A new shopping dynamic has emerged, Covid 19 transformed the way in which electronic commerce or e-commerce had been developing and has taken transactions in Latin America and the Caribbean to another level. The exponential growth of this sector has exceeded expectations and negativity, giving way to the modernization of the different sectors of the region’s economy.

Until before the declaration of Covid 19 as a pandemic, the perspectives we had on e-commerce were reserved. The lack of maturity of Latin America in economic development kept confidence levels low in this sector. However, when the World Health Organization declared this disease a pandemic, commerce in general had to close its doors.

Consumers stopped going to bars or restaurants, Retail and other places that received considerable amounts of people. The world changed, people changed and the entire global economy had to quickly adapt to new needs and e-commerce had its rise to fame for the first time in Latam

One of the main factors that has helped the growth of this sector is the fact that thanks to new technologies and the internet, more people can access different platforms created by shops and businesses to carry out their commercial transactions, allowing them greater ease of purchase for consumers.

The fact that these virtual stores rely on the payment gateways has generated greater confidence and security to carry out any type of transaction with the desired acceptance. A fact that until before the pandemic was not fully accepted due to the type of consumer that exists in Latin America, young and inexperienced in technological matters.

A look at 2019 and beyond

Forecasts for 2019 were moderate. A study carried out by Linio called “World Electronic Commerce Index ” recorded data from 53 countries around the world in order to evaluate two indicators: annual sales of e-commerce and internet penetration percentage. In short, the forecast for 2019 was 3 billion dollars in turnover.

This represented 12.8% of total retail sales. Countries like China, France, Germany and the United States were among the top 10 leading countries in e-commerce and with more than 70% average Internet penetration percentage.

Undoubtedly we observe that although there is a gradual growth of e-commerce worldwide, only developed countries had the necessary platform and adequate operating mechanisms to carry out this type of trade

Then in 2020, for the second quarter of the year, impressive growth emerged. A new analysis published by Kantar revealed that purchases of consumer goods through e-commerce grew by 41% compared to 8.8% valued in 2019.

It may be a kind of opportunity in the midst of the tragedy that is currently being experienced worldwide due to Covid, but if we evaluate the situation with an objective look, e-commerce strong> is an excellent advantage to overcome this crisis and be able to give the regional economy a necessary break.

Sectors and growth in the region

Another interesting piece of information to evaluate and which demonstrates the exponential growth of e-commerce in the region is the one published by Statista which reflects the “ Variation in revenue from retail sales email during the Covid-19 outbreak in some Latin American countries in April 2020”:

• Peru: 900%
• Mexico: 500%
• Brazil: 130%
• Colombia: 130%

Reflecting a global average in the Latin America region of 230%.

These data show the positive growth of e-commerce in Latin America, observing the level of acceptance and adaptation of consumers that initially or at least as predicted in 2019 for 2020 but, which are the sectors of commerce that have increased or decreased the most?

Without a doubt, the figures reveal how this sector has increased and as a result of this growth we assume that the different market sectors have also done so, but the reality is that as a result of the Covid pandemic > Some sectors have decreased their consumption and enjoyment of the service.

One of the factors that most affected the economy worldwide was the decision of governments to establish containment measures and restrictions in all countries. These measures led to the closure of multiple food and drink establishments, which caused consumers to prefer to consume what they wanted from home.

Although this is the main reason why this expansive growth of e-commerce has been generated, it also gave way for consumption outside the home, for example, to drop by between 10 % and 30% according to analysis by Kantar, this includes the spirits, cafes and restaurants sectors.

On the contrary, sectors such as direct debit, household items and household appliances, medical expenses, fashion, sports and home deliveries are the sectors that, apart from retail, have grown by more than 200% according to some studies.

A necessary evil

Which shows that ultimately, consumer behavior has evolved, trust and security in e-commerce and unbanked transactions are the results of the impressive evolution of e-commerce in Latin America.

According to some conclusions highlighted by Kantar, the consumer in Latin America has more easily adapted to the way of buying and living from home, which indicates that the growth of e-commerce has been as favorable as it was successful in the midst of the Covid pandemic crisis.

If this economic and social situation had not occurred, the growth of electronic commerce would probably have been compromised or would have grown prudently as was forecast for this 2020 and as was observed in the first quarter of this year.< /p>

Crises worldwide and throughout history have caused the dynamics in the behavior of society to change in unexpected ways. Adapting to changes is a skill that few manage to develop, however, having this type of process that promotes evolution and economic growth is the main advantage that we observe.