• Sunday , 4 December 2016

Cashback News: E-commerce gaining momentum in Latin America – market updates

mexicoLatin American e-commerce is showing strong growth and we have an excellent overview of which markets are hot, new developments and what’s trending. B2C e-commerce sales in Latin America will grow from $71 billion in 2015 to more than $87 billion by 2018 according to Statista. Their report also notes 38% of consumers use mobile for search and 27% purchased via mobile. Business Insider expects online shopping to grow 17% annually in Latin America with Brazil making up 42% of the total and Mexico 12.3%. B2C e-commerce in Argentina and Mexico is expected to grow faster than Brazil in 2016 according to a report from yStats.com.

NearshoreAmericas says logistics are key to e-commerce growth citing Walmart’s three new e-commerce fulfillment centers in Brazil and Amazon’s new Spanish website in Mexico. WorldCityWeb highlights some of the logistics and safety challenges for e-commerce in Latin America. Americas Market Intelligence found Brazil accounts for 60% of all e-commerce and 58% of purchases are on installment programs.

eBay announced plans to sell its interest in marketplace MercadoLibre which is headquartered in Argentina and operates in Chile, Brazil, Colombia and Mexico. MercadoLibre sales grew 37%, to $230.8 million and it sold 47.6 million products in the third quarter. AT Kearney said e-commerce sales in Mexico should reach $40 billion by 2019. Uber launched the Bankaool Debit Card market in a partnership with Bankaool and Mastercard to enable easier payments and encourage growth.

E-commerce in Latin America

https://www.statista.com/topics/2453/e-commerce-in-latin-america/In 2018, 139.3 million people in Latin America are expected to buy goods and services online, a dramatic increase from 84.7 million in 2013. Recent figures show that the Latin America e-commerce market is still rather small, in comparison with the Asia-Pacific or North American regions, with B2C e-commerce sales in Latin America accounting for only 4.3 percent of the global B2C e-commerce sales in 2014. However, B2C e-commerce sales in Latin America are projected to grow from 71 billion U.S. dollars in 2015 to 87 billion U.S. dollars by 2018. On a national level, Brazil is the market leader, with over 23 billion in e-commerce sales forecast for 2015, followed by Mexico, with e-commerce sales in Mexico expected to reach 13 billion, while Argentina is expected to sell 5.24 billion U.S. dollars worth of online products and services. As of 2013, B2C e-commerce accounts for 0.49 percent of the GDP in Brazil, a figure which is expected to double by 2018.

The most popular online retailer in Latin America in terms of visitors is MercadoLibre .com (MercadoLivre.com in Brazil and Portugal), a C2C e-commerce platform similar to eBay.com, currently present in Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Mexico, Ecuador, Peru, Panama, Portugal, Uruguay and Venezuela. With over 45 million unique visitors in June 2014 alone, MercadoLibre.com manages to surpass Amazon, the world’s most successful e-retailer, as well as the Brazilian-based company B2W, which is currently the largest web-only retail company in Latin America, with 2.8 billion U.S. dollars in e-commerce sales in 2013.

Latin America is also part of the mobile shopping movement. In the fourth quarter of 2014, 38 percent of internet users in Latin America used their mobile device to search for a product or a service online and 27 percent of internet users purchased a product. Via statista.com

THE LATIN AMERICA E-COMMERCE REPORT: The region’s top markets, biggest growth opportunities, and foreign retailers making inroads

http://www.businessinsider.com/the-latin-america-e-commerce-report-the-regions-top-markets-biggest-growth-opportunities-and-foreign-retailers-making-inroads-2016-3Here are some of the key takeaways:

– Latin America is one of the fastest-growing regions for e-commerce, behind Asia-Pacific. We expect online retail sales to grow at a compound annual growth rate (CAGR) of 17% between 2014 and 2019 to reach $85 billion in sales at the end of the forecast period.
– Brazil is the largest online retail market in Latin America, accounting for 42% of the region’s $47.4 billion in e-commerce sales. But e-commerce growth is decelerating due to an economic downturn. Between 2014 and 2019, we expect e-commerce sales to rise at a CAGR of 12.5%.
– Mexico is the second-largest market for e-commerce in Latin America. Mexico currently accounts for 12.3% of the region’s e-commerce, but we expect Mexico’s share to increase to 15.6% by 2019. By 2018, Mexico is forecast to reach $11 billion in e-commerce sales — or just under 2.5% of total retail sales in the country. Via businessinsider.com

Latin America B2C E-Commerce Market 2016

background-1559050_640Latin America’s B2C E-Commerce market is one of the smallest worldwide in terms of sales, the new report by yStats.com reveals. Online retail is only starting to evolve across this region and accounted for a tiny share of overall retail sales in 2015. This signals a great potential for further development. In the near future, B2C E-Commerce sales in Latin America are predicted to maintain strong double-digit growth rates, spurred by Internet access, financial services and online shopper penetration rising across the region. Both local and international E-Commerce companies are competing for a larger share of this growing market, with Amazon launching full operations in Mexico in 2015 and Argentina-based marketplace operator MercadoLibre scoring high by number of website visitors in almost every major market of the region.

Brazil is Latin America’s leader in B2C E-Commerce sales, with multiple sources cited in yStats.com’s report ranking it high above other countries in terms of sales, number of online shoppers and online spending per shopper. However, even in Brazil online retail accounted for less than 5% of total retail sales in 2015 and is not expected to break this threshold in the next few years.

Argentina and Mexico are predicted to overtake Brazil in B2C E-Commerce sales growth. In 2015, Argentina was already the region’s strongest performer in terms of growth rate, with online retail rising by a high double-digit percentage share. Meanwhile, Mexico was ahead of other countries in Latin America in the adoption of major market trends including M-Commerce and cross-border online shopping, according to the findings revealed in yStats.com’s report. Via satprnews.com

Logistics Startups Facing Difficult Roadblocks in Latin America

http://www.nearshoreamericas.com/logistics-startups-latin-america/U.S. venture capitalists have pumped over US$1 billion into shipping and logistics companies since the start of 2014, and because of this boom, attention is now turning to Latin America – one of the fastest-growing regions in the world for e-commerce.

As online retail sales in Latin America are expected to reach US$85 billion in sales by 2019, global investors and entrepreneurs are becoming increasingly interested in this part of the world. We’re seeing U.S. heavy hitters actively investing in the region, despite the slowing economy. For example, Walmart recently redesigned its website for the Brazilian market and is now finalizing three new e-commerce fulfillment centers in the country. Amazon, too, has begun investing heavily in Latin America, specifically in Mexico with the launch of a Spanish version of its site. Via nearshoreamericas.com

E-commerce in Latin America: Digital doorways and stumbling blocks

https://www.worldcityweb.com/e-commerce-in-latin-america-digital-doorways-and-stumbling-blocks/Researcher Price said he was most hopeful about increases in the digital selling of goods and services region-wide, even as governments worry about disruption of traditional sectors (think Uber).

“Outside the 10 largest Latin America cities, retail only covers the basics,” Price said. When it comes to finding luxury or out-of-the-ordinary items, choices are few. So the digital economy “becomes a natural channel through which you will source that stuff,” said Price.

To be sure, conditions in different countries vary and affect adoption of e-commerce.

In Mexico City, for example, worries over personal safety worries buoy transport service Uber, because consumers like its digital tracking feature. In retail, truck delivery services are looking at plans for drivers to drop off packages at a secure facility for later customer pick-up, said Price. Via worldcityweb.com

Brazil Accounts for 60% of All e-Commerce in Latin America

http://cardflash.com/news/2016/10/brazil-accounts-for-60-of-all-e-commerce-in-latin-america/E-commerce in Brazil is set to grow by 15% in 2016 despite the economic recession affecting the country and the overall e-commerce market size for Brazil is $23 billion—three times that of Mexico, the second-largest e-commerce market in Latin America.

Americas Market Intelligence found while Brazil accounts for 60% of all e-commerce in Latin America, significant challenges await companies who go into the market without the crucial details needed to be successful.

Despite this robust market, without a local payment strategy, merchants only reach 17% of Brazil’s total addressable e-commerce market. Non-card payment methods represent 23% of all Brazilian e-commerce sales, and 58% of e-commerce volume in Brazil is purchased using an installment plan. Via cardflash.com

eBay divests majority of its stake in Latin American ecommerce giant MercadoLibre

http://venturebeat.com/2016/10/13/ebay-divests-ecommerce-mercadolibre/Ecommerce giant eBay has announced plans to sell the “majority” of its stake in Latin American online marketplace MercadoLibre — in what is just one in a number of divestments on eBay’s part in recent times.

Headquartered in Argentina, MercadoLibre has been called the eBay of Latin America and is one of the biggest ecommerce platforms in South and Central America by number of visitors. It operates across its native Argentina, as well as Chile, Brazil, Colombia, Mexico, and other markets.

MercadoLibre’s relationship with eBay dates all the way back to October 2001, when MercadoLibre acquired iBazar Como, the Brazilian subsidiary of European online auction site iBazar S.A that eBay had acquired earlier that year. In place of an all-cash deal, eBay took a 19.5 percent stake in MercadoLibre, with the duo also committing to sharing best practices. Via venturebeat.com

MercadoLibre Keeps Riding Latin America’s Rebound

http://www.foxbusiness.com/markets/2016/11/03/mercadolibre-keeps-riding-latin-america-rebound.htmlMercadoLibre’s third-quarter numbers reaffirmed just how much potential the company has to tap into the Latin American e-commerce market. Sales soared 37%, to $230.8 million, exceeding even the optimistic 32% pace of growth that investors had been hoping to see. Net income climbed 27%, to $85 million, and that produced earnings of $0.88 per share. That was $0.05 per share higher than the consensus forecast among investors.

Looking more closely at MercadoLibre’s numbers, the e-commerce specialist posted exceptional operational results. Total items sold jumped by two-fifths, to 47.6 million, sustaining the pace of growth that investors saw earlier in the year. Gross merchandise volume was more than 10%, to $2.04 billion, and those numbers were held back by the strength of the U.S. dollar and by the eccentricities of the Venezuelan market. In local currency terms, revenue from advertising was up 84%, due, in large part, to MercadoLibre taking advantage of using product ads in search format. Via foxbusiness.com

2016: The Tipping Point for E-Commerce in Mexico

Aztec deityMore Mexicans are using the Internet than ever before. Internet penetration was expected to reach 53.8 percent in 2015 and should grow 6.7 percent annually to reach 67.4 percent (84.9 million users) in 2019, according to eMarketer.

Concurrently, business-to-consumer (B2C) e-commerce (services and retail) in Mexico was worth $13.1 billion annually in 2014 and is expected to grow at 26 percent annually to reach more than $40 billion in 2019—three times 2014 revenue (see figure 1 on page 2). In 2014, retail generated $4.6 billion, and the market is expected to grow annually by 26 percent to reach $14.5 billion by 2019.

However, there is also a wealth of opportunities beyond retail in service industries such as banking, insurance, and travel. Via AT Kearney

Uber Enters the Debit Card Market in Latin America

uber-e1478548661656Uber, in partnership with Mexico’s first online bank Bankaool and Mastercard, announced the launch of Uber Bankaool Debit Card, which allows users to pay for rides using a mobile banking app.

The card, which has been available since October 21, is intended to help users who do not have a debit or credit card, and cannot use other ecommerce options, such as Apple Pay. The debit card, which is linked to a Bankaool account, is not just good for Uber rides. It can be used at other venues as well.

“#YourUberCardforEverything (#TuTarjetaUberParaTodo) can be used to pay at movie theaters, stores or restaurants, as well as ecommerce and mobile apps that accept Mastercard, both in Mexico and internationally, and even to withdraw cash at ATMs,” said Juan Carlos Espinosa, Chief Digital Bank, Business Development and Marketing Officer. Via lowcards.com

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