Why is e-commerce in Argentina booming? What are the business opportunities in this industry? In this article, we’re going to have a close look at this growing sector of Argentina’s economy. There is plenty of room for the sector to grow rapidly and rival other nations.
With Alibaba operating mainly in Asia and Amazon operating worldwide, one may question why e-commerce in Argentina is not yet properly developed. There are many reasons for this, but this is changing rapidly. Indeed, this may be a great moment to consider company formation in Argentina.
Biz Latin Hub can help you with that, as we are local experts, not only in e-commerce in Argentina, but any other field as well. Our array of back office services is designed to help you from initial forays into the market through ongoing compliancy and even up to eventual liquidation if necessary. Not just that, but our network of 18 regional offices means we can help you anywhere in Latin America and the Caribbean.
The e-Commerce Industry In Argentina
The CyberMonday of at the beginning of November in Argentina stresses the relevance of this topic. The ‘BlackFriday of the web’ on the 1st of November gathered 1.1 million nationals as the website offered breathtaking discounts. At its busiest time, 50 thousand people were connected simultaneously, and a huge amount of transactions were made.
According to Worldpay’s research, e-commerce in Latin America is growing fast, rising to US$118 billion in 2021. This is the biggest increase of any region in the world so far. This same research shows that the 3 countries where e-commerce is growing the fastest are Argentina, Colombia and Nigeria.
And this increase was confirmed by the Argentinian Chamber of Electronic Commerce which calculated that there was an increase of 51% in e-commerce transactions in just 2016. And despite its difficult economic past, Argentina has a real chance to succeed in this sector.
Furthermore, Argentina is the country which has the most smartphone users in Latin America, which also makes it possible for m-commerce to increase accordingly.
Effort to Boost e-Commerce Transactions
If Argentina wants to keep up with the growing e-commerce industry, it has a few challenges to face. The real problem which is necessary to solve is that of user trust.
Indeed, many Argentinians don’t fully trust buying online and prefer to buy at their local stores. And they aren’t completely wrong, as Argentinian e-commerce still needs more investment in innovation for it to be as reliable and efficient as it is in other countries.
When they first set off CyberMonday in Argentina, the objective was exactly that, to invite new users on the web for them to make the most of the breathtaking offers. And it worked. During the first CyberMonday, every 10 seconds a smartphone was sold.
Business Opportunities In Argentinian e-Commerce:
As the e-commerce is growing exponentially in Argentina, there is a whole wealth of opportunities for keen investors. As we mentioned previously, better logistics are needed for the e-commerce to function properly.
These e-commerce platforms will need foreign digital expertise for their websites to make them safer for users, especially when it comes to billing and money transactions. This will only have a positive effect on demand as more and more Argentinians will gain trust in its use.
The increasing use of e-commerce in Argentina also means that anyone anywhere can sell their merchandise in the whole of Argentina through an online shopping website.
These last are user-friendly and aren’t very costly. This offers great opportunities for companies that are seeking to cut down on costs as there will be no more need for physical stores anymore.
Biz Latin Hub can assist you with e-commerce in Argentina
If you’re just starting out or looking to expand, working with a local partner is essential to streamline the process of establishing your operations in Argentina. Don’t let the idea of paper work get in the way of realising your business ambtions!
We offer a range of market entry and back-office services to support your commercial success in Argentina. The Biz Latin Hub team is built of well-experienced, bilingual, and knowledgeable accountants and lawyers striving to offer premium service.
Our team of local and expatriate professionals offers responsive, tailored legal and accounting solutions in Colombia where procedures tend to be lengthy and complex. If you want to set up a company, then Biz Latin Hub can be your professional partner.
Reach out to our team of local experts for advice and comprehensive market services.
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