We're tired of hearing that e-commerce is expanding its reach and driving business growth. But it's an undeniable truth. So, understanding how to start an online business in Chile is crucial to your success.
As you probably already know, online businesses have many advantages. But at Hispanos Emprendedores, we believe that reminding you of these advantages is key to helping you take the plunge if you're not yet fully convinced.
Selling online allows us to enter new markets and customers, being available 24 hours a day. In addition, to offer a wide range of products and publicize the characteristics of each one. Segment and direct information to our target audience. Having a presence in several channels today is essential for the entrepreneur.
Likewise, you have the option of improving your presence on social networks by linking your store's stock to the Facebook and Instagram catalogues.
Importance of SEO
Try to have your eCommerce platform optimized for SEO (organic positioning). Friendly usability, high speed, automation and good support.
This is a sector with great projection in Chile due to its marked growth in recent years. Until February of this year, some 12,5 million users have purchased online.
According to the Digital 2022 study, 7.64 billion dollars have been raised. It has had a 36.2% penetration of smart devices in this market. For its part, BlackSip determined that 63% of Chileans already buy in eCommerce, ranking 31st in the world, which confirms its potential. It projects that by 2025 it will grow 11% to reach 13 million consumers.
How to open an online business in Chile
The first step to starting an online business is defining your target market. Analyze your ideas to choose one that meets all the requirements and is viable. There are many profitable online businesses in Chile.
Then choose which platform you will base your project on. Having a website is vital for the development of an electronic commerce. In case you do not have the resources to hire an expert, try renowned providers such as: Tienda Nube, Shopify and Webnode. Likewise, Jumpseller, SITE123, Wix, WooCommerce and Magento are recommended.
The next step is to register your company to sell in Chile. You can do this through the Ministry of Economy's website, www.tuempresaenundia.cl . Since September 2021, the Ministry has published the Electronic Commerce Regulations to ensure transparency for consumers.
In the portal you choose the legal form under which the business will work and obtain the Unique Tax Role (RUT). This document is essential to operate, declare income and taxes and make invoices.
What legal figure suits you?
The most popular legal figures are the individual limited liability company in case you do not have partners. In addition, a limited liability company if you have shareholders and a joint-stock company that makes it easier to add partners.
Likewise, you have to process the signature before a notary, signature of deeds, publication in the Official Gazette. As well as requesting the patent and the permits required by the Internal Revenue Service.
All the expenses of this process would amount to $330.000 and it takes about 130 business days. It should be noted that they do not ask for a minimum capital to legalize the company, but it is recommended that the expenses generated in the registration and the first months after the launch be covered.
Another requirement to open an online business is to create a website to make it work, buy a .com domain and hire a hosting service. In this way it will be identified as a company. Make sure that the company that provides the service offers enough space apart from optimal loading speed and technical support.
Do not forget to install an SSL certificate to guarantee your security and that of the client. With this you can register and make payments safely. When the site does not have it, an alert appears indicating that the url is not protected, which can scare the user away.
Create a section in which you explain the company's policy on the conditions of purchase, dispatch, returns, payment methods, etc. Work in an attractive, clear design with adequate usability.
Plan the logistics for deliveries. Have a vehicle or motorcycle to take them yourself or simply opt for an alliance with a delivery company. Accompany the start of sales with promotion on social networks and investment in paid advertising.
Tax obligations of the online business in Chile
In Chile, all businesses are required to pay taxes, which is why they must issue invoices and include the VAT amount. This must be declared monthly and paid to the Internal Revenue Service (SII ). Payment can be made in person or through the agency's website.
It is best to hire a tax advisor. Also, there is the tax called Marketplace. They charge it to businesses that operate in Chile, but are domiciled in the country. In other words, from abroad they use the territory to provide services on digital platforms.
Dropshipping in Chile
If your intention is to go further and cover markets outside of Chile, it is a good idea to dedicate yourself to Dropshipping. With this business model you will reach other countries and clients if you do it from Chile with international markets. Take advantage of the fact that in the country you can use worldwide known payment gateways such as PayPal and 2Checkout to expand your business.
While you implement it in the country with international suppliers, the client must pay a 6% tax if the product has a value greater than $30. In addition to this, VAT is charged.
Dropshipping with a local supplier is also possible. For example, a craft is sold in your online store, then said supplier will receive the payment and the shipping cost. You keep the profit as in the other cases.
An online store requires a lot of dedication. So if you want to learn more about it, we invite you to read our article, "What are digital businesses and how to start them."
