Switzerland climbs to top of global e-commerce index

Switzerland replaced the Netherlands at the top of UNCTAD’s Business-to-Consumer E-commerce Index 2020, which ranks 152 countries on their readiness to engage in online commerce.

Europe remains by far the most prepared region for e-commerce, according to UNCTAD’s Business-to-Consumer (B2C) E-commerce Index 2020, but wide gaps with countries with the lowest level of readiness need to be addressed by tackling weaknesses in those nations to spread the benefits of digital transformation to more people.

For the first time, Switzerland leads the UNCTAD B2C E-commerce Index, just ahead of the Netherlands. In 2019, 97% of the Swiss population used the internet. The only non-European economies among the top 10 are Singapore, ranked fourth, and Hong Kong (China) in the 10th position.

The index scores 152 nations on their readiness for online shopping, worth an estimated $4.4 trillion globally in 2018, up 7% from the previous year.

Countries are scored on access to secure internet servers, reliability of postal services and infrastructure, and the portion of their population that uses the internet and has an account with a financial institution or a provider of mobile money services.

Developing countries: Asia leads the pack

The 10 developing countries with the highest scores are all from Asia and classified as high-income or upper-middle-income economies.

At the other end of the spectrum, least developed countries occupy 18 of the bottom 20 positions.

The two largest B2C e-commerce markets in the world, China and the United States, rank 55th and 12th respectively in the index. Although both countries lead in several absolute measures, they lag in relative comparisons.

For instance, internet penetration in the United States is lower than in any of the economies in the top 10, while China ranks 87th in the world on this indicator. As for online shopping penetration, the United States ranks 12th while China takes the 33rd slot.

“The e-commerce divide remains huge,” said Shamika N. Sirimanne, director of UNCTAD’s division that prepares the annual index. “Even among G20 countries, the extent to which people shop online ranges from 3% in India to 87% in the United Kingdom.”

Also, in Canada, the United States and 10 European nations, more than 70% of the adult population makes purchases online. But that proportion is well below 10% in most low- and lower-middle-income countries.

“The COVID-19 pandemic has made it more urgent to ensure the countries trailing behind are able to catch up and strengthen their e-trade readiness,” Ms. Sirimanne said. The index, she said, underscores the need for governments to do more to ensure more people can avail of e-commerce opportunities.

“Otherwise, their businesses and people will miss out on the opportunities offered by the digital economy, and they will be less prepared to deal with various challenges,” she added.

Changes in the 2020 rankings

The 2020 edition of the index includes a few notable changes from the previous year. In the composition of the top 10 positions, Hong Kong (China) replaced Australia. Among the top 10 developing economies, Oman replaced Turkey.

The four largest increases in index scores were recorded in developing countries – Algeria, Brazil, Ghana and Lao People’s Democratic Republic, whose scores surged by at least five points, largely due to significant improvements in postal reliability.

Costa Rica became the best performer in the Latin America and the Caribbean (LAC) region, replacing Chile. Mauritius retained the highest score in sub-Saharan Africa, while Belarus again got the highest score among transition economies.

Special focus on Latin America and the Caribbean

The 2020 index takes a closer look at the LAC region, which accounts for 9% of the world’s population aged 15 and older and as much as 11% of the world’s internet users. However, the region’s share of global online shoppers was only 6% of the global total in 2019.

The UNCTAD report notes that five countries account for 92% of online shoppers in LAC, much higher than their share (72%) of the region’s population. Postal unreliability is the region’s biggest e-commerce infrastructural weakness, particularly in the Caribbean.

As seen globally, COVID-19 has boosted online shopping in the region. For example, 7.3 million Brazilians shopped online for the first time during the pandemic. And in Argentina, the number of first-time online buyers during the pandemic was equivalent to 30% of the 2019 online shopping base.

 

Top 10 economies in the UNCTAD B2C E-commerce Index 2020

2020 Rank
Economy
Share of individuals using the Internet (2019 or latest)
Share of individuals with an account (15+, 2017)
Secure Internet servers (normalized, 2019)
UPU postal reliability score (2019 or latest)
2020 Index value)
Index value change (2018-19 data)
Rank 2019

1
Switzerland
97
98
92
97
95.9
0.6
2

2
Netherlands
96
100
94
93
95.8
0.1
1

3
Denmark
97
100
100
81
94.5
0.1
6

4
Singapore
89
98
94
97
94.4
-0.3
3

5
United Kingdom
96
96
84
98
93.6
0.1
4

6
Germany
93
99
90
91
93.4
-0.1
9

7
Finland
95
100
88
91
93.4
-0.1
5

8
Ireland
88
95
92
98
93.4
0.7
7

9
Norway
98
100
84
88
92.6
-0.1
8

10
China, Hong Kong SAR
92
95
88
92
91.8
0.3
14

Source: UNCTAD
 

Top 10 developing economies in the UNCTAD B2C E-commerce index 2020

2020 Rank
Economy
Share of individuals using the Internet (2019 or latest)
Share of individuals with an account (15+, 2017)
Secure Internet servers (normalized, 2019)
UPU postal reliability score (2019 or latest)
2020 Index value)
Index value change (2019-20 data)
Rank 2019

4
Singapore
89
98
94
97
94.4
-0.3
3

10
China, Hong Kong SAR
92
95
88
92
91.8
0.3
14

18
Korea, Republic of
96
95
68
100
89.8
0.0
19

30
Malaysia
84
85
71
85
81.3
1.5
31

37
United Arab Emirates
99
88
61
64
78.2
0.0
28

42
Thailand
67
82
59
97
76.0
0.5
48

44
Iran (Islamic Republic of)
70
94
57
79
75.0
-1.5
45

49
Saudi Arabia
96
72
43
78
72.3
0.0
49

50
Qatar
100
66
50
73
72.1
0.0
47

54
Oman
92
74
43
73
70.6
0.0
60

Source: UNCTAD
 

Top 10 developing and transition economies in the UNCTAD B2C E-commerce Index 2020, by region

East, South & Southeast Asia
West Asia
Africa
Latin America and the Caribbean
Transition economies

Singapore
United Arab Emirates
Mauritius
Costa Rica
Belarus

China, Hong Kong SAR
Saudi Arabia
South Africa
Chile
Russian Federation

Korea, Republic of
Qatar
Tunisia
Brazil
Serbia

Malaysia
Oman
Algeria
Dominican Republic
Georgia

Thailand
Turkey
Ghana
Colombia
Ukraine

Iran (Islamic Republic of)
Kuwait
Libya
Uruguay
North Macedonia

China
Lebanon
Kenya
Jamaica
Republic of Moldova

Mongolia
Bahrain
Nigeria
Trinidad and Tobago
Kazakhstan

Viet Nam
Jordan
Morocco
Peru
Azerbaijan

India
Iraq
Senegal
Argentina
Bosnia and Herzegovina

Source: UNCTAD