Four components drive the National Electronic Commerce Strategy

The agenda has until December of this year to show progress

The hypergrowth that electronic commerce experienced in Ecuador in 2020 as a result of the confinement due to the coronavirus pandemicCOVID-19,which accelerated the adaptation of supply and demand to this new way of carrying out transactions, also accelerated coordinated public-private work to improve the environment of the digital economy.

In this way, with four main components and a deadline to apply them and show progress, theNational Electronic Commerce Strategy, through a virtual forum, in which representatives of theMinistry of Production, Foreign Trade, Investment and Fisheries (MPCEIP), the Ecuadorian Chamber of Electronic Commerce (CECE) and the Ecuadorian Chamber of Innovation and Technology (CITE).

Juan Sebastián Salcedo, executive director of CITE, highlighted that in 2020 theWhat are the stores where you can buy online in Ecuadormoved$2.3 billion,a growth of$700 million (43.75%)compared to what was achieved in 2019, although he recognized that so far progress in this matter has occurred empirically and out of necessity; Therefore, he indicated that it is important to promote these channels in an orderly manner.

“This first year (2020) has marked a before and after, the habit of people who have had to turn to digital businesses has changed,” said Salcedo, who indicated that the changes that were expected to be implemented within the next five years have been compressed into just six months.

This progress was also evident in the creation of applications, Salcedo indicated that in 2020 in Ecuador at least 90 new applications or platforms: 45 focused on Fintech (financial market) and 45 on ecommerce.

For its part, Daniel Legarda, Vice Minister of Foreign Trade, regretted that the pandemic has generated job losses, the fall in consumption and the economy, but also highlighted the opportunities it created for entrepreneurs, but also the challenges that manifest themselves in gaps that also have to be closed.

“In the case of Ecuador, this work has been done hand in hand with the private sector and academia to have a strategy that is not 100%, not exact, but that allows progress,” said Legarda, who identified the four components. of this strategy: legal framework, promotion focused on MSMEs (micro, small and medium-sized enterprises), promotion of payment and security systems; and logistics of the electronic commerce process.

Regarding the legal framework, Legarda explained that regulations in the sector will be strengthened by recognizing that those that currently exist are few and dispersed.

Regarding the promotion of MSMEs, he indicated that the greatest difficulty was detected for this type of companies to adapt to the reality that the new normal represents with greater challenges, but advantages were also found such as flexibility to be able to adapt their processes and standards to this new reality.

Regarding the promotion of payments and security, the vice minister indicated that although there is a tool to be able to sell, it still does not contemplate the comprehensive electronic commerce strategy.

“Transactions with payment gateways must be taken to a higher level, so that the use of cash in the economy in general is discouraged and we have more electronic transactions,” mentioned Legarda.

Finally, he classified logistics, or called the last mile, as a great challenge, as he assured that many companies are on a payment gateway, they have a showcase ofecommerce,They have already identified their clients and are positioning themselves well, but delivery logistics remain deficient.

Legarda revealed that initially these components had a period of one year from the launch of the strategy, that is, untilMarch 2022, to deliver results; However, it was shortened to December of this year; and added that it will also be transferred to the new authorities, after the change of government scheduled for next May, so that they continue the application of the strategy.

In this regard,Leonardo Ottati, president of the CECE, classified this strategy as a starting point, perfectible. “Let the government that comes continue with the work, perfect it and make the adjustments they have to make,” said the union leader, who praised the approach of the initiative by considering two main aspects: supply and demand.

“The agenda involves a lot of disseminating electronic commerce, its benefits, and growing the mass of consumers,” said Ottati, who revealed that within the strategy the CECE achieved a regional training agreement with the Inter-American Institute of Electronic Commerce.

Meanwhile, Legarda highlighted Ecuador's work with international organizations regarding theecommerce.“The new trade agreements already incorporate electronic commerce chapters and Ecuador has joined dialogues in the World Trade Organization (WTO) on the potential regulation of trade in services that is being carried out,” said the vice minister, who assured that This Thursday, during an official event, more details of the launched strategy will be revealed.