Business

Third VAT-free day in Colombia: Marketplaces surpass 1,000% sales growth

The Colombian government's decision to sell electronic appliances only digitally leveraged the sales performance of e-commerce firms such as Mercado Libre and Linio

Mercado Libre was one of the major players to take advantage of the third VAT-free day in Colombia
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  • The third VAT-free day in Colombia took place this Saturday, November 21. Previous dates were July 3 and June 19;
  • In this edition, the Colombian government decided to sell electronic appliances only through e-commerce stores;
  • According to the National Trade Federation of Colombia, Fenalco, sales will exceed $ 5 billion

The third VAT-free day in Colombia, which took place this Saturday, reached the same sales level as the past date held on July 3, according to a survey conducted with some retailers in Bogotá and other cities in the country and reported by La República newspaper.

According to a preliminary report that the National Trade Federation of Colombia, Fenalco, had access, around 10 a.m of this Saturday there was a 111% growth in sales with electronic invoicing, compared to the same time of the previous VAT-free days.

The Electronic Chamber of Commerce indicated in its official report at 10 a.m. a 25% growth in sales through electronic platforms, compared to the previous date.

“Compared to a normal November sales day in the first hours, it represents a growth of 300%. Versus the first VAT-free day, at the same time, a growth of 105% in sales, and vs. the second day, at the same time, 10% growth in sales,” said Carlos Fajardo, PayU Latam marketing manager.

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As indicated by the payment gateway, on the third VAT-free date, the first hours of the day recorded more than $ 40 million in accumulated sales, more than 242,000 transactions, and an average ticket of $ 167.

“Without a doubt, Colombians are taking advantage of the discounts that commerce, in general, is making. Some of the main protagonists of the day are the large chain stores with more than 70% of total sales,” he added.

E-commerce only

The Colombian government’s decision to sell electronic appliances only digitally leveraged the sales performance of e-commerce and large marketplaces such as Mercado Libre and Linio.

It is expected that the third shopping date will show better figures than the previous days as, according to Fenalco, sales will exceed $ 5 billion. This is also due to other shopping campaigns in development called Madrúgale a la Navidad (Get up to Christmas) and Compra lo nuestro (Buy from us), which seek to transfer the Christmas purchases to the last week of November.

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Andrés Robatel, Linio’s country manager, told the media outlet that, during the two previous days, the company exceeded up to 30 times the sales of a normal day in several of the categories and, in the second day without VAT, achieved a growth of more than 1,600% compared to other dates of the year, after the relevance given to the purchases of appliances and technology through e-commerce.

For Mercado Libre, on the first and second VAT-free days, 1,000% sales growth was registered; and during this last date, the e-commerce giant expects growth to exceed the first days.

The platform foresees to register an increase in new buyers very similar to the one that occurred during the past days, which remained at a growth of between 100% and 160% compared to a normal day. On this last date, the projection of users entering Mercado Libre is 250% more.

Mercado Libre seeks to register an increase of new buyers very similar to the one that was presented during the past dates, which remained at a growth of between 100% and 160% compared to a normal day. On this third VAT-free day, the forecast is to attract 250% more e-commerce newcomers.