That total is expected to grow to more than 19 million, or five percent of the 372 million Internet users worldwide. While the report found that the major barrier to the growth of online shopping and other e-commerce activity in Latin America is the cost of Internet access, a separate study from the Yankee Group indicates that the problem may soon be alleviated by a new wave of free access sweeping the region. Nearly 75 percent of Latin American online buyers currently shop at U.S.-based Internet sites. The fact that Latin American B2B e-commerce is set to take off has not been lost upon venture capitalists. For the most part, venture capital firms that are already investing in the area are concentrating on developed countries like Brazil, Mexico and Argentina.
Brazil is currently the largest on that list by a wide margin.
However, some forward-thinking companies are spreading the wealth to less developed countries. Proceeding with Caution Even with the rapid influx of cash into Latin American Internet and e-commerce companies, the biggest investors are taking a slow and steady approach. That's why I have always said that being the last mover isn't so bad for Latin America. Demographically, the region is ripe for electronic commerce, since the overall population is much younger than that of the U.S., Japan or Europe. However, a possible roadblock to the full development of e-commerce in Latin America may be the conflicting customs and various trade barriers among countries in the region.