The eCommerce landscape in Latin America (LATAM) is rapidly evolving, presenting opportunities for businesses looking to establish or expand their online presence. With a flourishing population of internet users and increasing digital infrastructure, LATAM is becoming a hotspot for online retail.
A solid business plan is essential when establishing an online store, as it should address specific problems and target a willing audience.
This Hostopia blog will explore how to start a successful online store in this vibrant market, supported by compelling case studies and statistics.
- The Growing eCommerce Sales Market in LATAM
- Understanding the Market Landscape through Market Research, a Tactic for Success
- Summary of eCommerce in Latin America (By Country)
- Hostopia’s eCommerce Solutions: Made for Telecoms in LATAM & the Globe
- What are the Main Challenges of Cross-Border eCommerce?
The Growing eCommerce Sales Market in LATAM
As we said at the beginning, the eCommerce market in Latin America is growing quickly, with augmented digital infrastructure and economic stability being the key drivers in the area .
Market research is paramount to understanding the dynamics of this burgeoning market as well as identifying the needs and preferences of the target audience. We’ve gathered some helpful and eye-opening stats for you to peek at before going deeper into our article.
- Market growth: The eCommerce market in LATAM is projected to increase from $211.03 billion USD in 2024 to $285.67 billion USD by 2028, reflecting a Compound Annual Growth Rate (CAGR) of 7.9% during this period. Big brands from China and other parts of the world are planning on creating warehouses and expanding their presence for their products in this region. Companies include Shein, Temu, and TikTok, according to reports.
- Consumer engagement: Over 70% of adults in the LATAM region engage in online shopping. This high engagement rate is driven by improvements in digital infrastructure and a surge in online advertising.
- Cross-border opportunities: The region is witnessing an increase in cross-border eCommerce, with a growth rate of 44% year-over-year. This trend underscores that there’s a market for international brands and products among LATAM consumers.
About Cross-Border eCommerce
Cross-border eCommerce is the online sale of goods and services between businesses and consumers in different countries. It allows companies to expand their reach beyond domestic markets, connecting with a global audience through digital storefronts.
Cross-border eCommerce is the process of selling goods and services online to consumers in different countries
In LATAM, cross-border eCommerce is expected to keep a double digit growth rate until 2027. This trend is driven by increasing internet adoption, a growing middle class, and a strong demand for international products. Platforms like Amazon have capitalized on this momentum, making it easier for consumers to shop across borders.
For most businesses, cross-border eCommerce offers significant opportunities but also presents unique challenges, including:
- Logistics: Managing international shipping and customs regulations.
- Payment processing: Supporting multiple currencies and local payment methods.
- Compliance with local laws and regulations: Adhering to country-specific laws and taxes is an ongoing hurdle for any businesses operating in cross-border eCommerce.
Understanding the Market Landscape through Market Research, a Tactic for Success
Diverse Marketplaces
Unlike the U.S., where marketplaces account for less than half of eCommerce sales, LATAM sees approximately 78% of total eCommerce sales coming from marketplaces like:
- Mercado Libre
- Libre
- Amazon
eCommerce store owners or other product producers should consider listing their products on these platforms to maximize reach, despite the selling fees they employ.
Encouraging every business owner to establish a well-thought-out online presence is essential for their business success. Our partners can offer Hostopia’s Website Design solutions and provide them with a clear advantage—ensuring their customers’ business is online, easily found in search results, and visible across the digital landscape.
Payment Preferences in Online Shopping
Payment flexibility is crucial, with installment plans comprising about 60% of all eCommerce payments in LATAM. Adapting payment choices to include local preferences can amplify conversion rates.
Summary of eCommerce in Latin America (By Country)
The eCommerce landscape in Latin America (LATAM) is rapidly evolving, with major growth across various countries. Online sales play another role in driving this surge, as successful eCommerce strategies and innovative business models expand their revenue.
Below is an overview of the current state of eCommerce in key LATAM nations, highlighting market sizes, growth rates, and notable trends.
1. Brazil
- 2025 eCommerce revenue: Expected to surpass $41.2 billion, marking a 16.6% increase.
- Market dynamics: Brazil remains the largest eCommerce market in Latin America, fueled by a robust digital infrastructure and an expanding middle class that increasingly relies on online shopping. According to recent statistics, there are 187.9 million internet users in Brazil, and 144 million of them use social media, which accounts for 96.9% of the country’s total population.
2. Mexico
- 2025 eCommerce revenue: Forecasted to exceed $38 billion USD.
- Market insights: As the second-largest market, Mexico benefits from a large population and increasing adoption of digital payment methods. The country is also seeing an explosion in cross-border eCommerce.
3. Colombia
- 2025 eCommerce revenue: Expected to exceed $49 billion USD.
- Market insights: Colombia’s eCommerce sector is expanding rapidly, supported by innovative logistics and delivery systems, which augment the online shopping experience.
4. Peru
- 2025 eCommerce revenue: Peru’s eCommerce is on an upward trajectory, with rising internet penetration and mobile usage driving sales. The market is expected to increase to $63 billion USD by 2026 as more consumers turn to online shopping.
5. Argentina
- 2025 eCommerce revenue: Argentina’s eCommerce market is characterized by high inflation rates that drive consumers to seek better deals online. The market is also seeing increased participation in digital marketplaces with a 2024 eCommerce revenue of $9 billion USD.
Hostopia’s eCommerce Solutions: Made for Telecoms in LATAM & the Globe
Telecom companies are positioned in a way that plays a pivotal role in LATAM’s growing eCommerce ecosystem. With their already established customer base, modern infrastructure, and trust within local markets, telecoms can bundle eCommerce solutions with their existing services much more confidently than ever before.
Hostopia’s robust eCommerce platform is an ideal solution for telecom providers looking to expand their offerings and tap into the lucrative eCommerce market.
Here are a few ways how:
- Empowering SMBs: Hostopia’s easy-to-use store builder helps create professional online stores quickly, with templates tailored for various industries.
- Seamless integration: Telecom providers can offer eCommerce tools alongside their services, enhancing customer retention and boosting value.
- Localized payment options: The platform supports LATAM’s preferred payment methods, like installment plans and local gateways, improving conversion rates.
- Scalable and flexible: Businesses can grow with Hostopia’s scalable features, including multi-channel selling, inventory management, and analytics.
- Additional tools for success: Hostopia’s OneList Plus, Reviews Promoter, and Search Engine Assist further enhance visibility and credibility for online stores.
What are the Main Challenges of Cross-Border eCommerce?
Cross-border eCommerce presents numerous opportunities for businesses to expand their market reach. It also comes with a unique set of obstacles on its own. We have to comprehend that operational costs are vital in cross-border eCommerce to maintain profitability and ensure smooth transactions. As we mentioned earlier, cross-border eCommerce is the process of selling goods and services online to consumers in different countries.
Here are the main challenges associated with cross-border eCommerce:
1. Logistics & Shipping
Managing logistics is one of the biggest hurdles in cross-border eCommerce. This includes ensuring timely delivery across international borders, dealing with multiple carriers, and navigating customs regulations. The complexities of shipping logistics can lead to increased costs and delays, which may frustrate customers and impact sales.
2. Regulatory Compliance
Each country has its own set of regulations regarding imports, including tariffs, taxes, and quality standards. Businesses must ensure compliance with these regulations to avoid penalties or shipment delays.
The documentation required for customs clearance can be intricate and varies by destination, adding to the administrative burden on sellers.
3. Cultural & Language Barriers
Differences in language, culture, and consumer behavior can pose challenges when entering new markets. Businesses need to adapt their marketing strategies and product offerings to resonate with local consumers. This may require translation services and cultural insights to effectively communicate value propositions.
4. Payment Processing
Cross-border transactions often involve multiple currencies and payment methods, which can complicate the payment process. Helpful customer engagement is needed in managing expectations in cross-border eCommerce, as it helps enhance interaction with website visitors.
Businesses must implement secure payment gateways that accommodate various currencies and local payment preferences while also protecting against fraud.
5. Customer Expectations
Consumers expect a seamless shopping experience similar to local purchases, including easy returns and customer support. However, managing returns across borders can be complex and costly due to varying regulations and logistics challenges. Clear communication regarding shipping times, duties, and return policies is imperative to meet customer expectations.
6. Fraud Risks
Cross-border eCommerce is susceptible to various forms of fraud, including payment fraud and identity theft. Businesses must invest in robust security measures to protect against these risks while ensuring a smooth transaction process for legitimate customers.
7. Currency Fluctuations
Exchange rate volatility can impact pricing strategies and profit margins for cross-border sales. Businesses need to monitor currency trends closely and may consider hedging strategies to mitigate financial risks associated with currency fluctuations.
For more helpful resources, please visit hostopia.com.
Conclusion
Building a successful online store in LATAM requires understanding the unique market dynamics and consumer preferences that are constantly changing and evolving.
Preserving a uniform brand image is required for long-term success in the LATAM eCommerce market. By leveraging productive strategies and utilizing Hostopia’s value-added services, businesses can tap into this thriving market even more powerfully.
Hostopia can help companies expand their hosting offerings. Schedule a free consultation with Hostopia today!
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FREQUENTLY ASKED QUESTIONS
What is eCommerce?
eCommerce refers to buying and selling goods or services over the Internet, encompassing everything from retail stores to digital services.
How can a business start its online store and start selling?
Begin by selecting a niche, choosing an eCommerce platform, setting up payment methods, and marketing products effectively to the end customers. Nevertheless, the process also involves marketing, sourcing and testing products, paying rent, and many other factors.
What are the advantages of selling online?
Selling online allows businesses to reach a broader audience, operate 24/7, and reduce overhead costs associated with physical stores.
What payment methods are preferred in LATAM?
Credit cards are the most common payment method, followed by local options like Pix and installment plans which are highly favored by consumers.
How can I start and grow a small eCommerce business?
Starting a small eCommerce business involves creating a business plan, even an informal one, to navigate obstacles. Look at success stories like Anker Technologies, which began as a small eCommerce business and grew into a global brand. This achievement highlights the growth potential of starting such a venture.
