Although the development of e-commerce in Argentina is not as good as that in Brazil and Mexico, it has demonstrated its strong vitality and development potential through its momentum of growth against the wind.
In the past few years of economic difficulties and policy adjustments, Argentina’s real economy has suffered a significant setback, and the consumption of ordinary goods has fallen by 5%. Against this background, the e-commerce business has always maintained a high growth trend. Argentina’s e-commerce has achieved an annual growth rate of 28%, which can be said to be “a unique one” in a period of weak overall economic growth. Now, with policies leaning towards business, Argentina’s e-commerce industry has also ushered in an opportunity for rebound, becoming one of the countries with the most development potential in the Latin American e-commerce market.
Located in the southeast of South America, Argentina is the third largest economy in Latin America. Its citizens have a high level of education, with a literacy rate of 98%, and have a larger middle class than other Latin American countries. The total population is about 44.49 million, of which 37% are concentrated in the capital Buenos Aires. The number of Internet users nationwide is 41.59 million, with a penetration rate of 93%. The number of mobile users is 38.47 million, with a penetration rate of 86%.
MercadoLibre, the largest e-commerce website in Latin America, was born in Argentina. Argentina is currently the fastest growing e-commerce market in Latin America, with an annual growth rate of 28%.
1. Enthusiasm for online shopping
It is estimated that by 2021, there will be as many as 20 million online shoppers in Argentina. Compared with other Latin American countries, Argentina’s main consumers are concentrated in the 25-34 age group with stable income. Argentines love online shopping. Chinese online stores are particularly popular among young Argentine consumers because of their rich products, low prices, and frequent home delivery and free shipping services. On some Argentine websites and forums, you can also see tutorial posts such as “How to shop on Chinese websites.”
2. Diverse payment methods
The main payment methods for e-commerce in Argentina include cash payment, online bank transfer and credit card payment.
(1) Cash payment
(2) Online bank transfer
(3) Credit card
3. Relatively friendly new cross-border e-commerce policies
In Argentina and many Latin American countries, due to the weak light industrial base, the prices of many mass consumer goods are generally high. Products made in China are cost-effective and often become the first choice of the public. Previously, considering the serious loss of foreign exchange, in order to strike a balance between the loss of foreign exchange and the quality of life of the people, Argentina introduced a new policy for cross-border e-commerce, which is roughly as follows:
(1) People can buy 5 products from abroad each year, with a maximum limit of US$999 per product;
(2) The same product with a total weight of less than 50 kilograms shall not exceed 3 pieces;
(3) The purpose of importing goods is not for resale.
Seeing this policy, many people may think that Argentina’s cross-border e-commerce policy is tightening, which may have an adverse impact on the export cross-border e-commerce business of Chinese sellers.
In fact, Argentina’s previous policy was more stringent. Argentine Customs once stipulated:
(1) Since the beginning of 2014, people will no longer enjoy door-to-door postal delivery service for goods purchased through overseas e-commerce platforms after entering the country. These goods will be collected at the customs office and picked up by consumers. In addition, consumers must sign a declaration form when picking up goods at the customs to facilitate import tax statistics.
(2) Each person can only make two overseas online purchases per year. If the annual purchase amount exceeds US$25, a 50% tariff shall be paid on the excess amount.
Obviously, compared with the previous “two purchases limit” and “US$25 limit”, Argentina’s new policy has relaxed restrictions on mass cross-border online shopping. This is good news for Chinese export cross-border e-commerce sellers!