Electronic commerce in Peru is developing at a faster rate than one might think for the year 2020. However, there are still certain challenges that it must overcome in order to reach figures similar to those of neighboring countries.
E-commerce in Peru in 2019
According to the Peruvian Chamber of Electronic Commerce (CAPECE), 2019 was a good year for electronic commerce in Peru, moving a total of 4,000 million USD. This represents a 31% increase over the previous year’s figures , and an increase of around 15 times over the data from a decade ago (2009).
Which sectors have had the greatest development
Keep in mind that electronic commerce in Peru is not distributed equally in all categories of goods and services that operate online. Thus, in 2019, the volumes regarding digital commerce are as follows:
- Travel and accommodation ($ 25.2 billion)
- Electronics and technology (USD 691 million)
- Fashion and Beauty ($ 561 million)
These three sectors constitute the ones that moved the highest volume of money during 2019. However, there are other sectors that, without reaching these figures, are increasing their percentage of importance especially quickly, such as hobbies and video games, furniture and household appliances, as well as the food delivery sector (especially in large urban centers).
What has been the impact of COVID-19
Despite the severe blow that the pandemic has caused to the world economy, including the Peruvian economy, e-commerce in Peru has managed to resist especially well. In fact, it can be said that COVID-19 has favored a greater boom in this type of trade and its penetration in certain areas in which, until now, it was more difficult to reach.
According to CAPECE, during the months of March and April, e-commerce fell to figures of -31% and -38% respectively. However, this trend was reversed as of May, and it is estimated that it could close the year with a final growth figure of around 70-90% compared to the previous year. This is mainly due to the fact that the pandemic has promoted personal contactless deliveries and delivery services .
Pending challenges of e-commerce in Peru
With all this and with this, CAPECE continues to point out a series of challenges that are still pending so that electronic commerce in Peru reaches its best possible figures and is at the same level as the rest of Latin America.
In this sense, one of the main challenges facing e-commerce in Peru is to ensure that e-commerce penetrates the provinces in a complete and stable way. Currently, most of the electronic commerce is concentrated in the capital and the rest of the coastal cities. In fact, Lima currently concentrates up to 65% of Peruvian digital commerce . The great challenge facing e-commerce in Peru is to ensure that the sector has access to a more equitable distribution of digital transactions, especially reaching the provinces, and especially those far from the coast.
Bet on digitization
In this sense, CAPECE insists on the need to take advantage of the pandemic as the opportunity that Peru needs to implement the necessary infrastructures to boost the digital commerce sector . In this sense, it is necessary to improve the communication routes that connect the coast with the interior of the country, especially by promoting the development of a railway network that helps to streamline and shorten delivery times.
Likewise, it is necessary for the country’s business sector to bet clearly on the digitization of companies . This will allow you to broaden the audience to which you direct your products, both nationally and internationally. This will help to overcome the pandemic with a much more resistant business fabric and adapted to the new demands of current commerce , eminently electronic.
In short, e-commerce in Peru is growing at a speed that suggests the good pulse of the sector. However, it is necessary to see the coronavirus crisis as an opportunity for further development and the ideal time to improve communication channels that allow a greater boost to the country’s digital sector. In this way, e-commerce in Peru will be able to catch up with the rest of Latin America and compete in full equality of conditions.