Stephanie Chevalier
E-commerce research and editorial expert
E-commerce in Chile - statistics & facts
Chile's e-commerce market has shown steady growth over the years. Nevertheless, like most markets worldwide, it underwent an unprecedented surge during the COVID-19 pandemic. In 2022, Chile ranked fifth in Latin America for e-commerce market share, with estimated business-to-consumer (B2C) online sales of around 12.6 billion U.S. dollars, double that of 2019. Even though brick-and-mortar stores have returned to normal operations, e-commerce is expected to remain an integral part of the shopping experience for Chileans. Forecasts suggest that digital sales will increase by 25 percent in 2023, reaching an all-time high of around 15.7 billion dollars.
Far from sitting idly by, long-established department store chains such as Falabella and Ripley have turned on full steam in digital transformation. For one, in August 2021, Grupo Falabella revamped falabella.com making it an overarching e-commerce platform including all of its brands – Falabella, Tottus, Sodimac, and its marketplace Linio. Meanwhile, for Ripley, the development of its digital channel was not just an option but a necessity, acting as a lifeline during the pandemic when physical stores faced long-term closure.
Nonetheless, Chile still struggles with income inequality. Consequently, informal trade remains an attractive alternative for sellers and consumers alike, even on the web. That year, informal e-commerce accounted for approximately 10.3 percent of all digital transactions. But a challenge for digital commerce in Chile today could mean opportunity tomorrow. If informal e-retailers eventually transitioned into the formal economy, this could fuel the growth of the country's e-commerce sector.
Digital reinvents retail
Both traditional and digitally native businesses have stepped up their online operations. In 2022, Mercado Libre, Latin America's leading online marketplace, announced a 400 million U.S. dollar logistics investment plan for Chile in 2022 and 2023. The move is part of the company's strategy to achieve a delivery time of under 48 hours, regardless of the country's region. By expanding its storage and distribution capacity, Mercado Libre aims to gain a competitive advantage over the increasing number of international players and local retailers striving to conquer the Chilean market.Far from sitting idly by, long-established department store chains such as Falabella and Ripley have turned on full steam in digital transformation. For one, in August 2021, Grupo Falabella revamped falabella.com making it an overarching e-commerce platform including all of its brands – Falabella, Tottus, Sodimac, and its marketplace Linio. Meanwhile, for Ripley, the development of its digital channel was not just an option but a necessity, acting as a lifeline during the pandemic when physical stores faced long-term closure.
A two-faced e-commerce economy
Retailers were not the only ones who had to make rapid adjustments to e-commerce. In 2022, Chile counted some 12.7 million e-commerce users, up more than two million from before the crisis. About a quarter of these users were adults in their twenties, typically digitally savvy yet with some financial independence to afford their own purchases.Nonetheless, Chile still struggles with income inequality. Consequently, informal trade remains an attractive alternative for sellers and consumers alike, even on the web. That year, informal e-commerce accounted for approximately 10.3 percent of all digital transactions. But a challenge for digital commerce in Chile today could mean opportunity tomorrow. If informal e-retailers eventually transitioned into the formal economy, this could fuel the growth of the country's e-commerce sector.
