E-commerce in Latin America part 1
Not only the economy but also the internet usage across Latin America is booming. Currently there are more than 235 million internet users in the continent. Internet is not only popular because of its social function but also as a marketplace. Latin America is an interesting market for e-commerce.
E-commerce does not stand by itself. A proper electronic infrastructure is necessary to make e-commerce a success. And don’t forget the banking system which is essential for online purchases.
The growing middle class across the Latin American continent is not only responsible for the increase in e-commerce but also for the growth of the banking system. Banks are expanding their portfolio and getting more efficient.
The growing middle class and expansion of the banking system are essential to make e-commerce a success. We took a look at the e-commerce sector in different Latin American countries.
Let’s start with Colombia. Colombia is one of the fast growing economies in Latin America, which goes together with an expanding e-commerce sector. The Colombian government is promoting electronic resources to reduce red tape, which can be very sticky. Development of e-commerce is slowly taking shape.
Colombia is one of the first countries in the region where electronic documents and signatures are valid transactions. More than 8 percent of the total transactions made in 2010 were done electronically. E-commerce is mainly used by the high-income segments for banking transactions and shopping. All banks have secure facilities to access accounts and make transfers.
Now that Colombia is further developing and expanding their tourism sector, e-commerce will only get more important.
Just because Venezuela and Colombia are neighbors, doesn’t mean that their development has gone hand in hand. Starting e-commerce in Venezuela won’t be easy. Low computer and internet penetrations are barriers for the development of e-commerce. The economic and political uncertainties don’t help to make the sector more attractive.
This doesn’t mean that there isn’t any e-commerce in Venezuela. Banks in Venezuela are promoting their online services to the middle class and actually, they do very well. Expansion of e-commerce remains limited due to low electronic resources. In the oil sector, electronic transactions are very common.
E-commerce in Venezuela will probably remain underdeveloped for the coming time. The lack of confidence in payment methods, uncertainty of product quality and delivery, and restriction on US-dollar internet purchases stand in the way of the development of e-commerce.
Besides the good glasses of wine, Chile has one of Latin Americas most stable economies. The e-commerce sector in Chile is far more developed than in other Latin American countries. The internet access and penetration rates of credit cards and computers are much higher. Electronic banking and online bank clients are increasing.
E-commerce is more popular in the business-to-business sector instead of business-to-consumer. In Chile, the social aspect of shopping is a very important component. Consumers are more likely to spend time in malls instead of online shopping. Some leading department stores created successful websites to complement their existing services. The expansion of e-commerce seems difficult and expensive, because most services are based in the capital city, courier routes are limited and the costs are high.
Worldwide e-commerce is a very popular free zone activity. Because of Aruba’s strategic location, high-tech infrastructure and multi-lingual population, Aruba is an attractive location for e-commerce.
If you want more information about doing e-commerce from Aruba, please contact us at firstname.lastname@example.org
Keep posting for more e-commerce information. In the next blog postings we will discuss the e-commerce situation in Brazil, Costa Rica and Peru. Even social networks are playing an important role in the e-commerce of these countries.
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