Introduction to Latin America
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 terms Ibero-America or Hispanic America. As of 2016, its population was estimated at more than 639 million and in 2014, Latin America had a combined nominal GDP of 5,573,397 million USD and a GDP PPP of 7,531,585 million USD. Latin America is a huge ecommerce market, coming in fourth globally in terms of its retail market. Of the various countries Brazil ranks the largest when it comes to B2C turnover.
Ecommerce and Infrastucture Data
Internet penetration in Latin America is vey gradually growing over time, with the more developed regions pushing ahead of others. At the front of the pack is Argentina with an internet penetraiton rate of 71%. Looking deeper into the more infrastuctural aspects of the ecommerce landscape, Chile, Mexico and Uruguay perform well. Chile comes out on top in terms of the Logistics Performance and Internet inclusivity Indexes, Mexico in the Ease of Doing Business Index and Uruguay for the E-Government Development Index.
Latin America Ecommerce Market Figures
Looking at the levels of ecommerce penetration in Latin America there is a large amount of variation. In 2017 the total B2C turnover of the regions comes to an estimated $60.37 billion USD. This is reinforced by a growth rate of 13.81%. The main contributors to this level of turnover are Mexico and Brazil, with Argentina a distant third. When looking at the most popular destination for shopping online, Mercado Libre/Livre is by far the most popular. In fact in February of 2018, almost three times the number shoppers bought from Mercado Libre/Livre rather than Amazon.
Social Media Usage
When it comes to consumers, it should come as no surprise that they vary greatly between regions and countries. Economic, cultural and infrastructural issues can all have a part to play in how consumers choose to use social media. Below is an example of the average usage across platforms taken from our latest Latin America Report.