Information Technologies –abbreviated ICTs- refer to the use of telecommunications equipment and computers for the transmission, processing and storage of data. In El Salvador, little by little, ICTs have allowed the Salvadoran market to innovate its structure, not only selling its products face to face, but this same sale is made through online platforms (web pages, apps, social networks , among other). This allows the markets to expand and operate practically every day and at all hours, so that they are available to more consumers.
Now we can askWhat exactly do we mean when we talk about Electronic Commerce? According to World Trade Organization (WTO), electronic commerce refers to the production, advertising, sale and distribution of products and services through telecommunications networks.
ELECTRONIC COMMERCE MODALITIES
According to the study called "Electronic Commerce in El Salvador", carried out by the Consumer OmbudsmanCurrently, there are the following forms of electronic commerce [1]:
- Government to Consumer / between Government and Consumer (G2C): It occurs when the consumer makes payments for goods or services provided by the State.
- Business to Government / between Business and Government (B2G): situation in which a company provides services or goods to the government (or vice versa).
- Business to Consumer / between Business and Consumer (B2C): most common mode. The company sells to a consumer through virtual platforms.
- Consumer to Consumer / between Consumer and Consumer (C2C): transactions between consumers, using a common platform that acts as an intermediary, for example: Ebay, Olx, to name a few.
- Business to Business / between Business and Business (B2B): operations between companies through the same sales channels used by regular consumers, or through specialized platforms for suppliers
Currently, in our country, there are many companies, applications and platforms that are already in their execution phase, which have had excellent results and acceptance by local and international consumers. This has allowed them to achieve success by marketing their goods and products more easily and faster thanks to electronic commerce.
However, there are always disadvantages or obstacles to taking advantage of electronic commerce in El Salvador, mentioning for example: consumer distrust, poor internet access (obstacle that has been decreasing over the years since more and more, Salvadorans have immediate access to the Internet, through their cell phone), lack of training or adequate training of human resources, a weak and scarce regulatory framework, among others.
REGULATORY ADVANCES – WHAT IS THE APPLICABLE LEGISLATION TO ONLINE PLATFORMS IN EL SALVADOR?
But after the commercial advances and advantages that electronic commerce represents for El Salvador, What advances have been incorporated into the Salvadoran regulatory framework?
- Electronic Signature Law: In 2015, the Legislative Assembly approved the aforementioned law that has been in force since April 2016, which, despite not being implemented at the moment due to certain obstacles, aims to promote electronic government.
- Consumer Protection Law (LPC): In 2018 the Legislative Assembly reformed the LPC. The objective of these reforms was the protection of the rights that users of goods or services by electronic means have.
- Electronic Commerce Bills: During this year, bills regulating electronic commerce are being studied by the Economic Commission of the Legislative Assembly and which are pending approval by said economy. [2]
Although the country still has challenges to face for the optimal use of electronic commerce, it is important to emphasize that there are public and private institutions that are supporting small, medium and large companies in order to promote technological innovation issues, such as example: CONAMYPE y Salvadoran Chamber of Information and Communication Technologies (CASATIC).
We invite you to ask any questions you may have to come to our offices in El Salvador, so that we can provide you with the corresponding advice.
Contact us at: elsalvador@latinalliance.co