User penetration in the context of e-commerce refers to the percentage of potential customers, usually within a specific demographic or geographic market, who have made at least one purchase from an e-commerce platform over a certain period of time.
For example, if there are 100 people in a market and 60 of them have bought something online within the past year, the user penetration rate for that e-commerce market would be 60%.
This is an important metric for businesses as it can help them understand the current reach of e-commerce within a particular market and identify potential for growth.