When businesses think about expanding eCommerce in Latin America, the usual markets come to mind: Mexico, Brazil, or Colombia. But a country often overlooked—Peru—is rapidly becoming one of the most interesting emerging markets for international brands.
Peru combines strong economic growth, rising internet penetration, and a unique payment culture where Cash on Delivery (COD) plays a crucial role in building trust. For brands from Europe or other parts of Latin America, Peru offers both opportunity and challenges—but those who adapt to local realities can unlock massive growth.
The Rising eCommerce Market in Peru
Over the past decade, Peru has shown consistent GDP growth and expanding middle-class purchasing power. The country now has more than 34 million people, with over 70% internet penetration and fast-growing smartphone usage.
According to industry studies, eCommerce sales in Peru are expected to grow by double digits annually, making it one of the fastest-growing eCommerce markets in LATAM. Yet, digital payment adoption still lags behind more mature markets.
This creates a unique window of opportunity for companies that can bridge the gap with flexible payment options—most notably COD.
Why COD Is Essential in Peru
- Low Credit Card Penetration
- High Trust in Cash Transactions
- First-Time Buyers
- Expansion Beyond Lima
A significant portion of the population does not own a credit card or prefers not to use it online. Offering COD immediately opens your business to millions of potential buyers.
Many consumers remain skeptical about online fraud or product quality. COD reassures them—they only pay when the product is in their hands.
COD is a gateway for customers who are new to online shopping. It lowers the entry barrier and helps brands build long-term trust.
While Lima dominates eCommerce today, COD allows businesses to reach customers in secondary cities and rural areas, where digital payment adoption is even lower.
👉 Learn more about the invisble logistics behind every great ecommerce.
COD as a Growth Accelerator in Emerging Markets
In emerging markets like Peru, COD is not just a payment method—it’s a growth strategy. Brands that embrace COD often see:
- Higher conversion rates compared to card-only checkout.
- Faster customer acquisition, especially for first-time buyers.
- Increased geographic reach, since COD makes eCommerce accessible in areas where banks and digital infrastructure are weaker.
This is why global companies like fashion retailers, supplement brands, and personal care businesses are increasingly choosing Peru as their entry point into LATAM expansion.
Challenges with COD in Peru
Like any market, COD in Peru has challenges:
- Rejected deliveries: some customers may change their minds at the doorstep.
- Cash handling risks: logistics partners need robust systems for managing money securely.
- Reconciliation complexity: businesses must track COD payments accurately.
The solution lies in combining COD with reliable last-mile logistics and reconciliation software, which ensures that operations remain profitable while capturing new customers.
👉 Explore Kiki Latam’s services designed for brands entering markets like Peru with COD.
Why Peru Stands Out Among LATAM Markets
While Mexico and Brazil attract more international attention, Peru has unique strengths that make it a smart choice for expansion today:
- Less competition: fewer global brands are aggressively targeting Peru compared to larger markets, leaving more room for new entrants.
- Favorable demographics: a young, digitally savvy population is eager to try new products and services.
- Mobile-first growth: most Peruvians access the internet through smartphones, making social commerce a powerful growth channel.
- Trust-driven market: COD allows you to align with local expectations and build credibility from the first interaction.
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Best Practices for Selling in Peru with COD
- Combine COD with digital payments: always offer multiple options, but emphasize COD to capture hesitant buyers.
- Invest in last-mile partnerships: ensure your logistics provider has coverage outside Lima.
- Track data carefully: monitor COD rejection rates and optimize operations accordingly.
- Build trust through communication: confirm orders via WhatsApp or SMS to reduce failed deliveries.
- Leverage software for reconciliation: streamline COD cash flows to avoid accounting headaches.
Peru is one of Latin America’s hidden gems for eCommerce expansion. Its combination of strong growth, young consumers, and trust-driven shopping behavior makes it an ideal destination for international brands.
By leveraging Cash on Delivery, logistics expertise, and reconciliation software, businesses can tap into this emerging market with confidence.
👉 At Kiki Latam, we help international brands enter Peru and other LATAM countries with COD solutions, logistics, and Merchant of Record services—making global expansion simple and scalable.