Peru E-Commerce Market Research Report: Forecast (2024-2030)

Market Definition

The E-Commerce Market covers a broad spectrum of online activities. This includes online retail, enabling consumers to buy products from websites or digital storefronts. Additionally, it encompasses digital services like software, media, and online courses, B2B transactions for business-to-business trade, and online marketplaces where multiple vendors can reach a wide customer base by showcasing and selling their products.

Market Insights & Analysis: Peru E-Commerce Market (2024-30):

The Peru E-Commerce Market is valued at around USD 15.3 billion in 2023 and it is estimated to grow at a CAGR of about 26.5% during the forecast period, i.e., 2024-30. The market has witnessed a significant growth, primarily attributed to the increasing internet penetration and the rising confidence of Peruvian consumers in online transactions. Online retail has been a notable driver, with consumers increasingly turning to digital platforms for convenience and a broader range of products. Furthermore, the proliferation of digital services, including the sale of software, media, and online courses has contributed to the market's expansion.

The B2B e-commerce segment is also gaining traction, facilitating business transactions through online channels. It is expected that this growth trajectory will likely continue in the coming years, driven by the ongoing digital transformation of businesses and changing consumer preferences. Companies are expected to focus on strengthening their online presence, providing secure and convenient payment options, and adapting to local market dynamics and logistics, thereby capitalizing on the evolving opportunities within the Peru E-Commerce Market. It is emerging as an opportunity area for the growth of the Peru E-Commerce Market during 2024-2030.

Peru E-Commerce Market Driver:

Rising Internet Accessibility Fuels Growth in Peru's E-Commerce Sector– The surge in internet accessibility has been a pivotal driver fuelling the remarkable growth of Peru's e-commerce market in recent years. The expanding availability of the Internet has triggered a significant shift in consumer behavior. With more people gaining access to online platforms, Peruvian consumers are increasingly drawn to the convenience and diversity of options that e-commerce provides. For instance,

• In 2022, according to the Peruvian Chamber of Electronic Commerce, internet penetration across Peru has increased to 76% in 2021, from 58% in 2019.

This shift has led to the rapid expansion of Peru's online audience, significantly enlarging the customer base for e-commerce businesses. In addition to the increased audience, improved digital infrastructure is also effectively attracting a significant number of consumers to explore, browse, and make purchases in the digital realm. Therefore, along with the improvement in internet penetration, the improved digital infrastructure would also become a catalyst for the ongoing evolution and robust growth of the e-commerce market in Peru.

Peru E-Commerce Market Challenge:

Logistical Challenges in the Peru E-Commerce Market Presenting a Significant Hurdle for Business Operations – Logistical challenges in the Peru E-Commerce Market had a significant hurdle for businesses operating in the country. Peru's diverse geography, which includes rugged mountainous terrain, dense Amazon rainforests, and remote rural areas posed a formidable logistical challenge. The complex topography and lack of developed infrastructure in some regions have led to delays and increased costs associated with the transportation and delivery of goods. Also, e-commerce companies have received a significant volume of complaints from consumers which have been mostly related to logistics. For instance,

• In 2022, at the Peruvian Chamber of Electronic Commerce, approximately half of the complaints and grievances filed with Indecopi regarding electronic commerce are attributed to shipping issues and delays in the timely delivery of orders.

Peru's diverse geography, including the Andes Mountains and the Amazon rainforest, poses difficulties for timely and cost-effective deliveries. Hence, this has been affecting the trust of consumers living in remote areas in the e-commerce platforms, which has been ultimately affecting the market growth. Therefore, effective last-mile delivery solutions are crucial to guarantee, punctual and economical deliveries; otherwise, the persistent logistics challenges will continue to impact the market's expansion.

Peru E-Commerce Market Trend:

Remarkable Rise of Mobile Commerce (M-commerce) in the Peru E-Commerce Market – With the widespread adoption of smartphones and the expansion of mobile internet accessibility in recent years, Peruvian consumers have been increasingly turning to their mobile devices for various aspects of their online shopping journey. Also, smartphones have been proven to be a largely preferred device to access online shopping platforms, as consumers have been able to access it anytime from anywhere. From product research to actual purchases and digital payments, the convenience of M-commerce has been reshaping the e-commerce landscape in recent years.

Moreover, numerous e-commerce firms in Peru are acutely attuned to this shift in consumer behavior and are proactively adapting by enhancing the mobile compatibility of their online platforms and creating dedicated mobile apps. This transition underscores the significance of delivering a smooth and user-friendly mobile shopping experience. Therefore, the growing consumer inclination towards mobile commerce (M-commerce), combined with the introduction of user-friendly applications, is poised to propel market growth in the forthcoming year.

Peru E-Commerce Market (2024-30): Segmentation Analysis

The Peru E-Commerce Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2024–2030 at the national level. According to the analysis, the market has been further classified as:

Based on Product Type:

• Consumer Electronics

• Smartphones
• Laptops and Computers
• Tablets
• Others (Smart TVs, Wearable Devices, etc.)

• Apparel and Fashion

• Clothing
• Footwear
• Others (Jewellery, Sportswear, etc.)

• Home and Furniture

• Home Décor
• Kitchen Appliances
• Others (Bedding and Linens, Sofas, etc.)

• Food and Groceries

• Fresh Produce
• Packaged Foods
• Others (Beverages, Snacks & Confectionery, etc.)

• Others (Health and Beauty, Automotive, etc.)

Traditionally, consumer electronics, especially smartphones, have held a significant share of the market. Smartphones have been an essential device for accessing online platforms, and their demand remains high in Peru. This increment in smartphone purchases on online platforms has been attributed to the improved internet infrastructure across the country, which has led Peru consumers to incline towards the adoption of smartphones. Furthermore, the e-commerce market's growth in the smartphone segment is further fueled by the abundant availability of discount options on online platforms, combined with the extensive array of choices for consumers, which significantly influences their inclination towards the platform. This trend is expected to persist and bolster the e-commerce market's growth in the coming years.

Peru E-Commerce Market Recent Development:

• 2022: Falabella announced a substantial investment of USD 711 million, which will be allocated to the introduction of the integrated falabella.com platform and to bolster its logistics to augment order processing capacity, with a primary focus on its existing infrastructure in key markets such as Chile, Peru, and Colombia.
• 2022: Platanitos, a prominent women's shoe retailer, announced its plans for diversifying into the home appliance sector, leveraging its extensive network of stores across Peru.

 Gain a Competitive Edge with Our Peru E-Commerce Market Report

• Peru E-Commerce Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Peru E-Commerce Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.