Building the E-commerce Infrastructure for Small Businesses to Thrive in Latin America
September 20th, 2020 – The World Bank estimates there are up to 445 million micro, small- and medium-sized enterprises in the developing world. In Latin America, nearly 90% of all businesses fall into this category. However, many of these businesses operate informally due to a lack of market information and poor access to digital and financial services for growth. Around 70% of Latin Americans do not have a bank account, and 60% of transactions made by small businesses are still in cash.
The shift towards online shopping, however, is well underway. More than 75% of Latin American consumers now go online to start or finalize a purchase decision. E-commerce in Latin America is projected to reach US$74.8 billion by the end of 2020. However, according to Google estimates, only 10% of SMEs in Latin America have a web presence, and only 2% sell online.
As more consumers embrace e-commerce in these developing markets, the opportunity to bring more SMEs online is accelerating.
Written by Crowdfund Insider
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