Business

Retail e-commerce begins to decelerate in Latin America

Persistent inflation and consumers’ return to brick-and-mortar stores are holding back the growth of some of the region's biggest e-retailers. Online shopping, however, will never play a supporting role again

e-commerce decelerates latin america
Illustration: Aanbetta/Shutterstock

After two years of growing at breakneck speed, Latin America’s e-commerce sector is experiencing a slowdown, especially in retail — that is, sales of physical and digital goods except for food delivery, subscription-based products, and travel-related services. 

Persistent inflation — despite region-wide monetary tightening — and the return of consumers to brick-and-mortar stores are two of the main factors holding back the expansion of some of the region’s leading retailers. Online shopping, however, will never play a supporting role again, even more so in the age of mobile commerce.

In early August, while reporting a record-breaking net revenue of USD...

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