Powerful growth will define the future of Latin America’s e-commerce market: 29% growth in volume between 2020 and 2024 with a projected volume of more than US$580 billion, according to Americas Market Intelligence (AMI) analysis from its 2020-2024 LatAm E-Commerce Datapack.
While there are more than 20 countries in Latin America, only a handful have developed strong e-commerce markets with significant amounts of transactions. The top 6 that AMI identified are:
- Brazil: E-commerce market worth $147.6 billion in 2021
- Mexico: E-commerce market worth $49.6 billion in 2021
- Colombia: E-commerce market worth $18.8 billion in 2021
- Argentina: E-commerce market worth $17.1 billion in 2021
- Chile: E-commerce market worth $16.5 billion in 2021
- Peru: E-commerce market worth $9.9 billion in 2021
The LatAm E-Commerce Datapack, 2021-2025
Strategic data on market volumes, purchase habits, payment methods, demand drivers and more for +15 countries
Between 2020 and 2024, the e-commerce growth rates for these markets are projected to be:
- Brazil: 30% growth in its e-commerce market by 2024
- Mexico: 27% growth in its e-commerce market by 2024
- Colombia: 21% growth in its e-commerce market by 2024
- Argentina: 32% growth in its e-commerce market by 2024
- Chile: 28% growth in its e-commerce market by 2024
- Peru: 42% growth in its e-commerce market by 2024
By 2024 75% of e-commerce purchases in Latin America will be done with a mobile device.
Defining E-Commerce in LatAm Markets
This is a key point, because often the definition of e-commerce in LatAm and other markets can be vague or restricted to specific merchant verticals or payment methods. For the purposes of AMI’s analysis, e-commerce was defined as all online purchases of goods and services, regardless of the device or payment method used. The data employed in AMI’s analysis includes:
- Purchases made using all locally issued payment methods
- Cross-border purchases made with locally issued credit and debit cards
- B2C and some B2C commerce made with a credit/debit card or that is processed via an e-commerce gateway
- Physical products and services, such as retail (physical products purchased directly from a merchant or marketplace),
- Travel (such as plane tickets, car rentals, hotels, etc.)
- Digital goods (such as ride hailing services, delivery apps, streaming)
- Other services (recurring payments such as monthly bills, insurance payments, school tuition, taxes, etc.)
Excluded from this analysis were payments made by international visitors and B2B e-commerce done via wire transfer or paid invoice NOT captured in an e-commerce gateway.
In 2020 debit cards accounted for 14% of e-commerce purchases in Latin America.
Other Key Datapoints
Beyond sheer volume and growth, AMI’s analysis also look at different aspects of e-commerce in Latin America. Among its findings are that:
- 86% of e-commerce transactions made in Latin America in 2021 will be domestic, the remainder cross-border
- While in 2019 more than 56% of e-commerce transactions in Latin America were made with a desktop computer, in 2020 the balance shifted to mobile representing 55.3% of transactions and desktop at less than 45%
- By 2024 AMI projects that more than 75% of e-commerce transactions in Latin America will be done with a mobile device
- While credit cards were used in 56% of e-commerce purchases in Latin America in 2020, AMI projects that by 2024 their share will go down by 2% while the share of bank transfers used for e-commerce will more than double
Beyond growth projections, AMI specializes in research and market intelligence for the LatAm e-commerce in a number of key areas:
- Identifying the major payment methods used in different Latin American e-commerce markets to help merchants with strategic planning, market entry and market expansion
- Helping merchants understand the cross-border e-commerce potential in different Latin American markets and the practices that can increase cross-border sales
- Using artificial intelligence and machine learning to help merchants analyze their customer data for a deeper understanding of e-commerce shopper behavior and tendencies so as to refine their marketing tactics, messaging and consumer outreach
Contact us if your company has specific data, market research or market intelligence needs regarding the e-commerce market in Latin America or in specific markets such as Argentina, Brazil, Colombia, Chile, Mexico and Peru.