E-commerce in Mexico and Brazil is booming, here’s what AI tech is doing about it

Contxto – During the first quarter of 2020, Visa reported that 13 million people in Latin America made their first online purchase.

Meanwhile, according to business intelligence startup, Apptopia, shopping app downloads in Latin America grew 43 percent year-over-year in May. Undoubtedly the coronavirus pandemic pushed users (mainly from Brazil and Mexico) into the digital realm. 

So with e-commerce experiencing an unprecedented boom in the region, what will make or break a sale? One major factor is customization to offer the right content to the right person. However no business has an army of marketers to keep track of online shoppers. That’s where artificial intelligence (AI) and machine learning can make a difference.

And that’s something two Latam startups, Spreaad and VTEX,  are realizing and developing AI solutions for e-commerce businesses.

• Related article: The thriving Brazilian e-commerce market

In Mexico Spreaad is spreading

For example newly-launched Mexican Spreaad offers online businesses AI tech to follow up with online shoppers. Depending on a person’s profile and interests, its algorithm assists businesses in launching targeted marketing campaigns for that specific user.

And like other businesses in e-commerce, it also reports that the coronavirus outbreak shifted its operations (for the better).

“All our customers saw a 130 percent increase in new users,” José Sánchez, Spreaad’s co-Founder, told Contxto. “During this time, retail sales increased and the conversion rate was reduced from around 25 days to 18 days. That means shoppers are deciding faster on their purchases.”

An increase in online behavior also means Spreaad’s algorithm learns more about these users and can better curate businesses’ campaigns. At the moment it only operates in Mexico however Sánchez states that it hopes to soft-land in Colombia, Chile, and Argentina by year’s end.

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In Brazil VTEX added an AI edge

Meanwhile Brazilian VTEX wants to provide AI tech to the retailers that build their online shops on its platform. Specifically it wants to offer them a machine learning tool to predict the product a consumer is looking for on the website.

“With VTEX Intelligent Search, you will have a ‘search-as-you-type’ experience,” explained the startup in a blog post.

“While consumers interact with the new search bar, our AI-powered algorithms will deliver autocomplete, spell-check, synonyms and even suggest terms and products. Instantly and in the same place, all configurable through our merchandising tools.”

Automation and customization all-in-one.

Related articles: Tech and startups from Mexico!

-ML