Nearshore Americas
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Latin America Turns to E-commerce, As the Pandemic Restricts Travel

Latin American is increasingly embracing e-commerce, as the COVID-19 pandemic restricts traveling. According to a study by tech investment firm Atlantico, e-commerce use is growing in Mexico and Brazil at similar rates to India and China.

The growth in e-commerce is proof that tech penetration is accelerating across the region. In Brazil alone, the share of e-commerce in total sales increased from 7% to 12% in a space of 10 weeks. Data from Vtex, LatAm’s leading e-commerce platform, shows an increase in store sales as new merchants are going online.

“Across LatAm, we saw a similar explosion in food delivery growth, including from new users searching for services,” says the report. Food delivery apps, such as Guiabolso and iFood,  are also seeing a sudden increase in users.

“Tech penetration is at an all-time high. LatAm’s digital landscape is growing exponentially and there are big opportunities for growth compared to developed economies,” says the report.

“Social media, e-commerce, and digital media have penetrated Latin Americans’ daily lives and there’s no going back”.

However, the region is still a long way away from building a strong tech talent pool in order to keep pace with the demand for technology-based services.

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Considering the report, the shortage of tech talent is a common scene across the region. Brazil and Mexico, the region’s large economies, lag most of their peers in the eastern world, with just 2.5 million and 2.6 million graduates, respectively.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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