Colombia soon to be the fourth largest e-commerce in LATAM
Colombia has been working hard to increase exponentially its economic growth and position itself as one of the four Latin American countries with the most significant ecommerce, alongside Brazil, Mexico and Argentina. Only in 2017, 30.3 million internet connections were registered in the country during the last quarter of the year, an increase of 6.4% compared to the previous quarter.
Another key element for ecommerce’s advance is the number of transactions made via smartphones. In the fourth quarter of 2017, 23.9 million mobile connections were registered as reported by the Ministry of Information Technology and Communication (Ministerio de Tecnologías de la Información y las Comunicaciones – MinTIC). According to the 4th study of Digital Transactions in Colombia 2016-2017, carried out by MinTIC, the Electronic Chamber of Commerce of Colombia (Cámara Colombiana de Comercio Electrónico - CCEE) and the National Academic Network of Advanced Technology (Red Nacional Académica de Tecnología Avanzada – RENATA), 87.8 million online transactions were carried out last year, moving $ 51.2 billion pesos (US$ 17.8 million) in electronic transactions.
With more connected shoppers, e-commerce market expands and opens a sea of possibilities especially when the country registers a Gross Domestic Product (GDP) of 912.6 billion pesos. From this amount, e-commerce represented almost 2% of GDP in 2017. Undoubtedly, there are two central points that should continue receiving attention to maintain the segment’s growth : internet connectivity and banking accounts with credit/debit cards.
According to the MinTIC study, it is possible to observe how, in a short time, the segment has gained relevance among Colombian shoppers: the acquisition of products and services over the internet, between 2014 and 2017, has multiplied more than five times.
To illustrate how significant this growth is: Colombians spend much more time connected to financial consultations or transactions, paying for services and selling products. Almost 30% of population is already buying online and doing so through smartphones, for example. Regarding the sales made via desktop, the categories of greater relevance were Fashion, supermarket and baby & kids, that increased 48%, 165% and 119%, respectively.
What you should know about Colombia
With an estimated population of 50 million (which ranks 28th in the world), Colombia is the third-most populous country in all of Latin America. It's home to the third-largest number of Spanish-speaking people in the world after Mexico and the United States. The largest city and capital of Colombia is Bogota, with a population of 7.9 million and which greater metropolitan area has a population of 12 million.
In order to take advantage of this potential market, a partner with local expertise is crucial. With BoaCompra, local payments can be processed easily and assured by safety protocols, no bureaucracy and your business can also:
- Accept payment options in local currency;
- Accept more than 14 different local payment methods;
- Sell in Colombia without a local bank account or company registration and get paid anywhere in the world;
- Integrate services across all markets served by BoaCompra without any additional cross-border surcharges.