Millennials prefer to make their purchases through credit and debit cards.
E-commerce is expanding in Latin America, driven mainly by generation Y and Z, also popularly known as “millennials” and “centennials.”
Thanks to the fact that these two generations have a higher purchasing power and, therefore, begin to acquire consumption habits, e-commerce has seen an accelerated increase in the Latin American region in recent years.
How do Latin American people purchase?
According to data from the IDC consultancy, these new consumers prefer to make their purchases through credit and debit cards, representing this method 52% of transactions. 32% prefer to make their purchases through an online payment service, such as PayPal or MercadoPago.
Among the preferred products in Latin American online shopping are clothes, technological items, and products for the home. However, food markets are starting to gain momentum thanks to the entry of actors such as Uber Eats, Rappi, and Cornershop. Health and beauty also become increasingly popular.
How can retailers create successful e-shops?
Felipe Vallejos, Digital Director of Reprise in Chile, points out that one of the most critical factors for success in online sales is the shopping experience and personalization, followed by the confidence that the brand brings and the availability of the products.
The expert advises companies to emphasize omnichannel to improve the experience of their customers, as well as the methods of sending and enhancing applications.
In terms of mobile commerce, the data shows that mobile devices are becoming increasingly popular for online shopping “which makes it essential that sites are thought of in a mobile way in the first instance and adaptive to desktop, as the well-known Mobile First or AMP, which are pushed by large entities such as Google “, Vallejos points out.
In addition to the improvements that e-commerce companies can offer on their websites and applications, these should forget that the customer experience does not end at the last click, so they must also take into account the speed of dislike and Consider having options for product change or returns, aspects that many companies fail to have rigid and slow systems.
In 2019, Latin America is expected to be the third region with the highest growth in e-commerce. Statisa estimates that 155.5 million people will pay for goods and services online, a considerable increase compared to 126.8 million people in 2016.
A connected LatAm improves e-commerce
Greater confidence in online payment methods, as well as improvements in connectivity, are some of the factors that have allowed the increase of this sector in the region n addition to the generational impulse.
In 2012, 42% of the Latin American population had access to the Internet, while by the end of 2018 the proportion reached 60%, with Chile (72%), Argentina (68%) and Colombia (66%) the countries with the highest connectivity.
Among the data of LatAm, it is highlighted that the average hours in line with the month of the region are seven hours less than the world average (32 hours), but in the case of the population segments with higher incomes, this figure reaches 300 hours a month.