Colombia is a country with a rapidly growing e-commerce market. In 2023, online sales reached 62.1 trillion pesos (approximately $15.5 billion USD), an increase of 12.58% from 2022. Similarly, the number of online sales transactions increased to 370.5 million, up by 11.5% from the 2022 total of 332.4 million. This reflects the growing importance of online shopping in the modern marketplace. This translates to a significant opportunity for Western businesses seeking to expand their reach and tap into a new and eager customer base of over 50 million potential online shoppers. This growth is being driven by a number of factors, including:
- Surging Internet Users: Colombia's internet penetration is experiencing rapid rise, with an estimated 72.8% of the population now accessing the web. This creates a big pool of potential customers for e-commerce businesses.
Individuals using the Internet (% of population in colombia)
source: data.worldbank.org
- Mobile-First Mindset: Colombians are increasingly comfortable shopping on their smartphones and tablets. In fact, over two-thirds of online traffic in Colombia comes from mobile devices. This trend towards mobile commerce presents a unique opportunity for businesses to reach customers conveniently.
source: statista.com
- Rising Disposable Incomes: As Colombia's economy strengthens, disposable incomes are on the rise. This fuels consumer spending, with a significant portion, nearly 18%, shifting towards online channels, where they can access a wider selection and potentially find better deals.
More Insights about Colombia
- Evolving Consumer Preferences: Colombian consumers are becoming more comfortable with the convenience and ease of online shopping. They appreciate the wider selection of products available online (categories like financial services and technology leading the pack) coupled with competitive pricing that can often be more attractive than traditional stores.
Lucrative Opportunities for Western Businesses
- Direct Online Sales: Western companies can leverage Colombia's e-commerce boom by selling their products and services directly to Colombian consumers. Platforms like marketplaces and branded online stores can facilitate these sales. Ongresso can be your guide, helping you navigate the process of setting up an online store or partnering with the most suitable marketplace for your products, reaching an estimated 370.5 million online transactions annually.
- E-commerce Solutions Providers: The demand for e-commerce solutions like secure payment gateways, efficient logistics services and targeted marketing tools is surging in Colombia. Western businesses with expertise in these areas can use this growing need. Ongresso can connect you with local partners or help you establish your own e-commerce solution business in Colombia.
- Investment Potential: Colombia's vibrant e-commerce ecosystem presents attractive investment opportunities. Western businesses can consider investing in promising Colombian e-commerce startups or established players for significant returns. Ongresso's team of experts can provide valuable insights on potential investment opportunities within the Colombian e-commerce landscape, projected to grow significantly in 2024.
Challenges to Consider
- Competition: The Colombian market is becoming increasingly competitive, with both local and international players searching for market share. Western businesses need to develop a strong brand presence, competitive pricing strategies and unique value propositions to stand out. Ongresso can assist you with market research, competitor analysis and developing effective marketing campaigns tailored to the Colombian market.
- Logistics: Logistics infrastructure in Colombia is still developing, which can translate to higher costs and longer delivery times. Partnering with a local logistics provider with a proven track record can help mitigate these challenges. Ongresso can connect you with reliable logistics partners who understand the nuances of the Colombian market.
Colombia's e-commerce landscape is coming with potential. By understanding the market dynamics, opportunities, and challenges, Western businesses can position themselves to thrive in this dynamic and rapidly growing market.
Why Choose Ongresso?
At Ongresso, we specialize in helping Western businesses navigate the complexities of entering the Latin American market. We have a deep understanding of the Colombian landscape and the unique challenges and opportunities it presents. We can provide you with the expertise and guidance you need to succeed, from market research and competitor analysis to navigating regulations and establishing partnerships. Call us now to get more insights about the market.