Lessons I’ve learned…Ahora!
After a successful 15-year career in the digital media and e-commerce industries in the United States, I relocated to Panama ten years ago to develop a complete digital transformation and online sales strategy for a 50-year-old brick and mortar business. It was a challenge that I readily accepted.
For the past four years, I’ve also worked as an e-commerce consultant, leading the development of B2B and B2C e-commerce sites for companies in the tech and consumer electronics, industrial equipment, home décor, and fast-moving consumer goods (FMCG) sectors. Businesses dedicated to getting products into the hands of customers as quickly and easily as possible.
I’ve been asked several times “How come Panama is so far behind in terms of e-commerce?” I’ve always stressed the point that Panama is not “behind.” Panama is simply different, and people must first understand the country’s socio-economic complexities to understand why it takes Panama longer than other countries to adopt new practices.
Panama at an E-Glance
The country’s size is at the root of the problem; Panama’s population is estimated to be only 4.5 million people, give or take. When we study financial inclusion and identify bank account holders, credit card holders, the existence (or the lack thereof) of digital wallets for the underbanked and so on, we’re left with a small percentage of the population who can benefit from purchasing online.
When some businesses initially began looking into e-commerce a few years ago, the “numbers” just weren’t there to persuade them the investment would be worthwhile. Furthermore, the talent pool of programmers and specialists with the technical skills required to develop e-commerce was very limited due to the country’s small size. Companies were left to look outside of Panama for this talent, at rates higher than the local market rates.
Lack of Trust
Another issue is Panamanians’ lack of digital literacy, which is caused by the fact that as long as there are physical offices and stores a stone’s throw away where payments can be made, many people will prefer to do so in person rather than process them online, for fear of a payment not being received or product not being delivered correctly. Consumers’ lack of confidence in the strength of online security and last-mile delivery is hindering the expansion of the country’s internet shopping.
Panamanians are creatures of habit, perhaps even more so than citizens of larger countries, with a multitude of options, cutting-edge technology, and a variety of methods for performing even the most basic of daily tasks. Someone in Panama who has been paying their utility bill in person for the past ten years or driving only ten minutes to the nearest store to make a purchase will continue to do so, even if they can complete the entire transaction online.
Congratulations, Panama!
I have personally watched as Panama has progressed from crawling to running in terms of digital commerce. Despite its size, Mediafy.pro Panama is quickly being re-considered an e-commerce hub of Latin America, thanks to the thousands of businesses who are actually embracing selling their wares online. The country is a top contender for new business, as it is one of the most stable economies in Central America.
When the big picture is taken into account, the word “behind” and its underlying meaning aren’t an adequate description. Yes, the country is slower in adapting to and implementing new industries like e-commerce, but this is due to an issue that most small countries face: a lack of population “volume,” resources, know-how, and idiosyncrasies. With the number of Panamanians using the internet continuing to increase yearly – roughly 69% of the population, over 2.9 million people, are internet users – it, like some of its neighboring countries, will be doing even better in a few years. That is something which I am certain about. Sin duda!
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