Chile E-commerce Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

Key Highlights

• Amazon remains an excellent option for local customers, and it now includes innovative products from Chilean businesses; however, some brands do not ship internationally. Even so, local consumers are willing to be a part of international online purchases in order to access a broader range of products and prices. Amazon has been offering free shipping to Chile for purchases of $49 or more in eligible products since April 2021.
• International platforms like Amazon and AliExpress, which have massively reduced shipping times and made e-commerce more accessible, have contributed to the enormous growth in Chile e-commerce market. Last year, Correos de Chile collaborated with AliExpress to reduce delivery times from a maximum of 60 days to a window of 16 to 38 days.
• Since Amazon, Walmart, and Aliexpress remain dominant, smaller startups are emerging to compete. As more Chileans go online, primarily via smartphones, the challenge will be to provide faster delivery across the country while making m-commerce more accessible in the chile e-commerce market.
• Chile's E-commerce sales are expected to increase by 23% in 2021. Growth has exceeded the previous year's expectations due to the COVID-19 pandemic, pension fund withdrawals, and government fiscal stimulus. eCommerce has previously experienced positive growth over the last decade due to Chile's rapid and ongoing technological infrastructure development.
• The COVID-19 pandemic is shown in the increased demand for services that allow the virtual interaction of teleworking activities and software that provides virtual meetings, conference rooms, and classes. To facilitate access to medicines during the pandemic, the Chilean Ministry of Health authorized the online sale of medicine, resulting in substantial growth of online prescriptions.

Key Market Trends

Increase in number of e-commerce user in Chile

• Chilean mobile internet penetration reached 100% in the third quarter of 2020, with 19.8 million connections, primarily via smartphones.
• Chilean consumers are increasingly using credit and debit cards to make online purchases. Online payments in Chile are made in Chilean pesos (CLP) via local bank transfers and credit cards issued by local banks. MACH, Fpay, and Mercadopago are popular payment platforms in Chile.
• The number of online users in Chile has increased dramatically year after year, as has their demand for digital services. Entrepreneurs and small businesses can now sell their products or deliver their services more efficiently due to an online channel that allows them to reach a larger audience and previously inaccessible markets.
• Matriz Digital 2018-2022 is a roadmap on national connectivity priorities developed by the Chilean government. This plan aims to close the technological gap in Chile to promote the country's development. Matriz Digital focuses on three areas. Such as defining and respecting digital citizens' rights, stimulating investment and infrastructure, including 5G implementation, and promoting digital development. There are currently free internet zones in fifteen regions of the country, providing access and connectivity to low-income residents.

Competitive Landscape

• May 2022- Falabella.com introduces the first electric e-commerce truck in Chile, with a 300-kilometer range. The Hyundai Zedo 300 EV model, developed in collaboration with Hyundai Trucks and Buses of Indumotora and Grupo Enel Chile, will enable the delivery of more oversized products while maintaining a zero-emissions proposal in this type of dispatch.
• May 2022- The Blockchain in Fintech Market report focuses on a detailed analysis of the industry's current and future prospects. Amazon Web Services, IBM, and Microsoft rapidly expanding their blockchain presence in the Fintech market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support