UNCTAD B2C E-commerce Index 2016

UN CTA UNITED NATIONS UNCTAD B2C -COMMERCE INDEX 2016 UNCTAD Technical Notes ICT Development ˚7 1 | UNCTAD B2C -COMMERCE INDEX 2016 Executive Summary consecutive year, Luxembourg top performer UNCTAD B2C -commerce Index, measures readiness countries engage online commerce. top 10 economies, European, Asia-Pacific region North America. developing economies, high-income economies – Republic Korea, Hong Kong (China) Singapore – rank highest, Gulf States. Uruguay top performer Latin America Caribbean. 61 st place Index, South Africa front-runner -commerce readiness African continent. greatest improvements compared 2014 Index noted Qatar ( 47 positions) United Arab Emirates ( 41 positions), large part due improved indicator measuring postal efficiency. Conversely, Madagascar Sierra Leone negatively affected changed methodology largest declines ranking. full ranking contained Annex table 2. UNCTAD B2C -commerce Index 2016 composed indicators: Internet penetration, secure servers 1 million inhabitants, credit card penetration postal reliability score. year' Index improved increasing geographic coverage ( 130 137 economies) fine-tuning indicator measure delivery aspect -commerce. straightforwardness transparency Index countries compare perform areas. 137 economies represent 96% world population 99 % world GDP. increasing number countries design national policies strategies harness full potential -commerce economic development. Index helps policy makers assess extent economies -commerce ready areas greatest improvement. -commerce readiness varies region. population Africa Internet compared thirds Western Asia. Western Asia transition economies fare indicators, credit card availability average. , Asia boost Internet penetration, stands population, number secure servers. Latin America Caribbean, main barriers credit card penetration poor postal reliability. Africa ranks lowest indicators. improvement underlying transaction logistics processes, African online shopping remain confined wealthier populations urban areas. methodological , compared previous edition index, Uruguay Russian Federation sizable improvement share individuals credit card jumped 13 percentage points Uruguay ( 27% 40%) 11 percentage points Russian Federation ( 10% 21%). improvements secure Internet servers 1 million people slower place, indicator moved Guinea (+4), Lesotho (+3) Liberia (+3). 2 | 1. INTRODUCTION report update UNCTAD Business--Consumer (B2C) -Commerce Index, introduced Information Economy Report 2015: Unlocking Potential - commerce Developing Countries. 1 reviews possibility incorporating indicators, tests robustness existing indicators updates Index latest data. 2. THE INDICATORS Index reflects steps involved B2C transaction (figure 1). form web presence required part businesses accept online orders. process requires Internet access part users review products place order. payment method credit card, -money, bank transfer cash delivery. Finally product delivered, online digital products customer' home pick point goods. Figure 1. online purchase process Source: UNCTAD. Data sources indicators shown table 1. cases, missing data indicators extracted national sources. case missing data, estimates based growth rates. data estimated . credit card data updated based ratio credit card ownership total 1 unctad.org/ier. 3 | credit cards data central bank. Index calculated country contained Annex table 1. Table 1. Data sources Indicator Number economies data, 2014 Source Internet (% individuals) 208 International Telecommunication Union (ITU) (http://www.itu.int/en/ITU- /Statistics/Pages/stat/default.aspx) Secure Servers 1 million inhabitants 200 World Bank (http://data.worldbank.org/indicator/IT.NET.SECR.P6) Credit card (% population 15+) 159 World Bank Global Findex Database (http://datatopics.worldbank.org/financialinclusion) Postal Reliability Score 185 (2013-14) Universal Postal Union (UPU) Source: UNCTAD. 2.1 Internet users Indicators selected benchmark B2C process based statistically significant. straightforward Internet penetration. Surveys Internet carried number countries. data compiled International Telecommunication Union (ITU), estimates. previous edition, ITU data complemented data national sources. Surveys analyzed order extract relevant online shopping statistics dependent variable testing Index. 2.2 Secure servers online shopping process involves purchasing -commerce web presence. Ideally represented indicator percentage enterprises sell B2C web presence ( website marketplace). related indicator – proportion enterprises B2C sales – included enterprise surveys Eurostat (figure 2, left). , widely countries. number secure Internet servers selected proxy - commerce sites employ security protocols safeguard payment personal information, . 2 Secure servers encryption technology online transactions protect transfer data unauthorized interception. indicator 2 2005, OECD number Internet subscriptions secure servers proxy -commerce demand supply. : OECD. 2005. Communications Outlook. http://www.oecd- ilibrary.org/content/book/comms_outlook-2005-en. 4 | countries World Bank, ensuring high coverage. Secure servers allay security concerns, mentioned barrier online shopping (figure 2, ). Secure server penetration higher economies -developed financial sectors banks major users security protocols. Figure 2. Share B2C websites EU 2014; security concerns Zealand 2012 Source: UNCTAD research based data Eurostat Statistics Zealand. 2.3 Credit card penetration Products purchased Internet paid online offline. Credit cards prevalent payment method worldwide terms online transaction purchase , situation forecast remain 2019 (figure 3). payment options increasingly , credit cards widely accepted virtually B2C web site. 5 6 7 8 8 8 10 12 12 13 14 14 14 14 16 16 16 17 18 18 19 21 21 21 22 27 28 Cyprus Portugal Italy Bulgaria Latvia Romania Spain Luxembourg Poland France Hungary Malta Slovakia Finland Estonia Croatia Austria Ireland Belgium Slovenia Lithuania Germany Netherlands Sweden Denmark Czech Republic United Kingdom Wholesale retail trade enterprises B2C sales (% wholesale/retail trade entreprises 10 employees), 2014 17 31 34 36 Zealand government websites Internet banking Social networking Buying selling goods services online Activities limited lack confidence Internet security (% Internet users), Zealand, 2012 5 | , credit card constrain ability consumer freely shop order online shop. indicator credit card penetration population aged 15 years older, collected part World Bank' Global Findex survey. Figure 3. Online payment methods , 2014 forecast 2019 Note: includes -invoices, postpaid, prepay, mobile carrier billing, crypto currencies (.. Bitcoin) emerging technologies. -wallets consumers electronically stored money funds payment type linked -wallet; examples include Alipay, Tenpay, PayPal, Qiwi, Yandex.Money. Credit cards includes card payment solutions (credit card, debit card, charge card pre- paid card). Source: UNCTAD research based data Worldpay, 2015. Global Guide Alternative Payments. 2.4 Postal reliability score product ordered line delivered. Delivery physical goods key consumer concern. 2014 B2C -Commerce Index, physical delivery considered indicator selected proportion population received home postal delivery. 2016 Index, indicator chosen: UPU postal reliability score ( section). 6 | Home 50% Post/courier office 34% Office 2% Store 4% 10% 16% Preferred delivery method, Nordic region, 2014, % online shoppers Home residence 74% Retailer store 10% Friend/ family 5% Work 5% Post/courier office 4%Delivery locker 2% 26% Preference delivery, US, 2014 3. REVISITING THE MEASUREMENT OF -COMMERCE DELIVERY revisiting original Index, questions methodology arose regard indicator delivery, physical goods services digital products. section examines options results delivery indicators. 3.1 Delivery physical products noted , original Index percentage population receive mail home delivery indicator. Home delivery convenient method receiving purchases important cash delivery, popular developing countries. -developed -commerce markets widespread home delivery, options desired. survey Nordic nations, online purchasers choose delivery method home (figure 4, left). survey carried United States, fourth online shoppers preferred pick order someplace home (figure 4, ). Figure 4. Package delivery options Nordic countries United States, 2014 Source: UNCTAD research based PostNord. 2015. -Commerce Nordics UPS. 2014. Pulse Online Shopper. regions, delivery mail post office boxes common method. Middle East, , lack street addresses historically meant population picked mail post office. countries penalized 7 | previous indicator mail access postal establishment retrieve parcels receiving orders place work. search indicator, considered rejected: • Universal Postal Union (UPU) indicators population receives mail (.., home, post office ). statistically ideal normalized. , postal authorities publish data. impossible check cases missing questionable data • Time post office. indicators attractive, postal authorities rarely compile data availability extremely limited. • Coverage postal authorities terms average people post office average area post office. average people post office penalize small urban economies area small large number people post office. hand, area coverage indicator penalize large countries good population coverage statistically poor area coverage. • Number post offices. consumers prefer mix options home delivery post office retrieval, indicator based number post offices limiting. developing countries, courier outlets growing exceed traditional postal locations. -commerce companies Nigeria Philippines partner local courier companies delivery trucks. 3 Quality important ability receive mail important long takes obtain . Delivery costs significant shape consumers buy online purchase physical store. clear statistical relationship ability receive parcels home incumbent postal operator speed delivery price sending . view limitations existing stand- indicators, UPU created reliability score assess relative quality core services delivery -commerce goods. score derived tracking data ) letter-post, ii) parcel-post iii) express mail service (EMS) delivery, equal weight. score includes main components, average domestic delivery shipping time ( fast order delivered domestic postal network country), standard deviation domestic delivery shipping time ( predictable domestic delivery service 3 Nigeria, -commerce site Jumia fleet 500 delivery vehicles. : https://www.jumia..ng/about_us/. Philippines, online shopping site Lazada collaborates courier company LBC Express deliveries. : http://www.lazada..ph/shipping/ 8 | country). 4 reliability score indicator goods delivery element 2016 edition UNCTAD B2C -commerce Index. 3.2. Delivery digital products B2C includes purchase digital products, increasingly downloaded streamed Internet. Depending product, 16% 18% online shoppers European Union download digital purchases (figure 5, left). Digital music sales growing steadily 2014 accounted industry' revenue (figure 5, ). , UNCTAD B2C -Commerce Index considers delivery physical goods reasons explained . Figure 5. Online purchases digitally delivered global digital revenues, music industry Source: Adapted Eurostat International Federation Phonographic Industry (IFPI). 2015. Digital Music Report. growth digital online purchases, ability efficiently download stream important. video streaming service Netflix, speeds 5 Mbps required streaming HD films. 5 interpreted minimum speed user enjoy full range digitally products. Content Delivery 4 components normalized 0 1 combined linearly equal weight. final result normalized time achieve final reliability scores 0 100. period covered release reliability score years 2013 2014. update cover 2015 2016. 5 https://.netflix./en/node/306 18 15 16 18 14 13 17 9 9 16 18 15 16 5 7 9 11 13 15 17 19 2010 2011 2012 2013 2014 Online purchase delivered online (% online shoppers) Video games software Films/music Books/magazines/-learning material Computer software 4.4 4.7 5.3 6.0 6.4 6.9 2009 2010 2011 2012 2013 2014 Global digital revenues, music industry (US$ billion) 9 | Network (CDN) provider Akamai publishes quarterly reports featuring relevant metrics: average user connection speeds proportion user connections 4 Mbps. 6 close relationship , preferred normalized (figure 6). Figure 6. Internet speed indicators, Q4 2014 Source: UNCTAD analysis data Akamai. proportion user Internet connections 4 Mbps tested inclusion Index. , results unsatisfactory. statistically relevant, coefficient generated negative indicating increase proportion reduced online shopping, counterintuitive. similar result obtained average connection speeds. , speed indicator included Index. unexpected finding Internet speed inversely related online shopping related interpretation Internet purchases users reporting physical products purchased ( survey questions refer purchase goods services). 2014 UNCTAD B2C -Commerce Index 2016 summarized table 2. year' Index increased geographic coverage. Sixteen 6 https://www.stateoftheinternet./resources-report-state---internet.html 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 5 10 15 20 25 li vi ra zu la , li ri .… si ia il ip st ic ra zi fr ic lo ia cu ru la si rg ti xi ile ly ra ir te rk ru ra ce il la st ra li rt lo . ry rm la ss ia ra ti st ri ra iw ro vi ce lg iu ta te rw ia rk la ze ch li Ir la rl ze rl Ja ( ) , . Average connection speed (Mbps) % 4Mbps 10 | economies added removed due lack data. net result additional economies, resulting total 137 2016 edition. Table 2. B2C -Commerce Index 2014 B2C -Commerce Index 2016 B2C -Commerce Index 4 indicators: • Internet users • Secure servers • Credit card penetration • Postal delivery home 4 indicators: • Internet users • Secure servers • Credit card penetration • Postal reliability score 130 economies 137 economies 4. RESULTS complete ranking countries UNCTAD B2C -Commerce Index 2016 contained Annex table 2. top 10 positions filled upper-income economies: Europe, Asia-Pacific North America (table 3). previous Index, Luxembourg ranks . -developed financial sector boosts secure server ranking. European headquarters global - commerce players Amazon, PayPal Apple.7 Valued Added Tax (VAT) ebooks stimulated -commerce EU requires Luxembourg charge higher rate beginning 2015. 8 landlocked, Luxembourg -developed logistics network highest European ranked country UPU postal reliability score. Iceland ranks due leader Internet penetration, credit card possession secure server diffusion. postal network dense accommodating -commerce; snapshot orders Alibaba' international online store post office handle customs clearance. 9 Norway Finland Nordic countries top ten characteristics: high Internet credit card penetration assumed proliferation web shops (captured high secure server values). Luxembourg, Switzerland strong financial sector, good logistics networks high postal coverage. United Kingdom high Internet penetration. B2C Index ranking reflected -developed -commerce market ( highest proportion 7 http://ict.investinluxembourg.lu/ict/-commerce 8 http://ebiz.pwc./2015/03/luxemburg--books--subject---standard-vat-rate---1--2015/ 9 http://www.postur./en/individuals/shipments--/aliexpress/ 11 | wholesale retail trade enterprises selling Internet Europe), attractive overseas shoppers; highest online shopping rate world 85% Internet users purchasing goods services Internet. Canada high credit card penetration B2C -commerce benefits proximity large United States market. Asia-Pacific economies top ten notable reliable postal networks; Republic Korea Japan rank 1 st 2 UPU Postal Reliability Score. Zealand good scores dimensions. Table 3. Top 10 economies UNCTAD B2C -commerce Index 2016 2016 Rank Economy Share individuals Internet (2014) Share individuals credit card (15+, 2014) Secure Internet servers 1 million people (normalized , 2014) UPU postal reliability score (2013- 14) UNCTAD B2C - commerce Index 2016 2014 Rank 1 Luxembourg 95 69 98 97 89.7 1 2 Iceland 98 77 100 81 89.0 #/ 3 Norway 96 67 96 89 87.1 2 4 Canada 87 77 92 89 86.3 4 5 Japan 91 66 89 99 86.1 12 6 Finland 92 63 95 87 84.3 3 7 Korea, Republic 84 56 97 100 84.3 8 8 United Kingdom 92 62 92 89 83.7 9 9 Switzerland 87 54 99 93 83.3 14 10 Zealand 86 61 92 93 82.9 13 Note: 2014 2016 indices postal methodologies. Source: UNCTAD. top 10 developing economies UNCTAD B2C -Commerce Index shown table 4. top 3 developing economies Asian Tigers high Internet penetration -developed logistics networks. Bahrain top 10 2014, newcomers Qatar United Arab Emirates previously underestimated Index account post office retrieval packages. full dataset Kuwait 2016 edition index. Common language spurred -commerce Gulf leading Arabic online shop Souq. countries inexpensive -day parcel delivery.10 Uruguay Chile top 10, 10 http://ems..sa/en/services/gulf-express 12 | highest Internet penetration region high credit card ownership. Malaysia rounds top 10 notably high score postal reliability. Table 4. Top 10 developing economies UNCTAD B2C -commerce Index, 2016 2016 Rank Economy Share individuals Internet (2014) Share individuals credit card (15+, 2014) Secure Internet servers 1 million people (normalized, 2014) UPU postal reliability score (2013-14) UNCTAD B2C - commerce Index 2016 2014 Rank 7 Korea, Republic 84 56 97 100 84.3 8 14 Hong Kong (China) 75 64 88 98 81.1 18 23 Singapore 82 35 88 98 75.8 26 25 United Arab Emirates 90 37 80 86 73.4 66 26 Qatar 91 32 78 88 72.4 73 32 Bahrain 91 28 75 72 66.5 34 39 Uruguay 61 40 70 79 62.6 40 40 Kuwait 79 28 73 68 61.9 #/ 43 Chile 72 12 64 69 60.3 39 44 Malaysia 68 20 69 84 60.1 45 Note: 2014 2016 indices postal methodologies. Source: UNCTAD. compared ranking previous year number occurred due revised methodology. greatest improvements compared 2014 Index noted Qatar ( 47 positions) United Arab Emirates ( 41 positions), large part due improved indicator measuring postal efficiency. Conversely, Madagascar Sierra Leone negatively affected changed methodology regard postal delivery largest declines ranking. full ranking contained Annex table 2. ITU data Internet users impacted relative ranking countries. applies economies: Iraq (-17), Trinidad Tobago (-10) Egypt (-9). methodological , Uruguay Russian Federation sizable improvement share individuals credit card. surged 13 percentage points Uruguay ( 27% 40%) 11 percentage points Russian Federation ( 10% 21%). improvements secure Internet servers 1 million people slower place, values indicator moved Guinea (+4), Lesotho (+3) Liberia (+3). Table 5 shows average values geographic region. wide regional differences. case Internet access, African region lags significantly , Western Asia ranking highest indicator. Relative strengths weaknesses differ 13 | indicators included index. , Western Asia transition economies fare dimensions, credit card availability remains average. Eastern, Southern South-Eastern developing Asia boost Internet penetration, stands population average, reliability postal network, number secure servers, essential online shopping sites. Latin America Caribbean, Internet penetration slightly world average density secure servers. main barriers credit card penetration poor postal reliability. Africa ranks lowest indicators, -commerce developing continent. Mobile money solutions growing number African countries partly compensate lack credit card . , improvement underlying transaction logistics processes, online shopping remain limited wealthier populations urban areas. Table 6 shows top 10 performers region. Table 5. Regional values UNCTAD B2C -commerce Index, 2016 Region Number economies Share individuals Internet (2014 latest) Share individuals credit card (15+, 2014 latest) Secure Internet servers 1 million people (normalized, 2014) UPU postal reliability score (2013- 14) UNCTAD B2C - commerce Index Africa 34 18 3 39 37 24 Southern, Eastern South- Eastern developing Asia 21 36 14 54 47 38 Western Asia 10 54 17 66 74 53 Latin America Caribbean 20 43 11 59 56 42 Transition economies 15 46 12 59 54 43 Developed 37 77 38 84 84 71 World 137 49 19 62 59 47 Source: UNCTAD. Note: Simple unweighted averages. 14 | Table 6. Top 10 economies UNCTAD B2C -commerce Index 2016, region Globally Developing economies Africa Developing Asia Oceania Latin America Caribbean Transition economies Luxembourg Korea, Republic South Africa Korea, Republic Uruguay Macedonia, TFYR Iceland Hong Kong (China) Mauritius Hong Kong (China) Chile Russian Federation Norway Singapore Tunisia Singapore Brazil Serbia Canada United Arab Emirates Morocco Malaysia Costa Rica Ukraine Japan Qatar Egypt China Argentina Moldova Finland Bahrain Botswana Thailand Mexico Albania Korea, Republic Uruguay Kenya Viet Nam Jamaica Azerbaijan United Kingdom Kuwait Senegal Iran, Islamic Republic Trinidad & Tobago Belarus Switzerland Chile Algeria Philippines Panama Montenegro Zealand Malaysia Ghana India Ecuador Bosnia Herzegovina Source: UNCTAD. factors play -commerce readiness measurable parts B2C transaction Index captures. legal regulatory framework influences level trust online transactions. UNCTAD continuously monitors availability laws relevance -commerce. 11 retail market environment, wealth consumer preferences play role captured. , countries Internet users shop online, payment, lack online shops delivery issues rarely cited main reasons. , relationship Index actual online shopping 2 0.74, small improvement earlier 2014 edition. economies due factors considered Index. Figure 7 shows relationship share Internet users shopping online Index values economies. Economies line expected (.., level online shopping higher predicted Index). Information Internet shoppers country contained Annex table 3. 11 UNCTAD' Global Cyberlaw Tracker: http://unctad.org/en/Pages/DTL/STI_and_ICTs/ICT4D-Legislation/eCom- Global-Legislation.aspx. 15 | Figure 7. Relation UNCTAD B2C -commerce Index 2016 online shopping Source: UNCTAD. , China online shoppers predicted Index . reason payments. 16% population 15 years older China credit card methods introduced barrier. Alipay -money service reportedly popular payment method online shopping China ( 68% Internet shoppers), 12 accounted 75% -commerce giant Alibaba' Gross Merchandize year March 2015. 13 Conversely, level online shopping Hong Kong (China) predicted. explained open economy abundant choice consumers spread concentrated area. , consumers prefer shop person, cited main reason shopping online Republic Korea (figure 8Figure 7, left), online shopping rate predicted. 12 http://www.worldpay./global/global-online-shopper-report 13 Alibaba Group Holding Limited. 2015. Form 20-. Bangladesh China Jordan Brazil Israel Korea (Rep.) Hong Kong (China) Qatar Colombia United Arab Emirates = 0.01x2 - 0.55x + 12.16 ² = 0.74 0 10 20 30 40 50 60 70 80 90 0 10 20 30 40 50 60 70 80 90 100 li ( % te rn se rs ) 2 0 1 4 la te st UNCTAD B2C -commerce Index 2016 16 | Shopping person impacted structure retail market; Israel, prices online sites higher physical shops, explain level online shopping predicted. 14 Socio-economic factors play. Qatar, shopping rate predicted compared Jordan wealthier. reason large portion population Qatar transient labor shop online (figure 8, ). Wealth factors explain Brazil higher online shopping rate Colombia. Brazil greater capita income Colombia population credit card. Colombia, 14% population credit card, rate increased 10% previous year. Figure 8. Reasons shopping online, Republic Korea share online shoppers demographic group, Qatar, 2014 Source: Adapted Korea Internet & Security Agency (KISA) ictQATAR. Table 7 sheds light difference predicted actual levels online shopping based relationship economy' Index reported level share online buyers. shows top bottom 10 economies percentage difference predicted actual share online shoppers ( proportion Internet users). noted earlier, China performing expected largest difference actual predicted proportion Internet users buy online. Notable -income nations South Asia East Africa expected Bangladesh, India, Kenya Tanzania. Conversely, Armenia performing worse expected; 1% Internet users shop online 14 https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Israel.pdf. 4.2 9.5 9.7 12.9 49.2 55.7 0 20 40 60 Privacy concerns Security concerns Lack skills Trust concerns interested Prefer shop person Reasons shopping online (% Internet users online purchases, 2014), Republic Korea 11 223 17 12 18 17 20 30 2227 0 0 10 20 30 40 50 60 70 80 90 100 % population % online shoppers Qatar, 2014 Transient Blue collar Asians Arabs Westerners Qatari 17 | compared predicted 11%. bottom 10 Caucasus, possibly reflecting trust concerns discouraging online shopping. notable United Arab Emirates Qatar bottom 10. prerequisites - commerce ranked 25 26 position , actual level online shopping predicted. Table 7. Top bottom 10 economies difference predicted actual share Internet users buying online, 2016 Top 10 Bottom 10 Online buyers share Internet users (%) Online buyers share Internet users (%) Economy Predicted Actual Absolute difference Relative difference (%) Economy Predicted Actual Absolute difference Difference 1 Bangladesh 7.0 23.0 16.0 228% Armenia 11.3 1.0 -10.3 -91% 2 China 19.8 55.7 35.9 182% Venezuela, Bolivarian Republic 9.6 1.1 -8.5 -89% 3 India 10.1 22.0 11.9 118% Azerbaijan 21.0 3.0 -18.0 -86% 4 Tanzania, United Republic 7.7 15.0 7.3 95% Georgia 12.7 2.0 -10.7 -84% 5 Jordan 13.9 27.0 13.1 94% Mexico 19.8 4.1 -15.7 -79% 6 Ukraine 24.9 44.0 19.1 77% Egypt 13.1 3.0 -10.1 -77% 7 Viet Nam 15.1 26.0 10.9 72% United Arab Emirates 49.0 16.0 -33.0 -67% 8 Malta 38.7 63.0 24.3 63% Colombia 16.2 5.6 -10.7 -66% 9 Denmark 57.8 81.0 23.2 40% Thailand 18.2 6.4 -11.8 -65% 10 Slovak Republic 41.4 58.0 16.6 40% Qatar 47.5 17.6 -29.9 -63% Source: UNCTAD. quality statistics affects Index. input construction Index data proportion online shoppers test statistical significance variables included Index. Anomalies present data distort results. Estonia, questions ICT included labor force survey 2013. 2014, data collected dedicated ICT survey. break series led higher proportion Estonian Internet shoppers (figure 9, top left). countries, proportion Internet shoppers barely budged, strange growing popularity -commerce. Colombia, Mexico Thailand, national statistics offices report negligible change proportion online shoppers rising Internet usage (figure 9, top ). Internet countries wealthy early adopters shop online. , data sources suggest rate higher, allowing margin error implicit surveys (figure 9, bottom left). wealthy countries high levels Internet access income differences play role online shopping adoption, 18 | differences surveys. survey Nordic countries average, online shopping rate 10 percentage points higher reported national statistics offices (figure 9, bottom ). Survey methodology questions asked making purchases online influence comparability data. Figure 9. Online shopping statistics Source: Adapted Statistics Estonia, InfoComm Development Authority (IDA) Singapore, Cetic Brazil, China Network Information Center (CNNIC), Thailand National Statistics Office, Instituto Nacional de Estadística, Geografí Informática (INEGI, Mexico), Departamento Administrativo Nacional de Estadística (DANE, Colombia), Eurostat, Pew 2015 PostNord 2015. 23.3 26.9 29.7 29.2 57.6 0 10 20 30 40 50 60 70 2010 2011 2012 2013 2014 Online shoppers (% Internet users), Estonia 0 10 20 30 40 50 60 2010 2011 2012 2013 2014 Online shoppers (% Internet users) Singapore China Brazil Thailand Colombia Mexico 35 56 6 5 4 6 31 52 18 3 12 22 3.8 3.5 3.5 4.3 4.0 3.9 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 0 10 20 30 40 50 60 Online shoppers (% Internet users), 2014 National Pew Margin error 78 68 75 77 87 76 84 82 50 55 60 65 70 75 80 85 90 Denmark Finland Sweden Norway Online shoppers (% individuals, 12 months) NSO PostNord 19 | 5. CONCLUSIONS Index enhanced physical delivery indicator penalize countries high level home delivery. straightforwardness transparency Index countries compare perform areas. inevitably trade- "" indicator data availability. order ensure wide coverage Index, proxy indicators widely selected. , Index subject data supplier coverage. , smaller island nations covered Global Findex data included Index. Index explain extraneous factors online purchase process. security knowledge factors inhibit , personal reasons people wanting shop bricks--mortar stores online. Laws inhibit development local web sites, limiting appeal online shopping. factors apparent comparing Index data share Internet users purchases Internet. Index identification objective factors online purchase, extraneous factors influencing countries explored detail. discussion policies improve -commerce readiness countries, Information Economy Report 2015. 15 15 unctad.org/ier 20 | ANNEX Annex table 1: Calculating UNCTAD B2C -commerce Index Republic Korea 2014 . INTERNET USE A1. Users (% population) 84 . PAYMENT B1. Credit card (% age 15+) 56 . B2C WEB PRESENCE C1. Secure Internet servers ( 1 million people) 2,178 C2. Secure server -Index, normalized 100 rescaling values. 97 . DELIVERY D1. Postal reliability score 100 B2C INDEX (A1+B1+C2+D1)÷4 84.3 21 | Annex table 2: UNCTAD B2C -commerce Index, 2016 2016 Rank Economy Share individuals Internet (2014 latest) Share individuals credit card (15+, 2014 latest) Secure Internet servers 1 million people (normalized, 2014) UPU postal reliability score (2013- 14) UNCTAD B2C -commerce Index 2015 2014 Rank 1 Luxembourg 95 69 98 97 89.7 1 2 Iceland 98 77 100 81 89.0 / 3 Norway 96 67 96 89 87.1 2 4 Canada 87 77 92 89 86.3 4 5 Japan 91 66 89 99 86.1 12 6 Finland 92 63 95 87 84.3 3 7 Korea, Republic 84 56 97 100 84.3 8 8 United Kingdom 92 62 92 89 83.7 9 9 Switzerland 87 54 99 93 83.3 14 10 Zealand 86 61 92 93 82.9 13 11 United States 87 60 94 89 82.6 15 12 Australia 85 59 93 89 81.4 6 13 Sweden 93 45 94 94 81.4 5 14 Hong Kong (China) 75 64 88 98 81.1 18 15 Netherlands 93 34 98 93 79.5 11 16 Denmark 96 36 96 87 78.7 7 17 Germany 86 46 93 87 78.0 20 18 Ireland 80 46 88 97 77.7 17 19 France 84 44 87 90 76.2 22 20 Israel 71 76 78 79 76.1 10 21 Austria 81 40 92 91 76.0 21 21 Belgium 85 43 89 87 76.0 16 23 Singapore 82 35 88 98 75.8 26 24 Spain 76 54 80 90 75.0 27 25 United Arab Emirates 90 37 80 86 73.4 66 26 Qatar 91 32 78 88 72.4 73 27 Estonia 84 31 89 85 72.3 24 28 Slovenia 72 35 86 95 71.9 23 22 | 2016 Rank Economy Share individuals Internet (2014 latest) Share individuals credit card (15+, 2014 latest) Secure Internet servers 1 million people (normalized, 2014) UPU postal reliability score (2013- 14) UNCTAD B2C -commerce Index 2015 2014 Rank 29 Czech Republic 80 26 87 94 71.7 28 30 Croatia 69 38 77 95 69.6 37 31 Slovak Republic 80 17 80 96 68.2 29 32 Bahrain 91 28 75 72 66.5 34 33 Malta 73 42 95 55 66.3 19 34 Latvia 76 22 81 86 66.2 30 35 Poland 67 17 83 94 65.2 35 36 Cyprus 69 26 86 78 64.8 25 37 Hungary 76 12 80 90 64.5 33 38 Italy 62 36 78 78 63.5 32 39 Uruguay 61 40 70 79 62.6 40 40 Kuwait 79 26 76 67 61.9 / 41 Lithuania 72 10 77 86 61.3 36 42 Portugal 65 29 79 69 60.4 31 43 Chile 72 28 73 68 60.3 39 44 Malaysia 68 20 69 84 60.1 45 45 Macedonia, Yugoslav Republic 68 21 68 83 60.0 41 46 Greece 63 12 74 85 58.6 42 47 Russian Federation 71 21 69 70 57.6 50 48 Lebanon 75 11 65 79 57.4 51 49 Turkey 51 33 66 76 56.5 38 50 Bulgaria 55 12 75 83 56.4 49 51 Brazil 58 32 67 68 56.2 47 52 Serbia 54 15 63 92 55.9 44 53 Romania 54 12 72 82 55.0 46 54 Ukraine 43 28 64 83 54.6 58 55 Costa Rica 49 14 70 76 52.4 52 56 Saudi Arabia 64 12 64 69 52.2 / 23 | 2016 Rank Economy Share individuals Internet (2014 latest) Share individuals credit card (15+, 2014 latest) Secure Internet servers 1 million people (normalized, 2014) UPU postal reliability score (2013- 14) UNCTAD B2C -commerce Index 2015 2014 Rank 57 Argentina 65 27 65 51 51.9 48 58 Moldova 47 6 64 89 51.4 62 59 Albania 60 6 58 80 51.0 55 60 Azerbaijan 61 9 53 79 50.5 / 61 South Africa 49 13 72 67 50.3 67 62 Belarus 59 13 64 64 50.0 61 63 Mexico 44 18 61 73 49.1 60 64 China 49 16 48 83 49.1 65 65 Oman 70 27 68 30 48.8 81 66 Jamaica 41 14 66 70 47.6 80 67 Trinidad & Tobago 65 15 71 39 47.5 43 68 Panama 45 10 72 62 47.2 84 69 Thailand 35 6 58 90 47.2 70 70 Mauritius 41 17 74 51 45.9 54 71 Ecuador 43 6 61 70 45.0 76 72 Colombia 53 14 64 48 44.6 71 73 Tunisia 46 7 56 69 44.5 74 74 Paraguay 43 9 58 65 43.8 / 75 Viet Nam 48 2 52 70 43.1 90 76 Peru 40 12 60 60 43.1 82 77 Iran, Islamic Republic 39 11 38 82 42.6 69 78 Montenegro 61 15 66 24 41.5 / 79 Morocco 57 4 45 60 41.5 75 80 Jordan 44 2 60 59 41.3 94 81 Bosnia Herzegovina 61 10 62 30 40.7 53 82 Egypt 32 2 45 81 39.9 68 83 Dominican Republic 50 11 60 39 39.9 57 84 Georgia 49 18 62 28 39.2 56 24 | 2016 Rank Economy Share individuals Internet (2014 latest) Share individuals credit card (15+, 2014 latest) Secure Internet servers 1 million people (normalized, 2014) UPU postal reliability score (2013- 14) UNCTAD B2C -commerce Index 2015 2014 Rank 85 Botswana 19 10 52 74 38.6 109 86 Kenya 43 5 49 54 37.9 112 87 Armenia 46 6 63 31 36.6 59 88 Kazakhstan 55 11 54 26 36.5 64 89 Philippines 40 3 52 48 35.7 / 90 India 18 4 46 68 34.0 83 91 Senegal 18 1 42 73 33.4 110 92 Sri Lanka 26 4 52 51 33.2 79 93 Indonesia 17 2 47 66 33.0 88 94 Venezuela, Bolivarian Republic 57 21 53 0 32.8 63 95 Algeria 18 6 37 68 32.3 / 96 El Salvador 30 8 58 31 31.7 72 97 Bolivia 39 6 53 25 30.8 98 98 Honduras 19 6 52 45 30.5 85 99 Ghana 19 1 42 60 30.5 108 100 Nigeria 43 3 38 38 30.4 100 101 Mongolia 27 1 60 31 29.8 102 102 Uganda 18 2 35 64 29.7 114 103 Zimbabwe 20 2 44 49 28.7 96 104 Bhutan 34 0 54 23 27.8 / 105 Pakistan 14 0 36 61 27.7 86 106 Swaziland 27 13 51 16 26.8 107 107 Tanzania, United Republic 5 1 35 65 26.5 120 108 Uzbekistan 44 1 36 24 26.1 78 109 Kyrgyzstan 28 3 50 14 23.8 / 110 Zambia 17 2 42 30 22.8 92 111 Guatemala 23 6 56 0 21.4 77 112 Ethiopia 3 0 19 63 21.2 / 25 | 2016 Rank Economy Share individuals Internet (2014 latest) Share individuals credit card (15+, 2014 latest) Secure Internet servers 1 million people (normalized, 2014) UPU postal reliability score (2013- 14) UNCTAD B2C -commerce Index 2015 2014 Rank 113 Angola 21 4 44 15 21.1 104 114 Nicaragua 18 4 52 9 20.7 97 115 Lao, People' Democratic Republic 14 3 38 26 20.3 105 116 Cameroon 11 1 36 32 20.0 / 117 Rwanda 11 1 43 25 19.9 113 118 Nepal 15 0 41 23 19.9 93 119 Cambodia 9 3 41 25 19.5 91 120 Togo 6 1 44 23 18.4 116 121 Bangladesh 10 0 30 27 16.7 / 122 ôte 'Ivoire 15 1 39 7 15.4 / 123 Benin 5 1 38 17 15.3 117 124 Liberia 5 3 39 13 15.1 118 125 Burkina Faso 9 3 27 20 14.9 123 126 Lesotho 11 2 34 11 14.5 122 127 Iraq 11 2 28 16 14.3 103 128 Sierra Leone 2 1 31 23 14.3 89 129 Malawi 6 2 32 17 14.2 121 130 Afghanistan 6 1 31 18 14.1 101 131 Mali 7 1 33 13 13.5 99 132 Sudan 25 0 0 25 12.4 119 133 Myanmar 2 0 25 21 12.0 / 134 Madagascar 4 0 31 12 11.7 95 135 Burundi 1 0 26 15 10.6 124 136 Guinea 2 2 22 6 7.9 126 137 Niger 2 1 16 7 6.5 125 Sources: UNCTAD analysis data cited table 1. 26 | Annex table 3. Internet shoppers Economy % Internet users % population Total, millions Latest data Note Argentina 26 16 4.76 [2014] Buy product online, 18+, year, source: Pew. Armenia 1 1 0.01 [2013] Shop, 18+, source: Caucasus Barometer. Australia 76 63 11.67 [2013] Purchase order goods services, year, Age 15+, source: ABS. Austria 65 53 3.84 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Azerbaijan 3 1 0.07 [2013] Shop, 18+, source: Caucasus Barometer. Bahrain 23 20 0.21 [2014] Purchasing ordering goods services, Age 15+, source: TRA. Bangladesh 23 2 2.55 [2014] Buy product online, 18+, year, source: Pew. Belarus 24 14 1.14 [2014] Ordering purchasing goods services, Age 6+, source: BelSTAT. Belgium 63 54 4.98 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Brazil 35 19 32.98 [2014] Buy products services year, Age 10+, source: CGI.br Bulgaria 28 15 0.96 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Canada 56 47 13.53 [2012] Ordered goods services online, 16+, source: Statistics Canada. Chile 35 26 3.66 [2014] Buy product online, 18+, year, source: Pew. China 56 27 361.35 [2014] Online shopping; year, Age 6+; source: CNNIC. Colombia 6 3 1.27 [2014] Buy/order products services, Age 5+, source: DANE. Costa Rica 11 5 0.19 [2012] Buy products services 3 months, Age 5+, source: INEC. Croatia 40 28 0.99 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Cyprus 38 26 0.25 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Denmark 81 78 3.65 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Egypt 3 1 0.79 [2014] Buy product online, 18+, year, source: Pew. El Salvador 8 3 0.12 [2014] Buy product online, 18+, year, source: Pew. Estonia 57 48 0.53 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Finland 53 49 1.22 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. France 56 43 22.76 [2014] Buy Internet, year, Age 15+, source: INSEE. Georgia 2 1 0.03 [2013] Shop, 18+, source: Caucasus Barometer. Germany 70 60 41.02 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Ghana 6 1 0.19 [2014] Buy product online, 18+, year, source: Pew. Greece 40 25 2.36 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Honduras 5 1 0.09 [2014] Buy products services, 3 months, entire population, source: INE. Hong Kong (China) 26 21 1.31 [2014] Online shopping, Age 15+, source: Census & Statistics Department. 27 | Economy % Internet users % population Total, millions Latest data Note Hungary 42 32 2.69 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Iceland 68 67 0.17 [2014] Internet purchase, year, Age 16-74; source: Statistics Iceland. India 22 3 22.00 [2014] Buy product online, 18+, year, source: Pew. Indonesia 9 2 3.63 [2014] Buy product online, 18+, year, source: Pew. Iran, Islamic Republic 10 3 2.07 [2013] Purchasing ordering goods services, Age 6+, source: SCI. Ireland 62 50 1.79 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Israel 42 30 1.49 [2013] Shopping, Age 20+, source: CBS. Italy 34 20 11.22 [2014] Bought ordered goods services private , 14+, year, ISTAT. Japan 57 47 57.20 [2014] Buying / exchanging goods services; Age 16+; source: MIC. Jordan 27 12 0.50 [2014] Buy product online, 18+, year, source: Pew. Kenya 16 5 1.20 [2014] Buy product online, 18+, year, source: Pew. Korea, Republic 51 43 21.09 [2014] Internet Shopping users, Age 12+, source: KISA/ISIS. Latvia 44 33 0.57 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Lithuania 36 26 0.65 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Luxembourg 77 73 0.31 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Macedonia, Yugoslav Republic 16 11 0.19 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Malaysia 15 9 1.93 [2013] Purchasing ordering goods services, Age 15+, source: DOS. Malta 63 46 0.17 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Mauritius 14 7 0.07 [2014] Purchase goods / services, Age 12+, source: Stat Mauritius. Mexico 4 2 1.95 [2014] Purchases Internet, year, Age 6+, source: INEGI. Moldova 16 11 0.32 [2014] Purchasing ordering goods services private entities, Age 16+, source: CBS-AXA. Montenegro 12 7 0.04 [2014] Internet purchase, year, Age 16-74, source: MONSTAT. Morocco 7 4 1.12 [2014] Purchase order goods services, Age 12-65, source: ANRT. Netherlands 77 72 10.40 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Zealand 66 54 1.86 [2012] Online purchases 12 months, Age 15+, source: StatNZ. Nicaragua 7 3 0.11 [2014] Buy product online, 18+, year, source: Pew. Nigeria 11 4 3.83 [2014] Buy product online, 18+, year, source: Pew. Norway 79 76 3.16 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Oman 11 8 0.22 [2013] Purchasing Ordering Goods Services, Age 5+, year, TRA. Philippines 7 3 1.84 [2014] Buy product online, 18+, year, source: Pew. 28 | Economy % Internet users % population Total, millions Latest data Note Poland 49 33 9.95 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Portugal 39 25 2.26 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Qatar 18 15 0.26 [2013] Purchasing ordering goods services, Age 15+, source: ictQATAR. Romania 17 9 1.54 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Russian Federation 36 24 26.03 [2014] Buy product online, 18+, year, source: Pew. Saudi Arabia 25 23 4.90 [2014] Purchase place orders product() / service(), Age 12+, source: CITC. Serbia 32 20 1.08 [2014] Bought/ordered goods services, year, Age 16-74; source: Statistical Office Republic Serbia. Singapore 57 46 1.48 [2013] Online purchase, 15+, IDA. Slovak Republic 58 46 2.14 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Slovenia 50 36 0.63 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. South Africa 14 6 2.30 [2014] Buy product online, 18+, year, source: Pew. Spain 49 37 12.86 [2014] Internet purchase, year, Age 16-74; source: INE. Sweden 75 70 4.93 [2014] Internet purchase, year, Age 16-74; source: EUROSTAT. Switzerland 67 56 3.93 [2014] Purchase order , Age 15+, source: OFS. Taiwan, Province China 30 23 4.81 [2014] Online shopping, broadband Internet users, Age 12+, source: TWNIC Tanzania, United Republic 15 3 0.77 [2014] Buy product online, 18+, year, source: Pew. Thailand 6 2 1.39 [2014] Online purchase goods & services, Age 6+, source: TNSO. Turkey 31 17 9.30 [2014] Bought goods services Internet, Age 16-74, source: Turkstat. United Arab Emirates 16 14 1.05 [2012] Purchasing ordering goods services, 3 months, Age 15-74, source: TRA. Uganda 4 1 0.10 [2014] Buy product online, 18+, year, source: Pew. Ukraine 44 23 9.03 [2014] Buy product online, 18+, year, source: Pew. United Kingdom 85 74 36.47 [2014] Internet purchasing ( 12 months), Age 16+; source: ONS. United States 79 69 166.85 [2013] Users purchase online; Age 18+; source: Digital Future Study. Venezuela, Bolivarian Republic 1 1 0.11 [2012] Purchases orders goods services, Age 7+; source: INE. Viet Nam 26 11 7.44 [2014] Buy product online, 18+, year, source: Pew. UN CTA UNITED NATIONS UNCTAD Technical Notes ICT Development 01. Implications Applying Definition «ICT Goods», 2011 02. Updating Partnership Definition ICT Goods HS 2007 HS 2012, January 2014 03. International Trade ICT Services ICT-enabled Services: Proposed Indicators Partnership Measuring ICT Development, October 2015 04. Global Assessment Sex-disaggregated ICT Employment Statistics: Data Availability Challenges Measurement Compilation, December 2015 05. Trade ICT Goods 2015 Expansion WTO Information Technology Agreement, December 2015 06. Search Cross-border -commerce Trade Data, April 2016 07. 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