Dropshipping in Argentina is a business model that many consider ideal to start selling. It has many advantages but also issues that need to be considered in detail. We prepared this guide to go through all the relevant points of the topic. Let us begin!
Some people do not know this method of sale and it is interesting to be aware of its operation. If you are thinking of starting a business, this may be the one for you.
But what is dropshipping? It is said that it is a business that you can start without an initial investment, that the amount of time you can choose to dedicate to it is very flexible and where you only contribute money when a buyer pays you.
We are going to see how much truth there is in these points and, in any case, how to build and sustain a dropshipping store in Argentina.
What is dropshipping?
The consists of the sale of products that stores do not have in stock. These offer items that they buy from external suppliers once they receive the order and it is these who send it directly to the customer.
This is why we talk about the sale of products without inventory, because the merchandise itself never passes through the store.
Those who do dropshipping in Argentina take care to offer products that they know they can get by working with reliable suppliers. These guarantee not only their availability, but also their care in the shipping process.
This business model is based on the intermediary relationship that the store adopts between the customer and the dropshipping provider. Did you know that you can design a free sales website with Tiendanube and implement this modality?
How does dropshipping work?
Within , dropshipping is one of the most interesting modalities. The fact of managing the purchase and shipment of products of all kinds without the need to have a warehouse to store them, is a distinctive feature.
Now, let’s go into a little more detail to see how dropshipping works in Argentina.
The first thing is that the customer makes the purchase of a product and pays the dropshipping store its retail price, for example, $1,000. At this point the e-commerce site contacts the vendor or manufacturer and purchases it for its wholesale price of $800.
In that transaction, the store includes the data of the end customer so that the dropshipping provider sends the item directly to the consumer. This closes and completes the circle of the transaction.
Basically, the economic revenue of the Argentina dropshipping store is based on the difference between the wholesale and retail price. But it is not all because the modality brings with it some advantages that allow lowering other costs and making it even more profitable.
One of the most distinctive characteristics of this business model is that it does not imply an initial investment in products to have in stock and/or a warehouse to store them. Thus, all the attention of the dropshipper must be focused on the management and optimization of the circuit.
On the customer side, this system has the advantage that it is the dropshipping store in Argentina that previously took care of curating the suppliers to purchase the product.
Advantages of dropshipping in Argentina
You may have heard that dropshipping in Argentina is more complex than in other countries.
Beyond the restrictions, it is a business model that can be sustained and work well. On the other hand, you can also start working only with dropshipping suppliers from Argentina, to test the modality and gradually scale.
We are going to know all the advantages that dropshipping includes.
You do not have to store or manage stock
Both acquiring an inventory of products to sell and storing, managing and replenishing it involve work, time and money. The dropshipping differential that is selling without any allows you to get rid of these points.
Instead of acquiring the inventory, before starting your business you will have to focus on getting the best dropshipping providers that can guarantee a good service.
Initial investment is low
In others, for example, the highest percentage of investment lies in the purchase of stock to have products to offer. Doing dropshipping in Argentina you “skip” this step and the initial investment becomes very low.
For example, with Tiendanube you can for 30 days. Then, you access plans starting at $599 to maintain your e-commerce site and boost your business.
You can choose or modify the product to sell more easily
For the initial moment, you can freely select the product you want to market, without having to consider issues such as space or storage conditions or preparation of the product.
Similarly, by not committing to a particular inventory, it is easier to modify the business if desired or necessary.
Those who dropship in Argentina can try new markets, either because the current product is not selling as expected or simply to broaden their experience.
flexible location
By dropshipping you can set up an online business from anywhere in the world, even . As long as you can communicate smoothly with suppliers and customers, you are free to locate yourself.
Low fixed costs and little equipment required
Many dropshipping businesses are run from their owners’ homes, where they don’t need much more technical equipment than a computer with an internet connection.
Not needing an office or work place, for example, significantly reduces fixed costs and simplifies remote work.
Do dropshipping with Tiendanube!
Sales anywhere in the world
Since it is handled by the dropshipping provider in Argentina, the shipping process for the store itself is simplified.
You have flexibility to set prices
Once you have your business ready, that is, you have analyzed what product will be profitable to sell, what target audience you are going to target and what your main commercial strategies will be to be successful, it is time to set prices.
All these points can be adapted and improved over time. In that sense, dropshipping in Argentina gives you a lot of flexibility to adjust prices and maintain the financial health of your business.
Disadvantages of dropshipping in Argentina
To go deeper and go through all the relevant topics around dropshipping, we are going to tell you what the disadvantages of this business model can be.
Times and delivery times
The flip side of not being in charge of logistics management takes away your power of action in that area.
Here it is necessary to reinforce the idea that choosing the correct dropshipping supplier in Argentina is directly linked to the fact that he is the one who guarantees that deliveries are made in a timely manner.
In addition to this point, it is worth mentioning that, with the growth of e-commerce at a global and regional level, many users are used to receiving their products shortly after making the purchase.
In this sense, dropshipping sales usually take a few weeks, mainly if the transactions involve the items being imported.
Import and export procedures
Customs procedures are a factor that is important to consider. It is possible that inconveniences arise when entering a product from abroad. At this point, we recommend you get in-depth advice from a specialist on the subject to carry it out.
It is also appropriate to say that, in many cases, it is likely that it is the customer who must take care of some formality at customs, for example, providing information about the package.
This is a facility for the dropshipping store in Argentina but our advice is that you clarify during the purchase process that this option exists. This way you will provide a more than satisfactory shopping experience and it is likely that they will recommend your business and make a purchase again.
Security in logistics companies
This is a rather particular point about dropshipping in Argentina. There are cases in which packages can be opened by mail systems, which can compromise the security of shipments.
To avoid this, it is usually recommended to work with private logistics companies with DHL or UPS, or to work with insured shipments.
Is it legal to dropship?
Yes, dropshipping in Argentina is legal. This is one of the modalities regulated by tax laws.
In this section we tell you about the legal framework to start this project. The requirements to sell through dropshipping are:
- Be registered as a monotributista or responsible registered in AFIP (Federal Administration of Public Revenues).
The first figure brings together the , earnings, gross income, retirement contributions and social work in a fixed monthly fee. The value of it will depend on the category in which you sign up for the .
People who exceed the amounts of the categories mentioned, correspond to the second figure. Registered managers pay VAT, profits and the self-employment regime. - Demonstration of form 960 that allows to know the fiscal information of all businesses. This interactive form consists of a QR code that must be visible on your .
The requirements to sell online through dropshipping coincide with those of any business.
Do you want to delve into the subject?
Article
How to dropship in Argentina
1. Find a niche market
One of the first steps to starting an online business, as well as one of dropshipping, is to look for a profitable and strategic niche market.
You can choose this item based on personal tastes or interests, but it is important that you analyze if it is actually going to bring you profit. In addition, it is advisable to have a differential that makes your brand stand out above others.
There are some questions you can ask yourself to have this clearer and design better strategies:
- What point will your business have in relation to the competition?
- Why should customers choose to buy from your dropshipping store over others?
- Are you going to get better products, more affordable prices, provide better service or lead a market niche that no one is taking advantage of today?
2. Choose the product to sell
Once you have the market sector with which you are going to work, it is time to define the product to be marketed. This is a process that goes hand in hand with considering the manufacturer you will be working with.
Even so, we believe that it is preferable to first choose your market niche and product, and then move on to consider dropshipping providers in Argentina or another part of the world.
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