Latin America has perfectly adapted to e-commerce. One of the companies that has achieved the most growth in the region is Linio, a platform that offers electronic products, clothing, furniture, health, beauty, books and other categories.

History of Linio

This ecommerce, called Linio after the Esperanto word for “line”, was created by the investment fund Rocket Internet, a German startup incubator that has also supported other e-commerce initiatives such as Zalando or Dafiti. In 2012, it was launched in Mexico where it has its main headquarters and has managed to expand its presence to Colombia, Argentina, Venezuela, Peru, Chile, Ecuador and Panama; it also has offices in China and the United States. Within months of its launch, it had reached one million visits and in 2013 had an approximate growth of 300%, which helped it expand throughout Latin America.

By 2013, it consolidated itself as a marketplace by integrating a variety of sellers and brands, becoming a platform that allowed other companies and entrepreneurs to offer their products. Then, in 2014, it launched its Android and iOS application and the following year invested 55 million dollars to enhance its online business in the region. In August 2018, it was acquired by Falabella, the largest retail platform in Latin America, integrating the marketplace into its physical and digital ecosystem.

Growing figures

The year 2020 was an opportunity not only for Linio, but for all e-commerce businesses around the world. The COVID-19 confinement opened the door for people to rely on e-commerce to purchase products and services from a distance.

Linio reported in one of its statements that 2020 was a year of growth in its figures. Taking into account that most of its consumers are between the ages of 25 and 30, during the year of the pandemic they recorded a growth in sales of over 60% in their category of technology products, within which computing products had a growth of 30% and both televisions and video game consoles reported a 20% increase in sales.

At the beginning of 2022, Andrés Robatel, Linio’s country manager, explained that Grupo Falabella would allocate part of its investment of over 700 million dollars to Linio to boost its sales through various channels, prioritizing technological products. The country manager of Linio did not share the specific amount that would be allocated to Linio.

“The interesting thing is that 60%, about $418 million to $420 million, will be exclusively for technology and logistics, to strengthen the group’s digital bet (…) The focus is to maximize the omnichannel experience of our customers, both buyers and sellers, because as a marketplace, the Group is also starting to strengthen its links with SMEs and large companies. The focus of the technology area will mainly be on the group’s ecommerce platforms,” said Robatel.

Why is Linio a success

The key to Linio’s success is their focus on simple purchasing processes, optimization of information, and fast deliveries. Customers usually choose their desired products from the website and choose from various payment methods, including credit, debit, or cash, and each of them can be paid upon delivery. Orders are usually shipped within 3 to 5 days at no additional charge. In addition, customers can return products if they do not meet their expectations.

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