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The total, direct and indirect, effect of the Internet on commercial activity in Argentina is in the order of 18,1% of the national GDP, according to available data. Based on this premise as a trigger, CUSTOMS NEWS interviewed GUSTAVO SAMBUCETTI, Secretary of CACE (Argentine Chamber of Electronic Commerce) and Deputy Director of eCommerce at Walmart Argentina, to understand this commercial (r)evolution.
What is the current situation for e-commerce in Argentina?
The study conducted by the Argentine Chamber of Electronic Commerce, together with Prince Consulting, for 2013, reveals an e-commerce growth of 48.5%, reaching sales of 24.800 billion pesos (excluding VAT). 23.000 billion under the business-to-consumer (Business to consumer or B2C) modality and 1.800 billion in transactions between consumers (consumer to consumer or C2C).
Local and regional businesses continue to do a great job of meeting this demand and this has led to growth that exceeded expectations.
What is the reason for its growth and what is its relationship with traditional commerce?
Several elements have come together to achieve this impressive development. These include the continued growth of the total number of Internet users in the country, the sustained growth of the proportion of Internet users who make online purchases, the sharp increase in the variety of items, products and services, and an increase in the number of items offered online. In addition, mobile broadband connections have grown exponentially and there has been an increase in the confidence and perception of security of transactions by Internet users, as well as satisfaction with the operations carried out.
The top three perceived benefits of online shopping remain convenience for 54,9%, time savings for 28,0% and lower prices for 22,6%.
What aspects should be taken into account when entering into e-commerce??
The first point to consider is the role of e-commerce in the company's strategy, clearly defining what the objective is.
You should invest in a reliable platform that matches your brand image, offer secure payment methods, make delivery times and returns policy clear, and set up logistics when it comes to physical products. In addition, you should have a good online catalogue, give the customer the possibility of completing the transaction in a few clicks, and always have the shopping cart visible.
What are the most common mistakes made in e-commerce?
One of the most common mistakes is to think that just by creating an e-commerce website, customers will magically appear. A strategy must be created and resources allocated to communicate about the website and drive traffic to it.
Another is to minimize the physical aspects associated with the proposal, such as stock availability, logistics and distribution. Although the platform allows selling online, the promise must then be fulfilled.
Finally, many companies make the mistake of measuring the eCommerce business in the same way that a traditional business is measured, when they should do so with a set of specific variables.
Are there enough trained human resources to manage the business?
This activity employs highly qualified labour directly and indirectly, being a source of first employment or a source of entrepreneurship for many young professionals or qualified people. It is also estimated that between direct personnel employed by companies in this sector for this online sales activity and the staff of online retail resellers and related activities, sector employment is approximately 120.000 people, that is, 1,1% of the Economically Active Population.
However, the demand for resources is increasing and, as this is a relatively new activity, experienced resources are limited.
What impact do you imagine mobile wallets can have on e-commerce?
Prince Consulting's study reveals that during 2013 there was a significant increase in mobile broadband connections, reaching 16 million at the end of 2013. One of the challenges that is being raised is the integration of the mobile channel when it comes to companies offering a complete offer to all those who are willing to buy online. Some local companies have managed to channel 12% of their sales through the mobile platform and over time this channel will become one of the priorities of every company that does not want to be left out.
What is the outlook for the electronic market in 2014?
The expectation is to continue growing at a rate close to 50% in 2014, driven basically by the maturity of users (greater frequency of purchase) and the quality and quantity of the offer from both purely Internet companies and online business units of traditional retailers.
What is CyberMonday? How did it come about?
The term “CyberMonday” is a neologism invented by Shop.org, part of the National Retail Federation of the United States. It was first used within the e-commerce community during the 2005 Christmas season. In Argentina, it was created as an initiative of the partners of the Argentine Chamber of Electronic Commerce, which works to accelerate the growth of e-commerce in the country.
Companies that are members of the Argentine Chamber of Electronic Commerce are participating in Cyber Monday in Argentina, offering special discounts on products and services in a variety of areas. The purpose of this initiative is to offer, through online sales channels, offers and discounts so that customers start buying online or increase the number of purchases they make on the web each year. In this way, people are helped to advance their Christmas shopping with special discounts and continue to promote the growth of electronic commerce in the country.
When is the next CyberMonday?
This year will be the third consecutive year that CACE is promoting Cyber Monday and the scheduled date is Monday, December 1st.
In any case, this year CACE doubles the bet and presents the Argentina's First Hot Sale:The main retail companies and e-commerce sites associated with the Argentine Chamber of Electronic Commerce (CACE) will participate for the first time in the "Hot Sale", a 3-day initiative (May 16, 17 and 18) to buy online with discounts and outstanding offers.
With a format similar to Cyber Monday, this initiative will be one of the largest national online sales campaigns.
What variants should be taken into account when starting a business?
Understanding what my business is, where I want to go, knowing who my competitors are, knowing the sales cycles of my product and knowing how to communicate my product. On the other hand, it is extremely important to know what standard of shopping experience I want to provide, achieve quality visualization in my products and be able to receive all the demands of the users.
Gustavo Sambucetti's profile
- Deputy Director of eCommerce at Walmart Argentina
- Graduate in Business Administration from UCA, with postgraduate studies in Marketing at the University of San Andrés and General Management at IAE.
- He is currently Secretary of the CACE (Argentine Chamber of Electronic Commerce)
- In 2010 he was responsible for the development of the e-commerce site www.walmartonline.com.ar and is currently in charge of said business at Walmart Argentina.
- Previously he served as Marketing Manager at Temaikén and associate consultant at Ordóñez, Bianco Consultores.
- In 2000 he was Country Manager for Argentina of the group purchasing site, Agrupate.com.
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