losing control over their brand equity, not to mention profit margins. Brands should think of Amazon as another channel, and leverage its platform and huge reach to connect with customers, but offer only select products and services. In turn, they can develop a stronger relationship in which consumers visit the brand’s website and other channels like mobile and social, fora fuller brand experience and broader range of products/services. A good example of a company with the ability to connect with their consumers is Vibram, an Italian brand known for the "five-fingers" running shoe. Vibram sold very successfully via retailers, including Amazon. After a while, however, growth started to slow. The company decided to invest heavily in a (digital) customer experience (social media, customer service, mobile first). As a result, 25% of their sales are now direct, and online sales accounts for most of their growth. Of course, Amazon is not an easy party to beat. It has a tremendous inflow of customer data due to the huge variety of products they sell. Additionally, the company has invested heavily in machine learning.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Tracking is as crucial to the shopper as the seller

I think that is also one of the key strengths of the Salesforce Commerce Cloud offering. During the 2016 holiday season, Salesforce Commerce Cloud reached 400 unique million shoppers per month. We are using that reach to provide our customers with insights, particularly to be more effective in their marketing efforts. For example, search typically generates 30% of revenues and 50% of traffic for our brands.

What are the key ecommerce trends for the next 2 - 3 years? Firstly, internationalization. Many of our clients are focusing on expanding their business outside their home country. Our cloud platform is everywhere, and we have partners across the globe that offer the right interfaces and hands-on support for payments, fulfillment, systems integration, translation and more. Second, mobility is everything, as we spend on average more than four hours per day on our phones. For most ecommerce sites, mobile visits now account for more than 50% of the total traffic. The big challenge is that 86% of that mobile time we spend in apps like social media and messaging, , and therefore significantly less time in browsers. So you have to find ways to engage the customer where they are - how do you use these new channels to drive conversion both directly in the messaging or social interface like we do on Pinterest for example, but also by driving them to your website.

To support the shift to the small screen, we are investing heavily in AI to improve the customer experience. One of our customers, Black Diamond, uses our Commerce Cloud Einstein to drive product recommendations. This resulted in a 9.6% increase in conversion and a 15.5% rise in revenue per visitor in 2016. Finally, a more nascent technology is augmented reality. Some forward-thinking brands are using AR/VR to create a richer, more relevant experience for their customers. New Balance, a running shoe brand, is very proud of their American heritage, as they make or assemble more than 4 million pairs of athletic footwear per year in the USA. They use VR to let consumers experience the factory and meet the people who create their shoes. Jeff Barnett, CEO And this is just the beginning. Salesforce Commerce Cloud

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www.ecommercefoundation.org | www.ecommerce-europe.eu U.S. ranks highest in internet inclusivity

Countries are ranked overall and across four categories: Availability, quality and breadth of available infrastructure required for access and levels of internet usage; Affordability, cost of access relative to income and the level of competition in the internet marketplace; Relevance, existence and extent of local language content and relevant content; and Readiness, capacity to access the internet, including skills, cultural acceptance, and supporting policy. 87.9 88.0 88.2 83.8 83.9 84.7 85.2 86.6 86.9 80.2 81.1 76.2 77.6 78.0 68.3 69.6 69.7 70.6 71.0 64.4 65.4

1Inclusive Internet Index. Source: Economist Intelligence Unit, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Internet penetration of selected countries continues to grow

INTERNET PENETRATION AND GROWTH RATE1 Share of population (selected report countries) using the internet, 2014-2017(f); Internet Penetration Growth Rate (selected report countries), 2015-2017(f) 5.54%

4% 3.70%

66.4% +2.65% 63.75% 61.4% +2.35% +3.4% 58%

2014 2015 2016 2017(f)

1Internet Penetration and Growth Rate. Source: ITU.INT, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Europe has the highest internet penetration regionally

INTERNET PENETRATION: REGIONAL1 Share of population using the internet (selected report countries), regionally, 2017(f)

Middle East & Africa 67.1%

Asia Pacific 46.6%

South America 63.3%

North America 74.6%

Europe 80.5%

1Internet Penetration: Regional. Source: ITU.INT, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu The U.K. has highest internet penetration, Indonesia the lowest

INTERNET PENETRATION: TOP 10 COUNTRIES* INTERNET PENETRATION: LOWEST 5 COUNTRIES* Share of population Countries Online population Share of using internet Countries population using Online population United Kingdom 97.52% 63mn internet South Korea 95.21% 48.3mn Brazil 61.02% 129mn Japan 92.69% 116.83mn China 56.26% 781mn Australia 92.44% 22.8mn South Africa 56.07% 31mn Germany 91.76% 74mn India 33.02% 443mn Canada 91.41% 33.5mn Indonesia 28.69% 75.6mn France 86.55% 56mn Spain 82.32% 38mn Russia 79.44% 114mn Israel 79.17% 6.6mn

1Internet Penetration: Top 10 Countries. Source: ITU.INT; Ecommerce Foundation, 2017. | 2Internet Penetration: Lowest 5 Countries. Source: ITU.INT; Ecommerce Foundation, 2017. *Selected report countries.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Fixed broadband subscription growth increased globally in 2016

MOBILE/BROADBAND SERVICE GROWTH1 Growth rate of mobile and fixed broadband subscriptions, 2015 & 2016

9.60% 9.31% 8.41% 5.58% 4.86% 7.39% 5.51% 3.39% 3.79% 4.29% 4.25% 2.36% 1.84% 3.46% 0.08%

-0.77% -1.89% -4.18%

-15.54%

-22.05% Mobile subscriptions 2015 Mobile subscriptions 2016 Fixed Broadband subscriptions 2015 Fixed Broadband subscriptions 2016

Europe North America South America Asia Pacific Middle East & Africa 1Mobile/Broadband Service Growth. Source: ITU.INT; Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu B2C Ecommerce is expected to increase to €1.843 trillion in 2017

B2C ECOMMERCE TURNOVER: TOTAL1* Total B2C ecommerce turnover (selected report countries), USD, 2010-2017(f)

$1.84

$1.53 $1.36 $1.16 $1.02 $0.83 $0.65 $0.52

2010 2011 2012 2013 2014 2015 2016 2017(f) 1B2C Ecommerce Turnover: Total. Sources: FEVAD, Statista, , bevh, GIM, AKIT, Netcomm Italy, ONTSI, Turkish Etailers Association, US Census Bureau, Ecommerce Foundation, StatCan, Euromonitor, eMarketer, CACE, CCS, TNS Argentina, e-bit Empresa, GfK, PayPal, Yalla, Wamda, SP eCommerce, NAB, FBIC, HappyCheckout, Goldman Sachs, World Wide Worx, 2017. *Selected report countries.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Asia Pacific has highest share of total B2C Ecommerce Turnover

B2C ECOMMERCE TURNOVER SHARE OF TOTAL: REGIONAL1* B2C ECOMMERCE TURNOVER: REGIONAL2* Share of total B2C ecommerce turnover, USD, regionally, 2017(f) B2C ecommerce turnover, in millions of USD, regionally, 2017(f) Middle East & Africa 875,107 0.49% Europe 25.64%

472,654 Asia Pacific 458,163 47.48%

North America 28,213 24.86% 9,070 South America Asia Pacific Middle East & Europe North South 1.53% Africa America America

1B2C Ecommerce Turnover Share: Regional. Source: Ecommerce Foundation, 2017. | 2B2C Ecommerce Turnover: Regional. Source: Ecommerce Foundation, 2017. *Selected report countries.

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www.ecommercefoundation.org | www.ecommerce-europe.eu China will continue to have the largest ecommerce market in 2017

B2C ECOMMERCE TURNOVER: BY COUNTRY1 B2C ecommerce turnover (selected report countries), in millions of USD, by country; 2017(f)

681,867

438,000

196,256

95,436 87,003 79,246 43,572 37,572 33,334 28,304 25,888 20,159 19,892 15,843 12,527 9,051 6,960 5,471 3,318 2,766 833 5

1B2C Ecommerce Turnover: By Country. Source: Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Ecommerce growth rate fluctuates, but increases globally

B2C ECOMMERCE GROWTH RATE1 Total B2C ecommerce growth rate (selected report countries), USD; 2011-2017(f)

21.58% 20.06% 18.59% 16.88% 15%

11.67% 11.47%

2011 2012 2013 2014 2015 2016 2017(f)

1B2C Ecommerce Growth Rate. Source: Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Ecommerce growth rate fluctuates, but increases regionally

B2C ECOMMERCE GROWTH RATE: REGIONAL1 Regional B2C ecommerce growth rate (selected report countries), regionally, USD; 2011-2017(f) 9.18% 10.08% 10.86% 30.73% 30.37% 9.14% 23.66% 10.89% 19.78%

9.88% 12.78%

11.83% 17.76% 16.55% 12.21% 11% 8.71% 23.25% 13.12% 17.76% 14.13% 11.17% 8.92% 12.78% 13.98% 19.44% 18.85% 14.64% 19.36% 15.40% 12.61% -11.60% 4.87% 1.17% 12%

2011 2012 2013 2014 2015 2016 2017(f) Europe North America South America Asia Pacific Middle East & Africa 1B2C Ecommerce Turnover Growth Rate: Regional. Source: Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Australia’s ecommerce market is growing the fastest

B2C ECOMMERCE GROWTH RATE: BY COUNTRY1 B2C ecommerce growth rate (selected report countries), in millions of USD, by country, 2017(f) 40%

31% 26% 26% 25% 25% 22% 21% 20% 20% 18% 17% 17% 16% 16% 15% 15% 14% 11% 9% 9% 8%

1B2C Ecommerce Growth Rate: By Country. Source: Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Europe has the highest E-GDP of all the regions

E-GDP: REGIONAL1 Ecommerce share of GDP, USD, regionally, 2017(f) Overall 2.92% Europe 4.91% Middle East & Africa 0.74%

Asia Pacific North America 4.87% 2.21% South America 1.03%

1E-GDP: Regional. Source: Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu The U.K. has the highest E-GDP

E-GDP: BY COUNTRY1 Ecommerce share of GDP, $USD, by country, 2017(f)

7.9%

5.8%

3.9%

2.9% 2.7% 2.5% 2.3% 1.9% 1.6% 1.6% 1.6% 1.5% 1.4% 1.3% 1.3% 1.3% 0.8% 0.8% 0.7% 0.7% 0.3%

1E-GDP: By Country. Source: Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu North America has the highest share of e-shoppers at 70%

E-SHOPPER PENETRATION: REGIONAL1 Share of internet users shopping online, regional, 2017(f)

Overall Europe 50.4% 58%

Middle East & Africa 45.5% North America 70%

Asia Pacific 43.5% South America 43.5%

1E-Shopper Penetration: Regional. Source: Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Internet use & online shopping differs across countries

81% 79% 76% 70% 65% 78% 62% 62% 60% 68% 54% 50% 40% 55% 58% 35% 40% 41% 36% 47%

98% 92% 93% 95% 87% 92% 91% 79% 82% 79% 78% 72% 78% 17% 65% 63% 68% 15% 62% 61% 56% 56%

33% 29%

Percentage of individuals who used internet in the last 12 months Percentage of internet users who purchased online in the last 12 months Internet Use and Online Shoppers. Source: Statista, Ecommerce Foundation, Eurostat, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu The e-shopper population is growing rapidly in Indonesia and India

E-SHOPPER PENETRATION GROWTH RATE: BY COUNTRY1 Growth rate of e-shoppers, by country, 2017(f)

24.2% 22%

15.6% 12.5% 11% 10.7%10.6% 10% 8.8% 7.4% 7.2% 6.2% 5.7% 5.3% 5.2% 5% 4.6% 4% 3.4% 3% 3% 3%

1E-Shopper Penetration Growth Rate: By Country. Sources: Statista, Eurostat, Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Average e-shopper spending is increasing every year

E-SHOPPER SPENDING & GROWTH1 Average amount spent per e-shopper (selected report countries), per year, 2014-2017(f); E-shopper spending growth rate (selected report countries), 2015-2017(f)

7.4% 5.7% $1,425.32 1.3%

$1,319.59 $1,302.23

$1,228.03

2014 2015 2016 2017(f) 1E-Shopper Spending & Growth. Source: Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Average number of online transactions highest among Generation X

CONSUMER BEHAVIOR: ONLINE TRANSACTIONS1 CONSUMER BEHAVIOR: ONLINE TRANSACTIONS2 Average number of online transactions, per person per year, regionally, 2017 Average number of online transactions, by generation, 2017 18.6 South America 9.2 $190 15.1 15.6 $203 $173 Middle East & Africa 11.0

North America 19.0

Europe 30.3

Asia Pacific 38.2 Baby Boomers Generation X Millenials 1Consumer Behavior: Online Transactions. Source: KPMG, Global Online Consumer Report, 2017. | 2Consumer Behavior: Online Transactions. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Over 50% of consumers purchased via mobile device 1+ years ago

CONSUMER BEHAVIOR: MOBILE PURCHASE1 CONSUMER BEHAVIOR: MOBILE PURCHASE1 Consumers’ first purchase via smartphone/tablet; by region, 2016 Consumers’ first purchase via smartphone/tablet, by region, 2016 1 year ago or Country Less than 6 longer months 30% 27% 30% 26%

6 months to 1 Europe 57% 13% year 13% 16% 18% North America 57% 1 to 2 years 14% 16% 19% 20% 14% 14% South America 52% 2 to 3 years 12% 12% 31% Asia Pacific 61% 28% 26% 3 Years or 20% more Country Average 57% Europe North America South America Asia Pacific

1Consumer Behavior: Mobile Purchase. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ’When did you first purchase an item or service via your smartphone or tablet?’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Nearly 25% of consumers purchase weekly via mobile device

CONSUMER BEHAVIOR: MOBILE PURCHASE FREQUENCY1 Frequency of mobile purchases; by region, 2016 4% Daily 7% 7% 10% Total % Weekly or More 11% 31% 15% 14% 1-2 times a week 21% 18%

2-3 time a month 25% 26% 22% 21% 24% 25% Once a month 15% 20% 20% 10% 5-11 times a year 16% 11% 11% 12% 10% 2-4 times a year 10% 11% 8% 22% Once a year or less 11% 11% 11% Europe North South Asia Pacific Europe North America South America Asia Pacific America America 1Consumer Behavior: Mobile Purchase Frequency. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘’How frequently do you purchase products or services via smartphone/tablet?’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Majority of global consumers are satisfied with mobile purchases

CONSUMER OPINION: MOBILE PURCHASE SATISFACTION1 Consumer satisfaction levels with mobile purchases; by region, 2016

34% 30% 40% 39%

Extremely Satisfied

Somewhat Satisfied 47% 47% 41% 43%

Neither satisfied nor unsatisfied 15% 13% 17% 17%

Europe North America South America Asia Pacific 1Consumer Opinion: Mobile Purchase Satisfaction. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘How satisfied are you with your experience purchasing products/services via smartphone/tablet?’

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www.ecommercefoundation.org | www.ecommerce-europe.eu UK and Canadian consumers are most satisfied with mobile purchase

CONSUMER OPINION: MOBILE PURCHASE SATISFACTION1 Share of online purchasers who are satisfied with their mobile purchase; by country, 2016

89% 87% 85% 85% 84% 84% 81% 80% 80% 79% 79% 79% 78% 78% 77% 75% 75% 73% 73%

1Consumer Opinion: Mobile Purchase Satisfaction. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘How satisfied are you with your experience purchasing products and services via smartphone/tablet?’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Retailer websites/apps top mobile purchases

CONSUMER BEHAVIOR: MOBILE WEBSITES/APPS1 Types of websites/apps used by consumers to purchase online with mobile device; by region, 2016 A retailer's website or 54% app 50% 48% 46% An aggregator website or app 35% 35% 34% An auction website or 32% 30% 31% 30%30% app 28% 28% 25% 25% 25% 23% A social media website 21% 20% 19% or app 18% 14% 15% A Brand specific website or app

A messaging app Europe North America South America Asia Pacific 1Consumer Behavior: Mobile Websites/Apps. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘Which of the following websites/apps have you used to make purchases via smartphone/tablet? Select all that apply.’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Fashion is the leading category globally for mobile purchasing

CONSUMER BEHAVIOR: MOBILE PURCHASE CATEGORIES1 Share of consumers making mobile purchases, by category; by region, 2016 Smartphone/table game or app 50% 46% 43% 44% Fashion (clothing, shows, 42% 39% 39% 39% accessories, etc.) 38% 38% 37% 34% 35% 34% 32% 33% 33% Tickets (events, movies, concerts, 28% 27% attractions, etc.) 25%

Toys and Games

Digital entertainment products (stream/download music, films, audio books etc.) Europe North America South America Asia Pacific 1Consumer Behavior: Mobile Purchase Categories. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘Which of the following have you purchased via smartphone/tablet? Select all that apply.’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Most consumers buy physical entertainment products via mobile device

CONSUMER BEHAVIOR: MOBILE DEVICE PURCHASING1 Share of products purchased via smartphone/tablet, by product category; by region, 2016

34% 32% 32% 32% 31% 31% 30% 28% 28% 26% 26% 24% 25% 25% 25% 22% 21% 21% 19% 19%

Europe North America South America Asia Pacific Physical entertainment product Travel Food/Groceries Items for your home Public Service Payments via a website or app

1Consumer Behavior: Mobile Device Purchasing. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘Which of the following have you purchased via smartphone/tablet? Select all that apply.’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Large share of online pre-purchase research leads to purchasing online

CONSUMER BEHAVIOR: PRODUCT RESEARCH1 Purchase behavior of consumers conducting pre-purchase research; by region, 2016

59% 53% 50% 51% 47% 47% 45% 43% 39% 41% 36% 35%

Europe North America South America Asia Pacific

Buying in a store Buying on a smartphone or table Buying on a laptop/PC

1Consumer Behavior: Product Research. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘Have you ever found or researched a product/service on smartphone/tablet and bought it in the following ways? Select all.’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Many in-store customer journeys end in purchasing online

CONSUMER BEHAVIOR: CUSTOMER JOURNEY TO ONLINE PURCHASING1 Online purchasing by consumers after experiencing product in-store; by region, 2016

53% 49% 48% 48% 44% 44% 43% 42% 40% 40% 36% 34%

16% 14% 15% 15%

Europe North America South America Asia Pacific

Checking it out on a smartphone or tablet Checking it out in a store Checking it out on a laptop/PC Other

1Consumer Behavior: Customer Journey to Online Purchasing. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘Have you ever purchased a product/service on smartphone/tablet after doing the following? Select all.’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Bank credit cards are most used payment method globally

CONSUMER BEHAVIOR: PAYMENT METHODS1 Share of payment methods used by consumers, by region, 2017

Asia Pacific 73% 33% 23% 13% 10% 7%

North America 67% 40% 30% 9% 4% 23%

Europe 54% 39% 45% 11% 20% 7%

Middle East & Africa 77% 24% 30% 20% 14% 8%

South America 79% 35% 25% 15% 6% 3%

Bank credit card PayPal Debit card Bank transfer COD Gift card 1Consumer Behavior: Payment Methods. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Turkey leads in monthly online payments

MONTHLY ONLINE PAYMENTS1 Share of population making online payments, monthly; by country, 2016

44% 42%

36% 32% 33% 29% 30% 30% 27% 27% 23%

Chile France Canada US Brazil Japan Mexico Australia UK China Turkey

1Monthly Online Payments. Source: IAB, A Global Perspective of Mobile Commerce, 2016.

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www.ecommercefoundation.org | www.ecommerce-europe.eu China utilizes the mobile wallet payment method the most

CONSUMER BEHAVIOR: MOBILE WALLET PAYMENT1 Share of population using mobile wallet as payment method; by country, 2016

47%

24% 20% 19% 17% 16% 14% 13% 10% 9% 7%

China UK Japan Australia US Canada France Brazil Mexico Chile Turkey

1Consumer Behavior: Mobile Wallet Payment. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘How have you paid for the products/services you bought via smartphone/tablet in the past 6 months? Select all that apply.’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Europeans love buying phones and financial services online

North Total APAC LATAM Europe America META Consumer electronics 23.8 23.7 27.4 25.4 22.8 15.2 Mobile phones 26.7 28.3 27.3 30.1 21 14.5 Households washing and cleaning products 4.5 9.9 2.6 2.5 3.1 2.4 Beauty and personal care 6 11.7 5.6 3.6 3.3 3.8 Packaged food and beverages 2.6 4.4 2.7 1.9 1.6 1.7 Toys 12.5 15.8 13.6 11.8 11.5 7.1 Small home appliances 20.8 24.3 25.2 20.1 17.5 13.2 Clothing/fashion 9.8 14.2 8.7 8.8 7.6 4.3 Financial Services 25.5 24.9 18 28.6 25.4 23.7 Furniture & furnishings 10.7 13.3 15.7 9.6 9.1 5.6 Baby Care 10.4 20.3 7.1 5.6 12.9 5.6 Major home appliances 17.8 17.6 20.2 21.1 13.3 6 Replacement auto or truck tires 10.8 8.3 10.6 12.6 11.6 8.3

Source: GfK, Future Buy, 2016; Q: Have you shopped for the product categories exclusively online? Base= Category Buyers; Total Sample N=20,002; n=1,000 per country

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www.ecommercefoundation.org | www.ecommerce-europe.eu The global population remains open to omnichannel shopping North Total APAC LATAM Europe America META Consumer electronics 45.8 44.2 40.1 47.7 50.4 45 Mobile phones 35.2 33.4 32.3 36.6 39.8 35.8 Households washing and cleaning products 19.7 32.3 11.1 16.6 13.5 15.5 Beauty and personal care 34.7 47 26.2 32.4 27.2 28 Packaged food and beverages 21.9 39.2 11.9 16.3 13.3 14.4 Toys 50.3 52.9 43.3 52.5 50.4 43.6 Small home appliances 42.1 41.9 32.2 45 42.4 40.6 Clothing/fashion 53 58.1 43.7 54.1 48.3 46.8 Financial Services 38.6 41.5 38.1 36.3 35.3 40.8 Furniture & furnishings 41.4 42.5 42 41.6 47.3 33.5 Baby Care 34.5 40.8 27.4 33.1 31.2 34.1 Major home appliances 38 35.4 40.4 39.5 39.4 36.3 Replacement auto or truck tires 23.6 24.4 23.7 21.6 33.9 23.9

Source: GfK, Future Buy, 2016; Q: Have you shopped for each of the product categories both online as well as in store? Base= Category Buyers; Total Sample N=20,002; n=1,000 per country

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www.ecommercefoundation.org | www.ecommerce-europe.eu Apple is the highest market value internet company

TOP INTERNET COMPANIES1 Market value of the top internet companies worldwide, billions of USD, May 2017

Apple 801

Google/Alphabet 680

Amazon.com 476

Facebook 441

Tencent 335

Alibaba 314

Priceline.com 92

Netflix 70

Uber 70

Baidu 66

1Top Internet Companies. Source: Statista; Worldwide; Kleiner Perkins Caufield & Byers; Capital IQ, May 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Amazon is the largest ecommerce company worldwide

LARGEST ECOMMERCE COMPANIES1 Largest ecommerce companies (inventory, revenue generated, number of employees), billions of USD, 2015

Amazon 107.0

Alibaba 12.3

eBay 8.6

Rakuten 6.3

Zalando 3.3

Groupon 3.1

flipkart 1.5

ASOS.com 1.4

1Largest Ecommerce Companies. Source: Worldatlas, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Ecommerce Environment

https://www.pexels.com/photo/holidays-car-travel-adventure-21014

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www.ecommercefoundation.org | www.ecommerce-europe.eu Majority of global consumers think shopping online saves money

72%

64% 61% 58% 59% 51%

Overall Pacific Asia South America Europe North America Middle East & Africa

Source: Gfk, Future Buy, 2016; Q: Do you agree with the statement, ‘Shopping online saves money’?; (% of respondents that answered positively). Base= 20002.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Most consumers prefer online shopping for 24/7 shopping

CONSUMER PREFERENCE: SHOPPING ONLINE VERSUS IN-STORE1 Consumer reasons for shopping online instead of in stores, 2017 Shop 24/7 58% Compare prices 54% Online better prices 46% To save time 40% Convenience of not going to shops 39% Greater variety 29% Free shipping offers 29% Everything in once place 27% Locate hard to find items 20% Avoid crowds 15% Unavailability in own country 15% Avoid checkout lines 11%

Only option to buy Free shipping Ease of selection Push from offline Price-related Convenience 1Consumer Preference: Shopping Online versus In-Store. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Price is the most important factor for consumers

CONSUMER BEHAVIOR: PURCHASE DECISION1 Share of important factors for consumers when deciding where to buy products, 2017

Best price 36%

Preferred website 30%

Best delivery options/price 17%

Stock availability 14%

Peer advice 2%

Returns policy 1%

1Consumer Behavior: Purchase Decisions. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Prices mainly determine where consumers will shop

CONSUMER OPINION: WHERE TO BUY1 Importance ranking of company attributes when deciding where to buy a product, 2017 The lowest price I can find 57% Enhanced delivery options 43% Easy return policy 40% Payment options 34% Ability to see if the product is in stock 33% Information about product sources 26% Consistent shopping experience across channels 23% Incentive program 21% Promotion tailored for me 21% Buy online and pick up 20% Limited time promotion 16% Social media presence 10%

1Consumer Opinion: Where to Buy. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Ease of contact increases consumer trust in a company

CONSUMER PREFERENCES: COMPANY TRUST1 Consumer-trusted companies’ shared traits, 2017

Easy to contact people at the company 51%

Open to negative news 43%

Consumers control their data usage 41%

Educate consumers about their products 41%

Ask consumers how to communicat with them 39%

Are transparant about the use of consumers info 35%

Are socially responsible 27%

Send personalized communications 23%

Are transparant about subsidiaries/affiliations 17%

Have credible spokespeople 17%

1Consumer Preferences: Company Trust. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Price/promotions drive most purchase decisions globally

CONSUMER BEHAVIOR: PURCHASE DECISIONS1 CONSUMER BEHAVIOR: PURCHASE DECISIONS2 Percentage of factors driving purchase decisions, by region, 2017 Percentage of factors driving purchase decisions, 2017 Price/promotions Product features Brand Price/promotions Online reviews Other 4% 5% 11% 9% 9% Product features 15% 12% 27% 13% 17% 18% 16% 17% 17% Brand 24% 23% 18% 24% 26% Online reviews 21% 27% 25% 17% 15%

Newest trends or arrivals 22% 34% 23% 29% 27% 26% 29%

Peer Asia Pacific North America Europe South America Middle East & influences/recommendations Africa

1Consumer Behavior: Purchase Decisions. Source: KPMG, Global Online Consumer Report, 2017. | 2Consumer Behavior: Purchase Decisions. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Majority of consumers click on ads to find out more information

CONSUMER BEHAVIOR: ADVERTISEMENT CONVERSION1 Share of consumers influenced by advertisements; by region, 2016

39% 38%

32% 30% 31% 30% 29% 29% 28% 27% 26% 26% 27% 26% 23% 23% 24% 21% 21% 22% 18% 19% 17% 16%

Europe North America South America Asia Pacific Clicked on the ad to find out more information Clicked on the ad to visit the advertiser's website Checked out the product or service at another time Visited the advertiser's website another time Clicked on the ad to purchase the product/service Shared the ad with others 1Consumer Behavior: Advertisement Conversion. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘In the past 6 months, have you done any of the following after seeing an ad on your smartphone/tablet? Select all.’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Majority of global consumers state social media affects online purchasing

CONSUMER OPINION: SOCIAL MEDIA IMPACT1 Consumer opinion of social media impact on online purchasing; by region, 2016 Total % Agree Agree Strongly 71% 63% 25% 28% 22% Agree slightly 38% 55% 53%

30% 31% Neither 35% 33%

Disagree slightly 22% 28% 21% 18% 11% 9% 10% Disagree strongly 12% 7% 7% 5% 8% Europe North South Asia Europe North America South America Asia Pacific America America Pacific

1Consumer Behavior: Social Media Impact. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘To what extent do you agree with the following statements, I often discover new products/services to buy on social media.’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Globally, consumers do not want to be informed of deals via smartphones

59%

45% 40% 34%

23% 21%

Overall Asia Pacific South America Europe North America Middle East & Africa

Source: GfK, Future Buy, 2016; Q: Do you agree with the statement, ‘I like it when retailers inform me on my smartphone of shopping promotions/deals’?; (% of respondents that answered positively); Base= 20002.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Convenience and saving time are leading reasons for mobile purchasing

CONSUMER OPINION: MOBILE PURCHASE REASONS1 Reasons for consumers purchasing via mobile device; by region, 2016 Advertising prompted me Only way for me to purchase online Safer than cash Entertainment To get immediately Couldn't find in-store Get best price Save time Convenience 55% 52% 50% 48% 44% 44% 45% 39% 35% 35% 32% 33% 29% 28% 24% 25% 25% 23% 22% 23% 22% 23% 20% 21% 17% 18% 16% 15% 11% 11% 12% 12% 11% 10% 8% 10%

Europe North America South America Asia Pacific

1Consumer Opinion: Mobile Purchase Reasons. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘Why do you purchase products or services via smartphone/tablet? Select all that apply’

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www.ecommercefoundation.org | www.ecommerce-europe.eu 55% of Latin America sees mobile devices as most important shopping tool

54% 55% 49%

41%

28% 26%

Overall Asia Pacific South America Europe North America Middle East & Africa

Source: GfK, Future Buy, 2016; Q: Do you agree with the statement, ‘My mobile device (smartphone and/or tablet) is quickly becoming my most important shopping tool’? (% of respondents that answered positively); Base= 20002.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Majority of consumers plan on mobile purchasing in the future

CONSUMER OPINION: MOBILE PURCHASING1 Consumers’ opinion on future mobile shopping, by region, 2016

27% 34% 32% 31%

Agree strongly 29% Agree slightly 31% 31% 31% Neither Disagree slightly Disagree strongly 29% 21% 25% 25%

8% 8% 7% 8% 7% 5% 6% 6% Europe North America South America Asia Pacific 1Consumer Opinion: Mobile Purchasing. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: To what extent do you agree with the statement, ‘I plan to purchase more products or services on smartphone or tablet in the next 6 months’?

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www.ecommercefoundation.org | www.ecommerce-europe.eu Laptops/PCs still the leading device for online shopping globally

CONSUMER PREFERENCES: DEVICES FOR ONLINE SHOPPING1 CONSUMER PREFERENCES: DEVICES FOR ONLINE SHOPPING2 Preferred device for online shopping, regionally, 2017 Preferred device for online shopping, by generation, 2017

23% 20% 29% 24% 29% 29% 28% 29%

7% 8% 10% 6% 6% 6% 5% 8% 4% 9% 6% 6% 5% 12% 8% 11%

67% 59% 63% 60% 65% 51% 55% 54%

South America Middle East & North America Europe Asia Pacific Baby Boomers Generation X Millennials Africa Laptop or PC Smartphone Laptop or PC Smartphone Tablet No preference Tablet No preference 1Consumer Preferences: Devices for Online Shopping. Source: KPMG, Global Online Consumer Report, 2017. | 2Consumer Preferences: Devices for Online Shopping. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Majority of consumers search online for reviews/recommendations

CONSUMER BEHAVIOR: RESEARCH METHODS1 Share of different research methods used by consumers before purchasing online, 2017

Online search for reviews and recommendations 55%

Visited the company website 47%

Visited physical stores to see, try or fit the product 26%

Spoke with my friends or family about it 23%

1Consumer Behavior: Research Methods. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu To prepare for the nearby future, focus on GenZ! The next generation of consumers are the i-Brains. They are the first generation that is fully merged with smart phones and social media. These digital natives will be leading edge consumers that drive (mobile) disruption. And they will come fast. In 2020 the i-Brains will represent a large portion of consumers.

Marco Wolters Global Industry Lead | Fashion, Home & Lifestyle

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www.ecommercefoundation.org | www.ecommerce-europe.eu 65% of consumers compare prices of other retailers online while in-store

CONSUMER BEHAVIOR: PRODUCT RESEARCH1 CONSUMER BEHAVIOR: MOBILE RESEARCH2 Types of product research conducted by consumers while in-store, 2017 Share of mobile research, by generation, 2017

Percentage of consumers that Price comparison with other retailers 65% have used their smartphone to look up a product while in a shop

Product information/specifications 61% 77% 70%

50% Online reviews 49%

Product options (e.g. color, size, 35% style)

Store inventory/availability 16% Baby Generation X Millennials Boomers

1Consumer Behavior: Product Research. Source: KPMG, Global Online Consumer Report, 2017. | 2Consumer Behavior: Mobile Research. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Majority of millennials saw products before purchasing online

CONSUMER BEHAVIOR: PRE-PURCHASE RESEARCH1 Offline channels where consumers saw the products before purchasing, by generation, 2017

24% 22%

18% 17% 17%

13% 12% 11% 8%

Saw a friend with it Talking with friends Physical shop

Baby Boomers Generation X Millennials

1Consumer Behavior: Pre-Purchase Research. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Across generations, consumers prefer to pay with bank credit card

CONSUMER BEHAVIOR: PAYMENT METHODS1 Share of payment methods used by consumers, by generation, 2017

74% 73%

64%

35% 35% 33% 32% 26% 21% 15% 12% 13% 13% 9% 10% 10% 9% 11% 6% 7% 7%

Gift card COD Alipay Bank transfer Debit card PayPal Bank credit card

Baby Boomers Generation X Millenials

1Consumer Behavior: Payment Methods. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Payment methods are important for financial inclusion

What is your view on e-commerce globally? It’s still growing, particularly in Asia, and will continue to grow for years. But it’s changing. It’s increasingly mobile, and shifting away from the classic online shopping paradigm to much more consumer-centric engagements, such as through messaging apps where truly personalized interaction is possible. Underlying this change is the increasing application of AI and machine learning, from powering messaging bots to fraud prevention, and from better recommendation engines to predictive analytics. In your opinion, what are the main challenges e-commerce faces distinctly in Europe/the U.S./China? Each region around the world differs greatly in terms of electronic payment volumes and methods. In emerging markets, one of the main challenges is financial inclusion, or enabling unbanked or underbanked populations to participate in the global economy by offering the right payment methods. In more mature markets, fraud, compliance with changing regulatory environments and innovation are key challenges. What suggestions/recommendations do you have for SMEs hoping to penetrate the global e-commerce market? They key to successful international expansion is offering a relevant and localized customer experience, wherever you go. That includes language, currency, payment methods, fulfillment and many other variables to get right. Local marketplaces can be an attractive alternative to going alone. Partnering with a global PSP will remove a lot of the complexity, allowing SMEs to focus on what they do best. Furthermore, when competing both with local heroes and large multinationals, SME’s looking to expand cross-border can leverage innovation to enable new sales channels or offer a better user experience, to differentiate themselves and create competitive advantage. Gabriel de Montessus Vice President Global Product & Marketing Ingenico Retail BU

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www.ecommercefoundation.org | www.ecommerce-europe.eu South America utilizes social media for purchase feedback most

CONSUMER BEHAVIOR: POST-PURCHASE FEEDBACK VIA SOCIAL MEDIA1 Consumer opinions/behavior in sharing mobile purchases/online experiences via social media; by region, 2016 Total % Agree

40% Agree Strongly 15% 14% 17% 14%

Agree slightly 19% 22% 20% 23% 36% Neither 24% 31% 26% 34% 34% 34% Disagree slightly 15% 12% 16% 14% Disagree strongly 27% 22% 18% 18% Europe North South Asia Europe North America South America Asia Pacific America America Pacific 1Consumer Behavior: Post-Purchase Feedback via Social Media. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘To what extent to you agree with the following statements, I love to share my mobile purchases and experiences online.’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Most generations use seller websites for feedback

CONSUMER BEHAVIOR: POPULAR FEEDBACK WEBSITES1 Most popular websites used by consumers for feedback, by generation, 2017 Seller's website 43% 49% 46%

Facebook 25% 29% 34%

Manufacturer or brand website 22% 18% 17%

Instagram 3% 9% 18%

Twitter 4% 9% 11%

Online forum 12% 10% 11% Baby Boomers Generation X Millennials

WhatsApp 16% 16% 17%

Blogs 6% 10% 12%

WeChat 13% 10% 10%

1Consumer Behavior: Popular Feedback Websites. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Facebook is the most popular social media platform for feedback

CONSUMER BEHAVIOR: FEEDBACK & SOCIAL MEDIA1 Most popular websites used by consumers for feedback, by region, 2017

62% 63% WeChat Blogs WhatsApp Twitter Instagram Facebook

40% 40% 38%

29% 29% 28% 26% 25% 25% 23% 24% 19% 16% 17% 18% 10% 12% 13% 10% 10% 9% 6% 6% 6% 6% 2% 1%

South America Middle East & Africa Europe North America Asia Pacific 1Consumer Behavior: Feedback & Social Media. Source: KPMG, Global Online Consumer Report, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu 43% of consumers see a shopping future not bound by store location

55% 54%

48% 43%

37% 35%

Overall Asia Pacific South America Europe North America Middle East & Africa

Source: GfK, Future Buy, 2016; Q: Do you agree with the statement, ‘I can see a future where retail stores are not a big factor in how I shop’?; (% of respondents that answered positively); Base= 20002.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Consumers cite ’trust’ as main barrier to purchasing more online

CONSUMER OPINION: REASONS NOT TO PURCHASE VIA MOBILE1 Consumer reasons for not purchasing more products via smartphone/tablet; by region, 2016

46% 47% 44% 42%

32% 31% 31% 30% 24% 25% 22% 22% 20% 20% 19% 19%

Europe North America South America Asia Pacific Trust Barriers Net I have no need to I don't trust the security I don't want to share personal information (location/purchase history)

1Consumer Behavior: Consumer Opinion: Reasons Not to Purchase via Mobile. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘What are the main reasons you don’t purchase more products/services via smartphone/tablet? Select all that apply.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Europe

80 www.ecommercefoundation.org | www.ecommerce-europe.eu France and the U.K. rank highest in Europe for internet inclusivity

Countries are ranked overall and across four categories: Availability, quality and breadth of available infrastructure required for access and levels of internet usage; Affordability, cost of access relative to income and the level of competition in the internet marketplace; Relevance, existence and extent of local language content and relevant content; and Readiness, capacity to access the internet, including skills, cultural acceptance, and supporting policy.

97 96 94 95 89 89 89 89 90 87 88 88 86 85 85 85 87 85 81 84 84 82 83 78 79 80 81 76 76 73 71 69 68 61 55

France UK Germany Russia Italy Spain Turkey Overall Availabilty Affordability Relevance Readiness 1Inclusive Internet Index. Source: Economist Intelligence Unit, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Average spending among Europeans is increasing

E-SHOPPER SPENDING & GROWTH1 Average amount spent per e-shopper, per year, Europe, 2014-2017(f); E-shopper spending growth rate, Europe, 2015-2017(f) 14.07%

7.65%

-1.80% $1,867.59 $1,633.73 $1,604.78 $1,508.76

2014 2015 2016 2017(f)

1E-shopper Spending & Growth. Source: Ecommerce Foundation, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Many Europeans order goods via smartphone/tablet monthly

CONSUMER BEHAVIOR: MOBILE PURCHASE FREQUENCY1 Share of population making mobile purchases, by frequency; Europe, by country, 2016

49% 44% 42% 39% 37% 32%

25% 20% 15%

UK Turkey France

Daily/Weekly Monthly A Few Times A Year 1Consumer Behavior: Mobile Purchasing Frequency. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘How frequently do you purchase products or services via smartphone or tablet?’ | 2Consumer Behavior: Mobile Purchasing. Source: DPD, Group E-Shopper Barometer Report, 2016; Q: ‘Which devices do you use to order goods online?’

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www.ecommercefoundation.org | www.ecommerce-europe.eu Facebook is most popular social media platform in Europe

SOCIAL MEDIA USE: EUROPE1 SOCIAL MEDIA USE: BY COUNTRY1 Social media platforms used, Europe, 2017 Social media platforms used, by country, 2017 1.09% Facebook Twitter Pinterest YouTube Vkontakte 4.68% 96% 5.72% 84% 80% 68.5% 71% 64.82%

49% 39%

24% 19% 84.62% 15% 16% 14% 9% 8% 6% 9% 6% 6% 4% 2% 4% 2% 1% 2% 6% 2% 2%

Facebook Twitter Pinterest YouTube France United Kingdom Germany Russia Italy Spain Turkey

1Social Media Use: Europe. Source: Statcounter, 2017. | 2Social Media Use: By Country. Source: Statcounter, 2017.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Delivery and payment options are crucial in different markets

What is your view on e-commerce in Europe? The internet is transforming retail. In 2016, 53 per cent of the world’s internet users bought either goods or services online, according to the US government. That’s more than a billion people. Nevertheless, e-commerce still accounts for a relatively small proportion of total retail sales, so there’s huge potential for growth. There are also risks, particularly when it comes to delivering the goods your customers have bought. In fact, the top three most common complaints from online shoppers all relate to delivery.

How do you foresee international delivery methods developing in the next two to three years? Cross-border e-commerce is booming. Speed of delivery is important, but it’s not everything. Shoppers want better control over how, when and where their goods are delivered. They want flexibility over delivery times and locations. They want to be kept in the loop, so tracked goods services will continue to grow.

In your opinion, what are the main challenges e-commerce faces distinctly in Europe/the U.S./China? Online cross-border trade varies from country to country. Cross-border trade is clearly affected by the size of the domestic market and its proximity to other markets. The key challenges for e-retailers relate to delivery and payment options. We often observe, that US consumers don’t necessarily opt for the faster delivery option, whereas speed is key for Chinese and European consumers. Credit and debit cards still dominate preferred payment options, although that is changing as options such as Bitcoins and PayPal grow in popularity. An exception pattern to this is Germany, where the majority of consumers still expect to pay for goods once invoiced.

What suggestions/recommendations do you have for SMEs hoping to penetrate the global e-commerce market? Enlist the help of a third party logistics provider with experience of the markets you’re trying to crack. Renaud Marlière They will be able to advise on the peculiarities of the market, help you manage the expectations Chief Marketing & Sales Officer of your newfound customer base and develop an effective returns policy. These points are crucial. Asendia

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www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: France ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 64.9 million • E-shoppers: 65% • Currency: Euro • E-shopper Growth: 2.93% • GDP per capita (USD): $37,295 • E-GDP (USD): 3.94% • Internet Penetration: 86.55% • E-GDP (LCU): 3.51% • Internet Penetration Growth: 1.48% • Turnover Growth (USD): 20.54% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$2,572 $95 $2,105 $76 $1,948 $1,958 $68 $67 $68 $58 $47 $40

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

86

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: United Kingdom ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 65.5 million • E-shoppers: 81% • Currency: Pound • E-shopper Growth: 5.66% • GDP per capita (USD): $47,813 • E-GDP (USD): 7.86% • Internet Penetration: 97.52% • E-GDP (LCU): 7.53% • Internet Penetration Growth: 3.4% • Turnover Growth: 16.43% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$196 $3,746 $3,847 $3,407 $169 $164 $3,060 $134 $116 $100 $80 $66

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

87

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Germany ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 80.6 million • E-shoppers: 79% • Currency: Euro • E-shopper Growth: 3.44% • GDP per capita (USD): $41,244 • E-GDP (USD): 2.54% • Internet Penetration: 91.76% • E-GDP (LCU): 2.27% • Internet Penetration Growth: 2.24% • Turnover Growth (USD): 17.73% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions) $1,508 $87 $72 $1,211 $1,285 $68 $1,184 $62 $65 $49 $34 $38

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

88

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Russia ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 143.4 million • E-shoppers: 40% • Currency: Russian Ruble • E-shopper Growth: 10.65% • GDP per capita (USD): $10,885 • E-GDP (USD): 1.27% • Internet Penetration: 79.44% • E-GDP (LCU): 1.25% • Internet Penetration Growth: 3.77% • Turnover Growth (USD): 24.51% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$450 $20 $375 $381 $17 $15 $298 $13 $12 $9 $10 $10

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

89

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Italy ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 59.8 million • E-shoppers: 35% • Currency: Euro • E-shopper Growth: 4.93% • GDP per capita (USD): $29,747 • E-GDP (USD): 1.57% • Internet Penetration: 64.51% • E-GDP (LCU): 1.33% • Internet Penetration Growth: 4.93% • Turnover Growth (USD): 26% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions) $33 $2,157 $25 $1,680 $23 $1,560 $1,531 $20 $20 $16 $12

$4

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

90

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Spain ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 46 million • E-shoppers: 60% • Currency: Euro • E-shopper Growth: 5.33% • GDP per capita (USD): $26,643 • E-GDP (USD): 2.7% • Internet Penetration: 82.32% • E-GDP (LCU): 2.41% • Internet Penetration Growth: 2.15% • Turnover Growth (USD): 14.53% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions) $1,492 $28

$1,129 $1,189 $21 $1,049 $17 $17 $18 $15 $11 $12

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

91

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Turkey ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 80.4 million • E-shoppers: 55% • Currency: Turkish Lira • E-shopper Growth: 11.06% • GDP per capita (USD): $9,826 • E-GDP (USD): 1.58% • Internet Penetration: 63% • E-GDP (LCU): 1.47% • Internet Penetration Growth: 8.26% • Turnover Growth (USD): 30.5% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions) $13 $452 $418 $406 $354 $9 $9 $8 $7 $6 $4 $4

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

92

www.ecommercefoundation.org | www.ecommerce-europe.eu North America

93

www.ecommercefoundation.org | www.ecommerce-europe.eu The U.S. ranks highest for overall internet inclusivity

Countries are ranked overall and across four categories: Availability, quality and breadth of available infrastructure required for access and levels of internet usage; Affordability, cost of access relative to income and the level of competition in the internet marketplace; Relevance, existence and extent of local language content and relevant content; and Readiness, capacity to access the internet, including skills, cultural acceptance, and supporting policy.

98.8 99.3 90.6 92.2 88.2 85.2 88.3 78.1 77.3 78.2 73.5 74.7 68.5 69.6 61.1

United States Canada Mexico

Overall Availabilty Affordability Relevance Readiness

1Inclusive Internet Index. Source: Economist Intelligence Unit, 2017.

94

www.ecommercefoundation.org | www.ecommerce-europe.eu The U.S. purchases more frequently via mobile devices

CONSUMER BEHAVIOR: MOBILE PURCHASE FREQUENCY1 Share of population making mobile purchases, by frequency; North America, by country, 2016

51% 45% 43% 43% 43%

34% 32%

25% 25% 24% 23%

13%

US Canada Mexico Country Average Daily/Weekly Monthly A Few Times A Year

1Consumer Behavior: Mobile Purchase Frequency. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘How frequently do you purchase products or services via smartphone or tablet?’

95

www.ecommercefoundation.org | www.ecommerce-europe.eu Average spending among North Americans is increasing

E-SHOPPER SPENDING & GROWTH1 Average amount spent per e-shopper, per year, North America, 2014-2017(f); E-shopper spending growth rate, North America, 2015-2017(f)

8.4% 9%

4.5%

$1,785.91 $1,706.07 $1,551.98 $1,422.56

2014 2015 2016 2017(f)

1E-shopper Spending & Growth. Source: Ecommerce Foundation, 2017.

96

www.ecommercefoundation.org | www.ecommerce-europe.eu Many North American consumers visit advertiser’s website via ads

CONSUMER BEHAVIOR: ADVERTISEMENT CONVERSION1 Share of consumers influenced by advertisements; North America, by country, 2016 41% 39% 38% 37% 34% 34% 31% 32% 31% 32% 27% 28% 23% 24% 20% 21% 18%

9%

Canada Mexico US

Clicked on the ad to find out more information Clicked on the ad to visit the advertiser's website Checked out the product or service at another time Visited the advertiser's website another time Clicked on the ad to purchase the product/service Shared the ad with others 1Consumer Behavior: Advertisement Conversion. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘In the past 6 months, have you done any of the following after seeing an ad on your smartphone/tablet? Select all.’

97

www.ecommercefoundation.org | www.ecommerce-europe.eu Facebook is most popular social media platform in North America

SOCIAL MEDIA USE: NORTH AMERICA1 SOCIAL MEDIA USE: BY COUNTRY1 Social media platforms used, North America, 2017 Social media platforms used, by country, 2017

Facebook Twitter Pinterest 90% 14.4% 74% 74%

5.43%

76.05% 16% 16% 6% 6% 5% 2.5%

Facebook Twitter Pinterest United States Canada Mexico

1Social Media Use: North America. Source: Statcounter, 2017. | 2Social Media Use: By Country. Source: Statcounter, 2017.

98

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: United States ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 326.4 million • E-shoppers: 78% • Currency: US Dollar • E-shopper Growth: 4.12% • GDP per capita (USD): $59,609 • E-GDP (USD): 2.26% • Internet Penetration: 77.87% • E-GDP (LCU): 2.26% • Internet Penetration Growth: 2.87% • Turnover Growth (USD): 8.92% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$2,209 $438 $2,098 $399 $1,888 $1,752 $339 $298 $260 $230 $199 $169

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

99

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Canada ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 36.3 million • E-shoppers: 62% • Currency: Canadian Dollar • E-shopper Growth: 7.18% • GDP per capita (USD): $43,611 • E-GDP (USD): 1.26% • Internet Penetration: 91.41% • E-GDP (LCU): 0.77% • Internet Penetration Growth: 2.63% • Turnover Growth (USD): 9.03% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$970 $970 $990 $20.2 $18.3 $16.9

$545 $8.3 $8.1 $8.3 $7.8 $8.8

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

100

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Mexico ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 130 million • E-shoppers: 40% • Currency: Mexican Peso • E-shopper Growth: 6.16% • GDP per capita (USD): $7,993 • E-GDP (USD): 0.0005% • Internet Penetration: 61.61% • E-GDP (LCU): 0.0004% • Internet Penetration Growth: 4.54% • Turnover Growth (USD): 26.21% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$0.13 $0.11 $0.11 $4.8 $0.10 $3.6 $3.6 $3.2 $2.7 $2.0 $1.0 $1.2

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

101

www.ecommercefoundation.org | www.ecommerce-europe.eu South America

102

www.ecommercefoundation.org | www.ecommerce-europe.eu Brazil leads in internet inclusivity

Countries are ranked overall and across four categories: Availability, quality and breadth of available infrastructure required for access and levels of internet usage; Affordability, cost of access relative to income and the level of competition in the internet marketplace; Relevance, existence and extent of local language content and relevant content; and Readiness, capacity to access the internet, including skills, cultural acceptance, and supporting policy.

92.3 90.6 86.7 87.1 87.5 81.9 84.3 83.6 76.2 78.0 77.6 70.9 62.8 65.8 64.0

Argentina Brazil Chile

Overall Availabilty Affordability Relevance Readiness

1Inclusive Internet Index. Source: Economist Intelligence Unit, 2017.

103

www.ecommercefoundation.org | www.ecommerce-europe.eu Brazil leads in frequency of mobile purchases

CONSUMER BEHAVIOR: MOBILE PURCHASE FREQUENCY1 Share of population making mobile purchases, by frequency; South America, by country, 2016

49% 47%

41% 40% 41% 37%

22%

14% 11%

Brazil Chile Country Average Daily/Weekly Monthly A Few Times A Year

1Consumer Behavior: Mobile Purchase Frequency. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘How frequently do you purchase products or services via smartphone or tablet?’

104

www.ecommercefoundation.org | www.ecommerce-europe.eu Average spending among South Americans is increasing

E-SHOPPER SPENDING & GROWTH1 Average amount spent per e-shopper, per year, South America, 2014-2017(f); E-shopper spending growth rate, South America, 2015-2017(f) 15.5% 8.6%

-24.75% $360.85 $374.62 $342.40 $289.26

2014 2015 2016 2017(f)

1E-shopper Spending & Growth. Source: Ecommerce Foundation, 2017.

105

www.ecommercefoundation.org | www.ecommerce-europe.eu Facebook is most popular social media platform in South America

SOCIAL MEDIA USE: SOUTH AMERICA1 SOCIAL MEDIA USE: BY COUNTRY1 Social media platforms used, South America, 2017 Social media platforms used, by country, 2017 3.05% 1.05% Facebook Twitter YouTube Pinterest

95% 8.23% 90% 81%

86.08% 6% 2% 2% 3% 3% 3% 1% 4%

Facebook Twitter Pinterest YouTube Argentina Brazil Chile

1Social Media Use: South America. Source: Statcounter, 2017. | 2Social Media Use: By Country. Source: Statcounter, 2017.

106

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Argentina ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 44.2 million • E-shoppers: 54% • Currency: Argentine Peso • E-shopper Growth: 4.63% • GDP per capita (USD): $14,267 • E-GDP (USD): 1.44% • Internet Penetration: 72.23% • E-GDP (LCU): 1.51% • Internet Penetration Growth: 3.81% • Turnover Growth (USD): 21.74% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions) $9.1 $502.93 $412.71 $7.1 $323.87 $5.3 $305.01 $4.7 $3.4 $3.8 $2.7 $1.8

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

107

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Brazil ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 211 million • E-shoppers: 41% • Currency: Brazilian Real • E-shopper Growth: 10.07% • GDP per capita (USD): $10,309 • E-GDP (USD): 0.74% • Internet Penetration: 61% • E-GDP (LCU): 0.73% • Internet Penetration Growth: 3% • Turnover Growth (USD): 13.91% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$363.12 $15.8 $299.78 $13.5 $13.6 $286.99 $12.2 $245.72 $11.0 $9.6 $10.0 $10.4

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

108

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Chile ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 18.3 million • E-shoppers: 36% • Currency: Chilean Peso • E-shopper Growth: 8.83% • GDP per capita (USD): $13,663 • E-GDP (USD): 1.32% • Internet Penetration: 67.7% • E-GDP (LCU): 1.17% • Internet Penetration Growth: 3.47% • Turnover Growth (USD): 15% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions) $743.41 $3.3 $692.98 $2.8 $601.27 $636.44 $2.4 $2.0 $1.6 $1.3 $1.1 $0.7

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

109

www.ecommercefoundation.org | www.ecommerce-europe.eu Asia Pacific

https://pixabay.com/en/globe-world-earth-planet-2491989/

110

www.ecommercefoundation.org | www.ecommerce-europe.eu Japan leads in internet inclusivity

Countries are ranked overall and across four categories: Availability, quality and breadth of available infrastructure required for access and levels of internet usage; Affordability, cost of access relative to income and the level of competition in the internet marketplace; Relevance, existence and extent of local language content and relevant content; and Readiness, capacity to access the internet, including skills, cultural acceptance, and supporting policy. 91 92 88 88 89 91 89 90 85 87 84 81 83 81 84 84 83 78 78 78 73 74 70 64 67 65 61 60 52 47

Australia China India Indonesia Japan South Korea

Overall Availabilty Affordability Relevance Readiness

1Inclusive Internet Index. Source: Economist Intelligence Unit, 2017.

111

www.ecommercefoundation.org | www.ecommerce-europe.eu China and Australia purchase via mobile device most frequently

CONSUMER BEHAVIOR: MOBILE PURCHASE FREQUENCY1 Frequency of mobile purchases; Asia Pacific, by country, 2016

47% 48% 45% 43%

33% 34% 31% 28% 25% 25% 23% 20%

China Australia Japan Country Average Daily/Weekly Monthly A FewTimes A Year

1Consumer Behavior: Mobile Purchase Frequency. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘How frequently do you purchase products or services via smartphone/tablet?’

112

www.ecommercefoundation.org | www.ecommerce-europe.eu Average spending per e-shopper is increasing in Asia Pacific

E-SHOPPER SPENDING & GROWTH1 Average amount spent per e-shopper, per year, Asia Pacific, 2014-2017(f); E-shopper spending growth rate, Asia Pacific, 2015-2017(f) 6.7% 5.25%

-1.00% $1,293.73

$1,218.81 $1,206.80

$1,154.78

2014 2015 2016 2017(f)

1E-shopper Spending & Growth. Source: Ecommerce Foundation, 2017.

113

www.ecommercefoundation.org | www.ecommerce-europe.eu Many Australians click on ad to visit advertiser’s website

CONSUMER BEHAVIOR: ADVERTISEMENT CONVERSION1 Share of consumers influenced by advertisements; Asia Pacific, by country, 2016

34% 34% 34% 33% 33% 31% 30% 28% 27% 25% 26% 23% 21% 21% 20% 19% 20% 17% 17% 17% 17% 15% 16%

8%

Australia China Japan Country Average

Clicked on the ad to find out more information Clicked on the ad to visit the advertiser's website Checked out the product or service at another time Visited the advertiser's website another time Clicked on the ad to purchase the product/service Shared the ad with others 1Consumer Behavior: Advertisement Conversion. Source: IAB, A Global Perspective of Mobile Commerce, 2016; Q: ‘In the past 6 months, have you done any of the following after seeing an ad on your smartphone/tablet? Select all.’

114

www.ecommercefoundation.org | www.ecommerce-europe.eu Facebook is most popular social media platform in Asia Pacific

SOCIAL MEDIA USE: ASIA PACIFIC1 SOCIAL MEDIA USE: BY COUNTRY1 Social media platforms used, Asia Pacific, 2017 Social media platforms used, by country, 2017 2.26% 1.05% Facebook Twitter Pinterest Youku Sina Weibo 95% 95%

82% 77% 69%

54%

17% 13% 12% 94.30% 10% 9% 6% 2% 3% 5% 4% 6% 1%1% 1%

Facebook Twitter Pinterest Australia China India Indonesia Japan South Korea

1Social Media Use: Asia Pacific. Source: Statcounter, 2017. | 2Social Media Use: By Country. Source: Statcounter, 2017.

115

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Australia ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 24.6 million • E-shoppers: 62% • Currency: Australian Dollar • E-shopper Growth: 7.35% • GDP per capita (USD): $55,215 • E-GDP (USD): 1.9% • Internet Penetration: 92.44% • E-GDP (LCU): 1.83% • Internet Penetration Growth: 5.83% • Turnover Growth (USD): 39.78% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$1,833.04 $25.9

$1,204.49 $1,191.55 $1,153.95 $15.6 $13.3 $13.1 $13.4 $13.9 $11.5 $10.1

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

116

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: China ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 1.38 billion • E-shoppers: 58% • Currency: Renminbi • E-shopper Growth: 15.6% • GDP per capita (USD): $8,480 • E-GDP (USD): 5.78% • Internet Penetration: 56.26% • E-GDP (LCU): 5.48% • Internet Penetration Growth: 5.85% • Turnover Growth (USD): 20% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$1,505.16 $681.9 $1,481.32 $545.7 $480.2 $389.9 $1,427.12 $1,418.85 $304.1 $211.9 $124.6 $69.9

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

117

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: India ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 1.342 billion • E-shoppers: 17% • Currency: Indian Rupee • E-shopper Growth: 22% • GDP per capita (USD): $1,850 • E-GDP (USD): 1.53% • Internet Penetration: 33% • E-GDP (LCU): 1.42% • Internet Penetration Growth: 11.55% • Turnover Growth (USD): 16.67% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions) $37.6 $621.14 $578.83 $31.3 $532.39 $498.60 $25.7 $20.7 $16.3 $12.1 $8.7 $6.5

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

118

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Indonesia ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 263.5 million • E-shoppers: 15% • Currency: Indonesian Rupiah • E-shopper Growth: 24.22% • GDP per capita (USD): $3,895 • E-GDP (USD) 0.68% • Internet Penetration: 28.7% • E-GDP (LCU): 0.68% • Internet Penetration Growth: 12.56% • Turnover Growth (USD): 20.11% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$7.0 $678.59 $646.95 $613.71 $5.6 $484.16 $4.6

$2.6 $2.1 $1.7 $1.2 $1.4

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

119

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Japan ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 126 million • E-Shoppers: 76% • Currency: Japanese Yen • E-Shopper Growth: 3.14% • GDP per capita (USD): $38,282 • E-GDP (USD): 1.64% • Internet Penetration: 92.7% • E-GDP (LCU): 1.6% • Internet Penetration Growth: .52% • Turnover Growth (USD): 16% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$892.53 $79.2 $774.46 $66.6 $651.56 $54.2 $559.02 $51.0 $49.2 $48.3 $43.8 $45.0

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

120

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: South Korea ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 50.7 million • E-Shoppers: 70% • Currency: South Korean Won • E-Shopper Growth: 3% • GDP per capita (USD): $29,115 • E-GDP (USD): 2.86% • Internet Penetration: 95.2% • E-GDP (LCU): 2.86% • Internet Penetration Growth: 3% • Turnover Growth (USD): 14.7% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$1,289.39 $43.6 $1,133.74 $1,034.51 $1,059.26 $37.2 $31.8 $33.6 $27.9 $30.2 $20.9 $22.9

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

121

www.ecommercefoundation.org | www.ecommerce-europe.eu Middle East & Africa

122

www.ecommercefoundation.org | www.ecommerce-europe.eu Average spending per e-shopper is increasing in the Middle East & Africa

E-SHOPPER SPENDING & GROWTH1 Average amount spent per e-shopper, per year, Middle East & Africa, 2014-2017(f); E-shopper spending growth rate, Middle East & Africa, 2015-2017(f) 0.3% -0.31%

-2.62% $292.48

$285.00 $284.97 $284.11

2014 2015 2016 2017(f)

1E-shopper Spending & Growth. Source: Ecommerce Foundation, 2017.

123

www.ecommercefoundation.org | www.ecommerce-europe.eu Facebook is most popular social media platform in Middle East/Africa

SOCIAL MEDIA USE: MIDDLE EAST & AFRICA1 SOCIAL MEDIA USE: BY COUNTRY2 Social media platforms used, Middle East & Africa, 2017 Social media platforms used, by country, 2017 Facebook Twitter Pinterest YouTube

2.44% 80% 9.93% 75% 68.5% 6.8%

19% 17% 78.4% 9% 6% 6% 2% 1% 4%

Facebook Twitter YouTube Pinterest Israel Saudi Arabia South Africa

1Social Media Use: Middle East & Africa. Source: Statcounter, 2017. | 2Social Media Use: By Country. Source: Statcounter, 2017.

124

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Israel ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 8.3 million • E-shoppers: 68% • Currency: Israeli new shekel • E-shopper Growth: 5.2% • GDP per capita (USD): $39,126 • E-GDP (USD): 0.81% • Internet Penetration: 79.2% • E-GDP (LCU): 0.78% • Internet Penetration Growth: 1% • Turnover Growth (USD): 7.52% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions) $617.28 $2.8 $2.6 $2.4 $2.2 $2.0 $602.11 $1.8 $599.11 $1.6 $1.7 $592.20

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

125

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: Saudi Arabia ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 32.7 million • E-shoppers: 50% • Currency: Saudi Riyal • E-shopper Growth: 12.5% • GDP per capita (USD): $21,848 • E-GDP (USD): 0.77% • Internet Penetration: 77.8% • E-GDP (LCU): 0.77% • Internet Penetration Growth: 6.9% • Turnover Growth (USD): 11% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, billions)

$489.71 $5.5 $4.9 $4.4 $3.9 $460.91 $3.5 $3.2 $2.9 $437.08 $2.6 $429.53

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

126

www.ecommercefoundation.org | www.ecommerce-europe.eu Full country report available: South Africa ecommerceFoundation.org/reports

Quick introduction: Ecommerce facts & figures: • Population: 55.44 million • E-Shoppers: 47% • Currency: South African rand • E-Shopper Growth: 10.6% • GDP per capita (USD): $5,588 • E-GDP (USD): 0.26% • Internet Penetration: 56% • E-GDP (LCU) 0.23% • Internet Penetration Growth: 4.5% • Turnover Growth (USD): 21.36% Average Spending per E-Shopper, 2014-2017(f), $USD Ecommerce Sales 2010 – 2017 (Dollars, millions) $57.02 $833.1 $50.15 $44.47 $655.2 $40.68 $480.6 $483.4 $367.8 $396.6 $266.6 $289.8

2014 2015 2016 2017(f) 2010 2011 2012 2013 2014 2015 2016 2017(f)

127

www.ecommercefoundation.org | www.ecommerce-europe.eu About the Report

128

www.ecommercefoundation.org | www.ecommerce-europe.eu Where to find our National Ecommerce Reports

The National Ecommerce Reports are published by the Overview reports 2017 Ecommerce Foundation. They provide overviews of the mature • European overview report June 26 and emerging markets in the field of ecommerce. • Global overview report September 27

In total, the Ecommerce Foundation publishes multiple country Future Country Reports reports and two overview reports per year, covering the most • Norway Argentina important ecommerce markets worldwide. • Switzerland Brazil • Turkey Chile To have a tailor-made ecommerce report made, • Poland USA completely based on your wishes and requirements, please • Greece Canada contact us via [email protected]. • China Mexico • Austria Bulgaria A light and full reports can be downloaded from: • Finland Ukraine http://www.ecommercefoundation.org/reports. • Romania Hungary • Australia Japan • India

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www.ecommercefoundation.org | www.ecommerce-europe.eu Definitions related to the Internet & Ecommerce

• Broadband access: the availability of broadband is measured by the percentage of • E-households: number of households that use the Internet for personal gain. 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 sites provide guidelines to measure and monitor B2C ecommerce in order to enable all European countries to provide data with respect to the penetration of B2C • Ease of Doing Business Index: The Ease of Doing Business Index is developed by ecommerce in a standardized way. the World Bank, and averages the country's percentile rankings on nine topics. It is made up of a variety of indicators, giving equal weight to each topic. The rankings • E-Government Index: The UN’s E-Government Index provides a comparative for all economies are benchmarked to June 2010. The Index covers 185 countries. assessment of the e-government development of UN Member States. One of the primary factors contributing to a high level of e-government development is • ecommerce (or electronic commerce), a subset of e-business: any B2C contract on concurrent past and present investment in telecommunication, human capital and the sale of products or services fully or partly concluded by a technique for provision of online services. distance communication. • Gross Merchandise Volume: the total sales facilitated by a third party, such as a • ecommerce GDP: total amount of goods and services online divided by the total market place. Gross Domestic Product (GDP). • E-services or electronic services: “Deeds, efforts or performances whose delivery is • Economic Freedom Index: the Index of Economic Freedom is an annual guide mediated by information technology. Such e-service includes the service element published by The Wall Street Journal and The Heritage Foundation, Washington's of e-retailing, customer support, and service delivery.” This definition reflects three No. 1 think tank. For over a decade, the Wall Street Journal and The Heritage main components: service providers, service receivers and the channels of service Foundation have tracked the march of economic freedom around the world with delivery (i.e. technology). (Jennifer Rowley, Professor Information and the influential Index of Economic Freedom. There are 5 categories, ranking from Communications, Manchester Metropolitan University, UK) Free (with a score between 80 and 100) to Repressed (between 40 and 49.9). • Inactive online population: users that have access to the Internet but have not (yet) purchased goods or services online in the past year.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Definitions related to the Internet & Ecommerce

• Market place: online platform on which companies (and consumers) sell goods • Online expenditure: spending per user who purchased goods or services online. and/or services. • Online Retail (or e-retail, electronic retail or retailing or even e-tailing): the selling • Logistics Performance Index (LPI): The Logistics Performance Index (LPI) measures of retail goods and services on the Internet. In the limited sense of the word, the “logistics friendliness” of 155 countries. It helps countries identify the sectors such as online leisure travel, event tickets, downloading music or software challenges and opportunities they face in their trade logistics performance and are not included. Online-only retail shops are often referred to as pure players. what they can do to improve this. The Index is developed by the World Bank and is based on a worldwide survey of operators, such as global freight forwarders and • Penetration levels: the percentage of a population using the Internet, mobile express carriers. phones, smartphones or tablet devices.

• Mobile commerce (or m-commerce): the ability to conduct commerce using a • Real economic growth rate: a measure of economic growth from one period to mobile device e.g. a mobile phone, a PDA, a smartphone, a tablet or other another expressed as a percentage and adjusted for inflation. The real economic (emerging) mobile equipment. growth rate is a measure of the rate of change that a nation's gross domestic product (GDP) experiences from one year to another. • Mobile subscriptions: mobile cellular telephone subscriptions are subscriptions to a public mobile telephone service using cellular technology, which provide access • Retail sales: the selling of mainly goods from businesses to individuals from a to the public switched telephone network. Post-paid and prepaid subscriptions are traditional or so-called bricks-and-mortar shop. included (source: Eurostat). • Statcounter research method: Statcounter is a web analytics service and their • Networked Readiness Index (NRI): The NRI measures the tendency for countries to tracking code is installed on more than three million sites globally. These sites exploit the opportunities offered by information and communications technology cover various activities and geographic locations. Every month, Statcounter records (IT). The NRI comprises three components: the environment for IT offered by a billions of page views to these sites. For each page view, they analyze the given country or community, the readiness of the country's key stakeholders to use browser/operating system/screen resolution used and they establish if the page IT, and the usage of IT among these stakeholders. view is from a mobile device. They calculate their Global Stats on the basis of more than fifteen billion page views per month, by people from all over the world onto • Online buyer (or e-shopper, e-buyer): an individual who regularly bought or more than three million member sites. ordered goods or services through the Internet.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Global Online Measurement Standard for Ecommerce (GOMSEC) 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 B2C offer made by the trader and the conclusion of a • Houses and real estate ecommerce worldwide and for each country separate contract, without the necessity of the consumer • Utilities (e.g. water, heating and electricity) in the country profiles, based on total sales of goods and trader being in the same place at the same • Mortgages, loans, credit cards and overdrafts and services. time. • Savings accounts, funds, stocks&shares and bonds These total sales of goods and services are based on Contract: a contract whereby use is made, either the areas/sectors/classification of areas and sectors, solely or in part, of one or more techniques for B2C ecommerce therefore includes all online as stated on the next few pages. distance communication within the framework of a transactions between businesses and consumers system organized by the trader for the distance sale using desktop computers, laptops, tablets, All data reported in the national currency of the of goods and/or services, up to and including the smartphones, point-of-sales and smart-wearables, country involved is converted into euros according to moment that the contract is concluded. for instance through online shops, physical stores the average (annual) rate of exchange as provided (“online instore”), email, QR codes, catalogs, etc. B2C by, preferably, the European Central Bank (ECB) or Classification of B2C ecommerce ecommerce includes Value Added Tax (VAT) or other the national bank of the particular country. The sales tax, delivery costs and apps, but excludes reference period that is used for this was from 1 The following classification on the next few pages returns. January to 31 December of each report year. Growth provides an overview of areas and sectors included rates are calculated and measured by the B2C in GOMSEC. ecommerce sales in the national currency.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Global Online Measurement Standard for 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 Apps machines and other New subscriptions newspapers ands magazines (no single copy sales) TV/video equipment Music instruments white goods 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 Underwear & Upperwear Shoes appliances Children's wear Swimwear & Sportswear Jewelry, Bijoux, Watches & others fashion accessories (e.g. sunglasses) Sports & Recreation Nightwear & legwear Bags, wallets, suitcases Sports hardware (e.g. soccer shoes, tennis rackets) Bicycles & accessories Articles for camping and recreation Toys Indoor and outdoor toys

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www.ecommercefoundation.org | www.ecommerce-europe.eu Global Online Measurement Standard for Ecommerce (GOMSEC)

Home & Garden Food/Nearfood/Health Furniture and kitchens Food/Nearfood Health & Beauty Floor and window coverings (e.g. curtains and blinds) Food & Beverages Personal care & Hygiene Home textiles Fresh produce Baby care Cookware (sets), kettles and oven equipment Packaged consumer goods Perfume Table and kitchen articles Detergents/household cleaning OTC Articles for cleaning, wash and store Animal feed Decoration Tobacco Lamps and fixtures DIY-articles Garden articles Other: Products Flowers and plants (in home) Cars components Glasses and contact lenses Telecom Stationery Smartphones, mobile phones & mobile devices Pictures and photo albums Telefax and answering machines Pet supplies Erotica Headsets & Accessories (mobile) phones Prepaid cards and tariffs of new phone subscriptions

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www.ecommercefoundation.org | www.ecommerce-europe.eu Global Online Measurement Standard for Ecommerce (GOMSEC)

Insurance Travel New indemnity, Life and Health Insurances Package Travel Flight Tickets & Accommodations Package travel Flight Tickets Liability insurance ANW-gap insurance Health Insurance – Car insurance (insurance for receiving a Base Private transport if booked through a Hotel stays Fire and theft insurance payment in addition to a Health insurance – tour operator Apartment/bungalow/camping site survivor's allowance) additional -> all of the above not booked in Bike/caravan/motorbike/ Annuity insurance Disability insurance – combination with other travel-parts 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 Other: Services Insurance package insurance) New subscriptions to dating service Other services

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www.ecommercefoundation.org | www.ecommerce-europe.eu Sources used in this report The report could only be realized by consulting a great number of valuable Publications • AKIT • Kleiner Perkins sources. These were available in various countries and regions in Europe and • Bevh Caufield & Buyers around the globe. The wide variety of sources include public domain • CACE • KPMG • Capgemini • NAB publications, blogs, websites, industry and financial specialist publications, • Capital IQ • Netcomm Italy regional and local news, annual reports, and press releases. • CCS • ONTSI • CIA World Factbook • PayPal • DPD • Quandl • E-bit Empresa • SP eCommerce Sometimes the information sources are contradictory and sometimes different • Ecommerce Foundation • StatCan figures and data were given by varying sources within the same country, for • EIU • StatCounter • eMarketer • Statista example due to different definitions. In our reports we have mentioned the • Euromonitor • TNS Argentina different sources, definitions and outcomes of such reports, studies and • Eurostat • Turkish Etailers • FBIC Association interpretations. • FEVAD • US Census Bureau • GfK • Wamda • GIM • World Wide Worx The report is based on information that we consider reliable, but we cannot • Goldman Sachs • Worldatlas vouch for it being completely accurate or complete, nor should it be relied upon • HappyCheckout • Worldbank • IAB • Worldometers as such. Opinions expressed are our current opinions as of the date of this • ITU.INT • Worldwide report. • Yalla

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www.ecommercefoundation.org | www.ecommerce-europe.eu About the Ecommerce Foundation

The Ecommerce Foundation is an independent non-profit organization, initiated by worldwide national ecommerce associations and online and omnichannel selling companies from industries such as retail, travel & finance.

Why an 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 the 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, the Ecommerce Foundation is able to realize projects which could not have been realized on an individual basis.

What does the Ecommerce Foundation do? The Foundation is developing and offering several services such as the Ecommerce Benchmark, the EcommerceWiki and the National Ecommerce Reports. At the moment we are also researching if a Global Ecommerce Trustmark can be set-up to increase worldwide consumer trust and as a result global trade.

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www.ecommercefoundation.org | www.ecommerce-europe.eu The Services of the Ecommerce Foundation 40+ National Every year a C-level The Global Ecommerce Reports study delegation Ecommerce Summit & supporting retailers travels to an inspiring awards offer retailers going across borders location. Previous trips insights into best include Silicon Valley, practices from across Seattle , NY and China the world

The Ecommerce The EcommerceWiki is EcommerceReports Benchmark allows the online handbook curates all ecommerce online retailers to for ecommerce related research across compare & improve managers with the globe by adding an their ecommerce templates, process editorial board and activities descriptions, and more peer review

Lectures & Custom research is Safe.Shop certifies presentations are done for a diverse set local trust marks to offered to help of topics both co- issue the global members look into the branded as well white ecommerce trust to future of shopping labeled promote and foster global digital trade.

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www.ecommercefoundation.org | www.ecommerce-europe.eu About the Authors

Jorij Abraham Sara Lone Managing Director Research Analyst

Jorij Abraham has been active in the Sara Lone recently moved to the international ecommerce community after graduating with her since 1997. He was an Ecommerce Masters degree in Public Policy from the Manager at Bijenkorf, TUI and Sanoma University of California, Irvine. Media and Director of Consulting at Unic. She joins the Ecommerce Foundation with a background in economic research From 2013 to 2017 he has been Director and policy analysis, having previously of Research & Advice at Thusiwinkel.org worked as a researcher in a California and Ecommerce Europe (the Dutch and firm and interning as a policy analyst for a European Ecommerce Association). non-profit organization.

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www.ecommercefoundation.org | www.ecommerce-europe.eu About the Authors

Johnson Chen Maximiliaan Koene Research and Marketing Intern Marketing and Sales Intern

Johnson is an International Business and Maximiliaan is an international Business and Management student at The Hague Languages student at the Amsterdam School University of Applied Sciences. His interests of International Business. in statistical analysis have moved him to the research department at the Ecommerce Maximiliaan’s main responsibilities include Foundation. conducting and promoting country reports, monitoring social media, updating Ecommerce Johnson conducts quantitative and Foundation websites and maintaining business qualitative analyses, works on the relationships while creating an extensive Ecommerce Foundation country reports, the market entry plan for Safe.Shop in the US Global report of 2017, as well as several Market. marketing projects.

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www.ecommercefoundation.org | www.ecommerce-europe.eu Address, Disclaimer & Copyright Address: Ecommerce Foundation Rijksstraatweg 29 1115 AH Duivendrecht (Amsterdam) The Netherlands Website: www.ecommercefoundation.org Contact: [email protected] Twitter: @Ecomfound

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 Foundation’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 thousand, five hundred euros) for every day that this non-compliance continues. However, it is allowed to use small parts of the information published in our reports provided that proper sourcing is used (e.g. “source: www.EcommerceFoundation.org)

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