Insights from eCommerceDay Panama

Insights from eCommerceDay Panama : Last week, I had the privilege of participating in eCommerceDay, held in Panama. It’s organized by the regional e-Commerce Institute (LATAM) and ConnectaB2B.

It’s always eye-opening to engage with industry events across the globe. Witnessing the rapid evolution of e-commerce, particularly in the Central and South American region.

Latin America’s E-commerce Growth

E-commerce in LATAM is on an impressive trajectory, with the region’s online retail sales reaching nearly $168B in 2022 and poised to represent almost 20% of total retail by 2026. As the birthplace of Mercado Libre (NASDAQ: MELI), often hailed as the ‘Amazon of Latin America’. This platform alone boasted 148MM unique active users last year, underscoring its prominence in the global e-commerce landscape.

Having experienced the infancy of U.S. e-commerce in the late ’90s / early 2000s, followed by the changes brought about by AdTech MarTech FinTech, and now witnessing the early stages of Panama’s e-commerce journey. I recognize the importance of understanding the unique dynamics of each market. 13 years ago, Robert Vanselow was also involved in the launch of an e-commerce initiative in the UK. And, it was an entirely different playing field. Nevertheless, it all boils down to one fundamental truth…

E-commerce Across Regions: Key Insights

E-commerce, whether in the U.S., UK, LATAM, is propelled by the ability to engage with consumers. It’s about learning their behaviors, cultural nuances, and country-specific limitations. For instance, in many Latin American countries, credit cards are not the primary payment method for online shopping. Instead, alternative payment methods like cash on delivery (COD), e-wallets (RAPPIPAY, NEQUI, YAPPY), and local bank transfers (ACH, PSE) are favored, reflecting market idiosyncrasies. Additionally, “BOPIS” (Buy Online, Pickup in Store) is also a preferred choice in smaller countries due to the proximity of brick-and-mortar stores. Not to mention the subpar street addressing systems in certain countries, which make last-mile delivery a challenge.

During the conference, it was great to hear discussions on topics such as RetailMedia, LiveShopping, Marketplace, BigData, and AI. It’s evidence that even emerging countries are setting ambitious goals and keeping pace with cutting-edge trends and innovations, just like their larger counterparts.

So, what attracts me to these events? With 20 years under my belt in both the U.S. and LATAM, I’m always on the hunt for ‘golden nuggets’ that can seamlessly integrate into e-commerce developments across diverse markets. These cross-market exchanges of ideas and strategies not only enhance our capacity to adapt to evolving consumer preferences but also empower us to think beyond conventional boundaries.