South America Ecommerce Market Outlook, 2030

The region’s e-commerce demands are characterized by a high appetite for consumer electronics, fashion, beauty products, and home goods, with emerging interest in groceries and health-related products, especially post-pandemic. South American consumers value convenience, competitive pricing, and a seamless shopping experience, pushing retailers to innovate in logistics and payment solutions, including the integration of local payment methods such as Boleto Bancário in Brazil and OXXO in Mexico (which influences the regional market). The digital infrastructure, while improving, still faces challenges in terms of coverage and quality, particularly in rural and remote areas, impacting the pace of market expansion.

Marketing and promotional strategies in South America’s e-commerce sector leverage both traditional and digital channels, with social media platforms such as Instagram, Facebook, and increasingly TikTok playing a pivotal role in engaging younger consumers. Influencer marketing is particularly strong, given the cultural importance of social validation and peer recommendations in purchasing decisions. Companies invest heavily in targeted online advertisements, flash sales, and events like Black Friday and Cyber Monday, which have become crucial drivers of e-commerce traffic and revenue. Localization of content and campaigns is essential to resonate with diverse cultural nuances and language preferences across the region.

Furthermore, mobile-first marketing strategies are prominent due to the prevalence of mobile device usage over desktop. Brazil’s General Data Protection Law (LGPD), similar to the European GDPR, has created a more secure environment for online transactions but also introduced compliance challenges for businesses. Taxation policies on digital goods and services are also evolving, influencing pricing and operational costs. Governments are increasingly recognizing the economic potential of e-commerce and are enacting measures to improve digital infrastructure, simplify taxation procedures, and enhance consumer trust through better regulation.

According to the research report, "South America E-Commerce Market Outlook, 2030," the South America E-Commerce market is anticipated to add to more than USD 1.96 Trillion by 2025-30. The region’s e-commerce ecosystem has also evolved alongside shifts in consumer behavior, particularly with mobile commerce taking center stage. Over 70% of Brazil’s online transactions now occur via mobile devices, a trend mirrored in many other South American countries. Major e-commerce platforms such as MercadoLibre, the regional leader boasting over 218 million users, have prioritized mobile-first strategies by integrating features like mobile wallets, seamless payment gateways, and contactless options to streamline the shopping experience.

This mobile dominance is complemented by the rise of social commerce, where platforms like Facebook, Instagram, and WhatsApp serve as essential avenues for product discovery, marketing, and sales. Social media-driven purchases now account for a significant portion of e-commerce revenue, with over 82% of Latin American consumers reporting that they have bought products through these channels in 2023. Influencer marketing, localized advertising, and culturally relevant content have proved particularly effective in engaging urban consumers and driving brand loyalty. Economic volatility and inflationary pressures in several countries can affect consumer spending power and business profitability.

Regulatory fragmentation across different nations also poses hurdles, with varied tax regimes, data privacy laws, and customs regulations complicating cross-border trade. Additionally, although urban centers enjoy relatively better logistics and infrastructure, many rural and remote areas still struggle with inadequate internet connectivity and delivery networks, limiting market penetration outside metropolitan hubs. However, governments and private players are increasingly investing in digital infrastructure and regulatory frameworks to overcome these barriers and promote inclusive growth.

Urbanization plays a critical role in shaping product demand and fueling e-commerce growth across South America. As more people move into urban centers like São Paulo, Mexico City, Buenos Aires, and Bogotá, the demand for a wide variety of products has intensified. Urban residents generally have higher disposable incomes, more reliable internet access, and greater exposure to digital marketing, all of which encourage online purchasing.

Market Drivers

• Increasing Internet and Smartphone Penetration: South America has experienced significant growth in internet access and smartphone usage, which is a major driver of e-commerce expansion. More consumers, including those in previously underserved urban and rural areas, now have the tools to shop online. Affordable mobile devices and improving digital infrastructure have made it easier for people to explore and adopt e-commerce platforms. This widespread digital connectivity enables retailers to reach a broader audience, driving the growth of online shopping across countries like Brazil, Argentina, and Colombia.
• Growing Middle Class and Shift in Consumer Behavior: The expanding middle class in South America is fueling demand for a wider range of consumer products and services available online. As disposable incomes rise, more people are willing to shop on e-commerce platforms for convenience, variety, and competitive pricing. The COVID-19 pandemic accelerated this behavioral shift by encouraging consumers to try digital shopping for the first time, many of whom have continued the habit. Younger generations, especially, prefer online shopping for its speed and ease, prompting retailers to strengthen their digital presence.

Market Challenges

• Logistics and Infrastructure Constraints: One of the biggest challenges in South America’s e-commerce sector is the underdeveloped logistics and transportation infrastructure. Delivering goods efficiently across vast and often geographically challenging areas is difficult and costly. Poor road networks, customs delays, and inefficient warehousing impact the speed and reliability of order fulfillment. Additionally, the high costs associated with last-mile delivery put pressure on retailers to balance affordability with service quality, often limiting expansion into remote or rural areas.
• Payment Barriers and Trust Issues: Payment remains a significant challenge in South America’s e-commerce industry. Many consumers lack access to traditional banking services or credit cards, and there is widespread concern about fraud and data security online. Cash-on-delivery remains a popular option but complicates the payment process and increases operational risks for sellers. Building consumer trust in digital payments and offering a variety of safe, convenient payment methods, including local solutions like digital wallets and installment plans, are essential for the sector’s continued growth.

Market Trends

• Rise of Mobile Commerce and Apps: Mobile commerce is rapidly gaining traction in South America, with consumers increasingly using smartphones to browse and purchase products. E-commerce platforms are optimizing for mobile experiences by launching dedicated apps and mobile-friendly websites. This trend is driven by the convenience of on-the-go shopping and the growing use of mobile wallets and payment apps. Retailers investing in mobile-first strategies are better positioned to capture the attention of younger, tech-savvy consumers and increase engagement.
• Expansion of Marketplaces and Cross-Border E-Commerce: Online marketplaces such as Mercado Libre, Amazon, and others dominate South America’s e-commerce landscape, offering a wide range of products and simplifying the shopping process for consumers. These platforms enable smaller sellers to reach large audiences and provide trusted payment and delivery solutions. Additionally, cross-border e-commerce is growing as consumers seek access to international brands and products not readily available locally. This trend encourages regional cooperation and necessitates improved customs processes and logistics to facilitate smoother international trade.

B2B e-commerce dominates the South American market because it addresses the critical need for businesses to efficiently source products, streamline supply chains, and reduce costs in a region with complex logistics and developing infrastructure.

The prominence of B2B e-commerce in South America is primarily driven by the region’s economic structure and the pressing demands of businesses operating within it. South America, characterized by diverse economies with a mix of emerging markets and developing nations, relies heavily on trade between companies to sustain industrial growth and commercial activities. Many businesses in the region face significant challenges such as fragmented supply chains, logistical hurdles due to geography, and varying levels of technological adoption.

B2B platforms provide a vital solution by offering centralized digital marketplaces where businesses can efficiently source raw materials, components, and finished goods from trusted suppliers across borders, thus simplifying the procurement process. These platforms also facilitate bulk purchasing, which is crucial for companies looking to optimize costs in markets where price sensitivity is high. Furthermore, South America’s infrastructure constraints - such as transportation inefficiencies and customs complexities - make digital transactions and supply chain integration more appealing as they reduce paperwork, shorten lead times, and improve transparency.

As businesses seek to expand their reach beyond local markets, B2B e-commerce enables them to connect with international suppliers and customers more easily, fostering cross-border trade that is essential for regional economic integration. Additionally, the rise of digital tools, mobile internet penetration, and government initiatives aimed at modernizing commerce have further accelerated the adoption of B2B e-commerce platforms. These platforms not only support transactions but also offer value-added services such as financing options, logistics support, and data analytics, which empower businesses to make more informed decisions and increase operational efficiency.

The services category, particularly fintech and logistics, is moderately growing in South America’s e-commerce industry because while digital financial solutions and improved delivery infrastructure are increasingly in demand.

South America has experienced a rapid rise in internet penetration and mobile device usage, creating fertile ground for fintech services such as digital payments, lending platforms, and digital wallets that cater to a largely underbanked population. Consumers and businesses alike are turning to fintech solutions to overcome traditional barriers in accessing financial services, especially in countries where banking infrastructure is uneven or where trust in conventional financial institutions may be low.

Similarly, the logistics sector has gained importance as e-commerce expands, with businesses and consumers seeking more reliable, faster, and cost-effective delivery options in a region marked by diverse geographies and complex transportation networks. However, despite this growing demand, fintech and logistics services face significant hurdles that temper their growth pace. Regulatory frameworks in many South American countries are still evolving, and inconsistencies in policies across borders create uncertainties for fintech startups and logistic operators, limiting their ability to scale quickly.

Additionally, logistical challenges such as poor road infrastructure, fragmented courier services, and customs delays add complexity and cost to delivery operations, slowing down service improvement and market penetration. Payment system interoperability and security concerns also constrain fintech adoption, as users and businesses require assurances about data privacy and transaction safety. Moreover, economic volatility in parts of the region can lead to cautious investment and slower infrastructure development, impacting both fintech innovation and logistics modernization.

The moderate growth of “Others” categories like Voice Commerce, Smart Devices, and Omnichannel (O2O) in South America’s e-commerce industry is driven by rising consumer interest and digital adoption, but tempered by uneven technology access and market readiness across the region.

Voice commerce and smart devices represent cutting-edge technology trends that appeal particularly to younger, tech-savvy urban populations eager to adopt new ways of shopping and interacting with digital platforms. With more households acquiring smart speakers, smartphones, and connected gadgets, consumers are beginning to explore voice-activated shopping and smart home integrations, which provide convenience and a novel user experience. Similarly, omnichannel strategies that blend online and offline (O2O) shopping are becoming more relevant as retailers in South America recognize the need to create seamless customer journeys that leverage both physical stores and digital channels.

This approach caters to consumers who want flexible purchasing options, easy returns, and personalized services, reflecting a shift toward more sophisticated retail experiences. However, the pace of adoption for these innovative categories is moderate rather than rapid due to several regional challenges. South America’s digital infrastructure is unevenly developed, with significant urban-rural divides that affect consistent access to high-speed internet and the latest devices. Many consumers still rely on basic smartphones and limited connectivity, which restricts the usability of advanced voice and smart technologies.

Furthermore, widespread awareness and trust in voice commerce remain in early stages, as consumers are cautious about privacy, data security, and the accuracy of voice recognition in local languages and accents. Retailers, especially smaller ones, often lack the resources and expertise to implement full omnichannel strategies, slowing down broader adoption. Economic factors also influence consumer spending power and willingness to invest in smart devices or new shopping methods. Despite these obstacles, the trajectory is positive, with increasing investments in digital infrastructure, growing smartphone penetration, and evolving retail models hinting at stronger future growth.

Brazil leads the South American e-commerce industry due to its large population, growing internet and smartphone penetration, expanding digital payment options, and rapidly improving logistics infrastructure.

Brazil stands out as the leader in South America’s e-commerce industry because it combines a large, youthful population with accelerating digital adoption and improving infrastructure, creating an environment ripe for online retail growth. With over 200 million people, Brazil offers the biggest consumer market in the region, and an increasing percentage of its population has access to the internet and smartphones. This expanding digital connectivity allows more Brazilians to discover the convenience and variety offered by e-commerce platforms, especially in urban centers but also increasingly in smaller cities and rural areas.

The surge in mobile device usage has made mobile commerce a key driver of growth, enabling consumers to browse, compare, and purchase products anytime and anywhere. This digital shift is supported by improving financial inclusion, as more people gain access to digital payment methods beyond traditional credit cards, such as digital wallets, buy-now-pay-later services, and instant bank transfers, which help overcome previous barriers related to limited banking access. Brazil’s e-commerce ecosystem benefits from local and international players investing heavily in tailored platforms that cater to regional preferences, languages, and payment habits.

Companies like Mercado Libre, Magazine Luiza, and B2W Digital have capitalized on this demand by offering user-friendly experiences, extensive product ranges, and flexible delivery options. One critical aspect of Brazil’s leadership is the focus on logistics improvements, a historically challenging area in South America. Investments in warehouse automation, partnerships with local delivery services, and innovations such as parcel lockers have helped reduce shipping times and costs, enhancing customer satisfaction and trust. The government’s support in digital infrastructure expansion and regulatory frameworks aimed at boosting e-commerce further facilitates this growth, encouraging startups and established businesses to innovate and compete.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Ecommerce Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• B2B
• B2C

By Product Category

• Physical Goods
• Digital Goods (Saas, Courses, NFTs)
• Services(Fintech, Logistics)

By Access Point

• Mobile Commerce (mCommerce)
• Desktop/Web
• Others(Voice Commerce / Smart Devices, Omnichannel (O2O))

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.