• OECD definition or an e-commerce transaction: – “...the sale or purchase of goods or services, conducted over computer networks by methods specifically designed for the purpose of receiving or placing of orders”. – Payment and delivery do not have to be conducted online. – Can be between enterprises, households, individuals, governments, and other public or private organisations. – Orders made by telephone calls, fax or manually typed e-mail excluded 2 • Business-to-business (B2B) – Online sales between enterprises, including linked to outsourcing and offshoring. – Online presence needed for SMEs to participate in value chains. • Business-to-consumer (B2C) – Involves sales by "pure play" e-commerce enterprises and traditional bricks-and-mortar firms adding online sales channels. – Many ways to reach consumers: social networks, crowdsourcing, ecommerce websites, mobile applications. • Consumer-to-consumer (C2C) • Government-to-business (G2B): e.g. e-procurement Improved connectivity in developing countries – Mobile telephony, Internet use and social media Reduced barriers to entry – New e-commerce applications and platforms – New e-commerce services – New payment solutions Rise of many new e-commerce companies in the South • • • • • • • Access global value chains Access to markets/exports Access to suppliers/imports Higher productivity More competition Greater consumer choice Job creation • • • • • • Risk of fraud Costs of adaptation Risk of crowding out Risk of losing tax revenue Risk of job losses Risk of widening divides • Countries need capabilities to engage in e-commerce… • …and to ensure that e-commerce contributes to their development • UNCTAD B2C E-commerce Index developed to provide countries an easy way to compare their e-commerce readiness • First edition presented in Information Economy Report 2015 • Percentage of individuals using Internet – Sources: ITU, 2014, 208 economies • Credit card (% age 15+) – Source: World Bank Findex survey, 2014, 159 economies • Secure Internet servers (per 1 million people) – Source: World Bank, 2014, 200 economies • Postal reliability score – Source: Universal Postal Union, 2013-2014, 185 economies • Total coverage: 137 economies Source: UNCTAD. 2014 B2C E-Commerce Index 2016 B2C E-Commerce Index 4 indicators: Internet users Secure servers Credit card penetration Postal delivery at home 4 indicators: Internet users Secure servers Credit card penetration Postal reliability score 130 economies 137 economies 99% of world GDP Source: UNCTAD. Wholesale and retail trade enterprises with B2C sales, 2014 (% of all wholesale/retail enterprises with 10 or more employees) 27 28 5 6 7 8 8 8 10 14 14 14 14 12 12 13 Source: UNCTAD based on data from Eurostat. 18 18 19 17 16 16 16 21 21 21 22 Activities limited by lack of confidence in Internet security (% of Internet users), New Zealand, 2012 34 36 Social networking Buying or selling goods and services online 31 17 Using New Zealand government websites Internet banking Source: UNCTAD based on data from Statistics New Zealand. Source: UNCTAD based on data from Worldpay, 2015. 2016 Rank 1 2 3 4 5 6 7 8 9 10 Economy Luxembourg Iceland Norway Canada Japan Finland Republic of Korea United Kingdom Switzerland New Zealand Source: UNCTAD. Share of individuals using Internet 95 98 96 87 91 92 84 92 87 86 UNCTAD Share of Secure UPU B2C eindividuals Internet postal commerce with credit servers per 1 reliability Index value card million people score 2016 69 98 97 89.7 77 100 81 89.0 67 96 89 87.1 77 92 89 86.3 66 89 99 86.1 63 95 87 84.3 56 97 100 84.3 62 92 89 83.7 54 99 93 83.3 61 92 93 82.9 2014 Rank 1 N/A 2 4 12 3 8 9 14 13 2016 Rank 7 14 23 25 26 32 39 40 43 44 Economy Republic of Korea Hong Kong (China) Singapore United Arab Emirates Qatar Bahrain Uruguay Kuwait Chile Malaysia Source: UNCTAD. Share of Share of Secure UPU UNCTAD individuals individuals Internet postal B2C eusing with credit servers per 1 reliability commerce Internet card million people score Index value 84 84.3 56 97 100 75 81.1 64 88 98 82 75.8 35 88 98 90 73.4 37 80 86 91 72.4 32 78 88 91 66.5 28 75 72 61 62.6 40 70 79 79 61.9 28 73 68 72 60.3 12 64 69 68 60.1 20 69 84 2014 Rank 8 18 26 66 73 34 40 N/A 39 45 Region Africa Southern, Eastern and SouthEastern developing Asia Western Asia Latin America and the Caribbean Transition economies Developed World Source: UNCTAD. Number of economies Share of individuals using Internet Share of individuals with credit card Secure Internet servers per 1 million people UPU postal reliability score UNCTAD B2C ecommerce Index value 34 18 3 39 37 24 21 10 36 54 14 17 54 66 47 74 38 53 20 15 37 137 43 46 77 49 11 12 38 19 59 59 84 62 56 54 84 59 42 43 71 47 Africa South Africa Mauritius Tunisia Morocco Egypt Botswana Kenya Senegal Developing Asia and Oceania Korea, Republic of Hong Kong (China) Singapore Malaysia China Thailand Viet Nam Islamic Republic of Iran Latin America and the Caribbean Uruguay Chile Brazil Costa Rica Argentina Mexico Jamaica Trinidad and Tobago Transition economies Macedonia, TFYR Russian Federation Serbia Ukraine Moldova Albania Azerbaijan Belarus Algeria Ghana Philippines India Panama Ecuador Montenegro Bosnia and Herzegovina Source: UNCTAD. Source: UNCTAD. 17 Source: UNCTAD. • Index allows countries to compare their performance in different areas. • The Index does not explain all factors – – – – – Security and knowledge factors Preferences for shopping in bricks-and-mortar stores Legal and regulatory environment Payment environment Skills availability • Good starting point for assessment of readiness • Can contribute to Aid for eTrade Initiative