Shipping within Chile

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devnull
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Shipping within Chile

Post by devnull » Sat Mar 07, 2015 8:33 pm

You know how the Intrawebz had made the world a smaller place, where even micro producers can set either their own Internet presence or leverage a eCommerce portal, and from the comfort of their local boonies they can reach customers on the cities via the postal service? Are people doing this in Chile or is this an alien concept?

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marti
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Re: Shipping within Chile

Post by marti » Sat Mar 07, 2015 8:47 pm

...
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devnull
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Re: Shipping within Chile

Post by devnull » Sat Mar 07, 2015 10:35 pm

Nothing firm, I'm mostly curious to know como se bate el cobre en chile when it comes to this sort of stuff. One day I want to retire and do the whole farm bit, which is a lot more profitable if you can access the end consumer directly. My first language is Spanish, and part of my IT career has been as a web administrator. I can stand up an eCommerce site between breakfast and lunch.

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eeuunikkeiexpat
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Re: Shipping within Chile

Post by eeuunikkeiexpat » Sun Mar 08, 2015 2:14 am

All hypothetical musings unless your ass is actually here analyzing the situation and then doing it and making adjustments in real time to beat the competition or abandoning the original plan for a new and improved modified plan numero 4. And as this is Chile, there are unknowns that will make or break you again in real time. And there is an element of chance or luck, but again, this is Chile not the USA, not Puerto Rico, etc. If you don't GET that fact, you are toast. An aside, your IT skills probably is your advantage in backwards Chile but it not tempered with Chile common sense ultimately worthless as the long list of extranjero failures can attest.
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devnull
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Re: Shipping within Chile

Post by devnull » Sun Mar 08, 2015 3:46 am

Which is why I wanted to post here so I could get a feel for the reality of the situation. When I finally do the jump it will be primarily on retirement income, monetizing the hobby farm is just to add extra funds for adventuring around. All I know for sure is that I'll be too far south for yupies to get to me on a regular basis so I would need to figure out a way to reach their wallets :mrgreen:

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Re: Shipping within Chile

Post by GJJIM » Sun Mar 08, 2015 11:55 am

Your e-commerce mind is living in Santa Clara, CA. Chile's delivery infrastructure operates like someone living in Animas, NM.

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lotn
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Re: Shipping within Chile

Post by lotn » Sun Mar 08, 2015 2:38 pm

Devnull, may I ask more specifically what you will be selling from your hobby farm? Could give better advice if we knew more what we were talking about exactly, especially here in this land of abundant cultural fine print.

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marti
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Re: Shipping within Chile

Post by marti » Sun Mar 08, 2015 2:54 pm

...
La mitad de eficaz. El doble de caro. El triple de complicado. Un país de cuarto.

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eeuunikkeiexpat
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Re: Shipping within Chile

Post by eeuunikkeiexpat » Sun Mar 08, 2015 5:26 pm

GJJIM wrote:Your e-commerce mind is living in Santa Clara, CA. Chile's delivery infrastructure operates like someone living in Animas, NM.
Actually Tur-Bus Cargo, Chilexpress and even Correos do an adequate job in moving things domestically 99% of the time. But OP needs to tell what they are moving as it may be something that the above three do not accept for encomiendas.
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devnull
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Re: Shipping within Chile

Post by devnull » Sun Mar 08, 2015 11:29 pm

Guys, as stated this is just early musings, I still have years before retirement. The answers are already helpful, I just browsed the pages of Tur-Bus and ChileExpress which have a lot of information I can add to my notebook.

I don't know which type of hobby farm it will end up being. It depends on what is there and what my sensibilities may be at that point. Keep in mind that a hobby farm is exactly what the name implies, a hobby. It may make some money, but unlike a business that you either produce or die it will run mostly on my retirement income.

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Re: Shipping within Chile

Post by admin » Mon Mar 09, 2015 9:46 am

ok, I seem to give my lesson in Chile market analysis 101 at least once a year on the forum, and constantly on phone and in meetings when someone asks me if their business idea will work in Chile. I should just formalize this and post it to the wiki, so I can just link to it every time someone says, "I have this idea to sell x. Do you think it will work?"

The point of this exercise is to eliminate immediately all the ideas that foreigners might have that would be shoving a large round foreign products or services, in to the very small square hole that is the Chilean market. It comes from years of watching foreigners trying to do exactly that. I found myself asking why this business or that business idea failed in Chile, while others worked, after watching hundreds of foreign businesses, big and small, fail in Chile. Fortune 500 companies do it, and tiny mom and pop operations do it. Companies that have made it big, expanding in to almost every market on earth have done it. They all seem to misread the Chilean market. Chile is not China. Chile is not the United States. Chile is not Argentina, Mexico, Brazil, and so on.

So, any time someone pitches any business idea to me in Chile I perform the following thought experiment to see how viable it is, before wasting any other time researching anything else. I use it myself, when I have what I think on the surface is a good idea, to test if it is even worth giving any further thought to. We will look at the internet, but this will work with just about anything in Chile, with minor modifications.

First start with the population of Chile. Say, 17 million people and change. This is the key. You need to fully grasp, just how small a market this is. It is the size of good size city anywhere else in the World. If you can not wrap your head around the real population size of Chile, you already are in trouble. Whom among those 17 million people actually participate in a significant way, is what this test is about. Determining who is really in the game is the name of the game.

Now, for internet products, imagine how many people in Chile use the internet at all. Let's say half, just for simplicity. 8.5 million people, mas o menos. That is anyone that has used the internet more than a couple of times. You will be shocked to find, just how shallow the internet use is in Chile. Even "web designers" in Chile, often lack real understanding of how the internet works or how e-commerce works. It is why you still see company trucks in Chile, with a yahoo or gmail account printed on the side of their trucks or other places you would normally have a company domain name.

Now, subtract anyone that is not a "real" internet user. That would be all the people with just a facebook page, a twitter account, and so on, but really don't know much more beyond that. People that would not be able to make an internet purchase on their own, and / or do not trust the internet sufficiently to make an internet purchase. That would be about half that number above, to be generous here.

Now, subtract from that number anyone without a credit card or money. Basically, this eliminates anyone under 18, and anyone that makes minimum wage, but still uses the internet. We are now down to about 1 million people, likely less, with the disposable income and ability to purchase online. Most of the real internet users in Chile are under 18, but not eligible to have credit cards. People that do not have sufficient income, can not get checking accounts, so can not get credit cards. It is a bit more complicated than that, but let's just say the banking system keeps a big boot on the development of any real e-commerce in Chile (ever).

Now, how many, of the over 18 year olds, have credit cards, money, known how to use the internet, and are in need of your blue widgets?

Now, how many of those are inclined to buy your blue widget vs. someone else's red widget?

Now, given that very small number, can you sell your blue widget for a sufficiently high price to keep from starving, let alone stay in business, let alone make a profit? If the answer is, yes, continue on to crunching more specific numbers, do some research, and test, test, test, test. Otherwise, start at the top again with another idea.

So, you basically need to be able to sell really expensive blue widgets to handful of buyers, or a lot of really cheap blue widgets to a lot of buyers. There is not a lot of buyers in Chile, no matter how you slice the internet pie. There simply is not. Not now, likely not ever. So, you will need sell a blue widget that is very expensive to make it fly.
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Re: Shipping within Chile

Post by passport » Mon Mar 09, 2015 10:28 am

I still want to know why prepaid credit cards have not shown up in Chile. That would solve one of big obstacles to retail e-commerce. Now THERE is a an idea worth promoting.

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