Ecommerce
The changing role of online shopping
Ecommerce enjoyed a boom period during the pandemic, as retailers – both pure players and non-pure players (bricks and mortar) – launched new platforms and apps and consumers embraced online as an easily accessible channel in the absence of physical stores.
In 2022, however, ecommerce slowed for the first time since the pandemic, with online spending falling by -0.4%, driven in part by delivery taxes from apps. But it remains an important part of omnichannel retailing in the Latam region, attracting an additional three million new shoppers in 2022, mainly from low-income households.
Phygital (physical + digital) shoppers are using both online and offline channels but being more selective in how and when they use them. Shoppers are migrating back to physical stores in a time of economic crisis. This gives them opportunity to compare prices, sizes, private labels vs. brands and to take advantage of promotions and deals in-store as they look for value for money. As a result, discounter and wholesale channels are benefitting the most.
As the market slows and shoppers fragment their spend across channels, the challenge now for ecommerce retailers is how they engage and retain shoppers.
