Argentina Ecommerce Table of Contents
Argentina is Latin America's third-largest economy, with a population of 45 million in 23 provinces and Buenos Aires, respectively. about 92% of the population of the province of Argentina is located in urban areas, while Buenos Aires has 38% and Cordoba, Rosario, and Mendoza another 15% of Argentina's population. The nation has skilled and qualified employees, but in the past 75 years, its people have experienced frequent political and economic instability.
Together with the two-year economic slowdown in Argentina, the COVID-19 pandemic has exacerbated the economic woes of the region. Argentina's GDP is now almost 12% falling in 2020, as predicted by the International Monetary Fund (IMF). Both hunger and inflation are above 40%. The official exchange rate decreased after 2017 from ~$1:AR$20 to ~$1:AR$80 and it is doubled by the unofficial 'blue' rate. In 2020, The Argentine government's has debt renegotiation deal with private bondholders gives some optimism that talks will proceed to reprocess another $45 billion owed to the IMF.
Under this recessionary situation, US exports goods from 9.91 billion dollars (2018) to 8.15 billion dollars decreased in Argentina (2019). Argentina's exports goods to the US grew marginally from 4.83 billion UDS (2018) to 4.92 billion UDS supported by a favorable exchange rate (2019). The US, however, maintained a considerable bilateral surplus of over US$3 billion in trade in commodities.
About 90% of U.S. products exports to Argentina, including refined oil and aviation, machines, commercial and agricultural chemicals, agricultural and transportation machinery, machine tools, and parts for petroleum field plants are used in local and agricultural industries. Argentina's main exports of oil, wine, fruit juices, and crude oil, aluminum, and medium-size items such as seamless tubes, and other iron-based products to the USA.
In Argentina, there are over 300 US businesses, some with more than 100 years of existence. In the fields of infrastructure, energy, wellness, manufacturing, information technology, mining, and agriculture the United States has substantial opportunities notwithstanding current macroeconomic challenges. With an investment value of around US$15.26 billion (stock) worth of assets, the USA is Argentina's biggest source of foreign investment. In Argentina, US businesses are highly known for sound market practices, transparency, social corporate social responsibilities, high quality, and good customer support.
Argentina has tremendous potential for further growth as a resource-rich region. The nation has the world's third-largest shale gas reserves and the world's fourth-largest shale oil and plenty of wind and solar power.
Argentina is the world's third-largest lithium manufacturer with ambitions to expand mining over the next decade. More than 70% of the proven lithium deposits in Argentina were not exploited.
The development of sectors such as agriculture, oil, and mines needs U.S. skills, technologies, and equipment.
With high internet connectivity and smartphone distribution, the country is technologically capable.
Since 2000, e-commerce activities have been increasing tenfold in peso. The third highest number after Brazil and Mexico in Latin America is over 37 million Internet users in Argentina. Argentina had 23 million urban families with access to computers and 75.9 percent of the Internet in 2019, according to the Argentine Chamber of Information and Communication (CICOMRA). Nine of every ten users use mobile phones and nine of every ten use the internet.
The extension of the network increases the availability of Wi-Fi in public and private areas. At least 90% of related Argentina adults (18.3 million people) have already at least once shopped online, as stated by the Argentine Chamber of Commerce (CACE). ECommerce in Argentina increased by 76% in 2019, and by 64% in 2018, with growth projected to be high, partly as a result of the extensive COVID-19 quarantine, by 2020. Credit cards were used by 78% of the total sales.
The number of goods available is more limited than in the province of Buenos Aires, with distribution service being a significant opportunity for orders. Online sales also increase. U.S. goods and services are generally offered on local importers' websites. In addition, MercadoLibre and OLX provide prominent eCommerce websites. October 2020 launching of new ' online shopping website called 'Compra Correo, was made by Argentina's official mailing service, Correo Argentino.
Social networking is also used as an efficient online sales channel in Argentina. As noted above, it should be noted by sellers that by December 2019, the Argentina government charged 30% of the 'PAIS' tax on overseas transactions, was charged in foreign currency including tourist facilities, streaming services (e.g. Netflix), or purchases outside Argentina with a loan and debit card. The Government added an extra 35% withholding income tax in September 2020 for sales of dollars or payments with foreign cards.
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