The Rise of e-Commerce in Latam
American brands often ignore or disregard Latin America as a market for online shopping. This is changing, though. In the wake of COVID-19, an increasing number of Latin Americans are embracing e-commerce which makes LatAm an exciting potential growth territory for online businesses. To help you to take advantage of this trend, Ameriworld, can make the pick-pack-ship process safe and seamless.
e-Commerce Growth Trends in Latin America
It is estimated that as many as 10m Latin American consumers made an online purchase for the first time last year. With a population of over 650 million, that sounds like a drop in the ocean. That’s 10 million new adopters to the e-commerce model though, bringing the total number of online shoppers to almost 200 million.
With physical shops closed and stay-at-home orders still active in some countries, the number of online consumers will surely only rise in 2021. Also, previously distrusted online payment methods are growing increasingly popular, making online shopping part of everyday life for many.
Experts predict that Latin America will be the largest growth market of 2021 for e-commerce sellers. This suggests that American businesses have a unique opportunity to tap into a sizable new market.
e-Commerce in Latin America – The Major Players
For many in the western world, e-commerce is a long-form way of saying, “Amazon.com”. Jeff Bezos’ empire is undoubtedly the quintessential figure in most marketplaces. That is not the case in Latin America though, where MercadoLibre sits proudly at the top of the web shopping tree.
MercadoLibre attracts almost 650 million visits every month from Latin America alone, compared to 120 million visits per month that Amazon receives.
Other sizable players throughout Latin America include:
- Dafiti – a fashion outlet that attracts around 30 million visits per month
- Linio – a general marketplace comparable to Amazon or MercadoLibre, but with a smaller customer base of 14 million monthly visitors
- Wish – the global seller of low-cost designer and luxury goods, typically shipped from China
There are other, country-specific online retailers in the territory. Brazil, for example, is by some margin the biggest e-commerce market in Latin America. The giant of Latam ranks fourth in global online marketplace size and offering a range of local online sellers. Online shopping in Brazil skyrocketed by 25% in 2020, and another 19% further growth is estimated within the next 12 months.
Shipping from the US to Latin America
Setting up an international arm of your business can be troublesome – and expensive. Opening a new business overseas comes with challenges arising from national regulations, language barriers, and making a raft of new hires. On paper, it’s easier to simply ship your goods from the USA.
Even this process is not without difficulty, though – until now. Previously, estimates of shopping and tariff rates led to potential errors that can impact a bottom line. What’s more, there was always the chance that your shipments would simply not arrive. We’re pretty sure that the Bermuda Triangle is home to countless mislaid packages.
Your business ideally needs is a 3PL fulfillment center located in Miami. One that works tirelessly to ensure the order fulfillment process to Latin America is seamless, safe, and convenient.
Ameriworld Fulfillment’s Latam Express Service
We would like to introduce Ameriworld Fulfillment’s Latam Express Service, a new option that will broaden your customer base with ease.
With Latam Express Service, a business can have products in stock close to their new market, shipping their orders from the US to Latin America. By receiving a tracking number with your orders, you can watch your parcels travel and its safely arrival to its destination.
Simply run your advertising campaigns in Latin America and stock your goods in Miami. When a Latin American consumer chooses to purchase from your online store, all duties, and insurance are be paid at once and then it would be processed through our Latam Express Service. We told you this was a worry- and hassle-free experience.
If your business has serious intentions to grow its reach in 2021, the Latin American market simply cannot be ignored. By teaming with Ameriworld for your fulfillment and shipping needs, you can greatly expand your offering, your audience, and your ROI.
If you need any more information about our services, including but not limited to Latam Parcel Express, just get in touch (info@ameriworld.com).
