An October 2018 article from Buy Box Experts cited Americas Market Intelligence and our research in the areas of e-commerce payments and logistics. A brief excerpt is below:
The challenges for Latin American ecommerce
Ecommerce in Latin America faces two key challenges that present an uphill battle for both marketplaces and consumers in the region: logistics and payments.
Challenge #1: Logistics
Logistics in Latin America is a huge challenge for ecommerce marketplaces, due to a lack of end-to-end responsibility for purchases. Customs delays and corruption present a huge challenge for cross-border purchases in the region, according to Americas Market Intelligence. This is one of the reasons why Chinese ecommerce giant Alibaba’s AliExpress platform is gaining market share in Latin America as it allows customers to purchase two lower-value items in the hopes that one of them will outwit the region’s logistics inefficiencies and make it to their door.
In 2015 Americas Market Intelligence (AMI) conducted a mystery shopping exercise for a leading logistics company in which packages were delivered across all continents using several logistics firms. In Asia, Europe and North America, packages arrived within two to five days as predicted but in Latin America all parcels encountered obstacles at customs. In Argentina, customs officials requested a bribe to expedite the clearing of the packages. While in Colombia and Mexico, local authorities did not clear the goods arguing the receiver must be a registered importer (in itself a time-consuming process) prior to delivery and refused to release the package.
Challenge #2: Payments
In most Latin American countries, customers are wary of product quality and uncertain if their products will even be delivered, as discussed above. This, combined with low credit card penetration, leads to significant challenges for ecommerce marketplaces. Credit and debit card fraud rates in Mexico and Brazil are the highest in the world, making customer trepidation about using cards to purchase goods online in these countries understandable.