European B2C E-commerce Report 2015 - Home - Ecommerce Europe

“The European Market Changes Constantly”Key Trends and Best Practices for Cross-border E-commerce in EuropeEurope is mostly a mature e-commerce market, but it changes and evolvesconstantly. For merchants, there is still plenty of opportunity for growth byexpanding into new European markets. Especially the Southern and EasternEuropean regions include several emerging countries. However, the uniquedynamics of the European marketplace do require careful consideration andplanning.While selecting the right payment mix per country is part of the necessary basisfor cross-border expansion, merchants should also anticipate and act on macrotrends, such as changes in the regulatory environment, in consumer behavior andin expectations, in order to be successful. In addition, they should actively analyzeand optimize their businesses through aggressive fraud management and theapplication of big data analytics.Mobile first strategyIn 2014, mobile commerce well and truly arrived in Europe. The use of mobiledevices for online shopping and payments is accelerating. In addition, merchantsthat have adopted the mobile first strategy in both check out and payment pagesare seeing considerably higher success rates.Big data to monitor risks and identify opportunitiesAnother major trend that further matured in 2014 is the application of big dataanalytics and visualization in the domain of online payments. E-commerce leaderssuch as Amazon have been applying big data for years now with the objective ofbuilding sophisticated profiles of their consumers for Conversion RateOptimization (CRO).Cross-border payments can quickly become very complex and hard to manage.Huge volumes of data need to be analyzed in order to identify issues andopportunities. By applying analytics and visualization to payments data,merchants can track and compare performance per country, per payment methodor per time period, and take appropriate steps to optimize processes.Combating sophisticated fraudFraud is a fact of life for merchants. This is particularly true for internationalmerchants, because cross-border payments have significantly higher fraud ratesthan domestic payments. Increasingly, sophisticated fraudsters also takeadvantage of the shift to mobile payments, where fraud losses are relativelyhigher.However, rather than accepting fraud as a cost ofdoing cross-border business, merchants shouldtake action to minimize its impact. In addition toimproving the bottom line, this also limits the riskof the kind of reputation damages that go hand-inhand with online fraud.David ShellVice President, Global Marketing and Communicationsat GlobalCollect Ingenicowww.ecommercefoundation.org7

GlobalB2CB2CE-commerceE-commerceGlobalDetailed overview of the Global E-commerce MarketCommissioned byIn cooperation withPowered byExecuted by

Global Key B2C E-commerce Data of Goods and Services at a Glance 2014Top 10 e-commerce countries inturnover (in billions of dollars)Asia-PacificEuropeNorth AmericaLatin AmericaMENAOthers 770bn 567bn 523bn 37bn 21bn 25bn 44% 14% 12% 18% 22% stralia 538 483 169 136 95 75 28 27 22 21people live in the world*48%2,737 million*20%people use the Internet1,139 million*people are e-shoppers*excluding people aged 0-14GOMSECGlobalOnlineMeasurementStandard B2CE-Commerce* B2C & C2C goods & services, excluding insurancesAverage spendingper e-shopperGlobal 1,943bn 24%7,223 million100%Forecast 2015 2,251 bnTurnover E-commerceGoods & Services5.9%Estimated shareof online goodsin total retail of goodsShare of Internet usersaccessing the webthrough a mobile72%device worldwideTotal B2C E-sales of Goods and Services 2014Cross-border B2C E-commerceMost popular countries:USA47%UK38%China / HK31%Canada17%Australia16%Germany13% Ecommerce Foundation Sep 2015“2.1 billion active social media accounts worldwide”“309 million consumers boughtcross-border last year and thisnumber is expected to grow in 2015”Info: info@Ecommercefoundation.orgFor reports: info@Ecommercefoundation.orgRaadhuisstraat 22 1016 DE Amsterdam NetherlandsIn cooperation with:Powered by:Twitter: @EcomfoundFree download at:https://www.ecommercefoundation.org/reports

Overview of the Covered CountriesGlobal B2C E-commerceCovered countriesThis table provides you with some relevant informationregarding the countries that are covered in this report.The countries mentioned in the table are selected for thisGlobal B2C E-commerce Report because they are influentialin their regions and are all discussed in brief in this report.For more detailed information about these and othercountries, we refer you to our regional nMexicoRussiaSouth KoreaSpainUnited KingdomUnited StatesBuenos AiresSydneyRio de JaneiroOttawaSantiagoBeijingParisBerlinNew DelhiRomeTokyoMexico CityMoscowSeoulMadridLondonWashington .0%8.0%16.0%18.0%10.0%21.0%20.0%5.0%Peso (ARS)Dollar (AUD)Real (BRL)Dollar (CAD)Peso (CLP)Yuan (CNY)Euro (EUR)Euro (EUR)Rupee (INR)Euro (EUR)Yen (JPY)Peso (MXN)Ruble (RUB)Won (KRW)Euro (EUR)Pound (GBP)Dollar 8.9mn10

Economic Indicators per RegionGlobal B2C E-commerceGDP real growth rateThe real growth rate of the Global GrossDomestic Product (GDP) was 2.4% in2014. This was slightly lower than in thepreceding year (2.8%). For 2015, theworld economy is expected to recover alittle, which is reflected in the forecastgrowth rate of 2.5%.GROWTH RATE OF THE GLOBAL GDPPercentage change, 2011 - 2015eGDPIn terms of the share of e-commerce inGDP, Asia-Pacific is the clear frontrunner.Its eGDP rates of 3.3% is significantlyabove the global average of 2.6%.2.8%2.4%GDP at market prices and share of e-commerce in GDP of covered countries in report, 2014RegionWith an eGDP of 0.8%, the Middle Eastand Northern Africa and Latin Americanare at the bottom of the list, whichindicates that there is a lot to be gainedin terms of e-commerce in these regions.4.5%2.8%REGIONS IN TERMS OF SHARE eGDP2.5%GDP at marketShare of e-commerce in GDPpricesGlobal 73,479bn2.6%Asia-Pacific* 23,215bn3.3%North America 20,488bn2.6%Europe 22,663bn2.5%Latin America 4,494bn0.8%Mena 2,619bn0.8%Sources: Worldbank, Tradingeconomics, Statista, 2015*The GDP for the major Asian-Pacific economies are actual. The other countries (including Taiwan, Philippines andThailand) are based on our calculation from the 2012 figures from the Worldbank.20112012201320142015 (f)Sources: Ecommerce Foundation, Statista 2015 (1)www.ecommercefoundation.org12

Internet PenetrationInternet penetration per regionThe average Internet penetration in the five global regionsslightly increased to 48% in 2014. This resulted in 2.7 billionpeople being connected to the Internet.At 77%, North America had the highest rate of people withInternet access, followed by Europe with 72%. It isinteresting to see that even though Asia-Pacific achieved thehighest B2C e-commerce sales last year, it also had thelowest Internet penetration. When this rate increases, its ecommerce turnover will grow even more.INTERNET ACCESS PER REGIONInternet access covered countries and online population, 2014RegionsInternet access*Online PopulationRegions Total(excl. BRICS)48%2,737.1mnNorth America77%290.4mnEuropa72%490.4mnLatin 8.9mnBRICS39%913.1mnSources: Worldbank, 2015Global B2C E-commerceTOP 10 COVERED COUNTRIES ON BASIS OF INTERNET PENETRATIONInternet penetration and online population, 2014CountriesInternet penetration per countryWith regard to the countries covered in thisreport, the UK had the highest Internetpenetration; 92% of its population hadaccess to the Internet in 2014. It wasfollowed by Japan (91%) and the US (87%).Even though Asia-Pacific was the regionwith the lowest Internet penetration, therewere three Asian-Pacific countries in the top10. However, with only 18% of its 1.3 billioninhabitants being connected to the web,India significantly lowered the region’saverage. In addition, at 49%, China’sInternet penetration was also quite low.www.ecommercefoundation.orgInternet penetration Online populationTop 10 countries84%719.8mnUnited 87%26.2mnGermany86%60.3mnAustralia85%16.3mnSouth %10.2mnSources: Worldbank, Internetlivestats, Eurostat, Ecommerce Foundation, 2015*share of total population14

Population per regionThe table below provides an overview of the globalregions in terms of population. Asia-Pacific is clearly inthe lead in this regard, with a total population of 5.1billion people. This is mainly due to the presence ofChina and India, which together account for more thanone third of the world’s population. When we look at theother continents, Europe ranked second with 817.5million inhabitants, followed by North America (478.2million).REGIONS IN TERMS OF TOTAL POPULATIONTotal population and number of households, 2014RegionsTotalpopulationNumber ofhouseholdsRegions total(excl. .1mnBRICS3,031.5mn897.0mnEurope817.5mn331.7mnN. America478.2mn167.6mnMENA437.8mn82.5mnL. America393.6mn116.8mnPopulation and HouseholdsPopulation per countryWith 1.4 billion inhabitants, China was theleader with regard to population in 2014. Itwas closely followed by India, which had atotal of 1.3 billion inhabitants. It isexpected that India will surpass Chinaaround 2025.The gap between these two nations andthe other countries is considerable. TheUnited States ranked third with 318.9million inhabitants, while Indonesia (252.8million) and Brazil (202.0 million)completed the top 5.Global B2C E-commerceTOP 10 COUNTRIES IN TERMS OF TOTAL POPULATIONTotal population and number of households, 2014CountriesTotalpopulationNumber ofHouseholdsTop 40.4mn29.9mnSources: Worldbank, Internetlivestats.com, Eurostat, Generator Research, EcommerceFoundation, 2015Sources: Worldbank, Ecommerce Foundation, 2015www.ecommercefoundation.org16

Growth in Global B2C E-commerce SalesGlobal B2C E-commerceGLOBAL B2C E-COMMERCE SALESTotal online sales of goods and services of countries covered, 2011 - 2015 2,251bn 1,943bn 1,564bn 1,252bn 1,014bn2011GrowthGlobal B2C e-commerce sales have increased steadily since 2010. Inaddition, the growth rate has been quite consistent over the last fewyears, as shown in the graph below.However, this trend is not expected to continue in 2015, as a growthrate of 15.9% is forecast, resulting in a global B2C e-commerce turnoverof 2,251bn. Even though this growth rate is still significant, its decreasecan be seen as a first sign of the global B2C e-commerce marketbecoming more and more mature.2012201320142015 (f)Source: Emarketer, Ecommerce Foundation, 2015GLOBAL B2C E-COMMERCE GROWTH RATEPercentage change in B2C e-commerce turnover of countries covered, 2011 - 201526.2%201123.4%201225.2%24.0%2013201415.9%2015 (f)Source: Ecommerce Foundation, 2015www.ecommercefoundation.org17

Usage of Smartphones and TabletsGlobal B2C E-commerceTABLETS AND SMARTPHONESOverview of usage of mobile devices per region, in millions of US dollarsNorth es002010201120122013201020142011Western EuropeEastern lets80Smartphones1000201020112012201320142010Latin AmericaMENA150200Tablets100201410050150Especially in China and MENA, the popularity oftablets lags behind. However, Europeans and NorthAmericans are more and more embracing tabletsfor buying goods and/or services online. This isevident from the growing share of e-commerceturnover made through tablets, which is shown inthe tables on the left.2001002002014Smartphones continue to dominateWhen we look at the use of mobile devices in globalregions, we see that smartphones remain the mostimportant mobile device with regard to shoppingthrough the 13Smartphone sales increased by 48%in the developed world,but by 164% in the emerging 13201420102011201220132014Source: Total market including 2014 estimation by GfK Trends and Forecastingwww.ecommercefoundation.org26

GlobalB2CB2CE-commerceE-commerceRegional and NationalOverview of the Regional and National E-commerce MarketsCommissioned byIn cooperation withPowered byExecuted by

Legend: Explanatory NotesRegional and National B2C E-commerceCountry pagesOn the following pages, you will find an overview of the most important mature andemerging e-commerce markets in the world. On each page, a country will be covered Country X vs. Global Averagesby means of several figures and graphs, as shown to the right. Here you will find aCountry Xshort explanation of these graphs.Economic indicatorsThrough the three economic indicators GDP growth rate, inflation rate andunemployment rate, we want to provide an overview of the economic situation of acountry, in comparison with the global averages. The growth rate of the GrossDomestic Product shows how much the size of the country’s economy grown, whilethe inflation rate indicates how much prices have increased in a country. Theunemployment rate is the percentage of the labor force without a job.4.5%GlobalShare of online spending per e-shopper in GDP per capitaComparable with the eGDP, but this figure shows how much an e-shopper is onaverage willing to spend of the GDP per capita, or the size of a country’s economy .3% 2.4%GDP growth rateInflation rateShare of e-commerce in GDPThe share of e-commerce turnover in the GDP shows the influence of e-commerce in aNational E-commerce Sharescountry’s total economy.Share of e-shoppers in populationThis represents the percentage of online shoppers in the total population, which is anindication of what share of the inhabitants is interested in online shopping.6.7%3.4%Share of ecommerce in GDP45.6%Unemployment rate7.8%Share of onlineShare of e-shoppersspending per e-shopperin populationin GDP per capita31

North AmericaAn Overview of E-commerce Markets in North AmericaCommissioned byPowered byExecuted by

North America Key B2C E-commerce Data of Goods and Services at a Glance 2014100%77%Canada478 millionForecast 2015people live in North America 589bn290 million*people use the Internet52%196 million*United StatesMexicoTurnover E-commerceGoods & Servicespeople are e-shoppers*excluding people aged 0-14North America 522.9 bn 12.2%Asia-Pacific 770.0 bn 44.3%Europe 567.0 bn 13.9%Latin America 37.4 bn 18.2%MENA 21.0 bn 21.5%Ranking covered countriesin turnover (in millions of USD)Total B2C E-commerce of Goods & Services 2014North America 522.9bn 12.2%eGDP123United StatesCanadaMexico 482,650 27,820 12,381Estimated share of4.2% online goods intotal retail of goods2.55%45% 55%Services GoodsTotal GDP 20,488 bnNational e-commerce associations:CanadaUnited StatesAverage spendingper e-shopperEstimated 64% of active Internet users areon social mediaInfo: info@ecommercefoundation.orgFor reports: info@ecommercefoundation.orgRaadhuisstraat 22 1016 DE Amsterdam NetherlandsPowered by:Mexico Ecommerce Foundation Sep 2015Twitter: @EcomfoundFree download at:https://www.ecommercefoundation.org/reports

E-commerce MarketsNorth AmericaCanada vs. Global Averages36 millionCanadaDollar (CAD)5.0%(General Sales Tax, GST)Gross Domestic Product 1.8 trillionInternet penetration87%Online population26 millionAverage spending perCanadian e-shopper 1,646Global7.0%6.6%CanadaEven though the US economy is many times larger thanthe Canadian one, they are still comparable. For instance,their GDP growth, inflation and unemployment rates arenearly similar. In terms of Nationals E-commerce Shares,as well as in average spending per e-shopper, Canada islagging behind a little. However, the fact that nearly halfof all Canadians have purchased something through theInternet indicates that e-commerce is becoming anintegral part of Canadian life.4.0%2.5% 2.4%GDP growth rate1.9%Inflation rateUnemployment rateNational E-commerce SharesCultural differences have often been cited among thefactors behind the slower progress of Internet shoppingin Canada. Another reason is the fact that Canadiancompanies are in general still reluctant to use theInternet to promote their business.1.6%Share of ecommerce in GDPwww.ecommercefoundation.org56.3%3.3%Share of onlineShare of e-shoppersspending per e-shopperin populationin GDP per capita36

Latin AmericaAn Overview of E-commerce Markets in Latin AmericaCommissioned byPowered byExecuted by

Latin America Key B2C E-commerce Data of Goods and Services at a Glance 2014394 million100%people live in Latin America221 million*61%Brazilpeople use the Internet29%87 million*Forecast 2015 44bnTurnover E-commerceGoods & Servicespeople are e-shoppersChile*excluding people aged 0-14ArgentinaLatin America 37.4 bn 18.2%Asia-Pacific 770.0 bn 44.3%Europe 567.0 bn 13.9%North America 522.9 bn 12.2%MENA 21.0 bn 21.5%Ranking covered countriesin turnover (in millions of USD)Total B2C E-commerce of Goods & Services 2014Latin America 37.4bn 18.2%123eGDP0.83%BrazilArgentinaChile47% 53%Services Goods 20,970 4,450 2,000Estimated share of2.1% online goods intotal retail of goodsTotal GDP 4,494 bnNational e-commerce associations:BrazilArgentinaChiliAverage spendingper e-shopperEstimated 57% of active Internet users areon social media Ecommerce Foundation Sep 2015Info: info@ecommercefoundation.orgFor reports: info@ecommercefoundation.orgRaadhuisstraat 22 1016 DE Amsterdam NetherlandsPowered by:Twitter: @EcomfoundFree download at:https://www.ecommercefoundation.org/reports

E-commerce MarketsLatin AmericaChile vs. Global Averages18 millionPeso (CLP)ChileChile4.4%19.0%Gross Domestic Product 258 billionInternet penetration72%Online population10 millionAverage spending perChilean e-shopper 377Chile is a rapidly increasing e-commerce market. In fact, itis ranked first in the Global Retail Development Index,which shows that this country provides a lot of changesfor domestic and foreign online and other retailers.The share of e-commerce in the country’s Gross DomesticProduct is still quite low, but in line with the other B2C ecommerce markets in the region. However, just as inArgentina, the share of e-shoppers in the Chileanpopulation form a good basis for B2C e-commerce.1.9%Global 6.1%6.6%4.0%2.4%GDP Growth RateInflation RateUnemployment RateNational E-commerce SharesThe Chilean economy is performing rather well, especiallywhen compared to those of the other two major B2C ecommerce markets in Latin America. In the categories ofGDP growth rate, inflation rate and unemployment rate,Chile scores around the global average. As a result, thecountry is considered one of Latin America’s most stableand prosperous nations.www.ecommercefoundation.org0.8%Share of ecommerce in GDP37.6%2.6%Share of onlineShare of e-shoppersspending per e-shopperin populationin GDP per capita43

EuropeAn Overview of E-commerce Markets in EuropeCommissioned byPowered byExecuted by

Europe Key B2C E-commerce Data of Goods and Services at a Glance 2014817 million100%people live in Europe72%France40%RussiaUnited Kingdom490 million* 639bnpeople use the InternetTurnover E-commerceGoods & Services274 million*GermanyForecast 2015people are e-shoppers*excluding people aged 0-14Europe 567.0 bn 13.9%Asia-Pacific 770.0 bn 44.3%North America 522.9 bn 12.2%Latin America 37.4 bn 18.2%MENA 21.0 bn 21.5%Spain ItalyRanking covered countriesin turnover (in millions of USD)Total B2C E-commerce of Goods & Services 2014Europe 567.0bn 13.9%eG

commerce and provides for benchmarking and reports on e-commerce facts and figures. It also serves as Ecommerce Europe'sresearch institute. In this role, the Ecommerce Foundation was commissioned by Ecommerce Europe to develop the European B2C E-commerce Report and more than forty national e-commerce reports.