It is a small country of 4.2 million inhabitants, but its geographical position has allowed it to become an important strategic axis of logistics connectivity in Latam and to register one of the highest GDPs per capita in Latin America: $15,575, behind only Uruguay and Chile. This is Panama, which together with Costa Rica is also at the head of e-commerce in Central America, in addition thanks to its ICT infrastructures. Because, although e-commerce is here in the initial phase of development, it is estimated that its online sales will reach 270 million dollars in 2024, 41.1% compared to 2019.
But this low volume of digital purchases currently has an important peculiarity: the high participation of cross-border e-commerce. Specifically, 87.3% of Panamanians make their purchases on international websites, especially from the US, since there are hardly any local marketplaces or companies that sell online.
The importance of logistics in Panama
A context that offers numerous business opportunities to European and Latin American fashion and lifestyle companies since Panama’s important geostrategic influence for the continent has made it a centre of global trade with important links to the United States and Europe. Its economic growth, financial strength, legal guarantees and stability facilitate international trade and investment, attracting a multitude of multinationals from around the world, seeking to build regional sales operations or manufacturing centres.
Companies from different sectors that produce in China and Europe and seek to introduce their products in the USA and Latin America have found in Panama an important growth opportunity as a gateway to other countries.
Panama, due to its privileged geographical location thanks to the Panama Canal, the Free Trade Zones, the Tocumen International Airport, and its modern system of highways and freight trains, offers many hyperconnectivity options, and it is categorised as the second largest free trade zone in the world, with important tax benefits for companies that conduct import and export operations.
For this reason, Logisfashion has had a presence in Panama since 2015, with a hub in the north of the country, in the Colón Free Trade Zone, from where it carries out all kinds of operations, storage, stock management, value-added services or e-commerce logistics, as well as national and international transport and customs advice to support European companies in their internationalisation strategy.
Among the main benefits of a warehouse in a free trade zone are:
- 0% entry tax for export
- 0% departure tax
- 0% income tax (Exports)
- Logistics operations (VAS) in tax warehousing
Logisfashion Panama provides advice on foreign trade processes and the flexibility needed by brands that venture into cross-border online commerce, to locate their stocks there and distribute to the different markets according to demand, which results in better transit times and greater profitability and efficiency.
