E-commerce in Argentina: Status of the Sector and Trends in 2023

During the pandemic, e-commerce reached unsuspected levels of growth. This growth is continuous in Argentina, and opportunities are seen on many fronts, especially in small and medium companies. However, challenges are also foreseen in the face of the consolidation of cybercrime and online scams. We will then see what the future of e-commerce in Argentina will be like.

As of June 19, Correo Argentino, Mandate’s advertising campaign, began to be projected throughout the country. The campaign targets small and medium companies and serves as a testimony to the state of online commerce in Argentina. Moreover, the campaign recognizes the proliferation of businesses, companies, and cooperatives dedicated to selling their products online. It also offers Correo Argentino’s shipping services as a reliable guarantee.

According to the ‘Cámara Argentina del Comercio Electrónico’ (CACE), virtual commerce in 2022 witnessed an impressive growth of 11% compared to the previous year, resulting in the sale of 422 million products across the country. Additionally, ‘CACE’ reported a remarkable 87% growth in the market during 2022, with a total turnover of approximately 2,846,000 million pesos.

The growth also brings a negative aspect: virtual scams surged by 200% compared to 2022, as reported by the Observatory of Cybercrime and Digital Evidence in Criminal Investigations of the Austral University (OCEDIC). Therefore, it’s crucial for online businesses to invest in fraud detection tools. These tools help monitor operations in real-time, detect suspicious elements in the background, and suspend them. Furthermore, these programs can be easily customized and automated, ensuring they do not complicate the task at hand. They offer accessibility and prove highly effective in combating e-commerce fraud.

Characteristics of e-commerce in Argentina

The significant growth of online commerce benefits both internal trade and local producers and consumers. For instance, businesses operating solely online, without physical stores, and utilizing their own or third-party shipping methods, experience rapid expansion. This approach reduces product costs and enhances accessibility for consumers.

According to Statista, the Argentine online market is expected to grow by 20% per year until 2025. This represents a higher rate than countries such as Russia, India, Mexico, or the United States. Additionally, Franco Radavero, the manager of Tiendanube (one of the largest platforms in the country), highlights specific advantages of the Argentine market, making it more competitive compared to other nations:

• The predominance of the Internet and its penetration in mobile telephony, smartphones, and computers.
• The prior logistical development and the wide range of distributors.
• The level of banking, financing, and the offer of online payment methods.

Conclusion

The proliferation of cybercrime and electronic commerce shows a strong connection, with 50% of companies now selling their products through virtual channels like online stores and marketplaces. However, most of these stores do not have security methods as sophisticated as those used by cybercriminals. Therefore, businesses themselves must adopt their own methods to avoid scams, fraud, and identity theft.