E-commerce revenues in Argentina have increased by over 48 percent in 2010 to USD 1.9 billion, according to a report by the Argentinean E-commerce Chamber (CACE). The growth was mainly due to the increasing Internet customer base, which reached 26.5 million users at end-2010. The study also shows that around 32 percent of Argentina’s Internet user-base make online purchases. The report forecasts that Argentina’s e-commerce sector revenues will grow by nearly 43 percent this year to USD 2.7 billion.
, along with Venezuela were the markets which achieved the strongest Internet retailing growth in 2010, reaching almost 40 percent in current terms.
Argentina was also the fastest growing market historically, posting over a 57 percent CAGR between 2005 and 2010.
Rapid growth of Internet usage is one of the reasons behind the sustained growth in Argentina, another reason being that consumers are using the Internet to shop for better prices. The current economic situation is helping as “people are turning to shopping online because it is a ‘rational buy’ which avoids temptation.
The most successful Internet sites are those of store-based retailers, which already benefit from consumer confidence. Pure e-commerce companies are few and far between, have not yet found a successful way to reach consumers and depend mainly on word of mouth. Retailers need to look at how they can use social media, which is increasing their number of users significantly in Argentina.
Source: Source: http://goo.gl/inRIJ