E-commerce in Colombia

E-commerce

E-commerce market

Colombia is Latin America’s fifth largest e-commerce market, and the only country in Latin America with a Ministry of E-Commerce, making it clear that the market is a priority for the government. The Colombian e-commerce market exploded between 2015 to 2016, growing by 64% in one year. In 2017, growth was still high, albeit much more modest, at 22%. In 2017, there were about 12 million online shoppers and more than 87 million online transactions were made by Colombians. According to Statista, e-commerce in the country generated approximately US$ 4.8 billion in 2017. According to the Colombian Chamber of Electronic Commerce (CCCE), e-commerce accounted for 5.61% of the country's GDP in 2017. E-commerce in Colombia has improved substantially within the last year, and has begun to catch the eye of international retailers. In 2017, there was a 3.5% increase in e-commerce website visits when compared to the previous year.  Access to the internet, especially through smartphones, and an increase in online services, like banking and online payment services, are the top factors driving growth in e-commerce in Colombia, particularly in the B2C segment. The segment is becoming more popular, however it is constrained by poor infrastructure, especially highways that connect to ports, which makes supply chains difficult, and complex logistics challenges such as the country’s mountainous geography and lack of integration with international markets. The biggest segments in the Colombian e-commerce market are tourism (airlines and hotels), fashion (clothing and footwear) and technology. B2B sales of industrial and agricultural products, and food sales have been growing significantly. Most Colombians use computers and laptops to buy goods online, but mobile commerce is growing, and 14% of people use their phone to make purchases online. Cash on delivery is very popular due to low credit card penetration rates in Colombia, and accounts for 40% of purchases.