What are the advantages of cross-border selling through online marketplaces?
Cross-border eCommerce has witnessed exponential growth in Latin America over the last few years. According to AMI (Americas Market Intelligence), cross-border eCommerce revenue will expand by almost 45% in 2022 – nearly 10% higher than the domestic eCommerce market at 36%.
That is mainly due to the increasing popularity of online marketplaces. These powerful platforms allow thousands of merchants to access a broad network of loyal consumers without investing money in exposure or marketing.
If you are considering selling cross-border through digital marketplaces, we will show the most important advantages of these digital platforms. Furthermore, we will reveal how online store owners can start selling on Latin America’s marketplaces.
What is an online marketplace?
Simply put, online marketplaces are a type of eCommerce platform where several retailers offer their products to millions of customers. The role of marketplaces is to connect sellers and buyers, facilitating the buying process. Nowadays, most consumers prefer buying through marketplaces due to the product variety, plus the possibility to compare and filter items based on price, score, delivery time, etc. Examples of some largest marketplaces include Amazon, Mercado Libre, and Americanas, among many others.
The advantages of cross-border selling through online marketplaces
Undoubtedly, diversifying sales channels is a tremendous opportunity for cross-border sellers to increase their global GMV. By selling through multiple marketplaces, brands can reach a wider audience of shoppers, maximizing their sales.
Cut marketing costs
Most marketplaces have a high marketing power from which sellers can benefit. For a cross-border company that just entered the market, gaining exposure from local consumers is critical. In addition, most marketplaces also offer discounts and promotions on special dates to attract millions of customers.
Help you build trust
Most customers do not trust buying directly from online websites due to unreliable payment methods, lack of privacy, and bank fraud. The good news is that marketplaces enable merchants to build an online reputation and give new consumers the confidence to buy. Some marketplaces, like Mercado Libre, score sellers based on their sales performance and consumer satisfaction, which helps serious marketers differentiate themselves from their competitors.
Gain more traffic
Considering that marketplaces attract millions of daily visitors per day, the potential to drive traffic to your store is solid. In addition, marketplaces are optimized for search engines, which makes them – and your products- easily discoverable.
Another great advantage is that marketplaces operate round-the-clock. Consumers can search for and buy your products at any hour.
Is it worth selling cross-border in Latin America’s marketplaces?
The short answer is: yes, definitely.
Considering that Latin America is one of the fastest-growing economies in the world, it has become an incredibly attractive destination for millions of retailers.
Over the last decade, online marketplaces have led the electronic market in Latin America, representing over 78% of the total eCommerce share in countries like Brazil (Mansano, 2021). Unlike other regions which only have a dominant marketplace, Latin America is well known for its vast diversification of electronic platforms. According to Morgan Stanley, Latin America’s 8 largest platforms comprise over 52% of the region’s eCommerce share, while nearly the other half is divided into hundreds of sites.
Opportunities to maximize sales in Latin America are just around the corner. However, entering the market is not an easy task for some retailers. Most sellers encounter several challenges when they start planning to sell cross-border. For instance, dealing with customs, opening a legal entity, and taking care of cancellations and returns, could be the worst nightmare, and the biggest impediment to start selling crossborder in Latin America.
Start selling online in Latin America within 48 hs – without any entry barrier.
Expanding your eCommerce business to Latin America in under 48 hs is now possible. By partnering with nocnoc, you can access 15 marketplaces and sell to over 485 million consumers. No need for an initial investment.
It’s simple. All you need to do is to Sign Up and one of our specialists will get in contact.
No matter the size of your business. Once you upload your products to our Seller Center, they will be published in our mega-stores, gaining total visibility from day one.
Our local experts are committed to helping sellers increase their sales in Latin America. They understand the market and know how to target consumers with products they desire, at the correct prices, with successful marketing campaigns.
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