E-Commerce Logistics Race in Latin America: Which Country Performed the Best in H1 2022?

Aug 10, 2022

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  • In Latin America, Mexico had the fastest transit time of 1.36 days during the first half of 2022. 

  • Contrary to Mexico's and Brazil's, Argentina's first-attempt delivery success rate decreased from 93.37% to 91.86% in the last year.

  • Brazil ranked first in terms of collection point usage in Latin America, with approximately 5.05% of its parcels being delivered to collection points across the country.

Since the outbreak of the COVID-19 pandemic, e-commerce markets across Latin America have continued to enjoy continuous growth. In fact, e-commerce in Latin America experienced significant growth, most especially in Brazil and Argentina. According to data from Statista, online shopping in Brazil generated about 161 billion Brazilian reals in revenue.

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Furthermore, Brazilian e-commerce markets recorded over 353 million checkouts in 2021. Due to the increase in online shopping, e-commerce logistics across the area have also experienced exponential growth. Customers throughout Latin America are always in demand of seamless solutions that guarantee the safety and swift delivery of their online purchases.

In our recent series, we compared the e-commerce logistics performance of Canada and the United States (US) and the countries in Europe. In this post, we will be taking a look at more insights into the e-commerce logistics performances in Latin America, where we will be focusing on three e-commerce markets, namely Mexico, Brazil and Argentina. Continue reading to discover more!

Mexico Had the Fastest Transit Time of 1.36 Days in H1 2022 among the Latin American Countries

In the first half of 2022, Mexico had the fastest transit time of 1.36 days among the nations in Latin America. Argentina and Brazil, on the other hand, witnessed transit times of 1.45 days and 3.02 days, respectively. Argentina’s transit time of 1.45 days remains a substantial improvement from its transit time of 1.96 days for the first half of 2021.

Mexico’s top transit time performance in H1 2022 was probably due to express couriers such as UPS, FedEx, and DHL, which are now able to deliver packages across Mexico from anywhere. Furthermore, the introduction of the Mexican Technology Integration Project (PITA) has helped to streamline customs processes, thus increasing the efficiency and speed of customs clearance and delivery of goods to customers while eliminating unnecessary delays and time wasted during border crossing.

Similar to Mexico, Argentina also experienced an improvement in its transit times, averaging 1.45 days in the first half of 2022, compared to 1.96 days for the same period last year. Conversely, Brazil had the longest transit time in the region. In fact, Brazil’s H1 2022 performance was a considerable decrease from its H1 2021 transit time of 2.28 days. This is probably due to logistics challenges in the country with limited rail lines, cargo theft, and poorly maintained highways.

First Attempt Delivery Success Rate in Argentina Decreased Over the Year Unlike Those of Mexico and Brazil

Additionally, a timely first delivery attempt is very important in the e-commerce sector. Based on our H1 2022 data, the first attempt delivery success rate in Argentina decreased over the year. In the first half of 2021, the first attempt delivery success rate in Argentina stood at 93.37%, compared to 91.86% in H1 2022. This may probably be associated with the lifting of travel restrictions across the country

In March 2022, Argentina lifted all travel restrictions across the country, including for unvaccinated people, as coronavirus cases continue to drop. Moreover, mask wearing in public places was no longer required in Buenos Aires, the country’s capital. This indicates that online shoppers in Argentina were more likely to go out rather than stay at home to receive their packages.

However, unlike in Argentina, the first attempt delivery success rate increased in Brazil and Mexico. According to our H1 2022 data, the delivery success rate was 92.59% in Brazil and 95.42% in Mexico. Recently, the Brazilian government enacted new Provisional Measures on remote work. The new laws offer more protection to remote workers, thereby encouraging more people to work from home. On top of this, repeated wildfires in the Amazon may possibly have prevented more Brazilians from going on adventures. All these factors combined would have caused more consumers in Brazil to stay at home and receive their packages.

Brazil Ranked First in Terms of Collection Point Usage in Latin America in H1 2022

Recently, the option of collection points has become an interesting choice for the delivery of e-commerce goods to customers across Latin America. Online shoppers can now integrate delivery into their daily routines and easily decide the preferred time to collect or receive their parcel(s). The days of endlessly waiting at home or office for your package to arrive are long gone.

In the first half of 2022, Brazil ranked top in terms of collection point usage in Latin America. About 5.05% of parcels were delivered to collection points in Brazil. However, only approximately 0.90% and 1.52% of parcels were delivered to collection points in Mexico and Argentina, respectively.

The increase in collection point usage in Brazil is probably due to the continued trend in online shopping in the country. By the end of 2022, approximately 380 million online orders were expected to be delivered, according to Statista. As an alternative to home or office deliveries, as well as to reduce failed deliveries, more Brazilians now opt for the option of collection points. With more online shoppers in Brazil, it is no surprise that collection point usage was way more than those in other countries during H1 2022.

The Future of E-Commerce in Latin America

In conclusion, consumers across Latin America have continued to embrace online shopping. E-commerce businesses continue to partner with e-commerce logistics companies across the region to ensure a faster and more seamless delivery experience. It is also expected that the establishment of more warehouses and logistics hubs in these countries will facilitate faster parcel collection and delivery. With this in mind, we are anticipating how e-commerce logistics will pan out in Latin American countries in the second half of the year.

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