Information Technologies refers to the use of telecommunications equipment and computers for data transmission, processing and storage. In El Salvador Information Technologies have gradually led the Salvadoran market to innovate its structure, not only by selling its products face to face, but making the same sale through online platforms (web pages, apps, social networks, among others). This allows the markets to expand and operate practically every day and at any time, in order to be available to more consumers.
Now, we can ask ourselves, what exactly does e-commerce mean? According to the World Trade Organization (WTO), e-commerce refers to “the production, advertising, sale and distribution of products and services through telecommunications networks”.
TYPES OF E-COMMERCE
According to a study developed by the Salvadoran Consumer Protection Authority, these are the types of e-commerce:
- Government to Consumer (G2C): occurs when the consumer makes payments of goods or services provided by the State.
- Business to Government (B2G): a Company provides services or provides goods to the Government (or vice versa).
- Business to Consumer (B2C): most common. A Company sells to a consumer through virtual (digital) platforms.
- Consumer to Consumer (C2C): transactions between consumers, using a common platform that acts as an intermediary, for example: Ebay.
- Business to Business (B2B): operations between companies through the same sales channels used by regular consumers, or through specialized platforms for suppliers.
In El Salvador many companies, applications and platforms are already in their execution phase, which have earned them excellent results and acceptance by local and international consumers. This has allowed them to achieve success by marketing their goods and products in a simpler and faster way thanks to e-commerce.
However, there are always disadvantages or obstacles to achieve an advantage of e-commerce in El Salvador, mentioning for example: consumer distrust, poor internet access (an obstacle that has been declining over the years as more and more Salvadorans have immediate internet access through their cell phones), lack of adequate training for human resources, a weak and scarce regulatory framework, among others.
REGULATORY ADVANCES – WHAT IS THE E-COMMERCE LEGISLATION IN EL SALVADOR?
After the commercial advances and advantages that e-commerce represents for El Salvador, What advances have been incorporated into the Salvadoran regulatory framework?
- Law on Electronic Signatures: In 2015, our Legislative Assembly approved the aforementioned law, currently in force since April 2016, which despite not being implemented at the moment by certain obstacles, aims to promote e-government.
- Consumer Protection Law (CPL): In 2018, the Legislative Assembly approved the amendment of CPL. The objective of this reform was the protection of the rights that users of goods or services by electronic means have.
- Bills of e-commerce Law: During this year, bills that regulate e-commerce and which are pending approval are being studied by the Economy Commission of the Legislative Assembly. [2]
Although the country still has challenges to face for the optimal use of e-commerce, it is important to emphasize that there are public and private institutions that are supporting small, medium and large companies so that technological innovation issues are promoted, such as example: CONAMYPE and the Salvadoran Chamber of Information and Communication Technologies (CASATIC).
We invite you that, in case of doubt or any questions, approach our offices in El Salvador, so that we can provide you with the corresponding advice.
Contact us at: elsalvador@latinalliance.co
Or contact the author of this article, Gabriela Avendaño, at: la@latinalliance.co