Argentina E-commerce Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

Argentina's E-commerce Market is expected to grow at a CAGR of 20.69 % from 2022 to 2027. Carrefour is the largest player in the Argentine e-commerce Market. In 2021, the store made $286 million in revenue. It is followed by adidas.com.ar, which has a revenue of US$250 million, and Walmart.com.ar, which has a revenue of US$193 million. The top three stores account for 10% of all online revenue in Argentina.

Key Highlights

• In the next four years, the Argentine market is expected to be one of the fastest-growing. Because of the increased use of mobile devices and the consumer characteristics of this country, companies looking to invest in Latin America find Argentina to be a promising and effective scenario for competing in global e-commerce.
• MercadoLibre, a Buenos Aires-based online marketplace, is also boosting e-commerce in Argentina. According to eMarketer, MercadoLibre is to Latin America what "Amazon is to the United States" or "Alibaba is to China." The platform has over 267 million registered users, the majority of whom are from Latin America. In 2019, MercadoLibre generated nearly $2.3 billion in net revenue, a 60% increase over the previous year. Argentina contributed $456 million.
• There are many strong reasons to target Argentina with e-commerce; the market is still progressing and not without barriers. It has an unstable economy and a high inflation rate, which has reduced Argentine consumers' purchasing power.
• Argentina faces an uncertain situation between 2020 and 2021 due to the COVID-19-driven fintech boom. The country has had some success with digital banking, such as the digital wallet MODO or the Estrategia Nacional de Inclusión Financiera (ENIF, as the Spanish-language acronym suggests).
• 90% of online Argentine adults (18.3 million people) have made at least one purchase. Argentina's e-commerce increased by 124% in 2020 after rising by 76% in 2019, with growth likely to continue in 2021 due to the extended quarantine imposed for the COVID-19 pandemic.

Key Market Trends

Argentina E-commerce Market

• The main reasons that a shopper buys online are related to the user experience, the ability to buy at any time and have the products delivered to their home, and having lower prices or discount codes compared to the physical stores.
• Argentina has the highest percentage of internet users in Latin America. One major reason for this is Argentina's high rate of mobile device use. Almost 60% of the Argentine population uses a mobile device to access the internet.
• In Argent%ina, credit cards are used for the vast majority of online purchases. According to CACE, 78% of e-commerce purchases were made with a credit card, either by a payment platform (56%), a payment gateway (21%), or in-store (1% ).
• Credit cards remain the preferred payment method in Argentina's e-commerce market due to an increase in digital wallets. While one out of every four transactions will be paid for with digital wallets by 2021, this method is expected to be Argentina's fastest-growing online payment method.
• Mobile commerce is rapidly expanding in Argentina. According to eMarketer, mobile e-commerce sales increased by 45% between 2017 and 2018. Further, some Argentina retailers have been slow to launch mobile-friendly web pages. As a result, desktop and laptop computers remain the preferred devices for Argentine online shoppers.

Competitive Landscape

Carrefour is the largest player in the Argentine e-commerce Market. In 2021, the store made $286 million in revenue. It is followed by adidas.com.ar, which has a revenue of US$250 million, and Walmart.com.ar, which has a revenue of US$193 million. The top three stores account for 10% of all online revenue in Argentina. Argentina is the 29th largest e-commerce market, with an income of $7 billion in 2021, ahead of Finland and behind Belgium. Electronics and media is Argentina's largest segment, accounting for 30% of total e-commerce revenue. This is followed by Fashion with 25%, Furniture & Appliances with 16%, Toys, Hobby & DIY with 16%, and Food & Personal Care with the remaining 12%.

May 2022- Amazon announced that customers in Argentina could access Amazon Music Unlimited, the platform's whole music subscription tier, which includes unlimited access to Amazon Music's library of HD and ultra-HD music, totaling 90 million tracks. The launch of Amazon Music Argentina follows the November 10, 2021, launch of Amazon Music in Colombia and Chile.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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