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E-commerce marketing Aug 30,2021

Why Latin American e-commerce market prospective for investment?

For the last few years, e-commerce in Latin America has been growing at an impressive pace. Online payment activities in Latin America increase rapidly over the course of 2020, turning the region into one of the fastest-growing e-commerce markets in the world.

According to data company Statista, it has been estimated that 13m people across Latin America made an online transaction for the first time last year, while retail e-commerce grew by 36.7% to around $85bn.

Whether you’re looking to expand or want to experiment with other business models, Latin America is the place to boost your results, your market reach and your brand awareness.

·Brazil

Brazil is the largest e-commerce market in Latin America, financial inclusion and increased connectivity have made it stand out. Its online market is growing day by day, e-commerce users grew by 25% in 2020 to reach an estimated total penetration of 61% by the end of 2021.

The country is the favorite option of most international merchants coming to Latin America mainly because of its size. Brazil has the largest online population in Latin America, with 150m Brazilians connected and 68% owning a smartphone.

·Mexico

Mexico is a large e-commerce market with more than 100 million people. Boosted by increased internet penetration, the Mexican online market shows impressive growth rates.

Due to confinement and distancing measures during the COVID-19 pandemic, Mexican e-commerce grew 81% in 2020 compared to 2019. The e-commerce users in Mexico is expected to grow 31% in 2020, already at an e-commerce penetration of 60%, pretty decent and that will grow faster than it’s growing in Brazil, at 31%.

·Chile

Chile has a favorable environment for business, with an economy characterized by a high level of foreign trade and a great reputation in terms of political and financial transparency such as taxation and regulations. 65% of Chileans have already used online market, this number is much higher than the average for Latin America (46%).

China remains the main trending partner of Chile as commercial relations between the countries have been improved year by year, boosted by trade agreements.

·Colombia

As the fastest growing online market in Latin America, the online market of Colombia has improved substantially and is expected to hit an average growth of 32% by 2021.

Currently, there are 11.6m online shoppers in the country and digital transformation is taking Colombia by storm. Colombian online consumers are becoming familiar with buying from foreign websites.

by Winnie

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