The e-commerce landscape in Colombia is a highly promising target for businesses interested in Latin America as a whole. With a consumer population of 50 million in South America’s third largest economy, the future of e-commerce in Colombia is bright. The market is increasing at an annual rate of 18% and is projected to exceed USD $8 billion by the middle of the decade.
E-commerce in Colombia still has a ways to go to catch up with overall internet penetration, suggesting significant room for growth ahead. One major factor in the development of Colombian e-commerce is a highly supportive public sector. In 2020, three tax-free online shopping holidays generated nearly USD $250 million in additional e-commerce revenue across our payments platform in Colombia. The government has also set ambitious targets for financial inclusion, which will enable more consumers to participate in e-commerce. Last year Colombia already reached its 2022 goal of 85% financial inclusion, two years ahead of schedule.
Colombia is the only Latin American country with a dedicated Ministry of E-Commerce, demonstrating the country’s eagerness to further evolve in this direction. Fashion, Electronics & Media, Furniture & Home Appliances, and Toys, Hobby & DIY make up the leading consumer categories for Colombian e-commerce.