Increases in Latin America and Caribbean Internet Usage Will Lead to Increased Internet Sales

Increasing internet usage throughout Latin America and Caribbean will lead to an increase in e-commerce sales. Consumers regularly purchase online from companies that offer better (larger) product selection and assured delivery.

(PRWEB) January 2, 2004 --According to statistical analyses reported by InternetWorldStats, at the end of 2003 there were an estimated 700 million Internet users, representing around 11% of the world population. This number represented a worldwide 94% growth rate since 2000. The Americas and Caribbean (excluding The United States and Canada) also showed large increases:

BERMUDA & MEXICO    71% growth (representing 5% of the population)
CENTRAL AMERICA     86% growth (representing 4% of the population)
SOUTH AMERICA     96% growth (representing 8% of the population)
THE CARIBBEAN     152% growth (representing 4% of the population)

Improvements in the communications infrastructure bring improved bandwidth and reduced telecommunication costs, which directly enable the growth in access. The idea of buying online is gaining acceptance at different rates due to technological and cultural differences within each country. Some users do not trust e-commerce or may be resistant or afraid to buy on the internet and initially may be unwilling to change. Other factors include the availability of e-commerce payment platforms, credit card transactional costs (which continue to be high), consumer protection measures, and warranty and returns policies and procedures (reverse logistics).

In response to these concerns, local resellers are creating hybrid transactional "click and mortar" models which allow consumers to view and order products online and pay and pick up their orders at the merchant's store. "Click-and-mortar" describes a store that exists online and in the physical world. Some examples are:

Data Point SA (El Salvador) - http://www.data-point.net
Microsys (Guatemala) - http://www.microsysonline.com
Compuequip Dos (Ecuador) - http://www.dosonline.net
Megatron Ltd. (Grand Cayman) http://www.megastore.ky
Gateway Ltd. (Bermuda) - http://www.soho.gateway.bm

Local well-established resellers will also initially enjoy an advantage over non-local e-tailers due to other consumer concerns. Among these are warranties and returns (reverse logistics), which benefit the local reseller. These concerns will drive customers to local resellers until non-local companies partner with local firms to provide post-sale service & support.

By offering the best of both worlds; a local established presence with the large product selection inherent in an e-store backed by a reliable supply chain, a local reseller will appear more attractive than a non-local e-tailer.

Manufacturer websites and search engines provide the product information necessary to compare products and consumers can find and buy online at any time. Therefore, resellers will continue to lose sales to competitors that offer a better (larger) selection of products and assured delivery. The consumer is in control.

Regional Internet Statistics Analysis 2000-2003

CENTRAL AMERICA - 86% growth (4% of the population)
Belize (pop. 257,400) - 47% growth from 15,000 to 22,000 (9% of the population)
Costa Rica (pop. 4,148,500) - 54% growth from 250,000 to 384,000 (9% of the population)
El Salvador (pop. 6,178,700) - 650% growth from 40,000 to 300,000 (5% of the population)
Guatemala (pop. 14,223,400) - 208% growth from 65,000 to 200,000 (1% of the population)
Honduras (pop. 6,606,100) - 400% growth from 40,000 to 200,000 (3% of the population)
Nicaragua (pop. 5,777,700) - 80% growth from 50,000 to 90,000 (2% of the population)
Panama (pop. 2,991,000) - 167% growth from 45,000 to 120,000 (4% of the population)

NORTH AMERICA - 71% growth (5% of the population)
Bermuda (pop. 64,500) - 20% growth from 25,000 to 30,000 (47% of the population)
Mexico (pop. 101,457,200) - 72% growth from 2,712,400 to 4,663,400 (4.6% of the population)

SOUTH AMERICA - 96% growth (8% of the population)
Argentina (pop. 36,993,000) - 64% growth from 2,500,000 to 4,100,000 (11% of the population)
Bolivia (pop. 8,676,000) - 50% growth from 120,000 to 180,000, (2% of the population)
Brazil (pop. 179,712,500) - 187% growth from 5,000,000 to 14,322,367, (8% of the population)
Chile (pop. 15,265,600) - 77% growth from 1,757,400 to 3,102,200, (20% of the population)
Colombia (pop. 44,533,300) - 126% growth from 878,000 to 1,982,000, (5% of the population)
Ecuador (pop. 12,471,600) - 180% growth from 180,000 to 503,300, (4% of the population)
French Guiana (pop. 188,200) - no growth, only 2,000 users, (1% of the population)
Guyana (pop. 865,200) - 3067% growth from 3,000 to 95,000, (11% of the population)
Paraguay (pop. 6,028,900) - 400% growth from 20,000 to 100,000, (2% of the population)
Peru (pop. 27,083,400) - 20% decrease, from 2,500,000 to 2,000,000, (7.5% of the population)
Suriname (pop. 456,900) - 24% growth from 11,700 to 14,500, (24% of the population)
Uruguay (pop. 3,452,600) - 8% growth from 370,000 to 400,000, (11.6% of the population)
Venezuela (pop. 23,865,800), 34% growth from 950,000 to 1,274,400, (34% of the population)

THE CARIBBEAN - 152% growth (4% of the population)
Dominican Republic (pop. 9,219,800) - 238% growth from 55,000 to 186,000, (2% of the population)
Jamaica (pop. 2,772,900) - 67% growth from 600,00 to 100,000, (4% of the population)
Puerto Rico & USVI (pop. 4,068,200) - 191% growth from 212,000 to 617,000, (15% of the population)
Trinidad & Tobago    (pop. 1,362,000) - 38% growth from 100,000 to 138,000, (10% of the population)
Dutch Caribbean    (pop. 331,800) - 333% growth from 6,000 to 26,000, (8% of the population)
English Caribbean (pop. 1,236,700) - 78% growth from 47,419 to 84,419, (7% of the population)
French Caribbean    (pop. 9,328,900) - 637% growth from 19,000 to 140,000, (2% of the population)

About InternetWorldStats.com
InternetWorldStats is an International website featuring up to date Internet usage statistics and population The information displayed is updated frequently and includes Internet statistics, usage penetration, demographics and information on global trade. For more information, please visit their website at http://www.internetworldstats.com

About Klatu
Klatu delivers complete international e-commerce business solutions throughout Latin America. Since 1999, Klatu Inc. has focused on IT and Consumer Electronics resellers and is a true international ASP solution provider. eCom, the underlying engine integrates CNET's highly structured content and images with pricing and availability information from major supply chain partners. The functionality includes product pricing and availability, multiple payment methods, a pricing engine, product filtering, multiple INCOTERM pricing, landed-cost pricing, multiple languages, and currencies. The resulting solution is powerful, affordable, and easily customized to a customer's requirements. For more information, please visit http://www.klatu.net or e-mail us at info@klatu.net
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