2. Second-highest growth in online buyers worldwide
2012 = 26.4%
but B2C ecommerce is still in its infancy
(total sales reaching only $36.82 billion this year)
Source: eMarketer
Presentation title⎢2
3. Brazil is the main player with more than half of
Latin America’s ecommerce sales
Presentation title⎢3
4. Market - Brazil
expansion in mobile internet usage in
recent years, one of the success keys.
have thehighest average spend per
online buyer at $838—more than $250 higher
than Latin America’s regional average.
Source: eMarketer 2012
Presentation title⎢4
5. Market - Brazil
increase in disposable
Brazilians are experiencing an
income, and have high usage of credit cards compared
to other countries, mainly with VISA or Mastercard.
19.4% of the country’s population will be
By 2015,
making online purchases (31.6 million Brazilians)
Purchase deliveries to lower and middle class
consumers outside of Brazil’s major cities present a challenge,
though solutions are slowly being put in place.
Source: eMarketer 2012
Presentation title⎢5
6. Market - Mexico
Mexico’s internet population is big but its online
retail industry is immature.
This represent a huge opportunity…Mexico’s gains
will come from new internet users turning into online
buyers.
Source: eMarketer 2012
Presentation title⎢6
7. Market - Argentina
Argentina defaulted on its debt in 2001, and since then
many people have been hesitant to trust the country’s
banking system, choosing instead to operate outside of
it, making traditional online payments difficult.
Also, online retailers in the country face obstacles with
delivery and payment options, though as more
individuals in Argentina become internet users, the
community of online buyers will grow in size.
Despite these factors, the country’s population of
internet users is much more intense than other
LATAM countries when it comes to ecommerce
participation.
Source: eMarketer 2012
Presentation title⎢7
9. They begin the purchase
process directly on retailer
websites.
When decides to shop online,
they have a sense of what
they’re looking for.
Presentation title⎢9
10. Main concerns of online buyers
taxes at time of delivering and Product time delivery
Shipping costs
Pricing is not in my currency
Merchant doesn't accept my credit cards
Unable to read the descriptions of products (foreign language)
Easy, quick and intuitive checkout
the ability to track the order
Online return policies and processes
Presentation title⎢10
11. But the most important…is
the price
They still care about
shopping around for
the best price
price comparison led
the online retail
categories, with 25%
reach among all internet
users.
12. MercadoLibre, an online auction site and eBay partner, is the
dominant retail site in Latin America, and the website
where much of that price comparing is happening.
Presentation title⎢12
14. The retailer
the retailer must consider:
Be clear with landed costs
Pricing in preferred currency
Language translation
Payment & Delivery options
Customer service
Presentation title⎢14
15. International E-commerce Companies
There are two basic models for engaging in international
ecommerce:
Centrally Locally
Cross-border trading The second is going local,
(CBT), whereby retailers which entails setting up
accept foreign orders county websites and
on their website and operations
ship them
internationally.
Presentation title⎢15 Source: eMarketer 2012
16. E-commerce International Expansion
Centrally VS Locally
What functions should be managed centrally?
efficiencies of scale or require standardization
branding responsibilities
core ecommerce technology
global partnerships like global carrier agreements.
What functions require country expertise?
ensure relevancy and take advantage of lower
costs
product sourcing, merchandise assortment, website language and
translation
Presentation title⎢16 Source: eMarketer 2012
17. What can be a good ecommerce business?
Presentation title⎢17
18. what Latinos are more looking for
buying online is apparel and
accessories.
The clothing and footwear
segment constituted the most
purchased items among online
buyers at 43%
In 2012, the region will post the second-highest growth in online buyers worldwide , according to eMarketer, at 26.4%, but B2C ecommerce is still in its infancy , with sales reaching only $36.82 billion this year.
Slow technology adoption and challenges with delivery and online payment options have stopped the country’s development
