Solo Social Sellers: Redefining Digital Entrepreneurship in Latin America

Fernanda Landgraf

Analyst

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The concept of solo social sellers has gained traction in recent years, especially since the COVID-19 pandemic. This phenomenon, while globally relevant, has deep roots in Latin America’s economy, which is characterized by a high degree of informal businesses—an estimated 63% of workers in the region work informally.¹ Solo sellers represent a staggering 88% of all small businesses in the region, and the pandemic accelerated the interest in this segment, driven by the digitalization wave and a global cultural shift.

Understanding Solo Social Sellers in Latin America

Solo social sellers are a diverse group of merchants. Many of these individuals leverage social media platforms to sell products or services directly from their homes, including everyone from hobbyists selling handmade crafts to professional freelancers offering their expertise. The post-pandemic era has made it more feasible than ever to “be your own boss,” particularly in Latin America, where high-paying traditional employment opportunities can be scarce. Freelancers in this region, for example, earn an average of $32,000 per year,² which is significantly higher than typical wages in many Latin American countries. For comparison purposes, the minimum wage in Brazil—which has the largest economy in the region—is approximately $3,380 per year, while in Ecuador, which has the second highest minimum wage in the region (behind Mexico), it is around $5,520 per year³, underscoring the substantial economic opportunity that social selling offers to people throughout the region.

The Importance of Social Media and Digital Platforms

The role of social media and messaging apps is pivotal for solo social sellers. These platforms provide an accessible way to reach a global audience and manage business operations. However, there is still a significant portion of small businesses — about 35% in Latin America and 30% in the rest of the world — that have not adopted digital platforms, presenting a massive opportunity for growth.

Globally, 83% of small business owners plan to invest in AI by 2024,⁴ aiming to streamline operations and boost sales. Technology companies are capitalizing on this trend, offering AI-driven tools to enhance sales efficiency and reduce payment friction.

One of these companies is Aida, short for Artificial Intelligence Deals Assistant, a newly established Mexican sales-tech company dedicated to empowering individuals with digital financial solutions through conversational AI on WhatsApp. CEO Erick Padilla highlights that the evolution of payments transcends mere transactions, focusing instead on driving sales growth. Aida’s AI assistant addresses key challenges for solo sellers by reducing sales inefficiencies, streamlining complex checkout processes, and integrating various services, making it easier for these entrepreneurs to manage their multiple roles.

Busting Market Myths for Solo Sellers

Aida uses conversational AI via WhatsApp and has quickly gained traction among Mexican home-based solo sellers. In its first month, Aida onboarded 130 businesses, primarily solo sellers, with an average transaction value of US$200. Operating through WhatsApp, Aida offers a user-friendly interface, making it particularly popular among small businesses with fewer than nine employees. One of the top features appreciated by users is the ability to accept card payments seamlessly, via WhatsApp, making it suitable for sales over social media. With plans to reach 10,000 businesses by the end of the year and expand into Colombia in 2025, Aida is set to continue empowering solo social sellers across Latin America. To see how Aida works in action, check out the video below:

In our recent talk with Erick Padilla, to better understand Aida’s operations and the learnings so far, we identified two prevalent myths about solo social sellers that they are debunking:

#1    Myth: Sellers Are Primarily Concerned About Taxation

It is commonly believed that social sellers avoid digital payment methods due to taxation concerns. However, as Erick Padilla from Aida points out, the real issue lies in the user experience. Solo sellers often find payment platforms cumbersome and prefer solutions that simplify their operations. Aida’s approach, which offers a conversational interface via WhatsApp without the need for separate apps or dashboards, has shown that sellers are willing to accept taxation if it results in increased sales. The focus is on providing a seamless, integrated experience that enhances sales rather than adding complexity.

#2    Myth: Zero Price Guarantees Adoption

Another misconception is that making a service free will ensure its adoption, including payment method acceptance. However, research and practical evidence suggest that sellers are willing to pay for services that demonstrably add value. For example, even if credit card processing fees are eliminated, sellers may not adopt the service unless it addresses their core pain points. Aida’s budding success illustrates that sellers are more concerned with how a service can help them grow their business rather than its cost. Sellers are ready to invest in solutions that drive sales, emphasizing the need for value over cost savings.

Conclusion

Solo social sellers are a dynamic and growing segment of the global economy, particularly in regions like Latin America. The pandemic has accelerated their growth, with social media platforms playing a crucial role. Companies like Aida are pioneering AI-driven solutions to address the unique challenges faced by these sellers, focusing on sales efficiency and user-friendly experiences. By debunking common myths about taxation and the necessity of free services, Aida demonstrates that solo sellers prioritize value and ease of use over cost concerns. As this sector continues to evolve, the focus will likely remain on enhancing the digital tools and platforms that empower these entrepreneurs to thrive.

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Fernanda Landgraf Consultant

Fernanda Landgraf has over 8 years of experience in payments and market intelligence, with strong expertise across Latin America and a global perspective on the payments ecosystem.

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