So far, 2019 has been a turbulent year in Peru in terms of politics. However, despite this, here are a number of indicators suggesting that Peru’s economy will keep performing well during 2020 and beyond, and we covered these indicators in our 2020 Major Markets Forecast for Latin America.
E-commerce is one of the positive areas in Peru’s economy, reflecting the overall growth in the country.
According to the Cámara de Comercio de Lima, e-commerce sales in Peru will reach US$2.8 billion in 2019. These figures were recently reported during E-Commerce Day Peru during a talk, but we weren’t able to find a published study with projections for 2019 or e-commerce sales figures for 2018.
Linio recently published a website entitled Índice Mundial del Comercio Electrónico in which it indicated that e-commerce sales were US$4 billion in Peru, presumably for 2019, though it isn’t entirely clear.
At Americas Market Intelligence (AMI), we use a different methodology than other organizations to calculate market size, working all merchant verticals, PC, mobile and in-app purchases, crossborder e-commerce transactions using a locally issued card and all card-not-present transactions, such as recurring payments. As such, AMI analysis indicates that in 2018, the e-commerce market in Peru posted slightly more than US$3 billion in sales.
Projections for E-Commerce in Peru
According to AMI analysis, the e-commerce market in Peru will grow by 319% between 2018 and 2022 to reach US$14 billion.
The Top-Selling Products in Peru’s E-commerce Market
Given the lack of detailed e-commerce reports about Peru, it’s difficult to find a list of the most popular products sold via e-commerce in Peru, whether through customer surveys or transactional data.
Market research company BlackSip produced a 2019 report on e-commerce in Peru which cited data from a Euromonitor report entitled Internet Retailing in Peru. This data didn’t indicate which were the best-selling products per se, but instead focused on the value of specific product categories in Peruvian e-commerce. The Euromonitor report indicated that the categories with the greatest value in Peru’s e-commerce market are:
- Consumer electronics (600 million soles or US$177 million)
- Clothing and footwear (358 million soles or US$106 million)
- Multimedia products (242 million soles or US$71 million)
- Personal accessories (103 million soles or US$31 million)
- Food and beverages (98 million soles or US$29 million)
The Main Payment Methods Used in E-Commerce in Peru
None of the published sources we reviewed indicated which were the most common payment methods for e-commerce in Peru.
According to AMI analysis, the most common payment methods used for e-commerce shopping in Peru are:
- Credit cards (63%)
- Cash vouchers (13%)
- Debit card (10%)
- Bank transfers (6%)
- Digital wallets (5%)
- Other methods (3%)
Main Devices Used for E-Commerce Purchases in Peru
A study by Picodi Peru indicated that 76% of e-commerce purchases in Peru were made using a smartphone, versus 22% with a desktop. That said, methodological details were not available and these results could reflect an online survey as opposed to transactional data from a platform that will give a true idea of the devices used.
AMI analysis indicates significantly different percentages: 53% of e-commerce purchases in Peru are made with desktops while 47% are made with mobile devices.
While smartphone penetration in Peru (40%) is still generally low compared to other LatAm countries, the popularity of ride hailing apps, food delivery apps and online ticketing are increasing the mobile channel in Peru. As such, by 2022 AMI forecasts that mobile devices will account for 76% of e-commerce purchases in Peru and desktops will account for just 22%.
Factors Limiting E-Commerce Growth in Peru
- Peruvian consumers tend to use cash for transactions quite often, and this limits the penetration of e-commerce in the country
- 55% of Peruvians are concerned that giving their personal information (credit card numbers, address, phone numbers) for e-commerce purchases can be harmful to them
- Peruvians also mistrust making online purchases: a 2018 survey from GfK indicated that 39% of Peruvians don’t think products will be delivered to them correctly, compared to the 26% global average in this area
- 40% of Peruvians say they prefer to look at products in person rather than online and 22% prefer to purchase products in stores rather than online
#1 Our 2019 E-Commerce Datapack contains extensive data on Peru. Click here to find out how to order a copy.
#2 For more specific data, AMI specializes in research and market intelligence for the Peruvian and LatAm e-commerce markets in a number of key areas:
- Identifying the major payment methods used in Peru’s e-commerce market to help merchants with strategic planning, market entry and market expansion
- Helping merchants understand the cross-border e-commerce potential in Peru and the practices that can increase cross-border sales
- Using artificial intelligence and machine learning to help e-commerce merchants focused on Peru to analyze their customer data for a deeper understanding of e-commerce shopper behavior and tendencies so as to refine their marketing tactics, messaging and consumer outreach