Latam Ecommerce Report 2018

Latin America
Ecommerce Report
2018
1
Thank you to our partners
Thank you for downloading this report. This report describes both the commercial opportunities, as well as its
challenges for the main ecommerce markets in Latin America. The growth and development seen in almost all Latin
American countries is having a huge impact for both international and domestic retailers, which makes
understanding the ecommerce landscape of each country, as well as across Latin America, even more important.
While cross-border ecommerce is increasing, there are still many barriers to overcome. We hope this report will help
you overcome challenges in selling online in the Latin American market.
The Ecommerce Foundation is an independent organization, initiated by worldwide national ecommerce

associations, as well as online and omnichannel selling companies. Our mission is to foster global digital trade,
as peace is the natural effect of trade. By facilitating digital commerce, we hope to make the world a better place.
We especially would like to thank our report partners; namely Asendia, SAP, Mazars, Pag Brasil and Safe.Shop.
Without their support, this report would not have been created.
If you would like to read more ecommerce reports, please visit ecommercefoundation.org/reports.
Jorij Abraham
Managing Director
Ecommerce Operations
2
www.ecommercefoundation.org
Valued Report Partners
Asendia is one of the world’s top three international mail, Mazars is an international, integrated and independent PagBrasil is a leading Brazilian fintech company processing
shipping and distribution organizations, delivering your organization, specializing in audit, accountancy, advisory, tax payments in Brazil for multinational e-commerce businesses. With
packages, parcels and documents to more than 200 and legal services. As of 1st January, 2018, Mazars operates focus on innovation, we created the best infrastructure for the
destinations across the globe. Formed as a partnership throughout the 86 countries and territories that make up its Brazilian market. By providing an outstanding service and innovative
between La Poste and Swiss Post in 2012, the Asendia integrated partnership. Mazars draws upon the expertise of products, such as Boleto Flash®, we create unique value for our
business employs more than 2,000 people worldwide, has 20,000 women and men led by 980 partners working from 300 clients and their customers.
Our complete online payments platform is the result of more than 20
offices in 15 countries and a global network of delivery offices worldwide. We assist clients of all sizes, from SMEs to
years’ experience in the segment and relies on innovative
partners to get your package where it needs to be, when it mid-caps and global players as well as start-ups and public
resources, designed specifically for the Brazilian market. Local and
needs to get there. organizations, at every stage of the development. international merchants gain access to the most advanced portfolio
of products and services, which help them boost their sales
immediately.
Safe.Shop is the global trust mark for online shopping, helping SAP Customer Experience is a business unit of SAP,
consumers and merchants shop & sell with confidence at providing omnichannel customer engagement and commerce
home & abroad. Safe.Shop checks if webshops are reliable by solutions that allow organizations to build up a contextual
verifying if they comply with national laws and/or the Global understanding of their customers in real-time, deliver a more
Ecommerce Code of Conduct. The Safe.Shop logo ensures impactful, relevant customer experience and sell more goods,
that consumers have the right to return the goods, privacy is services and digital content across every touch point, channel
protected, consumers will get the good(s) they paid for, the and device. Through its state-of-the-art customer data
payment is safe, consumer rights are protected, prices are management, context driven marketing tools and unified
clear and real, and any complaints will be listened to and commerce processes, SAP Customer Experience has helped
handled properly. Safe.Shop is issued by the Ecommerce some of the world’s leading organizations to attract, retain and
Foundation. grow a profitable customer base.
Tell us what you think and get a full ecommerce report for free!
YYY
Help us make better ecommerce reports! Take our 3-minute Click on or scan the QR
survey and you’ll receive a discount code for a free full code above to go to the
ecommerce report from ecommercefoundation.org! survey!
Thank you!
“Trustmarks have the greatest effect on perceived trustworthiness, influencing respondents’ beliefs about
security and privacy, general beliefs about firm trustworthiness, and willingness to provide personal information.”
Of consumers who never

buy goods/services
online, the #1 reason is
Mauricio Salvador trust (49%).
President, ABComm
“To sell in Brazil you of course need to have
your website in Brazilian Portuguese. Also use Cheaper trust alternative for
a trust seal like Safe.Shop. ABCom is proud to marketplace available: Trustmarks Free version available
announce that together with the eCommerce Currently, online shops have to Fortunately cheaper alternatives for
Foundation it will introduce Safe.Shop to the invest heavily in consumer trust. The Freemium version will go live at
online shops are now available, like the 20th of September but can
Brazilian market in September 2018.” People do business with those that trust marks. A trust seal or badge on a
they like, know, and trust. For online already be requested by owners of
site can mean a.o. that the company online shops. It includes a consumer
shops to instill trust fast in the consumer is buying from actually
consumers visiting their website is review system, a trust score of the
exists, that consumer rights are site and the Safe.Shop badge.
crucial. Entrepreneurs want to really protected, that the product is not fake
distinguish themselves from “ghost Please early subscribe by adding
and that consumer reviews are real. “free subscription” in your message.
shops”. That’s shops that collect
your money but don’t deliver the Safe.Shop, the first truly global trust Online shops receives three
product. mark now available for free in Latin Safe.Shop badges:
Currently merchants have to invest America
heavily into making their website The Ecommerce Foundation is Consumer review system
Jorij Abraham trusted. They do that by e.g. putting introducing the first truly global trust
Director, Ecommerce Foundation their products on market places like mark, now available for free in Latin
America. Safe.Shop as a national and Trust score
“Our mission is to foster global digital trade as Mercado Livre, Americanas, Linio or
peace is the natural effect of trade. We are eBay. These market places however cross border trust mark is initiated by
convinced that introducing the first global trust
mark Safe.Shop will help reaching our goal.”
take 5 – 20% of their generated many national ecommerce associations
Safe.Shop Badge
sales. Also using trusted payments worldwide, including ABComm in Latin
like Paypal come at high costs. America.
Source(s): Aiken, K., Boush, D. (2006); CIGI-IPSOS (2017)
Argentina Mexico
Bolivia Peru
Brazil Uruguay
Chile Venezuela
Colombia Guatemala
Costa Rica Dominican Rep.
Table of Contents
8 15 24
37 54
7
Introduction to Latin America
A Brief Introduction to Latin America
The term “Latin America” was first used in an 1856 conference with the title “Initiative of the
America. Idea for a Federal Congress of Republics” (Iniciativa de la América. Idea de un Congreso
Federal de las Repúblicas), by the Chilean politician Fracisco Bilbao. In such a conference, he
called for the creation of a confederation of Latin American republics to better search for their
common defense and prosperity, without political or economic barriers between them. In the same
work, he also detailed the principles under which such a confederation should work.
Latin America is a group of countries and dependencies in the Western Hemisphere where
Romance languages such as Spanish, French and Portuguese are spoken; it is broader than the
Argentina
terms Ibero-America or Hispanic America. The term originated in the Napoleon III French Bolivia
government in the mid-19th century as Amérique latine to consider French-speaking territories in Brazil
the Americas, along with the larger group of countries where Spanish and Portuguese languages Chile
Colombia
prevailed, including Spanish-speaking portions of the United States. Costa Rica
Cuba Mexico
Latin America consists of twenty sovereign states and several territories and dependencies which Dominican Rep. Nicaragua
Ecuador Panama
cover an area that stretches from the northern border of Mexico to the southern tip of South El Salvador Paraguay
America, including the Caribbean. It has an area of approximately 19,197,000 km2, almost 13% of French Guiana Peru
the Earth’s land surface area. As of 2016, its population was estimated at more than 639 million Guadeloupe Puerto Rico
Guatemala Saint Barthélemy
and in 2014, Latin America had a combined nominal GDP of 5,573,397 million USD and a GDP Haiti Saint Martin
PPP of 7,531,585 million USD. Honduras Uruguay
Martinique Venezuela
Source: Wikipedia, 2018
Latin America’s population* continues to increase (millions)
629,5
623,3
616,9
610,6
595,0 596,5
2013 2014 2015 2016 2017 2018(f)
Source: United Nations, 2018 *Countries incl. can be found on pg. 6
10
Brazil boasts the largest population of Latin America
Country Population Country Population

Argentina 44,271,041 Guyana 777,859
Bolivia 11,051,600 Honduras 9,265,067
Brazil 209,288,278 Mexico 129,163,276
Chile 18,054,726 Nicaragua 6,217,581
Colombia 49,065,615 Panama 4,098,587
Costa Rica 4.905,769 Paraguay 6,811,297
Dominican Republic 10,766,998 Peru 32,165,485
Ecuador 16,624,858 Suriname 563,402
El Salvador 6,377,853 Uruguay 3,456,750
Guatemala 16,913,503 Venezuela 31,977,065
Source: Worldometers; Population Reference Bureau, 2018
11
The 25-54 age group dominates in Latin America
‘Among the different age

groups, Generation X
41,54%
consumers (born 1966-1981)
made more online purchases in
2016/2017 than any other age
24,89%
group, averaging nearly 19
transactions per year.
16,81%
Generation X consumers in fact
made 20% more purchases last 8,44% 8,03%
year than their younger
counterparts (Millennials).’
-KPMG, 2017 Global Online Consumer Report 0-14 15-24 25-54 55-64 65+
Source: CIA World Factbook, 2018; KPMG, Global Online Consumer Report, 2017
12
GDP compound annual growth rate high in Central America
GDP compound GDP compound
Several factors Country annual growth rate, Country annual growth
influence Latin American 2000-15 (%) rate, 2000-15 (%)
countries and the ability Peru 5.3% Chile 4.0%
to compare/contrast
Bolivia 4.4% Paraguay 3.9%
economically, including
inflation, currency Colombia 4.3% Uruguay 3.5%
depreciation, etc. Ecuador 4.2% Argentina 2.5%
Therefore, to Panama 6.5% Brazil 2.7%
understand the
Costa Rica 4.2% Mexico 2.2%
economic situation of
each individual country, Honduras 3.9% Dominican Rep. 4.9%
the compound annual Nicaragua 3.6% Cuba 4.4%
growth rate of GDP is Guatemala 3.5% Venezuela 2.1%
shown in these tables.
El Salvador 1.9% Jamaica 0.6%
Source: World Bank; Conference Board Total Economy Database 2016; McKinsey Global Institute Analysis
13
Chile is leading in logistics and internet inclusivity
The LPI overall score reflects perceptions of a country's logistics based on, The E-GDI presents an assessment of the website development patterns in a
among other things, efficiency of customs clearance process, quality of trade- and country, incorporates access characteristics, such as infrastructure and educational
transport-related infrastructure and ease quality of logistics services. levels, to reflect how a country is using information technologies to promote access
and inclusion of its people.
The Ease of Doing Business Index: Higher rankings (low numerical value)
indicate better, usually simpler, regulations for businesses and stronger protections The Internet Inclusivity Index is based on the affordability, availability, relevance,
of property rights. and readiness categories for Internet.
Ease of Ease of
Logistics E-Government Internet Logistics E-Government Internet
Doing Doing
Country Performance Development Inclusivity Country Performance Development Inclusivity
Business Business
Index Index Index Index Index Index
Index Index
Argentina 61 117 43 78.6 Guyana 132 126 124 x
Bolivia 131 152 103 x Honduras 93 115 123 x
Brazil 56 125 44 77.6 Mexico 51 49 64 74
Chile 34 55 42 85.1 Nicaragua 102 131 129 x
Colombia 58 59 61 75.9 Panama 38 79 85 x
Costa Rica 73 61 56 x
Paraguay 74 108 108 x
Dominican Rep. 87 99 93 x
Peru 83 58 77 68.9
Ecuador 62 118 84 x
Suriname x 165 116 x
El Salvador 101 73 100 67.5
Uruguay 85 94 34 x
Guatemala 125 97 81 62.3
Venezuela 142 188 106 61.2
Source: The Economist Intelligence Unit; WorldBank; DoingBusiness; United Nations, 2018
14
Ecommerce Facts & Figures
15
Internet penetration is increasing, with Argentina in the lead
INTERNET USE: LATIN AMERICA INTERNET USE: TOP 10 LATAM COUNTRIES
Share of the total Latin American population accessing the Internet, 2016 Share of the population accessing the Internet, 2016
59% Argentina 71%

Costa Rica 66%
58%
Chile 66%
Uruguay 66%
Dominican Rep. 61%
55% Brazil 61%
Venezuela 60%
Colombia 58%
Ecuador 54%
2015 2016 2017*
Source: ITU.int, 2016 *estimate
16
Recent data reveals Argentinians are buying the most online
Argentina 39% 2018 (estimate): Percentage of active paying customers (or accounts), Age 16+
Source: Statista, Digital Market Outlook, 2018
Brazil 38% 2016: Percentage online bought products or services in last year, Age 10+
Source: UNCTAD; CGI.br, 2018
Chile 35% 2014: Percentage online bought a product online, Ages 18+, last year
Source: UNCTAD; Pew, 2018
Mexico 31% 2018 (estimate): Percentage of active paying customers (or accounts), Age 16+
Source: Statista, Digital Market Outlook, 2018
Colombia 10% 2016: Percentage bought/ordered products or services, Age 5+

Source: UNCTAD; DANE, 2018
Paraguay 9% 2015: Percentage bought/sold products & services, Age 10+

Source: UNCTAD; DGEEC, 2018
El Salvador 8% 2014: Percentage bought a product online, 18+, last year

Nicaragua 7% 2014: Percentage bought a product online, 18+, last year

Peru 6% 2016: Percentage bought products and/or services, Age 6+

Source: UNCTAD; INEI, 2018
Honduras 5% 2014: Comprar Productos o Servicios, last 3 months, INE

Source: UNCTAD, 2018
Source: UNCTAD, 2018
17
B2C ecommerce turnover continues to rise in USD ($)
15,21%
13,76% 13,81%
Some countries have been
excluded from the total Latin 10,36%
American (LATAM) B2C
ecommerce turnover figures $71,2
due mainly to lack of data.
Full version available at $60,37
However, many LATAM $52,03
www.ecommercefoundation.org/reports
countries have begun $44,87
implementing new and
improved ecommerce data
collection in light of their
burgeoning markets and
foreseeable growth.
2015 2016 2017 2018(f)
Source(s): WorldPay; Statista; CCS; GfK; export.gov; CCE; KPMG; MINTIC; RENATA; AMCHAMDR; Asociación de Internet; Worldline, 2018
18
Mexico boasts the largest ecommerce market in LATAM
Dominican
Republic Peru
$2,14 $3
Chile
$3,7
Mexico
Mexico leads in Latin American $21 Colombia
$4,93
B2C Ecommerce Turnover (21
billion USD), but only slightly with
Brazil following closely behind Full version available at
(almost 19 billion USD). www.ecommercefoundation.org/reports
Argentina
$6,83
*Figures shown are in billions of USD $.
Brazil
$18,86
19
The Dominican Republic has the highest E-GDP in LATAM
2,78%
2,66%
Total Ecommerce Turnover / GDP = Ecommerce Share of GDP (E-GDP) 2016 2017
1,80%
1,69%
1,63%
1,51%
1,37% 1,35%
1,16% 1,11%
1,10%
1%
0,92%
0,86%
Full version available at

Argentina Brazil Chile Colombia Dominican Republic Mexico Peru

20
Rises in first-time/unique shoppers to online marketplaces
Unique visitors (in

Retail Website
millions), May 2018
“Many investors see MercadoLibre as sort
Mercado Libre/Livre 56.3 of Latin American Amazon.com. The
Amazon Sites 22.4 company has growth opportunities in its
B2W Digital 16.1
Alibaba 11.8
payment platform Mercado Pago and its
eBay 9.5 ecommerce marketplace in the huge Latin
Cnova 9.1 American market.”
Apple Sites 8.4
-Jeremy Bowman
Walmart 7.7 The Motley Fool, August 09, 2018
Google Shopping 7.5

Buscapé 6
Ages 15+; home and work locations; desktop only; excludes mobile
Source: eMarketer, 2018
21
Mercado Libre/Livre is the leading online marketplace
Colombia
1. mercadolibre.com.co
2. olx.com.co
3. americanas.com.br Mercado Libre/Livre is
overwhelmingly the most popular
online marketplace amongst Latin
Mexico Venezuela American countries, followed by some
1. mercadolibre.com.mx 1. mercadolibre.com.ve key players, Amazon and Olx. In all
2. amazon.com.mx 2. amazon.com
3. amazon.com
countries apart from Chile, Mercado
3. olx.com.ve Libre/Livre is the #1 online
marketplace used by consumers.
According to Portada, 47.4% of Latin
Americans who visited ecommerce
Peru
sites in February of 2018 made
1. mercadolibre.com.pe their online purchases at Mercado
Brazil
2. olx.com.pe 1. mercadolivre.com.br Libre/Livre, dominating the market by
3. falabella.com.pe 2. olx.com.br a landslide, as only 16.6% made
3. amazon.com online purchases at Amazon.
Despite the close proximity of
Amazon in the US to Mexico, 38% of
Mexicans purchased from Mercado
Chile
1. yapo.cl Argentina Libre compared to just 21%
2. mercadolibre.cl 1. mercadolibre.com.ar purchasing from Amazon in
3. falabella.com 2. mercadolibre.com February 2018.
3. amazon.com
Source: SimilarWeb (ranked, # of visitors); Portada, 2018
22
Uruguay has most active population on social media
SOCIAL MEDIA USE: LATIN AMERICA
Share of the total Latin American population having used social media sites/apps since January, 2018
Uruguay, Chile and Argentina are home to the most
70% 71% 72%
active social media population(s) in Latin America,
63% as over 70% have used social media sites and/or
61% apps actively since January 2018.
58% 57% 56%
48% Average share of the population using each of the
47%
44% 44% different social media platforms:
52.75% 9.30%
Full version available at 1.50%

22.80%
12.90% 1.20%
Source(s): Statcounter; WeAreSocial; Statista, 2018
23
Country Profiles
24
Ecommerce Sales 2014 – 2018(f) (ARS & USD, billions)
Introduction: Ecommerce Facts & Figures:

• Population: 44 million • Internet penetration: 78%
• Currency: Peso • % of e-Shoppers: 39.4%
• VAT: 21% • E-GDP: 1.1%
• Unemployment: 8.5% • % using Social Media: 70%
Ecommerce Environment:
• Teens with a higher socio-economic level use mobile channels more than those
from middle and low-socioeconomic levels. It is striking that 51% of those
surveyed reported being online “all the time” while 16% say they go online more
than once an hour and 20% more than once a day.
• Argentina is the 3rd largest mobile market in Latin America, with 61 million mobile
connections. Penetration on a unique subscriber (i.e. human user) basis is Payment Method Date
Major Buying Holidays
mature at 90%. Supported by an improved outlook, mobile broadband Preference/Use 2018-2019
penetration will rise from 46% now to around 75% by 2020. This growth will be Carnival Feb. 12
Mastercard Argentina
underpinned by nearly $9 billion in network investment by mobile operators. A Valentine’s Day Feb. 14
similar shift is expected in device ownership; smartphone adoption is expected American Express Mother’s Day Oct. 21
to increase to 71% of connections over the next 5 years. Argentina
Father’s Day Jun. 17
• 80% of Avenida’s orders are currently delivered overnight to its 11 pickup PayPal Argentina
locations in Buenos Aires. These small storefronts are cheaper to run than retail Independence Day Jul. 9
stores, but still allow customers to interact with Avenida’s staff, which helps build 2Checkout Black Friday Nov. 23
trust and brand loyalty. Payu Argentina Cyber Monday Nov. 26
Source(s): BBVA; GSMA; Tech Crunch; Statista; Kantar TNS; CACE, 2018
25
Devices used to access the Internet, since January 2018

• Population: 11 million • Internet penetration (I.P.): 41%
• Currency: Boliviano • I.P. growth: 4.84%
• VAT: 13% • % using Social Media: 48%
• Unemployment: 3.2% • Facebook Users: 73%
• The Bolivian government hopes to address the problem with its new satellite to
provide Wi-Fi internet to rural areas and investment in rural telecenters, which
are expected to become hubs of a local communications network.
• Although internet access in many areas is still limited due to a lack of bandwidth,
the number of Bolivians with internet access has increased, most of them
through the use of smartphones. The Telecommunications law and general
Payment Method Population Age Structure 2018
Commercial Code serve as the legal framework for electronic commerce, but the
Preference/Use
lack of implementing regulations leaves many rules open to interpretation.
0-14 31.85%
• Domestic ecommerce is currently being utilized primarily for air transport.
Customers are able to make flight reservations and purchase tickets through 15-24 19.46%
Mobiamo
websites for both Bolivian de Aviacion and Amaszonas.
25-54 37.48%
55-64 5.90%
Credit Card
65+ 5.30%
Source(s): Statcounter; CIA World Factbook; Statista; Export.gov; Paymentwall, 2018
26
Ecommerce Sales 2013 – 2018(f) (BRL & USD, billions)

• Currency: Real • % of e-Shoppers: 38%
• VAT: 17% • E-GDP: 0.92% Full version available at
• Top leading categories of products purchased on international websites:
electronics (34%), software (25%), fashion & accessories (24%),
mobile/telephones (18%), toys & games (17%), cosmetics & personal care
(17%), automotive accessories (13%), books (13%), home furnishings &
decoration (12%), sports & leisure products (11%).
• In 2016, Brazilian eshoppers spent $2.4 billion in cross-border websites, Payment Method Best selling online Share of
representing an increase of 17% compared to 2015 & 38% compared to 2014. Preference/Use retailer/marketplaces users
• Businesses seeking to market in Brazil also may wish to consider registering Credit Card 62% Mercado Livre 77%
their trademark(s) as domain name(s) ending in ‘.br’ which is the country top-
level domain for Brazil. PayPal 28% Extra 38%
• According to ABComm, roughly 30% of consumer goods purchased in 2016
Ponto Frio 36%
were bought using mobile devices (smartphones and tablets). Boleto 9%
• Brazilians tend to purchase through marketplaces and group buying websites. Submarino 34%
Cash 50%
Brazilians also like to take advantage of online discount websites and coupons.
2-3 installments 18.7% Walmart 28%
Many middle-class consumers are aware that online prices for consumer goods
and customer service policies are better than in stores. 4-12+ installments 31.5% OLX 10%
Source(s): ABComm; Export.gov; eBit; Worldometers; Statcounter, 2018
27
Ecommerce Sales 2013 – 2018(f) (Trillions-Pesos; Billions-USD)

• Currency: Chilean Peso • % of e-Shoppers: 35%
• VAT: 19% • E-GDP: 1.37%
• Unemployment: 7% • % using Social Media: 71%
• In the last five years, ecommerce has more than doubled in Chile. This increase
is a result of the country’s rapid technological infrastructural development.
However, small- and medium-sized companies in Chile lag well behind large
companies in terms of ecommerce.
• Chile, one of the region’s most developed markets, has a high level of credit card
use and good quality of roads, but its package delivery industry to date has been Top International
Payment Method Best selling online
largely focused on business-to-business transactions. Preference/Use retailer/marketplaces Webshops
• Swedish furniture store, IKEA, announced in May 2018 that it planned to open its
Mercado Livre
first stores in South America under a franchise agreement with the Chilean 2Checkout Alibaba
retailer and online marketplace leader Falabella. www.ecommercefoundation.org/
Extra
• Regarding ecommerce purchasing, according to a study by the Chamber of reports
Payu LATAM Groupon Ponto Frio
Commerce of Santiago, consumer goods exceed 20% of purchases, whereas
food represented only 4% of B2C electronic sales registered in Chile, while Submarino
durable goods generated 27% of the transactions carried out. Regarding mobile Mercado Pago Falabella
Walmart
device purchases, users prefer to choose a product proposal where quality is
assured and therefore being able to touch and/or feel what they are buying. WorldPay Walmart OLX
Source(s): América Retail; Reuters; Shopify; SimilarWeb; Statcounter; Export.gov; Statista, 2018
28
Ecommerce Sales 2013 – 2018(f) (Trillions-Pesos; Billions-USD)

• Currency: Peso • % of e-Shoppers: 10%
• VAT: 19% • E-GDP: 1.63% Full version available at
• Despite a general mistrust of ecommerce in Colombia, the growth of internet
connections and use of smartphones are allowing for an increase in online
transactions. Colombians’ online purchases can be broken down as follows:
Government (13%), Financial (17%), Communications and Technology (11%),
Transport (9%), Other Services (3%), Commerce (15%), Education (6%), Public
Services and TV Subscriptions (4%), Health and Beauty (4%), Housing (2%), Payment Method Preference/Use Top International Webshops
and Enterprise Services (7%). 2Checkout
• In Colombia, social media is used to promote ecommerce websites and is a Mercadolibre.com.co
DineroMail
powerful tool of communication that some companies use to reach customers
and to position brands. Facebook, Twitter, Instagram, Pinterest and YouTube are Interpagos Olx.com.co
the most popular. MercadoPago
• Amazon expands its footprint in South America. The ecommerce giant last Ogone Amazon.com
opened its first customer service center in Colombia. The center, which will be
located in the Colombian capital, will begin operations at the end of October and PagosOnline
Falabella.com.co
will provide service 24 hours a day, seven days a week. Payza
PayU LATAM Exito.com
Source(s): América Retail; PrestaShop; SimilarWeb; Export.gov; Statista; CCCE; KPMG; MINTIC; RENATA, 2018
29

• Population: 4.95 million • Internet penetration (I.P.): 66%
• Currency: Colón • I.P. Growth: 10.4%
• VAT: 13% • GDP Growth (2018): 6.78%
• Unemployment: 8.1% • Facebook Users: 66.6%
• The Costa Rican government invested in the new system Mer-Link, an e-bidding
website, developed by the South Korean government. The Apple Store is
operating in Costa Rica, as well as the Netflix on-demand video store.
• Ecommerce has excellent potential in Costa Rica. “Black Friday” in Costa Rica
began in 2010. Thousands of buyers still take advantage of the day and
purchase online from virtual stores abroad. Payment Method Age Structure
• The latest trend in ecommerce purchases is buying from wish.com, a Chinese Preference/Use
website offering low prices and sent directly to Costa Rican households. The 0-14 22.61%
Costa Rican Postal Service (Correos de Costa Rica), has a backlog of deliveries Credit Cards
due to the overwhelming amount of orders received during the last months. 15-24 16.35%
SafetyPay
• Costa Rica passed legislation paving the way for the use of digital signatures
and certificates. More companies are obtaining digital signatures; they are still Efectivo 25-54 44.03%
not yet commonly used.
Mobiamo 55-64 9.20%
MINT 65+ 7.82%

Source(s): Export.gov; Statcounter; PaymentWall; CIA World Factbook, 2018
30
Ecommerce Sales 2013 – 2018(f) (Pesos & USD, Billions)

• Population: 10.8 million • Internet penetration: 61%
• Currency: Peso • E-GDP: 2.8%
• VAT: 18% • Facebook Users: 43%
• Unemployment: 5.50% • Online Sales Growth: 14.5%
• Even under a favorable legal framework, Dominican businesses have been
somewhat slow to integrate electronic commerce transactions into their
operations. Currently, only a few industry sectors offer ecommerce capability,
mostly business-to-consumer (B2C).
• There is a growing business-to-business (B2B) ecommerce market in the
Dominican Republic. Main sectors include banking, telecommunications, Payment Method Date
government transactions and consumer goods. Major Buying Holidays
Preference/Use 2018-2019
• The payment of services using ecommerce platforms have shown a remarkable
growth within the last three years, allowing customers to pay all utilities services, PayPal Valentine’s Day Feb. 14
official government transactions, such as taxes, certifications, business permits,
among other services. Easter Apr. 21
2Checkout
• Mainland China’s significance has grown in recent years for the Dominican Mother’s Day May 26
government as bilateral trade with China reached US$2 billion a year, making it Authorize.net
the second-largest trading partner for China among the Caribbean and Central Back to School Aug. 20
Stripe
American nations.
Amazon Payments Christmas Dec. 25
Source(s): South China Morning Post; ecommerce.com.do; Statcounter; UNCTAD; amcham, 2018
31

• Currency: Quetzal • Facebook Users: 79%
• VAT: 12% • 2017 GDP Growth: 9%
• Unemployment: 2.70% • Ecommerce Retailers: 750
• The trade union of electronic commerce reports that the number of companies in
the country that sell via the internet has grown mainly in the last two years, to
reach 750. Additionally, the number of companies in the country that use the
internet to sell products grew by 200%.
• There is a trend of purchasing products from the United States, considering the
ease of conducting business, and the well-established delivery companies found
in Guatemala. Guatemalan consumers also buy from the European and Mexican Age Structure Social Media Use
eMarkets.
• Despite the attractiveness and growth of ecommerce, Guatemalan consumers 0-14 34.50% Facebook 79%
and small businesses can be reluctant to purchase goods and services online
due to lack of trust in the system. 15-24 21.58% YouTube 12.62%
• Many retail stores, fast food restaurants and movie theaters have developed
25-54 34.12% Pinterest 6.13%
their own apps and offer many discounts when purchasing in-app.
• The business model most commonly used is B2C. B2B is used, but on a smaller 54-64 5.26% Twitter 1.37%
scale.
65+ 4.54% Instagram .66%
Source(s): CentralAmericaData.com; Statcounter; CIA World Factbook; Worldometers, 2018
32
Ecommerce Sales 2013 – 2018(f) (Peso & USD, billions)

• VAT: 16% • E-shopper growth: 8.11%
• Unemployment: 3.40% • E-GDP: 1.7%
• The market will continue growing as a result of improvements in connectivity,
enhanced financial inclusion, more streamlined logistics and increased digital
literacy. Multichannel brick-and-mortar (brick-and-click) retailers have reportedly
seen their online sales grow to account for 25% of overall sales.
• Mexico has a number of shopping events where retailers push special offers and
promotions. For example, Hot Sale Event runs from May 29th to June 1st and Payment Method Date
encourages online shopping. Similar to Black Friday in the U.S. – Major Major Buying Holidays
Preference/Use 2018-2019
eRetailers offer slashed prices and deals across electronics and clothing goods. Valentine’s Day Feb. 14
PayPal 70%
• By 2021, Fashion will still be the most purchased online category, with a value of
4.16 billion USD, and second favorite, Electronics & Media will have an expected Father’s Day Jun. 17
Mercado Pago 18%
worth of 3.89 billion USD$. Independence Day Sep. 16
• The top international eRetailers/marketplaces include Mercadolibre.com.mx, Visa Checkout 12% Black Friday Nov. 23
amazon.com.mx, amazon.com, Liverpool.com.mx and eBay.
Pay Mobile 7% Cyber Monday Nov. 26
• Along with Canada and Brazil, the majority of Mexican e-shoppers make
international purchases. Masterpass 7% Cinco de Mayo May 5
Safety Pay 7% Mother’s Day May 10
Source(s): InboundLogistics.com; Asociaciondeinternet.mx; Export.gov; eshopworld.com; SimilarWeb, 2018
33
Ecommerce Sales 2013 – 2018(f) (Sol & USD, billions)

• VAT: 18% • % Using Social Media: 63%
• Unemployment: 3.60% • E-GDP: 1.35%
• Peru ranks sixth among Latin American countries in the e-Readiness Index,
developed by Visa and Euromonitor, which measures the situation of electronic
commerce in a country and the ability of its consumers and businesses to use it
for their own benefit.
• Talking about young shoppers is important because they represent a high
percentage of population with particular preferences about internet and Payment Method
ecommerce uses. Those under 30 prefer buying accessories and applications Top selling online marketplaces/retailers
Preference/Use
(38%), technology (30%) and clothing and footwear (30%) on the internet. Mercado Libre
2Checkout
• Customers are becoming increasingly demanding and appreciate a wide range
of channels from which to make a purchase, or at least to make comparisons. OLX
PayU LATAM
The increasing demand from customers to find information and availability of Falabella
products through the internet has encouraged companies to enter online DineroMail Ripley
marketplaces more frequently, rather than to open their own ecommerce
Payza Platanitos
platforms because the investment is lower, and the reach can be wider through
marketplaces. PayPal Wong
FirstData Rosatel
Source(s): AmericanRetail; Euromonitor International; Export.gov; Statcounter; Worldline, 2018
34

• Currency: Peso • % Using Social Media: 72%
• VAT: 18% • Facebook Users: 85.5%
• Unemployment: 8.10% • GDP Growth: 14.5%
• Uruguay has one of the highest levels of internet penetration in Latin America.
Data released in December 2016 shows that 85% of Uruguayan households had
access to at least one computer, and that 81% had used the internet. When
smartphones are included, the percentage of Uruguayan homes with access to
the internet increases to 94%.
• According to a recent poll, 2.2 million Uruguayans have a smartphone. This
Age Structure Payment Method
figure increased by 18 times in the last four years. The number of smartphones Preference/Use
with 3G and LTE connections increased 30% in 2016.
• In Uruguay, pick-up centers work very well because of the low level of logistics in 0-14 20.17% Credit Cards 45%
the country.
• The United States and China are the countries from which over 90% of online 15-24 15.69%
Cash at Store 22%
purchases are made. Including shipping, these products tend to cost
approximately 60% of similar products available in the market. 25-54 39.34%
Independent Payment
• Uruguay is a regional leader in software development. As such, it possesses the 13%
54-64 10.56% Agencies
necessary human capital and tools to support ecommerce activities in various
Bank transfers, PayPal and
industry sectors. 65+ 14.25%
prepaid credit or debit cards
20%
Source(s): Statcounter; Export.gov; PaymentWall; Worldline; CIA World Factbook; WeAreSocial, 2018
35

• Currency: Bolívar fuerte • % Using Social Media: 44%
• VAT: 12% • Twitter Users: 62.07%
• Unemployment: 7.70% • Main Payment Method: C.C.
• Venezuela’s electronic commerce sector is expected to grow due to increasing
internet penetration, development of the legal framework, and improved
capabilities of banks to provide secure transactions. However, the economic
crisis and government restrictions on foreign exchange for online credit card
purchases have had a negative impact.
• Main barriers to shopping for Venezuelans: Likes to see the product before
Payment Method
buying (28%), shipping costs are high (27%), afraid to receive a different product
Preference/Use
than the one purchased (24%), no credit card (23%), do not like to give number
of credit card (21%), do not trust quality of products (18%), prices too high Credit Card 78%
(15%), delivery uncertainties (14%), long delivery times (11%), buying on internet Full version available at
is too complicated (8%), do not know how to buy (7%), do not know where to Bank Transfer 57%
buy (4%), other (24%).
www.ecommercefound
• Venezuelan users seem willing to buy online, even though they do not enjoy ation.org/reports Payment Market 39%
sophisticated payment methods or a favorable connection bandwidth. There is a Debit Card 21%
critical mass willing to carry out online transactions and overcome old barriers
associated with having the product in their hands before buying it. Cash on delivery 18%
Source(s): tendenciasdigitales.com; SimilarWeb; Statcounter; Worldometers; CIA World Factbook; Export.gov, 2018
36
LATAM Ecommerce Experts
37
Many commentators see the Latin growth in the daily ecommerce flows from
Interview
American ecommerce market as one our customers to LATAM destinations.
with huge potential. What factors do around one-quarter of Brazilian E-
you believe lends credence to this What advice would you give to a Commerce in 2017. The M-commerce
claim? business thinking about targeting the movement is led by the main LATAM
Latin American market (or specific marketplaces (Mercadolibre -the leading
One of the most obvious factors is that countries) via cross-border trade? one and based in Argentina-, Americanas,
ecommerce is still in the early stages of AliExpress, Amazon).
development in this region. We find a low My advice will be to consider the following:
share of the total retail sales corresponding • Consumers in these countries appreciate
María Gómez-Juárez to the online channel. This untapped • On a regional level and although big B2C E-commerce conveniences such as home
Head of Marketing and Sales, potential makes Latin America one of the top E-Commerce markets in South America delivery or 24/7 availability, but they
regions in the world for ecommerce growth. could be your first option for cross-border distrust online transactions’ payment
Asendia Spain
Other contributors to the credibility of this business (among them: Brazil, the largest safety as revealed by recent surveys in
claim are the expectations about the rising of one, Mexico, and Argentina) do not the region.
Internet and smartphone penetration rates, neglect the smaller ones since they are
the development of M-commerce and those leading the growth (one of these
improvements in online payment security. markets is Colombia, with an expected
Those are the facts that contributed in the annual growth rate of over 20% through
“Observing the market… big
María Gómez-Juárez brings more than 10 past to the growth of online retail sales in 2021 according to several studies). retailers and marketplaces
years’ experience in marketing and North America and Europe. Observing the
communications for the Postal Industry. She market, we detect that big retailers and • Take into consideration each country from the United States are
joined Asendia as Marketing
Communications Manager for Spain from its
and marketplaces from the United States are
investing heavily in their ecommerce strategy
separately considering their specificities
because they are not so homogeneous
investing heavily in their
very beginning coming from Swiss Post in the region (as an example Walmart in (with Brazil as the most different country ecommerce strategy in the
International. Her primary focuses are Brazil and Amazon Mexico) that is a sign of with important constraints regarding
overseeing all internal and external print and confidence in the market potential. customs and payment terms). region”
digital communications and marketing efforts
to help drive business results. Maria provides
I positively think that Latin American • Mobile shopping is also an important
business intelligence to the company for the
strategic decisions in which she participates ecommerce market has this huge potential, trend since M-Commerce has become
as a member of Asendia Spain management not only because of the statistics, the one of the key drivers of online retail
team. From 2016 she also leads the sales forecast or the articulated opinion of experts, expansion. As an example, it reached
activity since she was appointed Head of we do experience the growth in the daily around one-quarter of E-Commerce
Sales for Spain in 2016. ecommerce flows from
38
Chile is planning to tax multinational The 2017 Global Corruption Barometer
Interview
ecommerce companies (that have report states that whilst Brazil has a
localized operations). Do you this as a bribery rate of 11%, the Dominican
growing trend across Latin America? Republic for example has an
astonished 46% rate. Are issues such
Not necessarily. Latin America is a vast as this a large barrier to cross-border
region whose economies vary significantly in ecommerce trade?
terms of regulatory sophistication. We
probably will see a move towards tighter From our experience, foreign investors who
regulation of ecommerce businesses that register their businesses correctly with the
David Ashton, operate in the financial services sector as relevant authorities and transact with bona
Head of Accounting & these businesses gain market share from the fide clients and suppliers may actually rarely
Outsourcing Services, traditional economy. encounter bribery in the day-to-day
management of their business. Concerns
Mazars Mexico City
What tips would you put forward for over corruption are ever present in the
“Ethics will certainly be a
ecommerce businesses targeting the region but this does not seem to be having differentiator in these [Latin
Latin America market? an impact on the inflow of foreign
investment, or local start up investment, in American] economies in years
David leads an English speaking team
providing full business process outsourcing
In the current context we advise ecommerce
businesses to take the same precautions as
the e-commerce sector. to come.”
services to multinational businesses operating
in Mexico. Clients trust David and his team to all other companies entering the Latin
provide financial accounting and reporting, American market. Setting up a company in a
payroll, tax, treasury and other administrative Latin American country and ensuring it is
services to their Mexican subsidiaries. He is compliant with local regulations requires a
also responsible for coordinating regional certain amount of advanced planning, so do
engagements in Latin America for our your research and understand the local
multinational clients. compliance regimes. We see many
ecommerce companies getting into high risk
situations by trying to manage local tax
compliance from their foreign headquarters,
without taking full local advice, which usually
leads to serious delays in filing complete and
accurate information.
39
Would you say the Latin American tax levels of customer interaction must ensure
Interview
system/regulations are easy or they have systems that are capable of
difficult for foreign companies to registering revenues on a transaction-by-
adapt to and incorporate? transaction basis with the tax authorities.
Provided that the foreign company genuinely How is Latin America different
appreciates that Latin America region regarding compliance when compared
comprises many different, often very to other regions?
sophisticated tax regimes, there should be
no problem in adapting. When things go In terms of minimising risk from accounting
“When things go wrong… the
David Ashton, wrong, in our experience the problem can and tax compliance Latin American is problem can usually be traced
Head of Accounting & usually be traced to incomplete comparable to any other region in the world.
Outsourcing Services, understanding at corporate level, or worse, Many countries have regimes that are more to incomplete understanding
Mazars Mexico City the assumption that US or European ways of
addressing accounting and tax compliance
sophisticated than those in
“established” economies, which can take
more at corporate level, or worse,
will somehow be acceptable in the different foreign investors by surprise. the assumption that US or
local economies.
What are the opportunities and European ways of addressing
David leads an English speaking team
providing full business process outsourcing
What effect do current tax challenges for businesses to apply accounting and tax
services to multinational businesses operating
systems/schemes have on ecommerce business ethics in their online
in Mexico. Clients trust David and his team to in Latin America? trading? compliance will somehow be
provide financial accounting and reporting,
payroll, tax, treasury and other administrative Revenue recognition will always be a key Doing business ethically perhaps receives
acceptable in the different
services to their Mexican subsidiaries. He is issue and care must be taken in countries less attention in this region than in say, local economies”
also responsible for coordinating regional where there are very strict rules on the issue Europe, but that trend is changing. The rich-
engagements in Latin America for our date and consequent recognition date (in poor divide in many Latin American countries
multinational clients. accounting and tax terms) of revenues, arguably gives more scope to companies
costs, VAT and income tax. who want to show their local customers that
they are making efforts to grow sustainably
Several countries have compulsory e- in Mexico by supporting disadvantaged
invoicing systems, which are directly linked communities rather than setting up in Latin
to the tax authorities’ systems, so internet- America in order to take profits out of the
based companies with massive levels of country or region. differentiator in these
customer interaction must ensure economies in years
40
How is your audience different in Latin If you use a data analysis system,
Interview
America compared to other places in what behavior stands out among
the world? consumers in your country? What is your opinion regarding the
return policies in online stores in Latin
In Latin America there is much to be done. The shortage of information is extensive and America? Does having to offer an
The ecommerce market needs to further necessary. It is true that we still do not have extensive return policy with most of
develop in Latin America in order to better market information. In other words, today we the times free return, see it as a
understand the emerging needs and do not have a market study that allows us to problem or as part of the business
behaviors of consumers. Today the suppliers evaluate or compare if we are good or bad in costs?
must develop electronic commerce as a valid how much we manage our business. The
Carlos Fleitas channel for its economic development and absence of information in the different types The return policies in online stores in Latin
Co-founder, also understand that consumers are now of commercial sectors has not yet marked a generally protect the consumers on the one
"smart consumers". trend of growth of economic development in side and the stores on the other side.
CAPACE
digital channels. Currently the only Beyond the legal aspect of its application,
When looking at the different parameter of traceability in terms of the stores have the obligation to inform the
obstacles consumers face when ecommerce businesses are the payments by buyer of their rights and obligations and thus
deciding whether to buy online or not, credit cards or debits that payment both be protected. In the case today, the
which are the most relevant? processors give. But we know that the returns are part of a solution for the
indicator that gives us the evolution of the reputation of the store. Which helps them
Carlos A. Fleitas, 45 years old, born in In Paraguay there is still a low internet ecommerce market are the developed stores gain more power in a competitive market.
Paraguay in the City of Fernando De La Mora penetration and ecommerce development or channels.
(Great Asunción). Graduated from Universidad infrastructure whilst mobile phone
del Pacífico with a Bachelor's Degree in penetration has a high rate of more than “The ecommerce market
Marketing and a Bachelor's Degree in 100% (multiple phones per person). In
Business Administration. Specialized with a addition the low adoption of bank accounts needs to further develop in
Master’s degree in Digital Marketing and
Electronic Commerce and a Master’s degree
means that ecommerce options that only
offer electronic payments are often not
Latin America in order to
in Public Financial Management. Teacher and
Speaker at universities. Co-founder of the
considered. better understand the
Paraguayan Chamber of Electronic emerging needs and behaviors
Commerce. Currently developing
consultancies and advice to companies in the of consumers”
process of Digital Transformation.
Contact me at @carlosfleitaspy
41
What have been the biggest changes What are the biggest opportunities
Interview
you have seen in the online market in and/or threats in your current
your country recently? ecommerce market?
In Paraguay, there was a change in An opportunity in emerging ecommerce

purchasing behavior and in consumer markets, such as certain Latin America
confidence. CAPACE (Chamber of countries, is that we have a lot of growth
Ecommerce of Paraguay) has created potential in terms ecommerce in the
activities for the different sectors in the last commerce market.
two years. With them, we have noticed a
Carlos Fleitas change in the professionalization and The threats would be related to the
Co-founder, deepening of their ecommerce knowledge on infrastructure that is installed for security on
CAPACE the one hand, and on the other hand the the sites. The use of tools focused on the
consumer can see that ecommerce options consumer that leads to a disconnection “Today digital marketing
for shopping has grown. between the brand and the consumer has to
do with the inappropriate use of online allows us to interact with our
What are your top three tips for other marketing techniques, allowing us to interact
retailers looking to either start selling with our brand or company generating
brand or company generating
online for the first time, start selling positive and negative reactions and opening positive and negative
Carlos A. Fleitas, 45 years old, born in cross-border for the first time, or a breach of disagreement. Also certain
Paraguay in the City of Fernando De La Mora expanding to additional countries if retailers are not educated in the application reactions”
(Great Asunción). Graduated from Universidad they’re already selling cross-border? of best practices when its comes to the
del Pacífico with a Bachelor's Degree in ecommerce channel. Examples are security
Marketing and a Bachelor's Degree in The main tips would be: and customer services. Other threats include
Business Administration. Specialized with a how this channel uses traditional strategies
Master’s degree in Digital Marketing and • Develop payment conditions that generate in isolation, and the shopping experience is
Electronic Commerce and a Master’s degree confidence a disappointment for consumers, creating a
in Public Financial Management. Teacher and
• Know the border controls and the tax detachment between the brand or product
Speaker at universities. Co-founder of the
conditions that allow favorable delivery and consumer. Nor should we forget that
Paraguayan Chamber of Electronic
Commerce. Currently developing options for the final consumer today digital marketing allows us to interact
consultancies and advice to companies in the • Invest resources in technology so that the with our brand or company generating
process of Digital Transformation. UX/UI experience can generate greater positive and negative reactions
conversions
Contact me at @carlosfleitaspy
• dor, que pode notar um aumento
42
When putting together a marketing them an advantage against companies
Interview
solution for Latin American countries, focused in product distribution more than
what would be your top tips for foreign customer understanding. Currently, product compliant with the new regulations
small to medium-sized businesses? companies are switching to consumer throughout the world (like GDPR) in order to
knowledge and the other way around and be able to address different global markets.
There is no magic recipe. It is a combination this advantage is starting to decrease. These technologies are also helping to get
of digital techniques and being able to closer to the consumers and customers
provide consumers with information and Is there a strong demand for an being compliant.
insights which are useful for them. This is all omnichannel approach to ecommerce
in order to start exchanging information and from consumers? What is the status of digital
Jorge Barón, ultimately being able to have a platform that transformation of business in LATAM?
VP, SAP Customer Experience, let companies create communities that are Consumers are pushing hard to be able to
Latin America helpful for both the companies and the have an omnichannel experience not only in Companies are having different approaches
customer, building a different kind of ecommerce, but in the front office all depending on their business and industry
relationship. The main way to deliver this together, and boundaries between digital sector. Retail customers are the ones that
experience is to be able to test different and physical are disappearing, customers have started before with the omnichannel
approaches, offers and services at low cost want to be understood in a complete view. business models, but now it is spreading to
Jorge Barón is currently Vice President of SAP
and fast, to pick the right one throughout the They want to be treated in a B2Me way Consumer-packaged goods for B2B models
Customer Experience for Latin America and is time. The key element is to have a flexible (customer at the center of marketing efforts), including the order taking for their
responsible for the positioning, strategy and omnichannel platform that allows you do it in not more, B2B or B2C or digital or physical. distribution channels and starting to find
commercial execution of the Customer time and in a cost efficient manner. Being the They are always a consumer, in any channel techniques to understand their end
Engagement & Commerce solutions of SAP integration with back office a key element. the pick. Omnichannel and integration with consumers in a B2B2C model. Knowing the
Customer Experience in Latin America. back office are becoming critical. end consumer and providing a more efficient
MercadoLibre and B2W are giants of omnichannel approach is one of their main
He has more than 20 years of experience in the
sale of solutions for different global companies the ecommerce world in Latin America. What disruptive technologies do you goals in the digital transformation of the
in the telecommunications and technology What has given them the edge and see shaking up the ecommerce market business. Today, fulfilling the promise you
industries, leading teams of sales professionals, how can others learn from their in Latin America? make in the front office is key. The front
designing market strategies and executing a success? office platform needs to be integrated with
successful career with high levels of business The key topic is product catalog, which is the back office, given the customer
growth. One of the main reasons for their success is more complex every single day; the way to expectation is to be served as promised. The
that they started before knowing the understand the consumers and customers in name of the game is from lead-to-fulfill, not
Jorge graduated with a Bachelor of Science
degree from the University of Higher Studies in consumer, and being mainly focused on the new world, being understand the any longer lead-to-cash, so integration is
Exact Sciences and he holds a Master's Degree understanding them, gave focused on consumers and customers taking a key role.
in Business Administration from the Universidad understanding them, gave
del CEMA, in Argentina.
43
Do you think there is an economic What would you say are the
Interview
benefit, then from online retailers opportunities and challenges for
becoming and/or remaining ethical? businesses to apply business ethics in How do companies and organizations
their online trading? Generally and manage ethical issues to protect their
Absolutely. To create lasting and profitable more specifically for Venezuela, what ecommerce privacy, security, trust and
businesses, the ethical factor is are the opportunities and challenges intellectual property?
indispensable in the management of the for that?
business of online retailers. This implies that To manage ethical issues and ensure the
one of the first tasks to be carried out is to The application of business ethics in e- protection of your privacy, security, trust and
manage an adequate reputation and develop commerce operations is key to establishing a intellectual property of electronic commerce,
Ricardo Adrianza, specific controls to mitigate the risks of communication channel with customers and you must undoubtedly have a solid risk
Partner, exposure and effectiveness in the service. achieving the necessary interaction that management structure, supported by
Mazars in Venezuela generates trust. Many opportunities are policies, procedures and internal controls
What are some of the main ethical generated on this principle, as it is an that include best practices.
issues businesses have to deal with in essential element in the equation.
e-commerce that you see in Venezuela To consolidate this structure, it is
in particular? Also, under the current economic essential to involve employees from all
environment, the creation of digital areas of operational management of the
Founding Partner of Mazars in Venezuela. He Despite the many advantages that electronic companies with adequate and proven business, and regularly disseminate
currently serves as Head of the Audit business can offer, even in today's controls, and of good reputation, improves standards, codes and rules of conduct; as
Department, and is the Partner in charge of Venezuela, I would say that the main the positioning of the company by allowing to well as, coordinate training to promote and
Risk Management and Quality Control. problem faced in our country is related to the cultivate a credible brand in the market, in strengthen the ethical culture in the
feeling of insecurity inherent in this type of addition to the competitive advantages for company. Undoubtedly, all these measures
He has extensive professional experience of transaction. The presence of electronic fraud being able to do without the physical space. will result in the quality and credibility of the
more than 30 years practicing as a Public has been frequent in recent years, mainly The main challenge would be to generate service, the consolidation of the brand and
Accountant, specializing in services of through messages that pretend to be sent by the necessary trust to encourage the local its consequent growth.credibilidad del
manufacturing companies and services, local
banks or financial institutions. Hence the population to use electronic commerce as a servicio, la consolidación
and international.
importance of using secure and reputable reliable source in the purchase of goods.
Participates as a speaker in seminars online platforms.buena reputación, mejora el
sponsored by professional associations.
44
Chile is planning to put forward tax on 2017 through Law 27, 430, establishes the
Interview
multinational ecommerce companies obligation of digital service providers such as
(that have localized operations). Do the popular Netflix or Spotify, as well as In Argentina, new companies, new alliances
you believe this as a growing trend in those of online games such as Playstation, or mergers are continually appearing to
Argentina? and of any digital content (music, books, satisfy customers' requests and needs.
ringtones, among others), are reached by
The rise of the digital age has generated the VAT. Likewise, it is evaluating how to The companies dedicated to the sale of
enormous challenges for national economies achieve these revenues with the Income Tax, goods through the web have found strategic
and especially for those that face budgetary but there are many technical issues that alliances by linking to new subjects that
problems of fiscal deficit. must be analyzed to be able to advance in have created an entire platform dedicated to
Gastón Mondino, this area. the delivery of said goods, either by
Partner, The non-taxability of the digital economy in agreeing specific delivery points or even
Mazars in Argentina many countries that import digital goods and For all the aforementioned, in Argentina this door to door. These new players in the
services tends to enhance budgetary trend is becoming widespread and what we economy invest large sums of money in
imbalances, despite the fact that there is an understand would also be happening in Latin creating platforms that keep the catalogs
increase in the consumption of the America. and stocks of goods sellers synchronized,
population, since this increase does not allowing consumers to place their orders.
produce fiscal revenues for the State. That is Do you feel Argentinian consumer
Local Partner from Estudio Urien & Asoc. –
why tax systems in Argentina are being trust in online retailers is declining? This method grows by leaps and bounds,
Mazars Argentina.
adapted to include digital economic according to market studies. The trend of e-
Gastón has been working for Mazars activities. In Argentina, it is estimated that the digital commerce in the country has a constant
Argentina for almost 20 years, since 1999. He economy represents 2% of GDP. The growth. Nine out of 10 people ever bought
studied at the UBA – Buenos Aires University The aim is not only to capture part of the turnover for electronic commerce in the online and five out of 10 did so in the last six
obtaining his degree as an accountant. income of foreign companies, but also to put country was 68,486 million ARS in 2015, months.
Professionally registered in the Professional the foreign company on equal terms with amounted to 102,700 million ARS in 2016
Council of Economics of Buenos Aires City local merchants, given that if someone sells and finally reached 156,300 million ARS in
and Santa Cruz Province. a product over the internet and does not pay 2017, according to data from the Argentine
any tax or just pay some, then it becomes an Chamber of Electronic Commerce. This is a
“The confidence of the
His expertise includes international and
corporate tax, VAT, Due Diligence, Fiscal
unfair competition for the merchant who clear indication that the consumption of consumers increases day by
cannot escape the tax burden of the State. online goods and services is booming. The
evaluation of start-ups, Business tax
compliance, among others. He manages the confidence of the consumers increases day day as the offer of service
Indirect Tax Dept, which is in charge of The law of tax reform promoted by the
Argentine government in the month of 12 of
by day as the offer of service providers and
digital goods grows.
providers and digital goods
preparing the VAT Refunds and the China
Desk in Argentina and Uruguay. grows”
45
What effect do current tax reintegrating the fiscal credits associated
Interview
systems/schemes have on ecommerce with the inputs linked to them, and taxing the
in Argentina? imports of goods and services. Once Would you say the Argentinian tax
imported products and services are in the system is easy or difficult for foreign
Argentina opted for the so-called "destination interior of the country, they have the same companies to adapt/incorporate?
country", this implies that imported goods treatment as domestic ones. Respecting this
and services must pay the same internal principle implies conferring neutrality to the Argentina's tax systems do not imply a great
taxes that are levied on nationals at the time tax, avoiding distortions in the conditions of difficulty when it comes to incorporating
of their "entry into the country for competition and complying with the principle them and adapting them to foreign
consumption" (example: the Value Added of efficiency in taxation. If this were achieved companies
Gastón Mondino, Tax or VAT) worldwide, each company would enter the
Partner, corresponding tax only in the country where If you have adequate advice, not only can
Mazars in Argentina By emulating European Union legislation - the service is effectively consumed, thus you fulfil the obligation to comply with all
which, in turn, follows the recommendations avoiding double taxation. fiscal obligations, but you can also carry out
of the OECD - the new legislation for VAT a proper "tax planning" that allows
(Law 27, 430) establishes presumptions of Likewise, the challenge for these new companies to make use of all the tax
effective use or exploitation for digital taxation schemes is to make the collection benefits that are also available. applies in
services: effective, and really capture the consumption each particular case and saves additional
Local Partner from Estudio Urien & Asoc. –
of these services provided from abroad and tax costs due to ignorance of local
Mazars Argentina.
a) The IP address of the device used by the used in our country, especially when it regulations.
Gastón has been working for Mazars customer or SIM card country code; or, reaches subjects that do not even have the
b) The billing address of the client; or, obligation to present declarations. for this
Argentina for almost 20 years, since 1999. He
studied at the UBA – Buenos Aires University c) The bank account used for the payment, tribute.
“Argentina opted for the so-
obtaining his degree as an accountant. the billing address of the customer that called ‘destination country’…
Professionally registered in the Professional the bank has or the financial institution That is why, in Argentina, the obligation to
Council of Economics of Buenos Aires City issuing the credit or debit card with which enter the value-added tax applicable to imported goods and services
and Santa Cruz Province. the payment is made. digital services falls on the borrowers (that is,
who receives the service). Likewise, in cases
must pay the same internal
His expertise includes international and
corporate tax, VAT, Due Diligence, Fiscal
The imposition in the place of consumption where there is an intermediary intervening in taxes that are levied on
must, from an international point of view, the payment of the digital service, it will
evaluation of start-ups, Business tax
compliance, among others. He manages the lead to an equivalent load of these taxes on assume the character of a collection agent. nationals at the time of their
Indirect Tax Dept, which is in charge of the same products in the same market. For (i.e., banks, credit cards, etc.). entry into the country for
preparing the VAT Refunds and the China this, exports must be exempted,
Desk in Argentina and Uruguay. consumption”
46
How would you say the ecommerce When looking at the regulatory/policy
Interview
environment has grown in Latin environment in Latin America, which
America? areas do you feel could be improved more mature countries (such as Brazil,
upon to help in developing/growing United Kingdom, USA, France or Germany)
We come from 10 years of a great evolution the ecommerce market? and I think that sectors such as Fashion,
in the electronic commerce industry and the Clothing & Accessories, Services, Home &
Digital Economy in Latin America, today we I believe that the changes that we are Warehouse, Parts & Accessories, Niches or
see great advances in the maturity of the experiencing in the financial value chain specific verticals that target clusters such as
offer and especially great changes in the through the Fintech will cause great pets, babies, organic products and others
"online" customs of Latin American advances in many industries and if we can have many opportunities to grow
Marcos Pueyrredon consumers. adapt or incorporate the collaborative significantly in the coming years, as long as
President, Latin American business models in Latin America, we will they remember that the secret of Success in
Institute of Electronic Growth rates have been very high in the see disruptive changes in the chain of retail eCommerce is generating a positive
region in the last 5 years with an average value. shopping experience. And what's more, I
Commerce eCommerce Institute growth of 30% and our projections indicate would say "memorable", focusing on the
that in the coming years the penetration What are the biggest opportunities pillars and keys of online businesses.
rates of the online channel over the and/or threats in the current
traditional channels will be higher than 20% ecommerce market? But to take advantage of these opportunities
in many industries or sectors from this new the sector has to understand the dynamics
revolution of digital commerce that we are The ecommerce in Latin America has a great of eCommerce Retail and break the classic
Marcos Pueyrredon is a leading entrepreneur in
living hand in hand with the omnichannel growth, because it is mainly leveraged by a myths, such as considering that the demand
the Information and Communication
Technologies (ICT) industry in Latin America and and the ubiquity of the consumer. strong demand and new players at the level is not ready in my category, that there is still
a reference in digital economy in the region. He of supply that are generating a very good lack of maturity in the market and blaming it
has studies in business administration and It is very important to highlight the shopping experience, and that is helping to for the lack of growth of my online channel to
marketing, Postgraduate in eBusiness importance of the arrival of 5G connections build trust in the channel, with what we security or trust, ‘bankization’, quality of
Management, Specialist in Electronic Business and its role in the growth of omnicommerce generate a virtuous circle that is greatly internet connection of users, inefficient
Management by the University of Salvador –
in the coming years as I consider that enhanced. logistics, poorly developed means of online
USAL, double degree by Georgetown University
and Master of Business Administration MBA with something very similar to what China is payments, etc.
focus on Digital Business by USAL & The State going through, where mobile devices are the In a context where we are in full growth,
University of New York SUNY. It is currently "turbine" of its exponential growth. there are many opportunities that go hand in
Global VP Hispanic market of VTEX Digital hand with successful models in other models
Commerce Platform (www.vtex.com) in other in hand with successful models in
other
LinkedIn: linkedin.com/in/pueyrredon
47
Ecommerce start-ups are popping up Those who are part of the eCommerce in
Interview
in Latin America at a rapid pace. What Latin America and those who want to enter,
do you see are the biggest obstacles should be attentive to the following needs • VideoCommerce: develop a strategy to
for these business owners? and trends presented by the market to promote products and services through
achieve a positive 2018: online video and social networks.
Definitely the lack of legal and regulatory
context for these new business models and • Professionalization of the online • Generation of trust: increase the levels
a strong financial ecosystem are some of its channel: professionalizing the links of the of online security and transactions so that
main obstacles. Together with the reality that online sales chain significantly reduces more users feel safe when making the
in the absence of a single market, as the failures and bad shopping experiences for purchase.
Marcos Pueyrredon European Community has, it will not favor its customers, increasing profitability.
President, Latin American acceleration. The focus should be on streamlining all
Institute of Electronic • Omni-channel, a positive shopping points of contact and sales that have the
What are the biggest challenges faced experience: propose a multi-channel demand (consumer) with the offer. It is the
Commerce eCommerce Institute throughout Latin America regarding offer in which the consumer can choose beginning of the great challenge of
ecommerce? where to make his purchase. generating a positive shopping experience
throughout the "End to End" process of the
We come from 10 years of a great evolution • Online multi-channel sales capabilities: commercial event. These points can be my
in the industry of electronic commerce and Development of other sales channels online store or mobile store, but it can also
the Digital Economy in Latin America, today focused on CPA (acquisition cost) that be a call center or contact center, or physical
we see great technological advances and basically summarize the application of store, a self-management totem or instore
Technologies (ICT) industry in Latin America and above all great changes in the "online" habits Marketplace strategies or participate in kiosk to name only some where the
a reference in digital economy in the region. He of consumers. This year the Marketplace, several marketplaces as sellers. consumer not only expects agility but other
has studies in business administration and B2B2C models or collaborative economy, factors ( comfort, convenience, price,
marketing, Postgraduate in eBusiness hyper personalization, predictive marketing • Universality of the consumer: content / information, personalized attention,
Management, Specialist in Electronic Business and consumer ubiquity through mobile development of suitable support for the security / trust, etc), that make that
devices and the internet of things are the big purchase through mobile devices, they experience equal or better than when buying
and Master of Business Administration MBA with challenges. are no longer an option but a reality! through traditional channels, that is, it is
focus on Digital Business by USAL & The State single-channel.
University of New York SUNY. It is currently It is important to highlight the impact of the • Social e-commerce: introduce social , etc),
Global VP Hispanic market of VTEX Digital "marketplaces" and their multi-channel networks as new sales channels and
Commerce Platform (www.vtex.com) capabilities focused on the final consumer in attract traffic to the e-commerce
"the future of the profitability of an site.ventas y atractor de tráfico al sitio de
eCommerce retail”. e-
48
Finally, the professionalization of Latin How does your audience in Latin
Interview
American companies and entrepreneurs is America differ from your audience in
the great challenge of those who want to be other parts of the world? (consumer Other aspects that must be considered and
successful "surfing" the waves of this new preferences/behaviors). Looking at that are very important are the loading speed
Digital Commerce revolution. First of all, different factors in a consumer’s and usability / friendliness of the entire
master at the level of art the pillars and keys decision to buy, which play the most online shopping process in the online store
of omnicommerce that are detailed in the important role for your consumer and the content of the catalog not only in the
following table. They are part of the good base? quality of its images but in the information
practices that in the last 10 years have and attributes.
allowed many companies to generate a B2C retail e-commerce in Latin America has
Marcos Pueyrredon positive online shopping experience. already overcome the $ 100 billion barrier
President, Latin American and, as is the case in many countries in the
region, it is no longer based solely on prices,
Institute of Electronic
variety, convenience and valuations, but also
“…it is no longer based solely
Commerce eCommerce Institute Focus on digital commerce active on everything that consumers seek. In any on prices, variety, convenience
development offline purchase: the right product through an
unparalleled shopping experience and that is and valuations, but also on
the great challenge that Latin American retail
faces.
everything that consumers
seek. In any offline purchase:
With a low credit card penetration, providing
Technologies (ICT) industry in Latin America and alternative means of payment is a necessity. the right product through an
a reference in digital economy in the region. He The high penetration and use of mobile unparalleled shopping
has studies in business administration and devices generate the challenge of
marketing, Postgraduate in eBusiness adequately solving the mobile shopping experience… that is the great
Management, Specialist in Electronic Business experience, the complexities and high costs
of logistics make those who have capillarity
challenge that Latin American
and Master of Business Administration MBA with of physical stores take advantage of them retail faces”
focus on Digital Business by USAL & The State through models of pickup store or drive-thru
University of New York SUNY. It is currently delivery or last mille; for those who do not
Global VP Hispanic market of VTEX Digital have those options, they look to complement
Commerce Platform (www.vtex.com) their logistics with models of trust delivery
point (lockers or other models).
and that are very important are the
loading
49
For Latin America consumers On the other hand, it is one of the great
Interview
particularly, what aspects are most challenges of any offer that wants to be
important in retaining customers successful when "surfing" the waves of this
(response times, customer service, new digital commerce revolution, for this it is
social media, physical stores, etc.)? necessary to comply with the good practices
of electronic commerce and internet
The generation of a positive shopping businesses. Therefore, from the eCommerce
experience continues to be the main Institute we recommend and promote codes
challenge in Latin America, and in order to of good practice such
achieve this, attention must be focused on as the eConfianza.
Marcos Pueyrredon fulfilling the promise made with the online http://www.econfianza.org
President, Latin American consumer. Providing certainty and “The generation of a positive
Institute of Electronic information on the status of the entire shopping experience continues
purchase process, achieving good
Commerce eCommerce Institute compliance ratios of the SLA delivery and to be the main challenge in
taking advantage of the physical stores are
some of the keys to success as for example:
Latin America, and in order to
the "pickup store" is the leading player in achieve this, attention must be
Latin America above 40%, in many cases
reaching 80% if it has a good capillarity of focused on fulfilling the
stores.
the Information and Communication promise made with the online
Technologies (ICT) industry in Latin America and
a reference in digital economy in the region. He What impact do you feel trustmarks consumer”
has studies in business administration and have on Latin American consumers
marketing, Postgraduate in eBusiness when shopping online?
Management, Specialist in Electronic Business
They play a very important role, because
and Master of Business Administration MBA with when we analyze the growth we have
focus on Digital Business by USAL & The State experienced in recent years, it is mainly
University of New York SUNY. It is currently leveraged by strong demand and new
Global VP Hispanic market of VTEX Digital players that are generating a very good
Commerce Platform (www.vtex.com) shopping experience and that is helping to
build trust in the channel and a virtuous
circle that is greatly enhanced. circle that is
greatly enhanced.
50
When looking at the regulatory/policy If you use analytics software to
Interview
environment in Brazil, which areas do understand your audience better, what
you feel could be improved upon to unique/stand-out behaviors do you Which major changes have you seen
help in developing/growing the see amongst Latin America/Brazilian in your online market recently?
ecommerce market? consumers?
The government is creating many laws that
ABComm is fighting and representing the The mobile device channel is growing fast. impact e-commerce, especially related to
sector to develop Public Politics related to More than 55% of the online store visitors consumer rights, privacy and taxes. Some
taxes, data privacy and logistic. We come from mobile devices. On the other are good, some are not. The Brazilian E-
presented a document to Congress, hand, only 30% of the purchases are made commerce Association is trying to intervene
Mauricio Salvador suggesting changes in the Constitution that on these devices. This means that the on behalf of online stores.
President, could make omnichannel growth easier. conversion rates are lower on mobile than
desktops. Brazilian online stores still have to What are your top three tips for other
ABComm
Regarding tech and ecommerce, often work hard on the user experience for mobile. retailers looking to either start selling
Brazil and Mexico are put forward as online for the first time, start selling
strong players. What gives these What are your thoughts on the current cross-border for the first time, or
nations the edge? What impact does situation surrounding returned expanding to additional countries if
this have on the ecommerce market? products? Do you see it as a part of they’re already selling cross-border?
President of the Brazilian Ecommerce
Association (+7,000 members). Board of the cost of business and necessary?
Directors at the Ecommerce Foundation First of all, the number of internet users: What, if any, is your current policy on First, to sell in Brazil, you must have your
(Europe). Msc in Communication and more than 110 million Brazilians have returns? website in Brazilian Portuguese. Use a
Management. Start-up Angel Investor. Author internet access and from them, 60 million payment method like PayPal and trust seals.
of five books including: “The Ecommerce have already bought online. Mexico has 80 I think it is part of the cost of business, but Try to catch user generated content to bring
Manager”, “How to start an on-line store” and million Internet users and 34 million e- you must try to reduce it as much as trust to other visitors.
“High Performance Online Marketing”. shoppers. This means huge consumer possible. If your photos, product description
Founder at ComSchool, specialized in e- potential because there are so many people or product quality is not good, your return
commerce and online marketing (+40,000
students). MBA Professor in top ranked
with internet access but haven’t bought rates will be high. In Brazil, the consumer “More than 55% of the online
online yet. Also, the emerging economies has guaranteed by Federal Law, that he can
universities in Sao Paulo. Lived in San
Francisco, California where presented have infrastructure and technology needs return the product in seven days after having store visitors come from
seminars and e-commerce workshops at UC that brings opportunities to foreign investors.
The exchange rate also contributes to make
received it. mobile devices… only 30% of
Berkeley and worked as consultant for e-
commerce startups. Brazilian and Mexican companies cheap to the purchases are made in
be acquired.
Contact: Mauricio@abcomm.org these devices.”
51
Regarding tech and ecommerce, often It would be necessary to encourage private
Interview
Brazil and Mexico are put forward as companies to invest in logistics to reduce
strong players. What gives these costs and delivery time this would improve revenue and then, the tax percentage
nations the edge? What impact does not only the ecommerce growth, but also the increase when the sales increase. It leads
this have on the ecommerce market? wider industry and the entire market. small companies to engage in tax evasion
and also creates a market where people end
The relationship between the consumer and What impact do you feel trustmarks up creating a second or third company
digital retail is changing very quickly every have on Latin American/Brazilian (usually on behalf of a family member), to try
day. It is necessary to understand new consumers when shopping online? to reduce the volume of taxes caused by
consumer behaviours in order to develop increased sales. I believe that a tax policy
Rafael B. Soares new technologies focused on the Latin American customers are more often change and simplification could help
Head of Ecommerce Innovation, opportunities that have emerged from this taking the risk of buying from a not so well ecommerce development and improve the
change. known brand/manufacturer or store. The competitiveness of small business against
Mofo Design
reason is low prices and good product the big companies.
I believe that both nations have a great features offered from companies that have a
capacity to create and innovate to attend the strong reputation abroad. A good example in What are your thoughts on the current
new e-consumers as they want to be Brazil is the mobile phone market, which situation surrounding returned
attended. In the same way we find big represents 21,2% of all ecommerce sales, products? Do you see it as a part of
players and start-up companies developing that has (in the last 2 years) seen new the cost of business and necessary?
Graduating in international trade, he began his applications to improve the consumer brands appear offering similar product
career working on projects in the areas of experience, creating more convenience and features with a very low price. Slowly they About the returned products policy, every
sales and logistics in multinational companies. solving people’s problems. are taking an important market share slice of Brazilian company need to follow the rules
He later joined the ecommerce industry, a huge market. according to the Brazilian consumer law. In
where he started as a retailer and as a What are the biggest challenges faced fact, the main condition of this regulation is
consequence of this, the opportunity arose to throughout Latin America regarding When looking at the regulatory/policy to protect the consumer who have
open another consulting business focused on ecommerce? environment in Brazil, which areas do completed a transaction that is not face-to-
small and medium-sized companies. you feel could be improved upon to face. After receiving the goods the shopper
The biggest challenge for the market is the help in developing/growing the has 7 days to produce the purchase receipt,
Nowadays he works as a lecturer in themes
high logistic costs, most of Latin American ecommerce market? if the product is different from what was
related to digital marketing and e-commerce,
as well as actively participating in the day-to- countries have problems with logistics expected.
day activities of both areas as a partner and infrastructure and mostly road transport is In Brazil we have a lot of tax rules, some of
project manager at Mofo Design Agency. the only option available and almost always them with a high level of complexity. Within
has a high cost. this environment a small company collect
their taxes according to their revenue and
then, the tax percentage
52
Looking at different factors in a Which social media platforms do small
Interview
consumer’s decision to buy, which to medium sized businesses use for
play the most important role for your marketing to shoppers?
consumer base ?
The most common social media platforms
Every year delivery speed has maintained its are Facebook and Instagram, but the
position as one of the most important factors. audience have different behaviors when
But we can not forget that to understand using those platforms. When the seller
what leads a consumer purchase, we also needs to do a branding campaign or
need to analyze what factors generated the increase the brand organic engagement the
Rafael B. Soares most abandoned cart rates: best platform to perform this on is Instagram.
Head of Ecommerce Innovation, However, when this seller needs to create a
Mofo Design 1. 44% high freight cost new campaign focused on conversion,
2. 41% not sure to buy - lack of content seeking a quick response, Facebook has a
product/store better performance in most of cases. “The Brazilian consumer
3. 25% high product cost
appreciate a quick response
If you use analytics software to time and a good customer
understand your audience better, what
Graduating in international trade, he began his unique/stand-out behaviors do you service”
career working on projects in the areas of see amongst Latin America/Brazilian
sales and logistics in multinational companies. consumers?
He later joined the ecommerce industry,
where he started as a retailer and as a The ‘Mobile First’ rule has no way back even
consequence of this, the opportunity arose to in Brazil. In fact, the mobile device approach
open another consulting business focused on has changed over time, nowadays the
small and medium-sized companies. Brazilian shopper keep a strong price
research routine 70% based on mobile
Nowadays he works as a lecturer in themes
devices, but 73% use the traditional devices
related to digital marketing and e-commerce,
as well as actively participating in the day-to- as computers/notebook to finish and pay the
day activities of both areas as a partner and orders.
project manager at Mofo Design Agency.
53
About the Report
54
About the Authors
Sara Lone Isabela Fávero Shaun Packiarajah

Research Coordinator Researcher Researcher
Sara holds a Master in Public Isabela holds a Master in Shaun graduated with a
Policy from the University of Development Economics from Master’s degree in Victimology
California in the United States. the University of Auvergne in and Criminal Justice from the
France. University of Tilburg.
Sara oversees the Ecommerce
Foundation Research Team in At Ecommerce Foundation, she He works for the Research
its creation of country reports, is part of the Research Team Team at Ecommerce
custom research, content and providing support in data Foundation in creating
webinars. Additionally, Sara analysis and the creation of research-related content and
presents on research around country reports. Her interests reports. His background is in
the world and advises and experience include policy creation and analysis, in
stakeholders in furthering analysing data as well as addition to practical knowledge
ecommerce globally. conducting policy evaluations. of business development.
55
Definitions related to the Internet, e-commerce & e-tailing
• Broadband access: the availability of broadband is measured by the percentage • E-households: number of households that use the Internet for personal gain.
of households that are connectable to an exchange that has been converted to
support DSL technology, to a cable network upgraded for Internet traffic, or to • E-household expenditure: expenditure per household that bought goods or
other broadband technologies. It includes fixed and mobile connections (source: services in the past year.
Eurostat)
• Global Online Measurement Standard for B2C ecommerce (GOMSEC): aims to
• Cross-border ecommerce: percentage of ecommerce purchased at foreign provide guidelines to measure and monitor B2C ecommerce in order to enable all
sites European countries to provide data with respect to the penetration of B2C
ecommerce in a standardized way.
• Ease of Doing Business Index: The Ease of Doing Business Index is
developed by the World Bank, and averages the country's percentile rankings on • E-Government Index: The UN’s E-Government Index provides a comparative
nine topics. It is made up of a variety of indicators, giving equal weight to each assessment of the e-government development of UN Member States. One of the
topic. The rankings for all economies are benchmarked to June 2010. The Index primary factors contributing to a high level of e-government development is
covers 185 countries. concurrent past and present investment in telecommunication, human capital and
provision of online services.
• E-commerce (or electronic commerce), a subset of e-business: any B2C
contract on the sale of products or services fully or partly concluded by a • Gross Merchandise Volume: the total sales facilitated by a third party, such as a
technique for distance communication. market place.
• E-commerce GDP: total amount of goods and services online divided by the • E-services or electronic services: “Deeds, efforts or performances whose delivery
total Gross Domestic Product (GDP). is mediated by information technology. Such e-service includes the service element
of e-retailing, customer support, and service delivery.” This definition reflects three
• Economic Freedom Index: the Index of Economic Freedom is an annual guide main components: service providers, service receivers and the channels of service
published by The Wall Street Journal and The Heritage Foundation, Washington's delivery (i.e. technology). (Jennifer Rowley, Professor Information and
No. 1 think tank. For over a decade, the Wall Street Journal and The Heritage Communications, Manchester Metropolitan University, UK)
Foundation have tracked the march of economic freedom around the world with
the influential Index of Economic Freedom. There are 5 categories, ranking from • Inactive online population: users that have access to the Internet but have not (yet)
Free (with a score between 80 and 100) to Repressed (between 40 and 49.9). purchased goods or services online in the past year.
56
• Market place: online platform on which companies (and consumers) sell • Online expenditure: spending per user who purchased goods or services
goods and/or services. online.
• Logistics Performance Index (LPI): The Logistics Performance Index (LPI) • Online Retail (or e-retail, electronic retail or retailing or even e-tailing):
measures the “logistics friendliness” of 155 countries. It helps countries the selling of retail goods and services on the Internet. In the limited sense
identify the challenges and opportunities they face in their trade logistics of the word, sectors such as online leisure travel, event tickets, downloading
performance and what they can do to improve this. The Index is developed music or software are not included. Online-only retail shops are often
by the World Bank and is based on a worldwide survey of operators, such as referred to as pure players.
global freight forwarders and express carriers.
• Penetration levels: the percentage of a population using the Internet,
• Mobile commerce (or m-commerce): the ability to conduct commerce mobile phones, smartphones or tablet devices.
using a mobile device e.g. a mobile phone, a PDA, a smartphone, a tablet or
other (emerging) mobile equipment. • Real economic growth rate: a measure of economic growth from one
period to another expressed as a percentage and adjusted for inflation. The
• Mobile subscriptions: mobile cellular telephone subscriptions are real economic growth rate is a measure of the rate of change that a nation's
subscriptions to a public mobile telephone service using cellular technology, gross domestic product (GDP) experiences from one year to another.
which provide access to the public switched telephone network. Post-paid
and prepaid subscriptions are included (source: Eurostat). • Retail sales: the selling of mainly goods from businesses to individuals from
a traditional or so-called bricks-and-mortar shop.
• Networked Readiness Index (NRI): The NRI measures the tendency for
countries to exploit the opportunities offered by information and • Statcounter research method: Statcounter is a web analytics service and
communications technology (IT). The NRI comprises three components: the their tracking code is installed on more than three million sites globally.
environment for IT offered by a given country or community, the readiness of These sites cover various activities and geographic locations. Every month,
the country's key stakeholders to use IT, and the usage of IT among these Statcounter records billions of page views to these sites. For each page
stakeholders. view, they analyze the browser/operating system/screen resolution used and
they establish if the page view is from a mobile device. They calculate their
• Online buyer (or e-shopper, e-buyer): an individual who regularly bought Global Stats on the basis of more than fifteen billion page views per month,
or ordered goods or services through the Internet. by people from all over the world onto more than three million member sites.
57
GOMSEC aims to provide guidelines for measuring Definition of B2C ecommerce sales Online purchases of the following items are excluded
and monitoring B2C ecommerce. As a result, all from GOMSEC:
countries worldwide are able to provide data with “Any B2C contract regarding the sale of goods • Transactions between private
respect to the penetration of B2C ecommerce in a and/or services, fully or partly concluded by a individuals/consumers (C2C), such as auctions
standardized way. All Ecommerce Foundation figures technique for distance communication.” and marketplaces, and between businesses
and estimates are based on GOMSEC, unless stated (B2B)
otherwise. Technique for distance communication: means • Online gambling and gaming
that can be used for communication regarding the • Cars and other motor vehicles
The GOMSEC reports on sales figures for the total offer made by the trader and the conclusion of a • Houses and real estate
B2C ecommerce worldwide and for each country contract, without the necessity of the consumer and • Utilities (e.g. water, heating and electricity)
separate in the country profiles, based on total sales trader being in the same place at the same time. • Mortgages, loans, credit cards and overdrafts
of goods and services. • Savings accounts, funds, stocks & shares and
Contract: a contract whereby use is made, either bonds
These total sales of goods and services are based on solely or in part, of one or more techniques for
the areas/sectors/classification of areas and distance communication within the framework of a B2C ecommerce therefore includes all online
sectors, as stated on the next few pages. system organized by the trader for the distance sale transactions between businesses and consumers
of goods and/or services, up to and including the using desktop computers, laptops, tablets,
All data reported in the national currency of the moment that the contract is concluded. smartphones, point-of-sales and smart-wearables, for
country involved is converted into euros according to instance through online shops, physical stores
the average (annual) rate of exchange as provided Classification of B2C ecommerce (“online instore”), email, QR codes, catalogs, etc. B2C
by, preferably, the European Central Bank (ECB) or ecommerce includes Value Added Tax (VAT) or other
the national bank of the particular country. The The following classification on the next few pages sales tax, delivery costs and apps, but excludes
reference period that is used for this was from 1 provides an overview of areas and sectors included returns.
January to 31 December of each report year. in GOMSEC.
Growth rates are calculated and measured by the B2C
ecommerce sales in the national currency.
58
Global Online Measurement Standard for B2C ecommerce
(GOMSEC)
Media & Entertainment Electronics
Music (physical, download & streaming)/Spotify based on new subscriptions Consumer Electronics Information Technology (IT) Household Electronics
Video (DVD, Blu-ray, downloads) Photo equipment IT hardware (PCs, laptops, MDA:
Games hardware & games software tablets, etc.) air-conditioning,
Books & e-books Audio equipment Computer Software dishwashers, wash
machines and other
Apps white goods
New subscriptions newspapers ands magazines (no single copy sales) TV/video equipment Music instruments
Car electronics USB sticks, DVD/CD- SDA: equipment for

Fashion (navigation, audio, recordable, ink cartridges, personal care, home
Clothing Shoes & Personal lifestyle etc.) computer accessories comfort, kitchen
appliances
Underwear & Upperwear Shoes
Children's wear
Swimwear & Sportswear Jewelry, Bijoux, Watches & others
fashion accessories (e.g. sunglasses)
Nightwear & legwear Bags, wallets, suitcases
Sports & Recreation
Sports hardware (e.g. soccer shoes, tennis rackets)
Toys
Bicycles & accessories
Indoor and outdoor toys
Articles for camping and recreation
59
(GOMSEC)
Home & Garden Food/Nearfood/Health
Furniture and kitchens Food/Nearfood Health & Beauty
Food & Beverages Personal care & Hygiene
Floor and window coverings (e.g. curtains and blinds) Fresh produce Baby care
Home textiles Packaged consumer goods Perfume
Cookware (sets), kettles and oven equipment Detergents/household cleaning OTC
Table and kitchen articles
Animal feed
Articles for cleaning, wash and store
Decoration Tobacco
Lamps and fixtures
DIY-articles
Garden articles
Flowers and plants (in home)
Other: Products
Cars components
Telecom Glasses and contact lenses
Smartphones, mobile phones & mobile devices Stationery
Telefax and answering machines
Pictures and photo albums
Headsets & Accessories (mobile) phones Pet supplies
Prepaid cards and tariffs of new phone subscriptions Erotica
60
(GOMSEC)
Travel
Package Travel Flight Tickets & Accommodations
Insurance Package travel Flight Tickets
New indemnity, Life and Health Insurances Hotel stays
Private transport if booked through a
Liability insurance ANW-gap insurance Health Insurance – tour operator Apartment/bungalow/camping site
Car insurance (insurance for receiving a Base -> all of the above not booked in
Fire and theft insurance payment in addition to a Health insurance – combination with other travel-parts
survivor's allowance) additional
Bike/caravan/motorbike/ Annuity insurance Disability insurance –

Scooter insurance Pension entrepreneurs Event Tickets
Accident insurance Life insurance Disability insurance – Tickets for concerts and festivals
Boat insurance Funeral insurance private Tickets for (movie) theaters
Legal assistance insurance Endowment insurance Mortgage-related Tickets for zoos and amusement parks
Home insurance based on savings disability insurance Tickets for museums
Travel insurance Endowment insurance Mixed insurance Tickets for sports games
(continuous/annual + short based on investments (=endowment
term) insurance + life
Insurance package insurance) Other: Services
New subscriptions to dating service
Other services
61
Sources used in the report Publications
• ABComm Statcounter
• AMCHAM Statista
• América Retail Tech Crunch
• Asociación de Internet tendenciasdigitales.com
• BBVA UNCTAD
• CACE United Nations
• CCE WeAreSocial
• CCS Wikipedia
The report could only be realized by consulting a great number of valuable • CentralAmericaData.com World Bank
sources. These were available in various countries and regions in Europe and • CIA World Factbook Worldline
• DoingBusiness Worldometers
around the globe. The wide variety of sources include public domain publications, • eBit Worldpay
• Ecommerce.com.do
blogs, websites, industry and financial specialist publications, regional and local • Economist Intelligence Unit
• eMarketer
news, annual reports, and press releases. • Eshopworld.com
• Euromonitor International
• Export.gov
• GfK
Sometimes the information sources are contradictory and sometimes different • GSMA
figures and data were given by varying sources within the same country, for • InboundLogistics.com
• ITU.int
example due to different definitions. In our reports we have mentioned the different • KantarTNS
• KPMG
sources, definitions and outcomes of such reports, studies and interpretations. • McKinsey
• MINTIC
• PaymentWall
• Population Reference Bureau
The report is based on information that we consider reliable, but we cannot vouch • Portada
• Prestashop
for it being completely accurate or complete, nor should it be relied upon as such. • RENATA
Opinions expressed are our current opinions as of the date of this report. • Reuters
• Shopify
• SimilarWeb
• South China Morning Post
62
About Ecommerce Foundation
Our History
Ecommerce Foundation is an independent organization, initiated by worldwide national ecommerce associations and online and
omnichannel selling companies from industries such as retail, travel & finance.
Why Ecommerce Foundation?

Our mission is to foster global digital trade as peace is the natural effect of trade. By facilitating digital commerce we hope to
make the world a slightly better place.
How does Ecommerce Foundation help?

We facilitate the development of practical knowledge, insights and services for which individual institutions, retail and ecommerce
associations and B2C selling companies do not have the (financial) resources and/or capabilities. By combining collective goals
and efforts, Ecommerce Foundation is able to realize projects which could not have been realized on an individual basis.
What does Ecommerce Foundation do?

Ecommerce Foundation has developed and offers several services such as the Ecommerce Benchmark, the EcommerceWiki and
the National Ecommerce Reports.
63
Ecommerce Foundation Services
20+ National Every year a C-level The EcommerceWiki
Ecommerce Reports study delegation is Week brings digital
supporting retailers travels to an inspiring end-reponsibles back
going cross border. location. Previous trips to school to update
include Silicon Valley, their knowledge on
Seattle and China. everything ecommerce.
Our Ecommerce The EcommerceWiki EcommerceReports

Webinars zoom in on is the online guide for curates all e-commerce
country-specific facts by ecommerce managers related reseach
pairing up with experts with templates, process accross the globe by
and getting on-the- descriptions, etc. adding an editorial
ground advice. board and peer review.
Lectures & Custom research is

presentations are done for a diverse set
offered to help of topics both co-
members look into the branded as well as
future of shopping. white labeled.
64
About our Ecommerce Reports and where to find them…
The National Ecommerce Reports are published by Ecommerce Foundation. Overview reports 2018
They provide overviews of the mature and emerging markets in the field of • European overview report
ecommerce. • Latin America overview report
• Global overview report
In total, Ecommerce Foundation publishes multiple country reports and two • Africa overview report
overview reports per year, covering the most important ecommerce markets
worldwide. 2018 Country Reports
To have a tailor-made ecommerce report made, • Netherlands Switzerland
completely based on your wishes and requirements, please contact us via • United Kingdom Spain
info@ecommercefoundation.org. • Italy Belgium
• France Portugal
The full reports can be online purchased via: • Germany Poland
http://www.ecommercefoundation.org/reports. • Czech Republic Bulgaria
• Sweden Romania
Your feedback is very much appreciated. If you would like to help us make the
• India Russia
2018 reports even better, please take our 3-minute survey.
• Japan China
Also, consider becoming a member of Ecommerce Foundation for • United States Brazil
even more services and opportunities to sell better globally. • Australia
65
All reports can be found at:
66
Address, Disclaimer & Copyright
Address: Ecommerce Foundation
Entrada 123 (2nd floor – Wing 3)
1114 AA Amsterdam-Duivendrech
The Netherlands
Website: www.ecommercefoundation.org
Contact: info@ecommercefoundation.org
Twitter: @Ecomfound
Disclaimer
The National Ecommerce Reports are publications by Ecommerce Foundation, which also owns the copyright for these reports.
Although the utmost care has been taken in the construction of these reports, there is always the possibility that some information
is inaccurate. No liability is accepted by Ecommerce Foundation for direct or indirect damage arising pursuant to the use of the
report.
Copyright ©
It is not allowed to use information published in this report without the Ecommerce Operation’s prior consent. Any violation in this
regard will be charged a legal fine of € 25,000 (twenty-five thousand euros), as well as a further penalty of € 2,500 (two
thousand, five hundred euros) for every day that this non-compliance continues. However, it is allowed to use small parts of the
information published in our reports provided that proper sourcing is used (e.g. “source: www.EcommerceFoundation.org)
67
Ecommerce
Foundation
68

Latam Ecommerce Report 2018

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Latam Ecommerce Report 2018

Uploaded by

Copyright:

Available Formats

Latin America

The Ecommerce Foundation is an independent organization, initiated by worldwide national ecommerce

Of consumers who never

2013 2014 2015 2016 2017 2018(f)

Source: United Nations, 2018 *Countries incl. can be found on pg. 6

Country Population Country Population

Source: Worldometers; Population Reference Bureau, 2018

‘Among the different age

59% Argentina 71%

Source: ITU.int, 2016 *estimate

Colombia 10% 2016: Percentage bought/ordered products or services, Age 5+

Paraguay 9% 2015: Percentage bought/sold products & services, Age 10+

El Salvador 8% 2014: Percentage bought a product online, 18+, last year

Nicaragua 7% 2014: Percentage bought a product online, 18+, last year

Peru 6% 2016: Percentage bought products and/or services, Age 6+

Honduras 5% 2014: Comprar Productos o Servicios, last 3 months, INE

Source: UNCTAD, 2018

2015 2016 2017 2018(f)

Full version available at

Argentina Brazil Chile Colombia Dominican Republic Mexico Peru

Unique visitors (in

Google Shopping 7.5

Source: eMarketer, 2018

Full version available at 1.50%

Source(s): Statcounter; WeAreSocial; Statista, 2018

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

MINT 65+ 7.82%

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

Introduction: Ecommerce Facts & Figures:

In Paraguay, there was a change in An opportunity in emerging ecommerce

Sara Lone Isabela Fávero Shaun Packiarajah

Car electronics USB sticks, DVD/CD- SDA: equipment for

Bike/caravan/motorbike/ Annuity insurance Disability insurance –

Why Ecommerce Foundation?

How does Ecommerce Foundation help?

What does Ecommerce Foundation do?

Our Ecommerce The EcommerceWiki EcommerceReports

Lectures & Custom research is

You might also like