It’s big news that the U.S. leapfrogged to the number one spot in the A.T. Kearney 2015 Global E-commerce Index this week. But don’t miss the fact that the Americas as a whole took seven of the top 30 spots with Mexico making the list for the first time.
The Global E-commerce Index ranks the top 30 countries for market opportunity in online retail. Rankings are based on nine variables including macroeconomic factors, consumer adoption of technology and shopping behavior.
According to the A.T. Kearney report, global online sales from mobile and desktop will reach $995 billion this year and $1.1 trillion next year. That’s good news for all retailers in the e-commerce space. But some significant opportunities are being uncovered in the Americas.
Making the list from the Americas:
An improved economy and continued growth helped the U.S. go from third to first and trump China as the global e-commerce leader. E-commerce sales worldwide rose to $840 billion in 2014 with the U.S. accounting for more than a fourth of that number at $238 billion.
Mexico, which has never been ranked before, debuted at spot 17 on the Global E-commerce Index. The A.T. Kearney report credits a young and connected population for Mexico’s much-higher-than-average 32% year-over-year growth in online sales. Mexico’s total online sales hit $6.6 billion in 2014. And the news continues to get better with similar growth expected over the next five years.
Even though Brazil slipped to 21st place on the index, the country grew about 18% year-over-year and e-commerce sales were a strong $13 billion in 2014. “Online retailers still find Brazil to be a growing e-commerce market that is impossible to ignore,” the A.T. Kearney report states.
The Nielson Global Survey of E-commerce, released in August 2014, also put a spotlight on Latin America, noting that the emerging region has the highest online browsing rates.
“Latin Americans are enthusiastic online shoppers, but the online retail infrastructure has not yet caught up with offering conversion opportunities,” said John Burbank, president of strategic initiatives for Nielson.
Latin American shoppers are most often browsing online for electronic equipment, mobile phones, clothes, cars and motorcycles, and tour and hotel reservations, according the Nielson report. The highest buying category in Latin America is airline tickets and reservations, which historically is a starting point as consumers gain confidence in the online shopping experience.
Worldwide, e-commerce grew more than 20 percent in 2014, according to the A.T. Kearney report. But online sales overall remain less than 10 percent of total retail sales—so no matter what corner of the globe you’re in, your e-commerce market has room to grow.