The growth of E-commerce in Peru

Have you ever imagined that the traditional purchases you make in the shops can be
performed through your cellphone or a computer? A few years ago, all kinds of purchase used
to include a physical store and the physical presence of the transaction members that have
come to be increasingly regarded as a slow and expensive process. Nowadays, E-commerce
has revolutionized the entire process of the business operation of daily life of Peruvian people
that are now much more interested in buying products and services directly from an online
retailer. Additionally, the growth of e-commerce in Peru is associated with private consumption,
considered as an important part of the annual income of the country. In fact, the e-commerce
industry in the Peruvian market is in a growth stage due to the increasing demand of
consumers, the variety of e-commerce types and the security technologies.

The global e-commerce industry is in a growth stage due to the increasing virtual demand of
consumers. We will support our view with the following two reasons. The first one is the easy
virtual access to Internet that reduces the time we usually spend looking for a product. For
example, years ago, we used to go to the shopping center and walk into many stores to find
just a dress, but now we can look a lot of dresses online and make the online payment in
minutes. According to Patricia Peir (2003), Laziness is the main tool for the success of online
shopping, an emotional state that helps to obtain the customer loyalty in the process of ecommerce. This means that the laziness that we feel when we move to a point of sale, to
interact with vendors and interact with the product, this emotion is always accompanied by the

convenience of buying by a click from a computer or mobile device. The second reason is that
you can find a lot of offers on different kinds of products online and choose the price you are
willing to pay. For instance, in websites like Groupon, Despegar.com and Ebay, you can find
the same product of the physical shopping center but with a lower price. According to Kotler
and Keller (2009: 432), The use of Internet has changed the trend of a fixed price and
computer technologies allow sellers customize offers and prices and allow buyers to compare
prices. This means that the price has become more important in recent years, consumers and
shopping agents have greater access to information on prices and discounts. In addition, they
can exert pressure for lower prices. To sum up, the e-commerce market is growing fast
because people are preferring to buy online.

The e-commerce presence in the Peruvian market is increasing because there is a variety of
types of e-commerce. We will support our point of view with two reasons. Firstly, B2C, which
means business to costumers, is the most popular way to do e-commerce. It is a financial
transaction conducted over the Internet between a business and a consumer. For example,
nowadays there are more companies as Falabella, Ripley, Lan, etc, which offering this B2C ecommerce with their products. According to a report by eMarketer (2014) , Business to
consumer (B2C) online sales in Latin America totaled more than 48,000 million in 2013, and
forecasts for next year announced that online sales in Latin America could increase by 19,8%.
That means that the e-commerce sector in Latin America is in a growth stage, with high growth
forecast for 2016, with Brazil being the first e-commerce leader from a Latin American country.
Our second reason is about C2C existence as another type of e-commerce which means
customer to customer. The C2C e-commerce occurs when consumers sell items of services to

other consumers using websites. For instance, we can see this type of e-commerce in different
websites such as OLX, Ebay, Mercado Libre, etc. According to Sun and Finnie (2003:59),
C2C e-commerce consists primarily of Websites where consumers deal directly with one
another, such as online communities, free personal classified pages, auction houses. This
means that a website provides an exchange platform where consumers make their economic
transactions, then the sale occurs between the two people concerned, and they get a
commission for each sale that is made. All in all, the variety of types of e-commerce is an
important factor for the growth of the e-commerce sector in the Peruvian market.

From our point of view, the security technologies are important factors that have made the ecommerce industry increases fast, thanks to the high level of security that they offer. We will
support our view with two reasons. The first is about how people are starting to trust on the
security of shopping online because in the past years, people were still afraid to shop online.
For instance, there is now a method of online payment called Paypal that is a service
dedicated to fighting fraud and scams. In this sense, Garfinkel and Spafford (2012:631),
supports the fact that Paypal is an electronic payment system commonly used to settle
purchases made on Internet auction as Ebay and also offers its services as the most secure
method. In other words, PayPal is the largest payment method and preferred by Internet users
when making their purchases due to the high level of security. It has millions of active user
accounts worldwide. The other reason is that reputation systems for e-commerce are giving
good results in comparison to the last year. In other words, social networks play an important
role in the issue of reputation because public opinion can be influential. According to Maria
Jose Gallego(2015), The digital reputation is the perception that people have of your brand on

the Internet due to the social networks, the term "brand" can refer to a person, a service, an
organization, a product, or as in the present case, an ecommerce or online store. This means
that social networks operated as speakers that have the ability to amplify the message
transmitted by any customer, be it positive or negative. In fact, the level of security has helped
the growth of e-commerce in the Peruvian economy.

Hook. The Peruvian e-commerce is in a growth stage thanks to the next three points. The first
point is that the demand for shopping online of Peruvian people is starting to grow up in large
quantities. Consumers prefer to save time buying online. Another point is that the e-commerce
supply has a variety of types as B2B and B2C e-commerce. This means that the consumers
have more alternatives in the market. In addition, the last point is about the high security that
e-commerce industry has. In other words, Peruvian consumers are beginning to have
confidence in shopping online. Finally, we draw the conclusion that Peruvian e-commerce
market is growing very fast and the number of satisfied customers is constantly increasing.

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