By 2020, the global e-commerce market is projected to hit $4.2 trillion, about double its size in 2016, according to eMarketer. While Amazon is clearly king, there a few regions where it’s not reigning yet. Let’s see how it’s going as told by Axios
Africa: The dominant player is Jumia which doesn’t just sell goods but also food delivery, flight and hotel bookings, and even a subscription service for free delivery called Prime. With a customer base of about 4 million shoppers across Africa. It still has a long runway ahead of it on a continent that now has 400 million internet users.
However, one of the biggest hurdles Jumia faces is that many homes don’t have traditional addresses. “For example, if you say in a city in Africa, ‘I live in the third street by the church with the blue door,’ that’s the address,” Jumia co-founder Sacha Poignonnec said in an interview with McKinsey.
In Russia, the biggest online retailer is apparel company Wildberries, which has gotten ahead because it has invested billions in trucks and warehouses, However, around 60% of Russian e-commerce orders are paid for upon delivery, usually in cash.
Also, a large portion of the population is uncomfortable with having packages left on doorsteps, so 75% of orders are collected at lockers or pick-up points – maintaining these facilities adds another cost.
Asia: In Japan, the biggest player is Rakuten while in China it’s Alibaba, these countries leapfrogged credit cards and went straight from cash to mobile payments, so e-commerce has thrived there. It accounts for 30% of all retail, compared to 10% in the U.S.
But in India, although it’s the second-fastest-growing e-commerce market, behind Mexico. It’s population relies heavily on cash which has its downsides.
Big Picture: In the e-commerce world, the rest of the developing world might be lagging behind but it seems to be solving its different problems and catching up.