Ecommerce in Latin America

E-commerce in Latin America
May 2023
© Euromonitor
© Euromonitor International
International 2021.
2023. All rights
All rights reserved.
reserved.
This PowerPoint presentation includes proprietary information
from Euromonitor International and cannot be used or stored with
the intent of republishing, reprinting, repurposing or redistributing
in any form without explicit consent from Euromonitor International.
For usage requests and permission, please contact us

https://www.euromonitor.com/locations.
The data included in this report is accurate according to

Euromonitor International´s market research database,
at time of publication: May 2023
Contents
Introduction
Regional overview
Leading companies and brands
Forecast projections
Country snapshots
Introduction
INTRODUCTION 55
Scope
E-commerce continued to see positive
growth in Latin America in 2022, in spite of
the recent massive sales spike already seen in
2020 due to COVID-19 restrictions. Further
growth is also expected in the coming years,
given the now expanded customer base for
this types of shopping as well as the expected
rises in financial inclusion across the region.
Disclaimer
Much of the information in this briefing is of a
statistical nature and, while every attempt has
been made to ensure accuracy and reliability,
Euromonitor International cannot be held
responsible for omissions or errors.
Figures in tables and analyses are calculated
from unrounded data and may not sum. Analyses
found in the briefings may not totally reflect the
companies’ opinions, reader discretion is advised.
INTRODUCTION 66
Key findings
In spite of most countries in the region seeing major sales spikes in 2020, when COVID-19
restrictions saw people spending a lot more time at home than usual as well as the closure of
E-commerce continues to
non-essential retail outlets, the e-commerce channel continues to record positive growth,
grow in Latin America
generally outperforming offline retail across the region. Sales are being driven both by online
marketplaces as well as the continued development of formerly store-based retailers.
MercadoLibre is not only the biggest online marketplace in Latin America, but also the clear
leader in overall e-commerce in the region. As well as its solid infrastructure, enabling it to
MercadoLibre a strong offer speedy last-mile delivery, it also has its own financial arm for online payment transactions
leading player in MercadoPago. As they try and compete with pure-play companies like MercadoLibre
Marketplace, specialist retailers are increasingly using their physical stores as fulfilment centres
for online orders.
One problem standing in the way of e-commerce growth in the region, is the still relatively low
Increasing financial inclusion levels of financial inclusion among consumers in some countries. Greater financial inclusion
should further boost sales makes digital payments easier when shopping online, although smartphone apps and BNPL
options can also allow unbanked consumers to make online purchases.
With more consumers having become accustomed to shopping online during the pandemic,
the potential customer base for the e-commerce channel has been permanently expanded. The
More positive growth
wide range of options and prices online will also continue to attract shoppers, as will the offer
expected for e-commerce
of free delivery or pickup. Retail e-commerce will therefore continue to outperform retail
offline and overall retail over the forecast period.
Regional overview
REGIONAL OVERVIEW 88
Strong growth for e-commerce sales in Latin America

E-commerce has been booming in Latin
America, with this region recording a 75%
increase in its online sales when the
pandemic emerged in 2020 as well as a
26% CAGR in 2017-2022 as a whole, both
the highest figures among the seven global
regions.
Although Latin America’s e-commerce
sales are only fifth highest among the
regions, this shows that there remains
potential for further growth, as confirmed
by it being expected to record the second
best forecast period CAGR.
In per capita terms, Latin America
recorded the strongest historic period
CAGR, and is also expected to do the same
over 2022-2027. There is also room for
growth here, given it has only the sixth
highest regional per capita consumption
rate for e-commerce sales.
Growth slows post-pandemic but is expected to remain strong in Latin America

A slowdown in growth was only to be
expected after the very high peaks seen in
most countries in the region in 2020, as
COVID-19 restrictions guided consumers
towards online shopping, but e-commerce
sales increases still generally remained
strong in both 2021 and 2022.
Further positive growth is expected in the
coming years, given more consumers
became familiar with online shopping
during the pandemic, and as financial
inclusion continues to be seen, helped by
fintechs and apps facilitating popular (ie
Buy Now, Pay Later) or new payment
methods.
Most retailers have also now embraced an
omnichannel approach, while
marketplaces like MercadoLibre will
continue to give small manufacturers
access to an ever expanding consumer
base.
10
Brazilian e-commerce sales more than double during the pandemic

Even though retail e-commerce had already been recording very strong growth in the earlier years of the historic period, with a particularly
dynamic performance in 2020, due to the pandemic and the restrictions imposed on both the population and non-essential store-based
retailers, followed by another above-average performance in 2021, it still continued to register a healthy increase in its sales in 2022.
Specialist retailers were particularly badly impacted during the earliest days of the pandemic, as many were forced to close for long periods,
forcing Brazilians to move online for a wide range of goods. In spite of the easing or lifting of restrictions in 2022, and greater mobility
outside of the home, including a return to in-person shopping, retail e-commerce continued to outperform retail offline in 2022.
As the e-commerce channel involves logistics and home delivery, some online players were suffering from higher costs for their fuel for
transportation, especially during the first half of 2022, with Brazilian consumers generally more reluctant to pay for shipping. With this
being one of the biggest challenges for e-commerce players in 2022, a number of them, including Americanas, Magazine Luiza and Via
Varejo, encouraged consumers to buy products online by choosing click-and-collect services, with their offline stores acting as
delivery/pickup points for orders.
While adopting an omnichannel approach to sales has become an increasingly important strategy since the pandemic for traditional store-
based retailers, there are also significant pure-play e-commerce companies present in the Brazilian market, with MercadoLibre Marketplace
(operated locally by Ebazar.com.br LTDA) the leading brand in retail e-commerce, thanks to its dominance of marketplace e-commerce in
the country. With investments in its own delivery fleet, acquisitions of delivery start-ups and a strong focus on product quality, Brazil is
responsible for around half of MercadoLibre’s total revenues. In addition, MercadoPago, its financial arm for online payment transactions,
as well as increasing the group's revenue, enables and facilitates payments for both buyers and sellers.
Other notable pure-play e-commerce companies include Amazon, with a large product portfolio and commitment to fast delivery, and
Chinese group Sea Ltd under its Shopee retail division. Operated locally by SHPS Tecnologia e Servicos LTDA, Shopee has gained significant
share since its entry to Brazil in 2019, enabling it to quickly work its way up the rankings in overall retail e-commerce. Towards the end of
the review period, Shopee aimed to improve its logistics to better fulfil customer orders by investing in its first warehouse in Brazil.
11
Industry operators continue to work to allay Mexican consumers’ security concerns

Major e-commerce marketplaces, such as Amazon, MercadoLibre and Linio, continue to gain relevance in Mexico, attracting consumers
with their wide product offers. Many consumers even use these third-party platforms to browse and compare the prices of products that
are available in bricks-and-mortar stores, prior to making purchasing decisions. Supermarkets and hypermarkets have also continued to
further develop their e-commerce sites, offering click-and-collect services at their physical stores as well as home delivery. The “Hot Sale”
annual nine-day sales event, when brands offer special discounts and promotions, as well as other events, such as El Buen Fin, also prove to
be successful in tempting Mexican consumers to shop online.
E-commerce fraud continues to be a major concern in Mexico. As a result of security concerns, many consumers are reluctant to use their
credit or debit cards online, preferring cash-on-delivery. However, Mexicans are becoming more confident about making online payments
thanks to the efforts of the leading e-commerce players, which are working hard to convince customers that they offer secure transactions.
This growing trust in online payments is contributing to the continued growth of e-commerce, with more Mexicans choosing to make digital
payments when shopping online. Financial technology (fintech) companies also help to make e-commerce more accessible to low-income
consumers by making it easier for them to make non-cash payments.
Liveshopping is becoming an increasingly important sales strategy in Argentina. Via a live webcast, companies can promote their products
and consumers can interact with the presenter before shopping online. GoJiraf is the main technology provider and key partner for
developing this sales mode, with liveshopping having been implemented by retailers like Rapsodia, 47 Street, Cardon and Nike in apparel
and footwear as well as the pharmacy chain Farmacity, with Essen the first direct selling company to introduce liveshopping in Argentina.
Blink – and you may have missed it! Shopee.com started operating in Argentina at the start of 2022, with the marketplace operator
investing strongly in marketing campaigns during the first six months of the year, including 0% commission for sellers and free delivery for
buyers. However, in September, Shopee announced that it was leaving the country, having been operating in Argentina for just nine months.
It is extremely difficult for third-party merchants to compete with MercadoLibre, the biggest marketplace in Argentina and Latin America,
which has a solid infrastructure and speedy last-mile delivery, as well as playing a key role in payment methods through MercadoPago.
Leading companies and brands
LEADING COMPANIES AND BRANDS 13
13
Relatively consolidated competitive landscapes in Latin America’s biggest markets

E-commerce has a relatively concentrated
competitive landscape in the four biggest
Latin American country markets, with the
top five players generally accounting for
around 60% or more of overall sales.
MercadoLibre has been driving the
consolidation trend in a number of
markets, gaining a lot of share in Uruguay,
in particular, although its biggest sales
share is still in Argentina.
Despite having to compete against
MercadoLibre, the Brazilian retail chains
like Americanas, Magazine Luiza and Via
Varejo were trying to focus on their e-
commerce operations during the
pandemic, with their physical stores
increasingly acting as delivery hubs for
click-and-collect orders from their
websites, with this strategy of using their
bricks-and-mortar outlets as fulfilment
centres likely to continue over 2022-2027.
14
MercadoLibre continues to gain share in Latin America

MercadoLibre continues to lead the retail
e-commerce channel in Latin America, and
also continues to gain share in most
countries in the region. This includes the
region’s dominant market of Brazil, where
its delivery fleet, delivery start-up
acquisitions and Mercado Pago, its
financial arm for online payments, are
helping it cement its leading position.
While Shopee’s presence in neighbouring
Argentina has proved short-lived – entry
and departure within nine months in 2022
– it has gained significant share since its
entry to the Brazilian market in 2019. As it
looks to improve its logistics to better fulfil
customer orders it has also been investing
in its first warehouse in Brazil.
As MercadoLibre continues to open new
distribution centres in Mexico, Amazon is
trying to keep up by also expanding its
network of distribution hubs.
15
Brazil and Mexico the main revenue generators for the leading e-commerce players
Despite losing ground to the dynamic
MercadoLibre Marketplace in the last
couple of years, Brazil’s Magazine Luiza has
experienced a major digital
transformation. Over the historic period, it
developed from a simple offline retailer to
having a strong presence online, which it
identifies as the way forward. To build an
extensive digital ecosystem in Brazil, its
offline stores will continue to play an
important role as part of its omnichannel
strategy, as they are used as mini
distribution centres, with the aim of
reducing the delivery time of orders.
Magazine Luiza is also focusing its growth
strategy on a greater diversification of
products via its digital platform, with an
emphasis on Kabum! (an electronics brand
it acquired in 2021), Época Cosméticos
(local and imported beauty products) and
Netshoes (apparel and footwear).
16
Shopee appealing to consumers with an eye for a bargain

Shopee appeals to consumers looking for
bargains online, intending to replicate the
experience consumers have in store-based
retail when shopping in neighbourhoods
where small, independent retailers offer
lower-priced assortments. Shopee therefore
pursues aggressive strategies, including
coupons and free shipping, to attract new
users to the platform and encourage them to
continue spending.
In addition to tapping into unmet demand
from consumers looking for bargains online,
it also contributes to an ever-growing
number of small retailers in the online space.
A consequence of the success of
marketplaces in Brazil is that they not only
help small retailers enter e-commerce for the
first time, but also represent an alternative
for those who previously had their own e-
commerce solutions but now find it more
effective to instead rely on marketplaces.
Forecast projections
FORECAST PROJECTIONS 18
18
Latin America expected to register healthy growth rates throughout the forecast period
19
Marketplaces, driven by MercadoLibre, seeing strong growth in Brazilian e-commerce

Retail e-commerce once again outperformed retail offline in Brazil in 2022, despite the former’s already dynamic growth both during and
prior to the pandemic, with online expected to continue performing better than offline over the forecast period.
Many Brazilians have become more familiar with shopping online since they were forced to spend time at home to control the spread of
the virus, and therefore, despite the return of higher footfall to physical stores, consumers are now used to searching for more competitive
prices online, and choosing from the wide variety of products generally offered by internet retailers. Some even use physical stores as
showrooms, especially for big-ticket items, where they can inspect goods and obtain advice from sales assistants, before heading online to
find the lowest price.
In retail e-commerce, major groups that act as pure players in the channel include dynamic leader MercadoLibre (operated locally by
Ebazar.com.br LTDA), which is the dominant third-party marketplace brand, in which it continued to gain ground from competitors
Americanas Marketplace and Amazon Marketplace in 2022. Fulfilment, investments in logistics and increasingly faster deliveries are the
strategies adopted by these players to guarantee the satisfaction of both sellers and the end consumer.
The aggressive growth of e-commerce marketplaces in Brazil will likely also continue to play a pivotal role in sustaining small players’
merchandise sales by providing an accessible ecosystem of services for them to join the digital sphere of commerce. This will be driven not
just by MercadoLibre, Americanas Marketplace and Amazon Marketplace, but also Chinese player Shopee.
Large non-grocery specialists such as Americanas, Magazine Luiza and Via Varejo have been increasingly focusing on retail e-commerce
since the pandemic arrived in Brazil, using their physical stores to act as fulfilment centres for click-and-collect orders. This was a strategy
also adopted by leading pharmacies player Raia Drogasil, where its offline stores have also become delivery points for its customers due to
the attractiveness of not having to pay for shipping.
Overall, retail e-commerce will continue to record more dynamic growth than retail offline in Brazil, in line with greater confidence among
consumers in placing online orders, even if they are then collected from physical stores to avoid delivery charges.
20
Mexico to see further development of smartphone apps, BNPL options and quick commerce
E-commerce will continue to grow in popularity in Mexico – even if this will be at a more modest pace than in the historic period, as the
channel begins to mature, it will still be more dynamic than retail offline. While younger, more tech-savvy urban Mexicans are likely to drive
online sales initially, many more consumers will come to appreciate the convenience and contactless shopping model that this channel can
offer. Greater digital inclusion will also benefit the e-commerce channel, as smartphone apps and BNPL options allow unbanked consumers
to make online purchases. This is likely to boost sales through fast-fashion e-commerce platforms such as Shein, which offer consumers a
range of payment facilities.
Technological advances in the form of live e-commerce, augmented reality and the use of chatbots are likely to shape the development of
the e-commerce channel in Mexico during the forecast period. The live e-commerce approach is already booming in countries such as
China, where consumers can view highly sophisticated livestreams on retailers’ websites, while shopping at the same time. These are often
hosted by celebrities or social media influencers, who discuss the products’ claimed benefits. Personal interaction has already been proven
to be a key factor in retaining customers, and live e-commerce would take this experience to a new level.
E-commerce retailers in Mexico are also likely to respond to a greater demand for convenience by providing shorter delivery times for
customers’ orders. Central to this will be the development of “quick commerce” – the ability of a retailer to deliver an order within the
shortest possible time. Local players such as Rappi and Cornershop will be key drivers of this trend, with “dark stores”, storage facilities that
are not open to the public, expected to expand across Mexican cities.
Over the forecast period, foreign e-commerce will continue to be insignificant in Argentina in terms of value sales because of government
restrictions. For any purchases conducted in a foreign country, there is a tax of 30% and another 45% charge in terms of income tax. In
addition, for every purchase over USD50 it is necessary to pay a levy of 50% in custom taxes, and, since 2022, the government has
prohibited instalments with credit cards in order to discourage purchases. Because of the lack of Central Bank reserves, the government
tightened the restrictions during 2022 and it is not expected to make changes favourable to international e-commerce in the short term.
Country snapshots
COUNTRY SNAPSHOTS 22
22
Argentina: Market Context
23
Argentina: Competitive Landscape
24
Bolivia: Market Context
25
Bolivia: Competitive Landscape
26
Brazil: Market Context
27
Brazil: Competitive Landscape
28
Chile: Market Context
29
Chile: Competitive Landscape
30
Colombia: Market Context
31
Colombia: Competitive Landscape
32
Ecuador: Market Context
33
Ecuador: Competitive Landscape
34
Mexico: Market Context
35
Mexico: Competitive Landscape
36
Peru: Market Context
37
Peru: Competitive Landscape
38
Uruguay: Market Context
39
Uruguay: Competitive Landscape
E-COMMERCE IN LATIN AMERICA
Experience more
This research from Euromonitor International is part of a global strategic intelligence system that offers a complete picture of the commercial
environment. Also available from Euromonitor International:
Industry
Industry reports are updated annually and provide internationally comparable statistics on a wide range of consumer goods, services
and industrial markets.
Country
Internationally cross-comparable data covers more than 210 national markets, with continuous updates providing in-depth strategic
analysis of the competitive landscape and current market trends
Company
Strategic analysis of the world’s largest companies and their activities derived from a global country by country research program.
Economic
The world's most comprehensive market research and in-depth data and analysis on national economic performance and market sizes.
Consumer
The world's most comprehensive market research and in-depth data and analysis on consumer market behaviour.
Euromonitor International network and coverage
16 OFFICES
To find out more about Euromonitor
International's complete range of
business intelligence on industries,
countries and consumers, please visit
www.euromonitor.com or contact your
local Euromonitor International office:
Bangalore +91 80 4904 0500
Cape Town +27 21 524 3000
Chicago +1 (312) 922 1115
Dubai +971 4 372 4363
Dusseldorf +49 (0)211 890944 0
Hong Kong +852 3796 3604
London +44 (0)207 251 8024
Mexico City +52 55 9990 3120
Santiago +56 2 2 9157200
São Paulo +55 11 2970 2150
Seoul +82 2 6123 0200
Shanghai +86 21 603 21088
Singapore +65 6429 0590
Sydney +61 2 9581 9200
100 COUNTRIES 210 COUNTRIES
Tokyo +81 3 3436 2100
in-depth analysis on AND TERRITORIES
demographic, macro- and socio-economic Vilnius +370 5 243 1577
consumer goods and
services industries data on consumer and economies
Tailor these insights to your business

Passport Plus connects you directly to our experts. Through tailored presentations,
expert consultations, and workshops, we help you quickly develop expertise,
pressure test ideas, or inspire new thinking to help shape your future strategy.
Watch this video to learn more and then reach out to your Euromonitor contact to explore how
you can engage with our teams on this topic.

Ecommerce in Latin America

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ecommerce in Latin America

Uploaded by

Copyright:

Available Formats

E-commerce in Latin America

For usage requests and permission, please contact us

The data included in this report is accurate according to

Leading companies and brands

Strong growth for e-commerce sales in Latin America

Growth slows post-pandemic but is expected to remain strong in Latin America

Brazilian e-commerce sales more than double during the pandemic

Industry operators continue to work to allay Mexican consumers’ security concerns

Relatively consolidated competitive landscapes in Latin America’s biggest markets

MercadoLibre continues to gain share in Latin America

Shopee appealing to consumers with an eye for a bargain

Marketplaces, driven by MercadoLibre, seeing strong growth in Brazilian e-commerce

Argentina: Market Context

Argentina: Competitive Landscape

Bolivia: Market Context

Bolivia: Competitive Landscape

Brazil: Market Context

Brazil: Competitive Landscape

Chile: Market Context

Chile: Competitive Landscape

Colombia: Market Context

Colombia: Competitive Landscape

Ecuador: Market Context

Ecuador: Competitive Landscape

Mexico: Market Context

Mexico: Competitive Landscape

Peru: Market Context

Peru: Competitive Landscape

Uruguay: Market Context

Uruguay: Competitive Landscape

Euromonitor International network and coverage

Tailor these insights to your business

You might also like