web analytics

Underdeveloped B2C E-Commerce in emerging markets is often blamed on low Internet penetration rates, poor logistics, insufficient regulatory framework and other infrastructure-related factors. However, surveys show that both in emerging and advanced markets, there are multiple reasons why consumers who already have Internet access do not yet buy goods and services online.

One of the top reasons is the preference for buying goods in-store. This reason was indicated by 75% of individuals in the EU who did not order goods or services over the Internet in 2015, according to statistics from Eurostat. In India, close to a third of Internet users who are not yet online buyers prefer to buy in person even if they research the product online before going to a store.

Another major reason is fear for personal and payment data safety. Even in the USA, one of the most advanced online retail markets worldwide, a national survey revealed that more than one quarter of households avoided conducting financial transactions online because of security issues. Payment security concerns was also the second most popular reason among consumers in the EU who did not shop online in 2015.

Finally, another widespread reason for Internet users to not engage in E-Commerce is lack of online payment means. This is especially the case in emerging markets, where bank card penetration is lower. For example, close to half of non-online shoppers with Internet access in Mexico stated in a late-2015 survey that they did not buy online because they had no credit card.

More insights into behavior and preferences of Internet users and online buyers can be found in our reports, such as “Fraud and Security in Global Online Payments 2016”.

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