2021 LATAM ECOMMERCE TRENDS: EXPAND YOUR BUSINESS - Empowering tech companies to expand their business globally - Pulsoline
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Empowering tech companies to
expand their business globally
2021
LATAM ECOMMERCE TRENDS:
EXPAND YOUR BUSINESSOPPORTUNITY IN LATAM?
Latin America is a region with more than profitable, especially the TOP 6 countries
30 countries and 640 million people. that cover around 80% of the overall
The pandemic brought the region’s market potential** (Brazil, Mexico,
eCommerce potential to light, with Latin Argentina, Chile, Colombia and Peru).
Americans buying online more than
ever, and with around 52 million people This leading group of high potential
who will buy online for the first time countries is the starting point of any
during the pandemic in LATAM.* business expansion strategy in LATAM.
If done right, the prospect for digital The following tables compare some key
companies can be very promising and stats per Latin American countries.
COUNTRY DATA
POPULATION GDP GDP PER CAPITA PRE-COVID GDP CURRENCY LANGUAGE
COUNTRY (2021) (BILLONS - 2019) (PPP IN $ - 2019) GROWTH (2019) CODE
Brazil 212,559,417 USD 1,839 $15,300 1.1% BRL Portuguese
Mexico 128,932,753 USD 1,268 $20,582 -0.1% MXN Spanish
Argentina 45,195,774 USD 445 $23,040 -2.1% ARS Spanish
Chile 50,882,891 USD 323 $15,635 3.3% COP Spanish
Colombia 19,1 1 6 , 201 USD 282 $25,155 1.1% CLP Spanish
Peru 32,971,854 USD 226 $13,416 2.2% PEN Spanish
Source: World Bank, Pulsoline
*Source: LABS – Latin America Business Stories
**Source: Pulsoline.PENETRATION 2021
The internet penetration in Latam is booming. It gives us a hint of the region’s
business opportunity in the future, with another 115 million Latin Americans expected
to get access to the internet in the years to come.
100%
75%
50%
Source: We Are Social, Hootsuite
25%
0%
BRAZIL MEXICO COLOMBIA ARGENTINA CHILE PERU
Internet penetration in Latin America
The trend in LATAM shows that more and more people have access to the internet,
more and more people buy online, and those online buyers purchase more and
more often from the internet.
In fact, leading eCommerce website MercadoLibre reported growth of more than
70% in its user base in 2020*, while Mercado Pago's total payment transactions
increased by 131% during the same period.**
“RETAIL ECOMMERCE SALES IN LATIN AMERICA
GREW BY 37% IN 2020, MAKING IT THE
FASTEST-GROWING REGION IN THE WORLD”
Source: emarketer.com
*Source: Bnamericas
**Source: PYMNTS.comLANDSCAPE IN LATAM
TH E E COMMER C E L A N D S C A P E I N L A T A M
ECOMMERCE IN LATIN AMERICA BRAZIL MEXICO ARGENTINA COLOMBIA CHILE PERU
INTERNET
PENETRATION (2021) 75.0% 71.0% 80.0% 68.0% 82.3% 60.0%
SOCIAL MEDIA USERS
(IN % OF POPULATION - 2021) 70.3% 77.2% 79.3% 76.4% 83.5% 81.4%
ONLINE SHOPPERS
(IN % OF POPULATION - 2021) 17.6% 13.2% 18.6% 11.7% 29.5% 7.0%
DIGITAL PAYMENTS
GROWTH (2021) 19.3% 13.4% 24.9% 3.3% 11.6% 11.4%
YEARLY AVERAGE
TRANSACTIONS VALUE (2021) $553 $722 $705 $375 $810 $374
Source: We Are Social, Hootsuite
Social media use and eCommerce We believe that the digitization of LATAM
increased in Latin America during the and the growth of the eCommerce
pandemic and stay-at-home orders in industry will continue strongly ahead of
2020. In fact, the whole digitization of Latin 2021. Furthermore, the real growth
American economies strongly accelerated numbers will be estimated properly at the
with retail eCommerce sales in Latin beginning of 2022 when companies will
America growing by 37% in 2020, making it have enough post-Covid data to calculate
the fastest-growing region in the world. the real trends of growth for the future.
198
M I L L I O N PE O PL E
in Latin America still didn't have
access to the internet in 2021
Source: We Are Social, HootsuiteAFTER COVID
35 72% 2019
30 2024
30
70%
25 24,2
Source: Statista Digital Market Outlook
116%
20 18,2
17,2
15 14,3
92% 153% 121%
10,1
10 8,4
7,8
4,7
5 4 4
2,1
0
BRAZIL MEXICO COLOMBIA ARGENTINA PERU REST OF
LATIN AMERICA
Online sales in Latin American countries between 2019 and 2024 (in billions of US dollars)
In the Latin American region, home to over 430 million internet users, around 70% to
83% of the population used social media in 2021. During that period, the market
share of platforms like Facebook and Pinterest mostly decreased, while Instagram,
Twitter, and especially YouTube are rapidly rising.
COUNTRY INTERNET USERS INTERNET ACTIVE SOCIAL MEDIA SOCIAL MEDIA
(IN MILLIONS) USERS (GROWTH) USERS (IN MILLIONS) USERS (GROWTH)
Brazil 160 6.4% 150 7.1%
Mexico 92 4.0% 100 12.4%
Argentina 36 3.5% 36 5.9%
Colombia 35 4.0% 39 11.4%
Chile 16 0.7% 16 6.7%
Peru 20 13.4% 27 12.5%
Source: We Are Social, HootsuiteSource: We Are Social, Hootsuite
USERS (TOP 6 COUNTRIES)
4,5%
4,5% PERU
CHILE
9,7%
COLOMBIA
44%
10% BRAZIL
ARGENTINA
25,6%
MEXICO
Source: PulsolineIN LATAM (EXCLUDING MESSENGER APPS):
MOST USED SOCIAL MEDIA PLATFORMS IN LATAM
MOST USED SOCIAL BRAZIL MEXICO ARGENTINA COLOMBIA CHILE PERU
MEDIA PLATFORMS
01
02
03
04
05
06
Source: Pulsoline
With the internet and social media adoption rising to high levels in the region, it is now very easy
for marketers to reach their target audience. The 18-44 years old age group represents the
highest targetable population in LATAM, accounting for 70% of targetable users on social media
(example with Brazil below).
30%
20%
ON SOCIAL MEDIA (BRAZIL)
Source: Pulsoline
10%
0%
13-17 yo 18-24 yo 25-34 yo 35-44 yo 45-54 yo 55-64 yo 65+30%
70%
ON SOCIAL MEDIA (BRAZIL)
20%
10%
0% Source: Pulsoline
13-17 yo 18-24 yo 25-34 yo 35-44 yo 45-54 yo 55-64 yo 65+
Latin America has been the
AGE GROUPS ADVERTISING AUDIENCE
fastest-growing eCommerce region in ON SOCIAL MEDIA (BRAZIL)
the world in 2020, with retail
eCommerce sales increasing by 37%. 13-17 yo 5.60%
According to different sources, the
region is also expected to grow by 66% 18-24 yo 21%
between 2019 and 2023. Customers
around the region have slowly made
25-34 yo 28.30%
the switch to online shopping
throughout the pandemic, and online
consumption is becoming the new 35-44 yo 20.40%
normal. In the emerging markets of
LATAM, digitization is catching up: 45-54 yo 12.60%
eCommerce, digital payment methods
and home delivery services are 55-64 yo 7.60%
becoming increasingly popular, and are
showing strong signs of a change in 65+ 4.30%
purchasing behavior.
Source: Statista 2021Founded in 1999, MercadoLibre is the the adoption of technologies in the region.
leader in eCommerce in Latin America and
takes the 7th place globally. It has a broad It offers various eCommerce ecosystem
presence, covering 18 Latin American enablers that facilitate online transactions
markets. It has 200,000 Mercado Shops for Latin Americans. Such an example is
offering 182.1 million live listings. Last year, their payment technology company called
the regional eCommerce giant reported MercadoPago, which makes eCommerce
growth of more than 70% in its user base accessible beyond credit card holders. In
and more than 100% in terms of addition, it has a credit subsidiary –
transactions. These are record numbers MercadoCredito and a logistics arm –
showing the effects of the pandemic on MercadoEnvios.
WEBSITES IN EACH COUNTRY:
T O P F I V E E-CO M M E R CE SITE S I N L AT I N AM E RI C A’ S L ARG E S T M AR K ETS
RANK BRAZIL MEXICO COLOMBIA ARGENTINA CHILE PERU
1 MercadoLibre MercadoLibre MercadoLibre MercadoLibre Yapo Falabella
2 Americanas Amazon OLX OLX MercadoLibre Ripley
3 OLX Walmart Falabella Fravega Sodimac Sodimac
4 Casasbahia Liverpool Linio Alamaula Ripley Linio
5 Magazineluiza Coppel Sodimac Garbarino Paris Plaza Vea
Source: DHL, Ministry of Commerce & Industry in Panama
METHODS
Latin America is a very complex region and well as adding local optimized content
the array of possible optimizations is wide. and local preferences such as the
One important aspect of a successful possibility to pay by installments, or
localization strategy is the checkout. For adding local trust marks, awards and
instance, such improvements include the other trust symbols. This is important in
introduction of local payment methods in order to eliminate any potential friction
the key markets' carts (Brazil, Mexico, during the purchase.
Argentina, Chile, Colombia and Peru), asONLY 19% OF LATIN AMERICANS
own a credit card, making local payment
methods very important
Source: Ebanx
GO LOCAL MEAN? B2C
GLOBAL VS LOCAL STRATEGY
BRAZIL
Boleto bancario. - Online banking & Pix - Credit & Debit Cards
MEXICO
Cash - Online bank transfers - Credit & Debit Cards
ARGENTINA
Cash - Online bank transfers - Credit & Debit Cards
CHILE
Cash - Online bank transfers & Debit Cards - Credit Cards
COLOMBIA
Cash - O n l i n e b a n k t r a n s f e r s. - Credit Cards & Debit Cards
PERU
Cash - Online bank transfers - Credit Cards & Debit Cards
Source: PulsolineCOUNTRIES IN DETAIL
BRAZIL
COUNTRY INFOGRAPHIC DATA
Brazil is the largest country in Latin America by both area and population. It is the largest
country to have Portuguese as an official language and the only one in the Americas. Its
capital city is Brasília, while the largest city is São Paulo. Brazil is the largest national
economy in Latin America and the ninth largest economy in the world. It has a high internet
penetration rate of 75%, and the country is often classified as an emerging power.
Population 2021: Median Age 2021 Language
212,559,417 33 Portuguese
GDP (billons USD - 2019) GDP per capita (PPP in $ - 2019)
1.1%
Pre-Covid GDP
USD $1,839 Billions USD $15,300 growth (2019)
Internet Penetration (2021)
75.0%
Social Media Users (in % of population - 2021)
70.3%
Online Shoppers (in % of population - 2021)
17.6%
Digital Payments Growth (2021)
19.3%
Currency Currency Code
$553 Yearly Average
Transactions Value (2021)
Brazilian real BRL
Most popular payment methods (2021)
BANK CARDS, BOLETO, MERCADO PAGO, BANK TRANSFER, PAGSEGURO
SOURCE: https://www.jpmorgan.com/merchant-services/insights/reports/brazilMEXICO
COUNTRY INFOGRAPHIC DATA
Mexico is the most populous Spanish-speaking country in the world, while being the second
most populous country in Latin America after Brazil. It is also the world's 13th-largest country
by land area. Mexico City is the capital of the country while also being the largest
metropolis. Mexico is a developing country and is often identified as an emerging power.
The country has a high internet penetration rate, at 71%.
Population 2021: Median Age 2021 Language
128,932,753 29 Spanish
GDP (billons USD - 2019) GDP per capita (PPP in $ - 2019)
-0.1%
Pre-Covid GDP
USD $1,268 Billions USD $20,582 growth (2019)
Internet Penetration (2021)
71.0%
Social Media Users (in % of population - 2021)
77.2%
Online Shoppers (in % of population - 2021)
13.2%
Digital Payments Growth (2021)
13.4%
Currency Currency Code
$722 Yearly Average
Transactions Value (2021)
Mexican peso MXN
Most popular payment methods (2021)
PAYPAL, BANK CARDS, MERCADO PAGO, OXXO PAY, COMPROPAGO,
OPENPAY, PAYU, PAGOFACIL
SOURCE: https://3dcafestore.com/blog/conoce-los-metodos-de-pago-online-mas-populares-en-mexico/ARGENTINA
COUNTRY INFOGRAPHIC DATA
Argentina is the fourth most populous country in Latin America after Brazil, Mexico and
Colombia. However, Argentina has a higher GDP than Colombia. In fact, the country ranks
very high in the Human Development Index and has the second-highest one in Latin
America after Chile. It also has the second highest internet penetration after Chile, at 80%. It
is a regional power, and retains its historic status as a middle power in international affairs.
Buenos Aires is the capital and largest city of Argentina.
Population 2021: Median Age 2021 Language
45,195,774 32 Spanish
GDP (billons USD - 2019) GDP per capita (PPP in $ - 2019)
-2.1%
Pre-Covid GDP
USD $445 Billions USD $23,040 growth (2019)
Internet Penetration (2021)
80.0%
Social Media Users (in % of population - 2021)
79.3%
Online Shoppers (in % of population - 2021)
18.6%
Digital Payments Growth (2021)
24.9%
Currency Currency Code
$705 Yearly Average
Transactions Value (2021)
Argentine peso ARS
Most popular payment methods (2021)
PREPAID CARDS, RAPIPAGO, PAGOFÁCIL, BANK CARDS
SOURCE: https://www.id4you.com/blog/recomendados/cuales-son-los-metodos-de-pago-para-tu-e-commerce-en-argentina/CHILE
COUNTRY INFOGRAPHIC DATA
Chile has the lowest population of our TOP 6 countries, but it ranks the highest in terms of
Human Development Index, globalization, state of peace and economic freedom. It also has
the highest income per capita and GDP per capita in the whole Latin America. The
southernmost country in the world is among the most economically and socially stable
nations, making it a great place to start and test the waters for companies that want to
expand into LATAM. Chile also has the highest internet penetration in Latin America, at
82.3%.The country's capital and largest city is Santiago, and its national language is Spanish.
Population 2021: Median Age 2021 Language
19,116,201 35 Spanish
GDP (billons USD - 2019) GDP per capita (PPP in $ - 2019)
1.1%
Pre-Covid GDP
USD $282 Billions USD $25,155 growth (2019)
Internet Penetration (2021)
82.3%
Social Media Users (in % of population - 2021)
83.5%
Online Shoppers (in % of population - 2021)
29.5%
Digital Payments Growth (2021)
11.6%
Currency Currency Code
$810 Yearly Average
Transactions Value (2021)
Chilean peso CLP
Most popular payment methods (2021)
BANK CARDS, RED COMPRA, WEBPAY, ONEPAY, PAYPAL, MERCADO PAGO
SOURCE: https://www.statista.com/statistics/1114809/distribution-ecommerce-payment-method-chile/COLOMBIA
COUNTRY INFOGRAPHIC DATA
Colombia is the third most populous country in Latin America after Brazil and Mexico. It is
composed of 32 departments and the Capital District of Bogotá, the country's largest city.
Spanish is the official language, but 68 regional languages are recognized, making it one of
the world's most diverse nations. The country has a diversified economy, with
macroeconomic stability and favorable long-term growth prospects. Colombia's internet
penetration stands at 68%.
Population 2021: Median Age 2021 Language
50,882,891 31 Spanish
GDP (billons USD - 2019) GDP per capita (PPP in $ - 2019)
3.3%
Pre-Covid GDP
USD $323 Billions USD $15,635 growth (2019)
Internet Penetration (2021)
68.0%
Social Media Users (in % of population - 2021)
76.4%
Online Shoppers (in % of population - 2021)
11.7%
Digital Payments Growth (2021)
3.3%
Currency Currency Code
$375 Yearly Average
Transactions Value (2021)
Colombian peso COP
Most popular payment methods (2021)
PAYMENT ON DELIVERY, BANK CARDS, EFECTY, VIA BALOTO, PSE
SOURCE: https://www.statista.com/statistics/740770/colombia-payment-methods/PERU
COUNTRY INFOGRAPHIC DATA
Peru has the lowest GDP and GDP per capita of our TOP 6 countries, but Peruvians still enjoy
an upper middle income level. Most importantly, Peru is one of the region's most prosperous
economies with a high average growth rate in recent years. Its capital and largest city is
Lima and the official language is Spanish.
Population 2021: Median Age 2021 Language
32,971,854 31 Spanish
GDP (billons USD - 2019) GDP per capita (PPP in $ - 2019)
2.2%
Pre-Covid GDP
USD $226 Billions USD $13,416 growth (2019)
Internet Penetration (2021)
60.0%
Social Media Users (in % of population - 2021)
81.4%
Online Shoppers (in % of population - 2021)
7.0%
Digital Payments Growth (2021)
11.4%
Currency Currency Code
$374 Yearly Average
Transactions Value (2021)
Peruvian sol PEN
Most popular payment methods (2021)
BANK CARDS, PAGOEFECTIVO, MERCADO PAGO
SOURCE: https://www.statista.com/statistics/1114809/distribution-ecommerce-payment-method-chile/Companies that want to expand into Many companies want to expand to
LATAM need to roll out a local strategy different regions at an early stage.
and remove friction throughout the However, expanding to new regions
whole customer journey, so they can requires resource-intensive initiatives
optimize their business expansion. and time. That is where Pulsoline
comes into play, as we help companies
The digital revolution is just starting in test the waters at a lower cost.
the region, with the internet usage
being on the rise. In January 2021, 72% of We have a team of local sales and
South Americans were using the marketing experts on the ground so you
internet and this number keeps rising. do not need to recruit local teams and
But, let’s not forget that around 200 open new offices. Here’s what we do:
million people in Latin America still do
not have access to the internet. The GO-TO-MARKET STRATEGY (Customer
potential for growth is still enormous! and Competitor Analysis, Analysis of
Market Opportunity)
Cross-border companies have a huge
opportunity to succeed and expand BRANDING (Social Media Branding,
into LATAM if they understand that a Visual Identity Development, Sales
global strategy does not work in the Materials, Product design)
region.
LEAD GENERATION (Social Media
Pulsoline’s mission is to empower tech Management, Email Marketing,
companies to expand their business Webinars)
smoothly into Europe and Latam, and
maximize their user acquisition and MONETIZATION (Content Marketing,
sales. Sales Funnel Optimization)
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