Introduction to the E-commerce Landscape in Chile
In 2019, Falabella held 51% of Chile’s digital sales, Cencosud accounted for 24%, and Mercado Libre had a mere 3%. However, by 2024, Falabella’s share dropped to 21%, Cencosud’s fell to 15%, and Mercado Libre rose to 14%. This shift highlights the growing influence of Mercado Libre in Chile’s e-commerce sector.
The Impact of Chinese E-commerce Platforms
Chinese platforms like Shein, Aliexpress, and Temu initially posed a threat to Chilean retailers due to their low prices, diverse product offerings, and rapid delivery times. However, Christian Oros, Director of Business Insight at Cohlers + Partners, states that these platforms have yet to seriously challenge the dominance of local giants.
In 2024, online sales in Chile amounted to $8.2 billion, with Falabella leading at 21%, Cencosud following closely at 15%, and Mercado Libre securing 14%. Ripley, Walmart, and SMU occupy lower positions in the ranking, while the combined market share of the three Chinese platforms amounts to a mere 6%.
Key Factors Driving E-commerce Leadership
Oros attributes the leadership of Falabella and Cencosud to their long-standing history, multi-format structure, and omnichannel presence, encompassing department stores to supermarkets. Mercado Libre, on the other hand, is the only one of the three that has grown as a unified platform.
While Mercado Libre still has room for expansion, Falabella and Cencosud face the challenge of adapting within a market they already dominate. In contrast, Mercado Libre has yet to reach its full potential.
The market dynamics have changed significantly over five years. In 2019, Falabella controlled 51% of digital sales, Cencosud held 24%, and Mercado Libre managed only 3%. Oros predicts that in the future, there will be three major players consolidated in the Chilean e-commerce market.
International Purchases and Their Impact
Regarding Chinese platforms, although they have gained visibility and made inroads in certain niches, they face a structural barrier: low average order value. This limitation restricts their ability to directly compete with established national players.
Despite this, Chinese platforms dominate international purchases—transactions initiated from Chile to websites outside the country. In 2024, international shipments accounted for 28.9% of total online transactions, trailing only marketplaces at 30.3%. Moreover, 52% of these international purchases originated from Asian platforms.
Key Questions and Answers
- What is the current market share of major e-commerce players in Chile? Falabella leads with 21%, followed by Cencosud at 15% and Mercado Libre at 14%.
- How have Chinese e-commerce platforms affected the Chilean market? Although they initially posed a threat, Chinese platforms have yet to seriously challenge local giants due to structural barriers like low average order value.
- What is the significance of international purchases in Chile’s e-commerce sector? International purchases, dominated by Asian platforms, account for 28.9% of total online transactions in Chile.
