Diversifying your cross-border eCommerce sales in Latin America
Latin America is a dynamic region consisting of 18 countries with unique cultures, traditions, and consumer preferences. Latin America is one of the world’s fastest-growing eCommerce markets, and it is well-known for being a multi-marketplace region. Each country has its own set of marketplaces that compete on a level playing field, making it a diverse and competitive landscape for retailers.
According to a recent study by Morgan Stanley, Latin America’s 8 largest eCommerce platforms account for 50% of the region’s eCommerce market share, while the remaining 50% is divided among various other platforms. This illustrates the importance of a strong sales channel diversification strategy for businesses seeking to enter the Latin American market.
Therefore, cross-border sellers who aim to achieve resilience in the Latin American eCommerce market must establish a robust sales channel diversification strategy.
Adopting a sales diversification strategy
There are two diversification strategies that have proven to be effective: diversifying through marketplaces and diversifying through countries. Adopting one or both of these strategies can provide better outcomes, as your products can continue to generate sales even if a marketplace or country experiences an economic downturn. By diversifying your sales channels, you can reduce your risk and ensure a more stable revenue stream. Let’s take a closer look at each of these options.
Diversifying sales through multiple platforms
An effective way to diversify sales is by publishing your products in several marketplaces within the same country. While a country’s economy may be thriving, relying solely on a single marketplace can lead to potential losses if the marketplace experiences operational or technical issues.
For instance, on February 10th, Americanas marketplace announced the indefinite closure of its cross-border operations in Brazil, impacting thousands of cross-border sellers who only had one store in Americanas. By having a solid diversification strategy and listing their products on multiple marketplaces, sellers can achieve greater reach and a larger share of the market while better-managing risks and adapting to changes in the market.
Another reason to adopt this strategy is that each marketplace has its own marketing efforts and creates special campaigns to boost sales on specific dates. For example, last year Mercado Libre launched a campaign called “Meli Trends” to promote specific trending products, as well as a campaign called “Beauty Festival” to boost sales of beauty products.
Diversifying sales through multiple countries
Similar to the advantages of diversifying sales through multiple marketplaces, sellers can offer their products in multiple countries and overcome different challenges. For example, your target market could be going through an economic or political crisis. If you offer your product catalog in different markets, your business is less likely to be affected by an economic downturn.
Besides, sellers can take advantage of special shopping dates that vary from country to country. For instance, Mexicans and Argentines celebrate Valentine’s Day on February 14 and many people purchase gifts for their loved ones on that date. However, Brazilians celebrate this commercial date on June 12, and also brings lots of sales to retailers. The same applies to other festivities like Children’s Day which falls on April 30th in Mexico and October 12th in Brazil.
Furthermore, expanding into new markets can help you navigate import restrictions that vary between countries. While some countries may prohibit certain products, you can still sell them in other markets. For instance, Brazil does not allow the import of jewelry, and Mexico prohibits the import of human-shaped dolls. By diversifying your sales, you can find new opportunities for your products and mitigate risks from regulations.
The most effective way to diversify your cross-border sales in Latin America
With nocnoc, expanding your sales across Latin America is simple and effortless. By registering on our platform, you can publish your products on more than 15 marketplaces in 5 different countries, reaching over 485 million consumers. And the best part? We take care of everything for you.
From publishing your products to optimizing your listings, providing translations, offering customer support, launching effective marketing campaigns, handling customs, last-mile deliveries, and managing cancellations and returns, we’ve got you covered. You can start right away, without any upfront costs. Join the growing number of sellers that have successfully diversified their sales with nocnoc.