Purchases on international websites grow 43% in Argentina
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.
The increase of cross-border e-commerce in Argentina
According to the report released by Ipsos MORI in September 2018, at the request of PayPal:
- 43% of digital buyers in the country bought something using cross-border transactions in the last 12 months;
- 35% of these buyers made purchases in domestic and international online shops;
- 8% of the interviewees stated that they buy exclusively from international websites.
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.
The importance of local payment options for online customers
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.
What and how are the Argentinian online consumers buying?
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.
Insights to gain the confidence of consumers in Argentina
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:
- Better prices;
- More options of products that are not available in the country;
- Better quality;
- Product authenticity.
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:
- High charges for taxes or tariffs in international websites may scare off some consumers;
- Not receiving the product in time – or not receiving it at all – is a big concern among consumers;
- Shipping rates can also be a problem;
- Long delivery deadlines scare anxious buyers, who would rather have the product in a shorter period of time.
Insights about the Argentinian market
If Argentina is your target to boost online sales, you might also be interested in these articles:
- How gamers are spending money in Brazil, Mexico, Turkey and Argentina
- The importance of cash payments in Argentina
- Digital Market: Argentina expects a growth of 24% until 2021