Some benefit, others fall behind
The findings show that e-commerce is strongly popular across regions as consumers in emerging economies are making major changes to their online shopping.
For example, Mercado Libre, an online marketplace in Latin America, sold twice as much merchandise per day in the second quarter of 2020 compared to the same period last year. Furthermore, Jumia, an African e-commerce platform, claimed a 50% rise in transactions in the first half of 2020.
Between August 2019 and August 2020, China’s online market share of retail sales climbed from 19.4 percent to 24.6 percent.
In Kazakhstan, retail sales online market share rose from 5% in 2019 to 9.4% in 2020.
In Thailand, the number of shopping app downloads per week increased by 60% in March 2020.
The e-commerce capture trend reported in 2020 is likely to continue during the recovery, the report says.
However, many consumers and businesses in the world’s poorest countries do not take advantage of the e-commerce opportunities brought on by the pandemic because of permanent barriers. These include costly broadband services, excessive reliance on cash, lack of consumer trust, insufficient digital technology among the public, and crucial concerns about government e-commerce.
Countries that take advantage of the potential of e-commerce can better benefit from the global market for goods and services in this digital economy, while those that do not, carry a much higher risk of delayed quality. One of the challenges, according to the reports, is that Covid-19 has largely benefited the world’s best digital platforms.
Many of the solutions used for e-commerce, telecommuting, and cloud computing are being provided by a relatively small number of large enterprises, mainly based in China and the United States. Smaller businesses may get a stronger foothold, but digital behemoths may still outnumber them in the market, solidifying their dominance during pandemics.
Action points for inclusive e-commerce
According to the reports, building an effective e-commerce ecosystem will require changes in public policies and business practices to improve digital and transaction infrastructure, facilitate digital payments, and establish an appropriate legal and regulatory framework for online transactions and security.
Charting the future of e-commerce
Finding new paths in the digital economy requires better dialogue and collaboration. One such platform is the UNCTAD-led eTrade for all firms now financed by the Netherlands, Germany, and Estonia. The program has functioned as a worldwide assistance desk for developing nations for the past four years, bridging the knowledge gap in terms of information and resources in e-commerce and encouraging collaboration amongst partners. Since the pandemic’s start, more than 30 eTrades for All partners have collaborated to promote awareness of the e-commerce potential and concerns that arise when a crisis strikes. They also identified strategies for developing and least-developed countries’ enterprises to address challenges.
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