Cross-border eCommerce: challenges of selling online in Latin America

Latin America: A promising region to increase online sales

The Latin American eCommerce market has seen tremendous growth in the post-pandemic era. According to data from eMarketer, the market is valued at 362 billion USD and is expected to continue growing at a rate of 25% per year through 2025. The widespread adoption of smartphones and nearly universal internet access have contributed to the increase in online shopping in the region. In 2022, over 74% of the population in Latin America shopped online, which is a 19% increase from 2020. Forecasts predict that the number of online shoppers in the region will rise from 172 to 435 million by 2031.

Speaking of the cross-border eCommerce market growth, sales in 2022 had an annual growth rate of 44%, which was 10% higher than the domestic eCommerce market. Undoubtedly, Latin America is an attractive destination for cross-border sellers who seek to venture beyond traditional markets like the United States, Europe, or Asia.

However, opportunities and challenges coexist. Most sellers encounter several challenges when they start planning to sell cross-border. For example, dealing with customs, opening a legal entity, and taking care of cancellations and returns. Coupled with the increasingly fierce market competition, sellers need to compete with other cross-border stores and local sellers. To stand out from the crowd of sellers, you need to overcome the following challenges.

Main challenges of cross-border selling in Latin America 

Understanding consumer preferences

To successfully sell in the Latin American market, it’s important to understand the local consumer preferences and culture. This includes understanding the needs, habits, and preferences of shoppers in the region. Cross-border eCommerce goes beyond just transporting products across the ocean – it also involves exporting the brand value and culture of the products. By gaining a thorough understanding of the local market, sellers can effectively resonate with and cater to the needs of their target audience.

Create effective marketing campaigns

Creating successful marketing campaigns is another important factor in cross-border selling in Latin America. This involves investing in the right type of advertising and optimizing product listings with effective keywords to reach the target audience. It can take significant effort and investment to achieve a prominent position on the front page of a marketplace, and on average, only a small percentage of sellers are able to do so.

Building a strong brand

Before making a purchase online, Latin American consumers are highly concerned with the reputation of the seller. They want their products to arrive on time, with the desired quality, and without any additional fees. As a result, they are hesitant to buy from unknown or inactive stores. This can make it particularly challenging for cross-border sellers to earn the trust of their customers and improve their conversion rates and minimize cancellations.

Dealing with cancellations and returns

Effective after-sales management is crucial in cross-border eCommerce. There are various potential issues that can arise, such as order problems, lost or damaged packages, and delays in logistics. When these problems are handled efficiently and promptly, it can greatly enhance customer satisfaction. On the other hand, if they are not dealt with effectively, it can negatively impact the performance of the store.

Other challenges

During the operation process, sellers may encounter a range of challenges such as language barriers, last-mile delivery security, customs negotiations, and order cancellations and returns. These issues can be difficult to overcome and have caused difficulties for many sellers. According to statistics, a large proportion of sellers are unable to confirm their first order, and even for those who are successful, it can take anywhere from 60 to 90 days to complete the process.

The smartest way to sell online in Latin America

It is now possible to expand your eCommerce business to Latin America in just 48 hours with the help of a partner like nocnoc. By partnering with nocnoc, you can gain access to 15 marketplaces and sell to over 485 million consumers without any initial investment. This makes it easy and convenient to tap into the vast potential of the Latin American market.

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 understand the market and know how to target consumers with products they desire, at the correct prices, with successful marketing campaigns.

Get in touch with our experts

Be part of nocnoc’s mega stores and start selling in Latin America with no investment needed. Sign up today.

Do you still have questions? Contact us today.