Although online shopping was introduced in the 1990s, Guatemala did not see a substantial increase in its popularity until 2011. Additionally, as a result of COVID-19 and the stringent home quarantines imposed by the government, customer behavior shifted. Customers shifted from making purchases in-store to making purchases online and increased their desire for electronic payment methods.
E-commerce market
Since Guatemala’s e-commerce sector is still developing, most purchases are made on foreign websites. However, the market is expanding quickly in the nation, and some big associations, supermarkets, and banks have started to make the transition to e-commerce. Even a few government organizations have just recently developed websites that provide interactive services, recognizing the significance of the e-commerce business. In 2017, internet transactions totaled US$ 540 million from foreign websites and US$ 50 million from local stores, according to the Guatemalan Association of e-Commerce. Although younger generations are turning away from traditional shopping and using technology more, Guatemalans still enjoy face-to-face engagement. Most purchases are cash-based because just 17% of people use credit or debit cards. Only 1% of people utilize mobile money to make purchases. With 18% of people in Guatemala already using trading or e-commerce apps, mobile e-commerce is becoming more and more common.
Domestic e-commerce (B2C)
Given the simplicity of doing business and the established delivery firms present in Guatemala, there is a tendency of buying goods from the United States. e-markets in Mexico and Europe are being used by Guatemalan customers to make purchases.
Electronics, apparel, auto parts, household goods, presents, holiday decorations, books, and online courses are some of the top exports from Guatemala.
Challenges of selling in Guatemala
Even though Guatemala is rapidly developing economically and technologically, numerous challenges must be overcome before e-commerce in Guatemala can reach its full potential. Sellers need to be aware of the particular difficulties of doing business in this Central American country if they are to prosper in this burgeoning market.
The absence of dependable payment processing solutions is one of the main problems facing online retailers. Online purchases are challenging for many Guatemalan consumers because they lack access to credit cards or other electronic payment methods. Further preventing clients from making foreign purchases are the banks’ frequent hefty costs for such transactions. To increase sales, firms must find different payment options, such as cash on delivery or regional payment processors.
Revenue estimates in e-commerce in Guatemala
In 2023, the eCommerce industry is expected to generate US$2,404.00 million in revenue. An estimated market volume of US$4,151.00m by 2027 is the consequence of revenue growing at a projected annual rate of 14.63% (CAGR 2023–2027). The largest market volume, estimated at US$1,396.00 billion in 2023, is produced in China. By 2027, there will likely be 8.9 million users in the eCommerce market. By 2023, user penetration will be 39.4%, and by 2027, it’s predicted to reach 43.9%.
It is anticipated that the average revenue per user (ARPU) will be USD 322.80.
Top e-commerce sites
The three most popular online stores in the nation are ebay.com, olx.com.gt, and amazon.com. Among the best shopping websites are negociosenguatemala.com and amchamguate.com. It’s worthwhile to look at these websites to determine which, in terms of traffic volume, competitiveness, and kinds of customers they draw, could be the most appropriate for your goods.
Popular products
Electronics, clothing, household goods, vehicle components, and books are the products and categories that are most frequently purchased by Guatemalans who do their shopping online. You might get a head start in the Guatemalan e-commerce business if you provide products in these categories because it will help you grow your presence in the market there.
