Latin America’s potential for E-commerce

5 minutos

The countries of South and Central America have a population of 997 million people, of which 665 million are active internet users and 551 million are social network users, so it is not difficult to see the great potential that this region has for e-commerce.

The substantial year-on-year growth in online sales in Latin American countries means they are beginning to become significant in terms of the world market, resulting in very optimistic forecasts for the future. Experts in international trade say that e-commerce in Latin America is still growing. According to Spanish banking sources, during the last 6 years, e-commerce in South America has seen a threefold increase with registered sales, reaching 40 billion dollars

The growth of e-commerce in Latin America is an unquestionable fact

It is therefore clear that the potential of this part of the world is enormous. In 2015, according to e-marketing studies in this region, Brazil was the leader in e-commerce with a turnover of $19.49 billion, followed at some distance by Mexico, with $5.7 billion and Argentina, with $4.96 billion. The IDC forecasts that, by 2019, Brazil will reach $30 billion, Mexico $13 billion and Argentina $12 billion.

It is obvious that the growth of e-commerce in Latin America will not be uniform across the region, instead there will be variations from one country to another. A segmented breakdown by country shows that Mexico has grown the most (27.3%), and this growth is expected to be almost one point higher in 2018. Other countries, such as Peru, Colombia and Chile, grew by around 27%, although only in the case of Peru is the growth forecast to increase in 2018 (30.2%).

Argentina and Brazil lead e-commerce in South America

E-commerce transactions in the countries at the forefront of e-commerce in the region are also continuing to grow, such as Argentina, with 20.4%, and Brazil, with 22.8%. It is clear to see that consumers in the Latin American countries are interested in accessing products that are not currently on offer in their local markets, with the various options offered by the online market becoming increasingly important. The main countries of origin for e-commerce imports into this region are China, the United States and Europe.

In this context, it is interesting to note that Spain has some added advantages when doing business in Latin America: language, culture and history, as well as strong links with the different countries. These advantages allow us to take advantage of this upward trend in e-commerce in Latin America and benefit from the region’s great economic potential.

f you are considering expanding your online sales to this market, it is important that you know, in advance, the legal provisions for the exchange of goods with these countries, mainly in terms of Customs. In the guide prepared by Cacesa on Customs requirements for the import of postal goods to Latin America, you will be able to obtain information on the applicable rates and customs duties, as well as to check the list of restricted and prohibited articles, and other requirements for the import of goods in these countries.

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