Perspectives for electronic commerce in Peru

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Perspectives for electronic commerce in Peru

In 2016 the market for electronic commerce of products moved around 230 million dollars and has been growing at rates higher than 25% several years ago – 4x-5x greater than the growth of traditional floor retail. It is expected that for the next 3-5 years annual growth rates will not drop below 25% on average, so although the market is still small, the opportunity in the sector is huge. While these high growth rates are partly due to the fact that the base is small – e-commerce represents less than 2% of retail, and up to 5% in electronic categories – it is clear that if retail companies want to grow in the next years it is practically mandatory that they develop their electronic commerce channel as soon as possible.

For us in Linio , 2016 was a year of great improvements as we realized that we had a huge opportunity to improve the shopping experience of our customers, on our platform and in this way clearly differentiate ourselves from our competitors. During the year we launched a new version of the website , greatly improving the loading speed and making it responsive to provide a good experience when viewed from a cell phone. In the middle of the year we re-launched our applications on iOS and Android with great reception from the public, both already have more than 4 rating stars on average and are positioned within the top 4 in the rankings of "shopping" applications both in the IOs App Store as in Google Play . More importantly, application enhancements allow customers to navigate more friendly and secure without errors or risks when making purchases from their own cell phones.

We spent much of the second half of the year making improvements to our logistic models , having successfully launched our own motorized fleet to have greater control of human contact with the customer during deliveries and finally the person delivering the product the client is the face and ambassador of Linio . This greater human contact has allowed us to have the best effective delivery rates in the market. We also strive to make it easier for the customer to return the products they no longer want, providing an automatic guide that you can print to leave your product in an Olva office so that it is sent back to the seller at no additional cost to the customer. and with an increasingly simple and secure reimbursement process.

With these adjustments we are improving the shopping experience for our customers and facilitating companies and entrepreneurs in the retail sector to enter the e-commerce channel in a simple and cost-efficient way since apart from small a fixed monthly charge, the bulk The cost of selling in Linio is variable according to the sales generated. This model represents a win-win for our allies as we provide traffic, web and mobile platforms, payment gateway, telesales service and customer service while commercial partners are dedicated to offering their new, original products with guarantee at the best price and dispatch them in optimal conditions and on time. And if they already have an online sales platform such as PrestaShop or Shopify, we have developed plugins so they can connect their stores with our Marketplace and thus be able to replicate their offer in Linio without having to duplicate tasks. Soon we will be launching plugins with more e-commerce platforms.

2017 will be a year of great challenges with greater competition in the sector and with a large number of customers buying online for the first time. It is essential for the good of the sector that e-commerce companies strive to provide an excellent shopping experience and thus generate greater confidence in the channel since this business is not just about generating sales but about serving and customer loyalty.

Authors text by: Martín Romero