Nua Internet Surveys: Brazil Driving Latin American Ecommerce

Jul 27 1999: Brazil will account for 88 percent of online sales in Latin America this year, with 45 percent of the region’s online audience, according to a report from the Boston Consulting Group (BCG). Revenue from online sales in Latin America is expected to reach USD160 million this year.

There are now enough Internet users in Brazil to support a viable domestic ecommerce economy, according to the report. The two main factors that have set Brazil apart from its neighbours are the country’s high rate of computer penetration and technically sophisticated banking system, making the switch to electronic banking and commerce more attractive.

As has been previously forecast, the majority of Latin-American ecommerce will be through North-American vendors, with regional vendors expected to capture just USD77 million of this year’s total ecommerce revenue. Brazil is expected to account for USD67.7 million of the revenue spent at regional vendor sites, with Mexico accounting for USD4.6 million, Argentina USD1.5 million and Chile just USD500,000.

Latin American purchasing patterns are in keeping with those of the United States, with the notable exception of online grocery shopping, which is much more popular with Latin American consumers.

Overall, the report expects Latin American online sales to generate USD3.8 billion by 2003, with an estimated 10 million households in the region currently in the financial situation to go online.