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What: Retailers scramble behind Amazon and MercadoLibre to capture their share of expanding e-commerce in Latin America. This happens despite difficult payment and delivery challenges.
Why it matters: Experts predict e-commerce trends will grow by 19% in the next five years. They see it rising well above the global average of 11%. The lack of brick-and-mortar retail outlets in Latin America actually plays into the hand of e-commerce retailers. That’s because it allows them to offer products to consumers outside of major cities who don’t have many shopping options.

E-Commerce Trends Heating Up

E-commerce trends in Latin America provide no place for the timid. The challenges are well-known. Experts say they include lack of infrastructure, consumers without credit cards or bank accounts, high rates of online payment fraud, and obstacles to delivering product—to name just a few.

But the barriers to success don’t stop leading players. For example, MercadoLibre is diving into the e-commerce market and thriving.

One expert remarks the challenges are “daunting.” But competitors like Linio are finding ways to outperform. They chase what Linio’s General Director Olivier Sieuzac says is a “massive opportunity” in expected e-commerce growth in the region.

Linio has learned it had to expand its online business model. That means beyond just selling product. The strategy now includes things like creating its own delivery fleet. Linio also sells its hard-earned expertise to brands like Aeromexico who create their own online retailing presence.

To succeed in Mexico, Linio built partnerships with VISA to prevent credit card fraud. Consequently, it also joined arms with third-party payment channels. They include the convenience store chain Oxxo. Linio aims to provide the unbanked with cash-payment options.

Mexico, according to Sieuzac, offers the “worst of both worlds.” Mexico suffers high levels of online payment fraud and a low level of cooperation from banks.

As a result, Linio developed a proprietary algorithm with VISA as a response to reduce credit card fraud. Consequently, Linio also now offers its own credit card with a loyalty program. The loyalty program awards cash back on purchases.

Linio also created its own fleet in Mexico to handle the delivery of over-sized items like refrigerators and other home appliances.

Infrastructure, payment obstacles

Lack of infrastructure in Latin America makes delivering product a particularly difficult part of the e-commerce business.

Logistics and related issues amount to 15 percent of the cost of what’s sold online—well above other regions, according to Miriam Dowd, Marketing Manager at FOCUSECONOMICS.

Merchants experience the impact of “limited” access to credit card-based payment methods. Banks often don’t allow debit cards to be used for online payments.

E-commerce in Latin America faces many challenges, the most daunting of which are logistics, traffic, and infrastructure. Regulations and rules vary among countries. Merchants have and limited access to secure, credit-card based payment methods,” Dowd explains.

Online sales are expected to grow by 19% in the next five years. As a result, that is well above the global average of 11%. They are foreseen to double in value to $118 billion in 2021.

But on the positive side of the ledger, experts say market penetration is low compared to other regions. As a result, that represents lots of opportunity. Consequently, the market also offers higher growth rates.

“Online sales are expected to grow 19% in the next five years – well above the global average of 11%. As a result, they will double in value to $118 billion in 2021. Consequently, two of the three fastest-growing eCommerce markets in the world are in Latin America. They are Colombia and Argentina,” Dowd said in an email to Portada.

E-commerce trends forecaster eMarketer found even with this expected high growth rate, nearly 75 percent of the market of 650 million consumers expected to shop online is untapped.

E-commerce trends working for e-retailers

MercadoLibre boasts status as the undisputed leader in Latin America. Its huge geographic footprint and logistics expertise “have helped it to hold the lead,” Dowd said.

Amazon leverages its international recognition to become a leading player in Latin America.

And for Linio, expanding its business model and offering consumers a trusted, predictable and “formal” online shopping experience proves critical to its success, according to General Director Sieuzac.

Linio seeks to set itself apart from other online retailers by rigorously vetting its product providers to make sure what they offer Linio’s customers meets certain standards.

Linio offers free returns in its strategy of building customers’ confidence.

“We’re not leaving customers alone in a face-to-face situation with the seller,” Sieuzac said.

Linio’s strategy provides its online expertise to brands. They then create their own online shopping sites, a key component of Linio’s competitiveness.

As a result, Linio entered into a partnership to build and operate Aeromexico’s Club Premier online shopping experience.

Mexico offers the worst of both worlds: high levels of online payment fraud and a low level of cooperation from banks.

Linio also partnered with the micro-financing company ConCredito. ConCredito provides a huge presence in rural zones not necessarily within Linio’s geographic footprint.

Linio publishes its catalog of products on ConCredito’s website “Creditienda.” Linio spokesperson Paulina Maza said the company supports the ConCredito e-commerce site with specific promotion campaigns. They include digital marketing, logistics, fast delivery of products, and returns.

What lies ahead

The lack of brick and mortar retail outlets in Latin America actually plays into the hand of e-commerce retailers. That’s because they can offer products to consumers outside of major cities where consumers don’t have many shopping options. Sieuzac told Portada, “It’s a massive opportunity. You have people that simply don’t have access to products, even from a normal shop.”

A “key component” of e-commerce growth in Latin America proves to be shopping online with a mobile phone. As a result, a report by yStats.coMobile commerce reveals experts expect it to increase at a faster rate than e-commerce.

Brazil offers the largest consumer e-commerce market in Latin America. The report found experts predict Colombia to show a 20 percent growth rate through 2021.

A summary of the report reveals experts predict: “Rising internet and smartphone penetration rates, greater online payment security and development of MCommerce to contribute to the growth of online retail sales.”

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the market and/or targeting Latin American consumers right now.

For prior Sales Leads LatAm editions, click here.

  • Mondelez

Mondelez, one of the world’s largest snacks companies, has put its global creative business in review. The review follows a similar mid-2018 review of the company’s media business, according to Adweek.  The first round saw Mondelez consolidating the North American portion with Publicis Groupe’s Spark Foundry on buying and VaynerMedia on planning and digital. The subsequent global review proceeded on a regional basis, with WPP’s Wavemaker and Mindshare winning a majority of work in the AMEA and MEU. Spark Foundry retained most of its accounts in the Middle East and Latin America while adding work in China and Southeast Asia.Mondelez has made several significant changes to its leadership team over the past year, including the appointment of four regional CMOs for North America, Europe, Latin America and EMEA.

 

  • MCM Worldwide

MCM Worldwide, a leather luxury goods brand founded by Michael Cromer and bought out by Sungjoo Group in 2005, has appointed Spark Foundry as its global media agency following a competitive review. PGR Media was the incumbent.Spark Foundry will handle strategy, content, digital buying and data & analytics, across the brand’s U.S., EMEA and APAC markets.

 

 

  • Goya Foods

Goya Foods celebrates in May its first year of partnership with La Moderna in México, Abasto Hispanic reports. This alliance has allowed Goya to successfully expand the distribution of its food products in the neighboring country, where it seeks to continue growing.According to Goya Foods Senior Vice President, Joe Perez, La Moderna is the right vehicle to assist Goya Foods in this expanding effort.Goya Foods is using its´production plant in Texas to send its´products to La Moderna and focusing on northern México, but the brand hopes to continue expanding to other regions of the country.To continue with its global expansion plans, Goya appointed a new Director of International Business Development, according to Joe Pérez, Goya Senior Vice President.

  • Holiday Inn

IHG® (InterContinental Hotels Group), one of the world’s leading hotel companies,  announced the opening of the newly-built 175-room Holiday Inn Express® Lima San Isidro hotel located in the heart of Peru’s bustling capital city. Located at Calle Coronel Andres Reyes No. 492 in the vibrant San Isidro neighborhood, travelers can enjoy the hotel’s proximity to the Jockey Plaza shopping mall, the Huaca Pucllana ancient archaeological site in nearby Miraflores district, and top restaurants and shopping areas surrounding the hotel. Holiday Inn Express Lima San Isidro opens with IHG® Connect, which delivers enhanced Wi-Fi with the fastest speeds in the industry, as well as an auto recognition feature for IHG® Rewards Club members, so guests only need to sign in once to access hotel Wi-Fi at all IHG Connect-enabled hotels.IHG currently has 82 Holiday Inn Express properties located throughout Mexico, Latin America and the Caribbean and 232 hotels across all brands and more than 39,317 rooms throughout Mexico, Latin America and the Caribbean.

  • Inmuebles24

Inmuebles24, the largest real estate portal in Mexico, and FCB&FiRe presented the new campaign “My Home, Your Home” with the concept #MeSientoMexicano (I feel Mexican) shows the feeling of pride that is strengthened after finding a home.
Mexico conquers and captivates for its human warmth, its culture and immensity of options where to live, in each place there is something magical. And “My Home, Your Home” tells the stories of those who are proud of Mexico, either because they were born there or because they decided to be part of it.With this multiplatform campaign that will have an important presence in digital and traditional media, Inmuebles24 tells how Mexico is one of the countries that generates more pride between its inhabitants.Inmuebles24, one of Grupo Navent’s companies, is the most outstanding sales platform with more than one audience in Mexico that has more than 370 million property notices and uses the most advanced technology to deploy sea content more relevant for each user Find the perfect place to live. Quiroga Medios is Inmuebles24´s Media agency of record.

  • MercadoLibre, Inc.

MercadoLibre, Inc., a Latin American e-commerce technology company, announced it intends to offer approximately US$1 billion of common stock. The company reported it also intends to grant the underwriters a 30-day option to purchase up to US$150 million of additional shares of common stock.MercadoLibre then revealed it has entered into an agreement pursuant to which PayPal Holdings, Inc. has committed to making a US$750 million strategic investment through the purchase of common stock. MercadoLibre noted that in a separate agreement, an affiliate of Dragoneer Investment Group has agreed to purchase US$100 million of Series A perpetual convertible preferred stock. The PayPal and Dragoneer investments are contingent upon the closing of the public offering and are expected to close at the same time or shortly after the public offering.Founded in 1999 and headquartered in Argentina, MercadP Libre provides solutions to individuals and companies buying, selling, advertising, and paying for goods online.

2019 NETWORKING SOLUTIONS. To find out about Portada’s new networking solutions targeting the decision makers of the above campaigns, please contact Sales Manager Isabel Ojeda at isabel@portada-online.com.

 

What: comScore’s Ívan Marchant talks with Portada about the e-commerce landscape in Latin America and what to expect next.
Why it matters: The region is enjoying double-digit e-tailing growth with “real competition” between players and increased mobile internet access driving more and more online purchasing.

Increased internet penetration and availability of credit cards hold the keys to a bright future for e-commerce in Latin America, made even brighter by the recent opening of the cell phone market in Mexico, according to comScore Vice President Ivan Marchant.

A “world of opportunities” is how Marchant, vice president of comScore sales in Mexico, Peru and Central America, describes the e-commerce horizon in the region.

E-commerce in Latin America has lots of room to grow.

E-commerce in Latin America, he says, has “lots of room to grow.”

comScore’s internet usage monitoring platform tracks the internet behavior of an estimated two million users.

From Marchant’s perspective, online retailers in Latin America are engaging in “real competition,” but small- and medium-sized businesses have yet to fully get into the game. A concentration of e-commerce sales to consumers in the upper and upper-middle classes he says, needs to spread to a wider distribution of economic levels.

Internet access driving e-commerce growth

E-commerce starts to take off when half the population in any given market acquire internet access, Marchant said in a recent phone interview with Portada.

And increased mobile phone accessibility in Latin America, he said, is opening up internet access to millions.

In the case of Mexico, recent reforms to laws regulating the country’s cell and fixed-line networks, controlled for years by telecommunications billionaire Carlos Slim, have lowered cell phone service costs and driven e-commerce growth to new highs.

Since telecommunications legal reforms were undertaken in Mexico in 2013, mobile broadband subscriptions increased by 50 million between 2012 and 2016, according to a study by the OECD.

E-commerce in Mexico is being held back, however, by credit card access below that of other Latin American countries, coupled with fewer opportunities to use debit cards to make online purchases.

LATAM e-tailing to grow by 19%

As recently reported by Portada, e-commerce in Latin America is expected to grow by 19% in the next five years – well above the global average of 11%. Online sales in Latin America will double to $118 billion by 2021.

But Latin America has yet to catch up with the US, where online retailing makes up 5 percent of GDP. The average in Latin America is 2 to 3 percent, according to Marchant.

Brazil leads the region in e-commerce thanks to internet penetration of 75 percent, its larger population and higher credit card usage.

Argentina holds second place, followed by Mexico where online sales grew by 30% between 2016 and 2017.

“The entire region is growing in double digits,” Marchant says.

Since telecommunications legal reforms were undertaken in Mexico in 2013, mobile broadband subscriptions increased by 50 million between 2012 and 2016.

MercadoLibre the leader

According to data from comScore, MercadoLibre is the most visited e-commerce site in Argentina, Chile, Colombia, Mexico and Peru. B2W Digital takes first place in Brazil.

“MercadoLibre is way ahead in audience,” Marchant says.

While Samsung and Falabella occupy second place in Argentina and Chile respectively, Amazon now has the second-most visited e-commerce site in Colombia, Mexico and Peru.

“Amazon is growing rapidly,” Marchant said, while MercadoLibre enjoys an advantage from having been in Latin America long before Amazon’s arrival in the region.

Travel purchases, including airline ticket sales, make up 50-60% of all e-commerce in Latin America, according to Marchant.

“It’s definitely a travel market.”

The entire region is growing in double digits.

Purchases of computer hardware and software are also important, with fashion and clothing popular among e-commerce consumers in Mexico.

Seeing into e-commerce’s future in LATAM

Future opportunities for e-commerce growth in Latin America include the sale of groceries and artwork online, Marchant says.

Online sales of artwork are big in the US, but the same has yet to be seen in Latin America.

Both Walmart and Superama in Mexico have begun to sell groceries online, but in general, Latin America “is far from” where the US is in these important e-commerce sales categories, Marchant said.

Walmart, however, has made a lot of personnel changes in Mexico in an attempt to be a bigger e-commerce player.

The “most important opportunity,” regionally, Marchant says, is to get small- and medium-sized business to begin to do business with their customers online.

What: Chilean bricks-and-mortar retailer Falabella purchases Latin America online retailer Linio for US $137 million.
Why it matters: Online sales in Latin America will double to US $118 billion by 2021 and Falabella is preparing to be a major player, using its physical stores to key advantage.

Chilean bricks-and-mortar retailer Falabella is determined to be a major e-commerce player, and will likely use its physical stores to key advantage as it ramps up to compete with Amazon and MercadoLibre for online sales in Latin America. That’s how industry and regional experts explain Falabella’s recently announced purchase of online retailer Linio for US $137 million.

The word analysts keep repeating is “omnichannel.”

Omnichannel refers to the ability of bricks-and-mortar retailers to offer in-store pickup of goods ordered online.

It could become a key competitive edge for Falabella.

“This is congruent with a trend we are seeing of retailers getting smarter about e-commerce,” Lindsay Lehr, a senior director at the consultancy Americas Market Intelligence tells Portada.

One of the big stumbling blocks to e-commerce in Latin America is the inability of people to receive packages in their homes, which is why omnichannel purchasing is increasingly important, Lehr said.

The word analysts keep repeating is ‘omnichannel’.

Leveraging Stores to Boost Online Sales

Headquartered in Santiago, Falabella operates department stores, supermarkets, home improvement centers, malls and financial services in Argentina, Brazil, Chile, Colombia, Peru and Uruguay.

With the Linio purchase, Falabella’s online footprint expands to cover Mexico, Colombia, Venezuela, Ecuador and Panama.

The acquisition boosts Falabella to the #2 e-commerce spot in its home markets and begins the process of positioning it to take on MercadoLibre and the expansion of Amazon (Amazon Mexico’s Guillermo Rivera recently joined Portada’s Council System) in the region, Lehr says.

“They are getting prepared for what’s ahead.”

Betting on E-commerce

“The company is betting on e-commerce,” analyst and retailing expert Jorge Lizan tells Portada.

Even though online sales now only make up 14-15 percent of its business, Falabella is spending 80 percent of its development budget on the online channel.

Falabella will mine Linio’s database and leverage its e-tailing expertise to position Falabella to take on MercadoLibre and Amazon, Lizan says.

“Linio is very small. They didn’t acquire Linio for the size of the company or to be a big part of Falabella’s business. What Falabella is looking for in this acquisition is to get the infrastructure and expertise,” Lizan says.

Falabella will mine Linio’s database and leverage its e-tailing expertise to position Falabella to take on MercadoLibre and Amazon.

Getting ready to face Amazon

The Linio purchase is about protecting future market share from online competitors MercadoLibre, Amazon, Wal-Mart, and even Alibaba.

MercadoLibre is the undisputed leader in e-commerce in Latin America.

Amazon has taken second place in Mexico and reportedly has plans to expand its operations in Brazil. Its web services division has expressed a long-term interest in investing in Chile.

Wal-Mart is heavily invested in online sales in Mexico and Central America, according to Lizan.

Growing Digital to Offer More Products

With the permission of its shareholders, Falabella plans to raise US $800 million in capital to ramp up its efforts to go digital in Latin America.

“This increase in capital will allow us to accelerate our digitalization and grow regional services for our clients, offering our products across a diversity of channels,” President of SACI Falabella Carlo Solari said in an announcement of the Linio purchase.

“With this acquisition, the company advances its goal of being a leader in electronic commerce in the region,” said Falabella’s general manager Gaston Bottazzini.

Expanding product lines online

The Linio purchase gives Falabella something more than just an online presence. Online translates into the capability to offer customers a broader selection of products beyond the brands Falabella sells in its physical stores.

“They can have limitless numbers of brands which is something they can’t do in their bricks and mortar stores,” Lizan tells Portada.

Moreover, Falabella wants their stores to become fulfillment centers for online sales.

“The name of the game is omnichannel and will increasingly be in the future. Falabella’s brick and mortar presence will definitely give it an edge vs. MercadoLibre,” Lizan comments.

The name of the game is omnichannel and will increasingly be in the future.

Seeing a big online future

E-commerce in Latin America is expected to grow by 19% in the next five years – well above the global average of 11%.

Online sales in Latin America will double to $118 billion by 2021. And according to Lizan, retailing in Latin America is still under developed and under penetrated.

Falabella has the largest retail customer database in the industry; dominates its markets in key offerings such as grocery, home improvement and home and décor; and recently announced a partnership with IKEA in Chile, Colombia and Peru.

From 36,000 feet, the Linio purchase is “very small,” Lizan said. But the advantages on the ground are strategic.

“It’s a benefit for Falabella to have an e-tailer in their portfolio because they will learn from them and the learning curve will be shorter.”

“It is a very strong statement by Falabella.”

What: We looked at the sites where Latin Americans, and particularly Mexicans, went looking for possible online purchases in April 2018.
Why it matters: Even though Amazon is making great efforts to expand in Latin America, the retail giant is still way far behind Mercadolibre, always the leader of online shopping in the region.

As we saw in previous editions of this ranking, Amazon had already approached MercadoLibre and was comfortably sitting in the second spot. Last month, Latin American internet users preferred B2W Digital for online purchases, but now Amazon comes back to the second spot.

Top 10 E-Commerce Sites in Latin America, April 2018

Total Audience, Home and Work, PC/Laptop. Total Unique Visitors (000)
Total Internet: Total Audience 183,917
Retail 117,009
1 Mercado Libre 57,255
2 Amazon Sites 21,126
3 B2W Digital 17,281
4 Alibaba.com Corporation 12,886
5 eBay 9,898
6 CNova 8,283
7 Apple.com Worldwide Sites 7,762
8 Wal-Mart 7,554
9 Google Shopping 7,095
10 Buscape Company 5,796

[Source: comScore]

  • 63.6% of Latin Americans with an internet connection visited e-tail sites in April.
  • MercadoLibre is still the clear winner. With 48.9% of visits, it remains stable on the first spot.
  • Amazon is right behind with 18% of visitors.
  • B2W Digital received 14.7% of visits.
  • 11% of Latin American internet users looking for online shopping visited Alibaba.com Corporation.
  • eBay was visited by 8.4% of users, almost exactly the same as the previous month.
  • 7% of online shoppers visited CNova.
  • Apple.com received 6.6% of visits, while Wal-mart was seen by 6.4% of users.
  • 6% of online shoppers went to Google Shopping, exactly the same as the previous month.
  • Appearing in the list for the first time, Buscape received 4.9of visits.

Top 10 E-Commerce Sites in Mexico, April 2018

Total Audience, Home and Work, PC/Laptop, Mobile. Total Unique Visitors (000)
Total Internet: Total Audience 64,619
Retail 43,032
1 Mercado Libre 18,492
2 Amazon Sites 10,268
3 Wal-Mart 8,052
4 eBay 7,552
5 Linio Sites 7,504
6 WISH.COM 4,047
7 COPPEL.COM 4,008
8 Ticketmaster 3,593
9 Alibaba.com 3,568
10 Samsung Group 3,344

[Source: comScore]

  • Out of the total number of Mexicans with an internet connection, 66.5% visited e-commerce sites in April.
  • 42.9% of those users visited MercadoLibre, 2.97% more than the previous month.
  • 23.8% of internet users looking for e-commerce possibilities went to Amazon. 
  • eBay and Walmart switched places. Walmart is on the third spot with 18.7% of visits and eBay was seen by 17.5% of users.
  • Linio Sites received 17.4% of visits.
  • 9.4% of users visited Wish.com, while 9.3% went to Coppel.com.
  • Ticketmaster received 8.3% of visits.
  • Alibaba was seen by 8.2% of users.
  • 7.7% of users visited Samsung Group, 1.7% more than the previous month.

What: We looked at the sites where Latin Americans, and particularly Mexicans, went looking for possible online purchases in March 2018.
Why it matters: Even though Amazon is making great efforts to expand in Latin America, the retail giant is still way far behind Mercadolibre, always the leader of online shopping in the region.

As we saw in previous editions of this ranking, Amazon had already approached MercadoLibre and was comfortably sitting in the second spot. However, Latin American internet users preferred B2W Digital for online purchases in March, and so now Amazon has moved to the third spot. However, the difference in user amounts is not that high; Amazon could get closer to MercadoLibre in the following months.

Top 10 E-Commerce Sites in Latin America, March 2018

Total Audience, Home and Work, PC/Laptop. Total Unique Visitors (000)
Total Internet: Total Audience 184,772
Retail 118,311
1 MercadoLibre 57,302
2 B2W Digital 21,822
3 Amazon Sites 21,719
4 Alibaba.com Corporation 14,942
5 eBay 9,893
6 CNova 8,992
7 Apple.com Worldwide Sites 8,224
8 Walmart 7,736
9 Google Shopping 7,141
10 Gearbest.com 6,460
    [Source: comScore]
  • 64% of Latin Americans with an internet connection visited e-commerce sites in March, 2% more than February.
  • MercadoLibre is still the clear winner. With 48% of visits, it remains stable at the first spot.
  • B2W Digital received 18.4% of visits; very similarly, 18.3% of users went to Amazon.
  • 12.6% of Latin American internet users looking for online shopping visited Alibaba.com Corporation.
  • eBay was visited by 8.3% of users.
  • 7.6% of online shoppers visited CNova.
  • Apple.com received 6.9% of visits, while Walmart was seen by 6.5% of users.
  • 6% of online shoppers went to Google Shopping.
  • Appearing in the list for the first time, Gearbest.com received 5.4% of visits.

Top 10 E-Commerce Sites in Mexico, March 2018

Total Audience, Home and Work, PC/Laptop, All smartphones, All Tablets. Total Unique Visitors (000)
Total Internet: Total Audience 68,613
Retail 43,809
1 MercadoLibre 17,921
2 Amazon Sites 9,541
3 eBay 8,517
4 Walmart 8,147
5 Linio Sites 7,759
6 Wish.com 3,999
7 COPPEL.COM 3,896
8 Ticketmaster 3,613
9 Alibaba.com Corporation 3,530
10 Samsung Group 2,647

[Source: comScore]

  • Out of the total number of Mexicans with an internet connection, 63% visited e-commerce sites in March.
  • 40% of those users visited MercadoLibre.
  • 21.7% of internet users looking for e-commerce possibilities went to Amazon. 
  • eBay received 19.4% of visits, while Walmart was seen by 18.5% of users.
  • Linio Sites received 17.7% of visits.
  • 9.1% of users visited Wish.com, while 8.8% went to Coppel.com.
  • Ticketmaster received 8.2% of visits.
  • Alibaba was seen by 8% of users.
  • 6% of users visited Samsung Group. 

What: We looked at the most-frequently visited retail websites in Latin America, and particularly in Mexico, in February.
Why it matters: Even though Amazon is expanding in Latin America, it’s still second to Mercado Libre, the biggest online retailer in Latin America.

As retail online grows, e-commerce sites have to engage in fierce competition. Amazon is steadily increasing its relevance in Latin America, but it still has a long way to go if it wishes to reach Mercado Libre. As Amazon goes on with its plans to expand in Brazil, we’ll see how tendencies change in the next months.

Top 10 E-Commerce Sites in Latin America, February 2018

Total Audience, Home and Work, PC/Laptop Total Unique Visitors (000)
Total Internet: Total Audience 190,287
Retail 118,515
1 MercadoLibre 56,200
2 Amazon 19,728
3 B2W Digital 18,713
4 Alibaba.com Corporation 13,020
5 eBay 9,939
6 CNova 8,381
7 Apple.com 7,745
8 Wal-mart 7,331
9 Google Shopping 6,877
10 Buscape Company 6,006

[Source: comScore]

  • From the total amount of Latin Americans with internet access in February, 2018, 62% visited e-commerce sites.
  • 47.4% of those Latin Americans made their online purchases at Mercado Libre.
  • In comparison, Amazon has a long way to go with 16.6%.
  • 15.7% of users visited B2W Digital, not too far behind Amazon.
  • Alibaba was visited by 10.9% of users.
  • 8.3% of internet users looking for e-commerce sites visited eBay.
  • CNova received 7% of visits.
  • Apple.com and Wal-mart received similar amounts of visitors, 6.5% and 6.1% respectively.
  • 5.8% of users visited Google Shopping.
  • Buscape Company was visited by 5% of users.

Top 10 E-Commerce Sites in Mexico, February 2018

Total Audience, Home and Work, PC/Laptop, All Smartphones, All tablets Total Unique Visitors (000)
Total Internet: Total Audience 68,613
Retail 42,599
1 MercadoLibre 16,494
2 Amazon 9,011
3 Linio Sites 8,690
4 eBay 6,797
5 Wal-mart 6,698
6 WISH 4,093
7 Ticketmaster 3,955
8 Alibaba.com 3,246
9 COPPEL.COM 3,075
10 Samsung Group 2,765

[Source: comScore]

  • 62% of Mexicans with Internet access went shopping online in February.
  • Out of those users, 38% made their purchases on Mercado Libre.
  • 21% of users preferred to buy on Amazon.
  • Linio Sites received 20% of visits.
  • eBay, with 15.9%, and Wal-mart with 15.7%, are at almost the same level of popularity among Mexicans.
  • Wish.com opens the second half of the list with 9.6%.
  • 9.2% of e-commerce consumers visited Ticketmaster.
  • Alibaba.com received 7.6% of visitors.
  • 7.2% of users visited the website of Mexican store COPPEL.
  • Samsung Group closes the list with 6.4%.

What: We looked at the retail websites with the most Latin American visitors, and specifically Mexican, in December 2017.
Why it matters: By paying attention to the number of Internet users who look for retail information online, we can get a good idea of the reach of e-commerce among Latin Americans, and particularly Mexicans, as well as the kind of transactions they prefer to complete based on the type of website they look for.

It is no secret that we’re living in the era of digital transactions, and there is virtually no other sector where this is truer than retail. Buying online is easy, it’s convenient, and everyone has at least tried it. E-commerce is expected to grow by 8-12% in the next couple of years; it’s vital for marketers to keep an eye on who’s doing a good job… and who isn’t.

Top 10 E-Commerce Websites in Latin America, December 2017

Total Audience, Home & Work, PC/Laptop Only Total Unique Visitors/Viewers (000)
Total Internet: Total Audience 193,562
Retail 124,168
1 MercadoLibre 59,789
2 Amazon 22,201
3 B2W Digital 19,389
4 Alibaba 16,543
5 Wal-Mart 12,337
6 CNova 11,020
7 eBay 10,263
8 Apple Worldwide Sites 9,583
9 Google Shopping 8,808
10 Buscape Company 8,135
    [Source: comScore]
  • Out of the total amount of internet users in Latin America, 64% visited e-commerce websites.
  • Almost half (48%) of Latin Americans looking for retail options online visited MercadoLibre. 
  • 17.8% of users preferred to shop on Amazon websites.
  • 15.6% of Latin American users were interested in finding out more about financial figures related to e-commerce on B2W Digital.
  • Alibaba received 13.3% of Latin American visits.
  • 9.9% of users visited the Wal-Mart website for shopping online.
  • 8.8% of Latin American internet viewers visited CNova sites.
  • Close behind is eBay, with 8.2% of users.
  • 7.7% of Latin American e-shoppers visited Apple sites, while 7% preferred Google Shopping.
  • Finally, Brazilian website Buscapé received 6.5% of visits.

Top 10 E-Commerce Websites in Mexico, December 2017

Total Audience, Home & Work, PC/Laptop and Mobile Devices Total Unique Visitors/Viewers (000)
Total Internet: Total Audience 64,655
Retail 43,698
1 MercadoLibre 19,986
2 Amazon 11,627­
­3 Wal-Mart 10,221
4 Linio Sites 7,974
5 eBay 7,663
6 Liverpool.com.mx 5,774
7 Coppel.com 4,686
8 Wish.com 4,511
9 Samsung group 4,322
10 Alibaba 3,989
    [Source: comScore]
  • 67.5% of Mexicans with an Internet connection visited websites dedicated to shopping online.
  • As in the rest of Latin America, MercadoLibre leads the list with 45% of visits; again, almost half of users.
  • Amazon is still in second place, although not so far behind as in the rest of Latin America, with 26.6% of users.
  • Wal-Mart is more relevant to Mexicans than to other Latin Americans: 23% of users in this country visited the company’s online store.
  • 18.2% of Mexican e-shoppers visited Linio sites.
  • 17.5% of users looking for online stores decided to visit eBay.
  • Coppel and Wish received similar amounts of visits, with 10.7% and 10.3% of users respectively.
  • 9.8% of online shoppers decided to visit Samsung‘s website, while 9.1%  went to Alibaba looking for shopping options.

¿What is the current status of retail platforms in Latin America? How do Facebook groups dedicated to facilitating e-commerce impact them? What are users’ favorites, according to comScore‘s August 2016 rankings? You’ll find the answers to these questions and more in this article.

Latin American internet users are starting to conduct transactions online more than ever. In fact, an interesting phenomenon is that of Facebook groups through which users can sell used or purchase items to other members of the community without the intervention of retail platforms created for this purpose.

This is no small detail, as many users prefer to conduct their transactions on free platforms, and e-commerce platforms are now being challenged to reestablish their business model and look for new sources of income.

Either way, even with social media acting as a facilitator for e-commerce, retail platforms created especially for that purpose continue to resolve these users’ needs and are a priority to them, if the rankings are any indication.

Source: comScore Media Metrix, LatAm, Hogar y Trabajo, PC/Laptop solamente, Tipo de Video: Total, August 2016 Total Unique Visitors (000)
    Total Internet : Total Audience 195.841
    Retail 133.791
1     MercadoLibre 61.531
2     Amazon Sites 20.888
3     B2W Digital 19.166
4     Alibaba.com Corporation 14.858
5     CNova 12.914
6     Wal-Mart 12.166
7     MICROSOFTSTORE.COM 10.912
8     Netshoes Group 10.760
9     Apple.com Worldwide Sites 10.738
10     Buscape Company 10.106

According to comScore, in August 2016, Mercado Libre came in first among Latin Americans, with 46% of unique visitors, followed by Amazon, which came in with numbers closer to the rest of the platforms on the list.

B2W attracted 14% of users, followed closely by Alibaba with 11% of traffic and then CNova, with 10%.

9% of Latin American users chose Walmart when making online supermarket purchases, while in the sports sector Netshoes was the most popular, with 8% of the visitors in the category.

Technology is also important to users: 16% of them visited Microsoft Store and Apple in the informed period.

Finally, it seems that Latin Americans like to make informed consumption decisions: while it comes in last, the price comparison site Buscapé attracted 8% of the users.

Below is a ranking and some analysis about the 10 most visited e-commerce sites in Latin America.

In Latin America, Mercadolibre, Alibaba.com, B2W Digital and Amazon Sites are the four e-commerce giants, their combined visits representing 58.14% of the top 10 sites’market share.

Mercadolibre, a company in which Ebay has a substantial stake,  is the e-commerce ecommerceleader in the region  It’s number of unique visitors is higher than the sum of the unique visitors of the second and third sites’ (Alibaba y B2W). B2W owns several e-commerce sites including Submarino.com, Americanas.com, Shoptime and Ingresso.com.

Also important are three sites predominantly present in Brazil, by far the region’s largest market:  Buscape Company, Nova Pontocom and MAGAZINELUIZA.COM.BR,

Another interesting statistic is the presence of the  Netshoes Group platform in fifth place.  This reflects the growing popularity of online shopping for clothing: more than anything, there is a tendency towards athletic wear, and Netshoes is a conglomerate of virtual stores with sports and leisure products that manages a number of futbol clubs’ and important athletic brands’ online stores.

Ranking: Latin America

Source: comScore MMX, Category Retail, Latin America, September 2015, PC/laptop only, Home & Work, 15+ Total Unique Visitors (000)
1 MercadoLibre 49.886
2 Alibaba.com Corporation 19.377
3 B2W Digital 18.959
4 Amazon Sites 16.659
5 Netshoes Group 15.961
6 Buscape Company 15.010
7 Wal-Mart 13.603
8 Nova Pontocom 13.294
9 Apple.com Worldwide Sites 9.179
10 MAGAZINELUIZA.COM.BR 8.422