LATAM e-Commerce has grown drastically in these past few months!
Online businesses are seeing huge growth in sales, and a lot of that is due to COVID-19. The pandemic has restricted people from being able to shop like they usually did, so e-Commerce has been a life-saver!
There’s a lot of factors that have led to this market rise. Let’s talk about some of them!
COVID-19 Restrictions
Since March, going out in public has been a big risk. You never know who you might come into contact with!
Because of this safety issue, a lot of countries across LATAM have put restrictions in place to make sure that you’re not putting yourself or others in danger
Regulation Examples
Some of the laws and regulations that were created were:
- Limited capacity in malls and other areas
- Complete shut-down of stores and restaurants
- Mandatory quarantine throughout entire countries
For example, Argentina was completely shut down for months! No one could walk around the street, most stores were closed because they weren’t allowed to operate, and people couldn’t even fly in or out of the country.
What This Means for LATAM e-Commerce
You might be wondering how these COVID-19 restrictions play into the growth of LATAM e-Commerce. The answer is simple: you still need to buy things!
Even though it’s been harder and harder to go to brick-and-mortar stores, you still have a demand for things like food, clothing, and electronics.
If you couldn’t buy them in person, then there’s a variety of websites where you could get the same products, maybe even for a cheaper price.
Tech Growth For LATAM e-Commerce
After the surge of COVID-19 cases, businesses have learned to adapt to new situations. What does this mean? E-Commerce!
In fact, about 43% of consumers in LATAM are now buying more online than in person!
Knowing that it would be much easier (and safer) to shop through a website instead of going to a brick-and-mortar store, companies began shifting their focus to growing their online presence instead of trying to sell in person.
How Are Companies Adapting?
There’s a lot of ways that businesses have been growing their technology to be more comfortable in the e-Commerce scene.
- Including more payment methods: a lot of companies started doing this. In Brazil we see it with Boleto Bancario, while other countries take advantage of options like MercadoPago.
- Using better software and programs: using website builders like Wix or Shopify, as well as other softwares, have helped significantly drive up online traffic.
Using these sorts of techniques are making sure that companies’ online pages are running as smoothly as possible!
They help make sure that the sites look attractive and are providing consumers with a good experience that will make them want to visit again.
Social Media Growth
Over the past couple of months, LATAM has also seen a lot of growth in social media use, especially platforms like Instagram and Twitter. It’s a huge market that businesses in the region need to take advantage of!
The transition from brick-and mortar to e-Commerce means that companies would be in more direct contact with their consumers, knowing what they want, what they like and dislike, etc.
With so many more people on social media, the pandemic was the perfect time for businesses to step up their marketing game and reach their target audience through new platforms.
They also had the option of being able to link their pages and websites directly from their accounts, meaning that consumers could buy a product just a couple of clicks after seeing an ad on Instagram!
See if LATAM e-Commerce is Right For You
Online purchases currently only make up 5% of retail sales in Latin America. It’s a new market that you need to take advantage of now while you still can!
Need to keep an eye on the latest trends and platforms in LATAM e-Commerce? Contact us at Colibri today!
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