Retail ecommerce sales in Latin America are expected to grow 21.3% to a whopping $71.34 billion. To support this growth Hostopia has recently added support for PayU LATAM, a popular payment gateway now available through Online Store.
According to eMarketer, mobile is a main driver for ecommerce in Latin America (one of the fastest-growing smartphone markets worldwide). For example, Mercado Pago, a digital payment platform that launched in 2003 processed $19.72 billion worth of transactions between Q1 an Q3 2019 (eMarketer). Mercado Pago is available to consumers and businesses exclusively in Latin America. Based in Argentina, it has rolled out across Brazil, Chile, Colombia, Mexico, Peru, Uruguay and Venezuela.
Consumers in Latin America have been slow and hesitant to embrace ecommerce due to security concerns around data and personal information and general distrust in ecommerce websites. Businesses are responding with improved security measures, and trialing ecommerce through marketplaces.
On average, more than 60% of digital buyers feel safe making online purchases across Latin America. Data from last year indicates over two thirds (68.6%) of digital buyers in Mexico feel safe making online purchases, compared to 78.7% in Argentina, and 62.7% in Brazil.
Retailers continue to work to remove purchasing barriers to ecommerce, offering offline payment options for consumers without traditional means for online payments.
On top of mobile ecommerce, social media usage and social commerce also continues to rise in the region. Instagram is quickly gaining users in Latin America. eMarketer estimates that the number of users more than doubled between 2015 and 2018, from 54.9 million to 125.9 million. Facebook remains the largest social network of the region at 284.5 million users, but user growth has plateaued.
About 28 percent of internet users turn to social networks during online product research. In Latin America, social media beats out search engines when it comes to product research (GlobalWebIndex).
Equipping SMEs in Latin America for ecommerce
Online Store, our ecommerce solution, is localized to serve the Latin American region. With tiered store options, consumers can start at a lower price point. Online Store offers PayPal and offline purchase options on lower tier plans, and marketplace connections including Amazon and eBay and selling through Facebook on higher tier plans. It’s available in multiple languages, and connects users to local shipping carriers or allows in-store pick-up.
Store owners can also start accepting payments through PayU LATAM payment gateway, one of the most popular payment systems in the world, working in 16 global markets, including Colombia, Argentina, Brazil, Chile, Mexico, Panama and Peru. The solution also includes support for Mercado Pago.
Our ecommerce solution also easily enables users to showcase their ecommerce products on social media. Their online store inventory can be synced with Facebook and Instagram. Their customers can purchase directly through Facebook, or merchants can use the “Product Tagging” feature of Instagram to direct visitors directly to their store.