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The UNCIAD B2C E-commerce Index 2020
9potghton Lobn Amenca and the Combbean
EXxecutive summary
In the 2020 edition of the UNCTAD Business-to-Consumer (B2C) E-commerce Index，
Switzerland replaced the Netherlands as the country with the highest readiness to engage in
and benefit from e-commerce. European economies dominate the top 10 list， which also
features Singapore and China，Hong Kong SAR. At the other end of the spectrum，least
developed countries (LDCs) take up 18 of the 20 bottom positions in the index. The wide gaps
between countries with the highest and the lowest level of e-commerce readiness point to
the need to address weaknesses in the countries trailing behind in order for further digital
transformation to bring inclusive development gains. The COVID-19 pandemic has introduced
a_ new dimension due to quarantine measures that have led to an Uptick in e-commerce
among those who have the ability to shop online.
About the index
The UNCTAD B2CE-commerce Index measures an economy\'s preparedness to support online
shopping. The index consists of four indicators that are highly related to online shopping and
for which there is wide country coverage (Box 1).1The extent to which people shop online in
a Country is highly correlated with the value of the index, with an adjusted R squared value of
0.79 (Figure 1).
The 2021 index includes the same number of economies as the last iteration (152). Data
limitations affect compilation of the index. Internet user data for 2019 were limited at the
time of index calculation and the latest data on accounts are for 2017 as the pandemic
delayed the collection of data for the World Bank\'s Global Findex database. Hence, changes
from the previous edition of the index are primarily influenced by changes in terms of secure
servers and postal reliability. Inclusion of additional economies is dependent on the data
sources. Account ownership data are generally not available for smaller economies and the
postal reliability index does not include Some economies. UNCTAD is investigating alternative
index compositions with a view to widening the coverage and timeliness of the index.
Box 1: UNCTAD B2C E-commerce index methodology
The index is calculated asthe average offour indicators (i.e.,each indicator carriesthe same weight)
using data for 2019 or the latest available.
ee Account ownership at afinancial institution or with a mobile-money-service provider (% of
population ages 15+) (Source: World Bank)
e Individuals using the Internet (% of population) (Source: International Telecommunication
Union, ITU)3
e Postal Reliability Index (Source: Universal Postal Union, UPU)4
1 For more information on the methodology see: UNCTAD. 2017.“UNCTAD B2C E-commerce Index 2017.”
UNCTAD Technicalj Notes on /CT Jor Devejopment No. 9.
“https://globalfindex.worldbank.org/f#data_sec _ focus.
3 https://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx.
4http://www.upu.int/en/the-upuy/strategy/2ipd.html.e Secure Internet servers (per 1 million people) (Source: Netcraft retrieved from World Bank);
Account ownership data are Sourced from the World Bank Findex survey, which is carried out every
three years. The latest Survey data available are for 2017，
Secure Internet servers per 1 million people is normalized with this formula: Log (Secure server
penetration)-Log (maximum value) / Log (maximum value) - Log (minimum value) *100.
UPU postal reliability data are available for 2015-19, depending on the country. Ifthere are no data
fora country in 2019, the previous year\'s data are used in the UNCTAD index，
At the time of this report, 2019 Internet use data from the ITU were available for only around one
third of the countries in the UNCTAD index. In Some cases,， official statistics have been used to
update the datai; otherwise the previous year\'s data are Used，
Given revisions to 2018 data since the 2019 index was published, the change in score and rank
betweenthis index and that for 2019 is based on the index value based on the revised 2018 data，
Source: UNCTAD.
Figure 1. Relationship between UNCTAD B2C E-commerce Index 2020 values and online
shopping
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UNCTAD B2C E-commerce index 2020
9ouUrce: UNCTAD，
s https://databank.worldbank.org/source/world-development-indicators#.Some 1.5 billion people now shopping online
In 2019, an estimated 1.5 billion people, or 27 per cent of the world\'s population aged 15
years and oldenr shopped online (figure 2, left). This represented a 7 per cent increase over
2018. The proportion of those shopping online is much less in countries at |ow levels of
income. While over half the population in high-income countries shopped online the figure
was only 2 percent in ljow-income nations (figure 2, right).
Figure 2. Global online shoppers, 2017-19 and penetration by income group, 2019
Gobal online shoppers Shopped online, 2019 (% of population)
六 由6 138
5 1.38
五 14 1.27
下2
Low income | 2
1.0
0.8 Lower middle income 国 5
0.6
Upper middle income 国 16
0.4
0.0
2017 2018 2019 0 10 20 30 40 50 60
Note: Figures in the right chart refer to unweighted country averages. The weighted figure for the world is 27
per cent.
Source: UNCTAD.
Switzerland climbs to the top of the B2C E-Commerce Index 2020
Similarto the 2019 index, eight ofthe top ten economies are in Europe (Table 1). Index values
are extremely close, With a range of just 4.1 points between first and tenth rank. Switzerland
has narrowly displaced the Netherlands as the highest ranked country in the index (Box 2).
There was just one change in the composition of the top ten with China, Hong Kong,， SAR
replacing Australia.
While China and the United States are the world\'s largest B2C markets, they rank 12th and
55th respectively in the index. One reasonthey are not ranked higher is thattheir scale is not
factored into the index. Even ifthe two countries lead in a number of absolute measures they
lag in relative comparisons. For instance, Internet penetration in the United States is less than
any ofthe economies in the top 10 while China on this indicator ranks 87th in the world. With
regard to online shopping penetration, the United States ranks 12th while China ranks 33rd.
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