Navigating cross-border eCommerce in Latin America: challenges and solutions

Navigating Cross-Border eCommerce in LATAM

Cross-border eCommerce has become increasingly prevalent in today’s global marketplace. Business companies can now reach customers worldwide, creating new opportunities for growth and expansion. Latin America, in particular, has become a lucrative market for cross-border trade. However, navigating the complexities of international trade can be challenging. This blog post will explore some tips and strategies for successful cross-border eCommerce in Latin America.

Latin America’s eCommerce evolution – Where growth knows no borders

Latin America (LATAM) has become a significant eCommerce hub, with a rapidly growing digital shopper base of approximately 300 million. This market is forecasted to grow by more than 15% between 2023 and 2027.

Projections indicate that the number of online shoppers in the region will surge from 172 million to 435 million by 2031.This growth is mirrored in the cross-border eCommerce sector, which outpaced domestic eCommerce in 2022 with an impressive annual growth rate of 44%.

Several reasons why Latin America’s remarkable rise in cross-border eCommerce

  1. 1. Digital connectivity

    Just like Brazil, other countries in Latin America have seen a steady growth in internet penetration. For instance, Argentina, with a population of over 45 million, expects to reach a digital connectivity rate of 80% by 2025.

  2. 2. Consumer appetite

    Latin American consumers have become more open to international brands, driven by a desire for better quality, variety, and unique products that local markets might not provide.

  3. 3. Economic drivers

    As Latin American countries push for greater economic integration and trade liberalization, barriers for cross-border trade are gradually decreasing, creating a more conducive environment for international eCommerce.

Latin American eCommerce is experiencing rapid growth

Latina-America overview









eCommerce volume in Latin America’s top six markets

Brazil and Mexico lead the way: Dominating online sales with continued growth, while Peru gears up to join the race.

Top 6 Markets in the region

Cross-border and domestic volume in Latin America

Latin America’s cross-border eCommerce surges: Set to reach $114.6 billion by 2026, capturing 13% of top six market’s online sales volume.

Challenges facing the Latin America eCommerce market

Despite the promising growth in the region, several challenges may prevent eCommerce companies from fully capitalizing on the opportunities in Latin America.

Legal and regulatory compliance

Latin America comprises multiple countries, each with unique legal and regulatory requirements. Navigating these complex frameworks can be daunting and time-consuming for businesses.

Currency and payment complexity

Managing multiple currencies and payment methods across Latin American countries can pose significant challenges. Variations in currency exchange rates and payment preferences further complicate cross-border transactions.

Language and cultural differences

Effective communication with Latin American customers requires understanding and catering to their linguistic and cultural preferences. Please do so to avoid misunderstandings and hindering sales.

Taxation and duties

Taxation and import duties vary across Latin American countries, impacting the cost and profitability of cross-border sales. Understanding and complying with these tax regulations are essential for businesses.

6 must-know tips for eCommerce success in Latin America


  • Latin America’s eCommerce is booming, with expected annual growth rates of about 30% until 2025
  • 60% of Latin Americans have a bank account and only 19% of them own a credit card
  • Boleto, e-wallets and other alternative payment methods reached 31% of volume on Brazil’s eCommerce sales
  • Around 20% of overall revenue is lost to fraud in LATAM, putting it as the second region in the world after South-East Asia
  1. 1. Diversify payment methods

    Traditional credit and debit cards are not the primary payment methods in Latin America due to low ownership rates. To cater to the majority of consumers who lack access to traditional banking services, embrace alternative payment solutions like mobile payments, e-wallets, and regional payment options.

    Streamline your payment operations even more

  2. 2. Embrace the voucher system

    Many online purchases in Latin America are paid through voucher systems, where customers receive invoices and settle payments in cash at local network agents. To tap into this segment of the market, understand and integrate these systems, like Boleto in Brazil and Oxxo in Mexico.

  3. 3. Facilitate installment payments

    Recognize the popularity of installment payments in countries like Brazil, Mexico, Argentina, Chile, and Colombia. Offering installment options can attract more customers and enhance purchasing power, particularly in these markets.

  4. 4. Adapt payment options

    Determining the right payment options for each country is critical, and businesses should be prepared to adjust to local preferences. Additionally, regulatory changes, evolving consumer behavior, and the growth of Latin America’s mobile economy require businesses to be flexible and ready to adapt.

    Provide premium user experience with a localized checkout experience

  5. 5. Protect your business against fraud

    Merchants should invest in implementing in-house or outsourced fraud prevention solutions to help because fraud prevention tools built into a shopping cart platform do not always correctly detect attempted fraud. One of the best ways to do this is by employing a fraud prevention strategy that uses a two-pronged approach, both manual and automated, using algorithms, custom rules, and proven statistical techniques to analyze data.

    Fight online fraud and recover revenue

  6. 6. Localize website content

    Tailor your website content to resonate with Latin American consumer’s diverse cultural and linguistic preferences. Use local languages, currencies, and culturally relevant imagery to create an authentic and intuitive shopping experience. Prioritize mobile optimization to accommodate varying internet speeds across the region.

Ready to elevate your cross-border eCommerce strategy in Latin America?

While cross-border eCommerce in LATAM presents challenges, strategic approaches can help international merchants capitalize on the region’s growth potential. Businesses can successfully expand their presence in this dynamic market by understanding consumer preferences, navigating regulatory complexities, and leveraging innovative solutions.

Why Choose Nexway as your Merchant of Record?

Nexway is a leading eCommerce partner for online businesses, serving as a
Merchant of Record
for over 20 years. We handle everything related to checkout, including user experience, payment processing, and tax management, thus enabling you to focus on product development and marketing efforts.

Learn more about Nexway’s Merchant of Record capabilities

Should your business expand globally? Read the Nexway brochure to discover insights into the emerging market and specific local payments for fast-driving online growth.

With Nexway, expand your business in Latin America with localized payment options to boost customer conversion and reduce friction with a safe and localized checkout experience. Contact us to learn how our comprehensive solutions can support your cross-border expansion into Latin America.