Although Argentina’s current situation – such as high inflation, sky-high interest rates and currency turbulence – may at first glance look daunting to international merchants, the country’s economy is on its way back to normality. Proof of this lies in the development of the Argentinian e-commerce segment.
The preference for e-commerce websites has increased among Argentinian consumers. The Argentine Chamber of Electronic Commerce (CACE) stated that, during the first half of 2018, there was a 59% rise in purchase orders compared to the same period of 2017.
In their annual report, the same organization informed that 90% of connected Argentinians bought something online in 2017. This represents 18.3 million consumers, which reflects an increasingly mature and reliable market.
According to the report released by Ipsos MORI in September 2018, at the request of PayPal:
This increase of international purchases is celebrated especially by merchants from the United States, the People’s Republic of China (PRC) and Chile who are very popular among Argentinian online consumers. Taking into account this same Ipsos MORI’s report, 23% of purchases are from websites of the United States; 16% are from the PRC and 6% from Chilean merchants.
According to Statista, about 70% of online consumers in Argentina stated that they had conducted online payments by credit card in 2017. Thus, it is important to partner with a payment aggregator such as BoaCompra to make sure that you are offering the option of paying with main local credit cards in several instalments.
“Learning that online consumers are more open to international websites is important, especially to arrange strategies to promote your brand in Argentina. Reaching a good pitch and offering the most appropriate payment options such as local credit cards and cash payments can bring a significant rise in sales”, explains BoaCompra’s Payment Manager, António Ortega.
The same study ordered by PayPal presents the most popular products bought by Argentinian consumers through international e-commerce websites and the main devices used for cross-border purchases.
With a buoyant economy, and with online buyers willing to buy from international merchants, the chances of boosting sales in the country look good for 2019.
Nevertheless, even for a country with a gross domestic product (GDP) of USD 637.59 billion, better price conditions are one of the main reasons why Argentinian consumers choose to buy through e-commerce websites.
In order to persuade these consumers to buy online, domestic and international merchants must consider offering:
Some caution and better practices, however, will be needed to increase sales in this LATAM market. E-shops that target the Argentinian online consumers should be aware that:
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