Stephanie Chevalier
E-commerce research and editorial expert
The history of Latin America stands as a testament to its remarkable adaptability, prominently showcased in its response to the COVID-19 pandemic. Latin Americans didn't merely confront challenges; they capitalized on them, fostering innovation and advancement. This inherent capacity to adapt, intricately woven into the cultural fabric, became the cornerstone of its e-commerce boom.
While Latin America's e-commerce revenue still trails behind that of Asia, the United States, and Europe, the region boasts a formidable cohort of nearly 300 million digital shoppers, a number forecast to soar 44 percent by 2029. In 2023, online retail sales in Latin America yielded an estimated 272 billion U.S. dollars.
In this dynamic landscape, Brazil and Mexico are vying for the lead, each accounting for close to 30 percent of the Latin American e-commerce market. Yet, the ascendance of economies like Argentina, Chile, Peru, and Colombia underscores a broader narrative of accelerated growth and burgeoning potential.
While Latin America's e-commerce revenue still trails behind that of Asia, the United States, and Europe, the region boasts a formidable cohort of nearly 300 million digital shoppers, a number forecast to soar 44 percent by 2029. In 2023, online retail sales in Latin America yielded an estimated 272 billion U.S. dollars.
In this dynamic landscape, Brazil and Mexico are vying for the lead, each accounting for close to 30 percent of the Latin American e-commerce market. Yet, the ascendance of economies like Argentina, Chile, Peru, and Colombia underscores a broader narrative of accelerated growth and burgeoning potential.
The Mercado Libre hegemony
Mercado Libre has been a pivotal force in shaping Latin America’s e-commerce landscape. Originating from Argentina, the company has maintained a dominant presence in the region despite increasing competition. The U.S. e-commerce giant Amazon has shown commitment to capturing a larger market share in the region by enhancing its logistical infrastructure in key markets like Brazil and Mexico. While local competitors have also experienced rapid growth in their sales figures, none have yet managed to rival Mercado Libre's impressive revenue generation. Mercado Libre continues to lead among Latin American-born e-commerce companies, showcasing a robust business model and widespread consumer reach.Retail and mobile domination
In 2023, the retail sector claimed over half of Latin America's e-commerce market. Among the product categories driving revenue in the region, electronics emerged as a top performer, followed closely by fashion and food. One of the driving factors behind this surge in e-commerce activity is the widespread adoption of mobile phones, which have played a pivotal role in democratizing internet and, consequently, digital shopping. Regarding retail web visits and orders, smartphones were the preferred choice among Latin American online consumers. By early 2024, these devices accounted for nearly 85 percent of e-commerce site traffic and facilitated more than two-thirds of online retail transactions.The stage is set for advancement
With its gaze set on the horizon, Latin America's e-commerce sector is primed for growth. This trajectory is fueled by digitalization, improved logistics and infrastructure, and groundbreaking technologies reshaping online shopping worldwide. As the region continues to develop and mature, it is likely to assume a progressively influential role in the global e-commerce arena.
