Webinar: Selling Cross Border in Latin America for Black Friday & El Buen Fin

Webinar Transcription

Maria: To kick things off, I want to start by discussing why Latin America should be on your radar for expansion. Many sellers wonder, “Why LATAM?” Well, first and foremost, it’s one of the fastest-growing e-commerce markets in the world, with an impressive growth rate of over 25%. Consumers here are increasingly turning to international websites for their purchases, with over 82% of the population using the Internet and shopping through marketplaces and e-commerce sites.

Latin America also has a strong cultural connection with the U.S., which leads to a high demand for U.S. brands. Whether it’s through movies, TV series, or online content, Latin Americans are exposed to U.S. products, creating a natural affinity for them.

Another key point is that just six countries—Brazil, Mexico, Colombia, Chile, Argentina, and Peru—account for more than 94% of the total e-commerce market share in the region. This means you don’t need to expand to every country in LATAM to capture a significant portion of the market. You can gain substantial traction by focusing on larger markets like Brazil and Mexico.

Brazil’s Highlights

Now, moving on to the countries themselves, starting with Brazil. Brazil is not only the largest e-commerce market in Latin America but also one of the largest in the world, holding more than 50% of the market share in the region. Over 68% of Brazilian online shoppers have made cross-border purchases, and the market continues to grow with major players like Amazon Brazil, Americanas, Magalu, and Mercado Libre leading the charge.

Mexico’s Highlights

Next, we have Mexico, which is the second-largest market in LATAM. Many sellers mistakenly think Mexico is the largest due to its proximity to the U.S., but it actually comes after Brazil. Mexico represents over 20% of the region’s e-commerce share and has seen one of the highest growth rates globally. Major marketplaces like Amazon Mexico, Walmart Mexico, and Coppel are excellent platforms for expansion.

Must Watch: Colombia, Chile & Argentina

Countries like Colombia, Chile, and Argentina may not be as large as Brazil or Mexico, but they are still experiencing significant e-commerce growth. Cross-border capabilities are being enabled by more and more marketplaces, such as Walmart Chile, making these countries worth considering.

Now, I’d like to shift gears and talk about the main topic of today’s webinar: Black Friday and El Buen Fin, and how international sellers can capitalize on these events.

Black Friday Awareness In Latin America

We’re all familiar with Black Friday, so I won’t go into too much detail about the event itself. In LATAM, awareness of Black Friday is almost universal, with nearly 100% of Latin Americans familiar with it. Cross-border sales during Black Friday have been growing at a rate of 27%, with many Latin Americans taking advantage of international websites for their purchases. Traditionally, they would shop on platforms like Amazon US, but now with local marketplaces like Amazon Mexico and Amazon Brazil offering competitive deals, there’s a growing shift towards purchasing within these local platforms.

What’s El Buen Fin?

Let’s talk about El Buen Fin, Mexico’s biggest e-commerce event. Unlike Black Friday, which is a single day, El Buen Fin spans an entire week. The goal is similar—stimulating the economy and boosting e-commerce sales—but it’s a more extended event. El Buen Fin is heavily promoted by the Mexican government, with extensive marketing campaigns across all major marketplaces like Mercado Libre and Walmart. Last year, it was a huge success for many sellers, with noticeable sales spikes.

Preparing for 2024’s Peak Season

My recommendation is not only to prepare for Black Friday but also to take El Buen Fin into account, especially since it takes place one week before Black Friday. Mexican shoppers tend to make their purchases during El Buen Fin and may not shop again during Black Friday, so it’s essential to plan accordingly.

Looking at some trends for 2024, I’d advise sellers to start preparing early. Upload your products, optimize your listings, and ensure translations are accurate well in advance. Many consumers in Latin America start searching for Black Friday deals a month ahead, so you want to be ready for them.

Now, regarding product categories: Based on our experience, the top-performing categories differ slightly between Mexico and Brazil. In Mexico, electronics, home appliances, and fashion dominate, likely due to the proximity to the U.S. High-ticket items like laptops, cell phones, and home appliances are popular purchases. In Brazil, while electronics are also top sellers, we see additional categories like beauty and personal care, vitamins, and supplements performing well.

In terms of average spend, consumers in Latin America tend to wait for November to make larger purchases. The average ticket price is around $70–$100, but one in four consumers plans to spend over $200 on marketplace platforms during this time.

Lastly, I’d like to mention a significant change in Brazil regarding new regulations around cross-border purchases. The Remessa Confiável regulation was introduced last year, and while it initially caused some confusion among consumers, the situation has improved. Most consumers now understand how it works, and marketplaces have adjusted to comply with these regulations, making it easier for cross-border sellers to operate smoothly.

Peak Season Challenges

Lucas:

Thank you, Maria. Hi everyone, I’m Lucas from Bringer, and I’ll be covering some of the logistical challenges we see during the holiday season in Latin America.

One of the main challenges is capacity. With increased demand during events like Black Friday and El Buen Fin, there are a lot more packages moving through our facilities. To avoid disruptions, we plan additional flights and trucking routes in advance, but as with any holiday season, there can still be delays.

Another challenge is addressing. Unlike the U.S., where addresses are more straightforward, Latin American addresses can be complex. That’s why we offer multiple delivery attempts and keep in constant communication with buyers to ensure successful deliveries.

Lastly, duties and taxes can be tricky, as each country has its own regulations. Brazil, in particular, has its own system for calculating duties on cross-border purchases, which can create challenges for sellers and buyers alike. However, we work hard to navigate these complexities for you.

Lucas: It’s essential to figure out the right formula for managing duties. If you’re shipping prepaid, you must account for those costs accurately. There’s nothing worse than expecting to pay $100 in duties, only to be billed $120 later. So, from a logistics perspective, our three main challenges during the peak season are ensuring sufficient capacity, confirming accurate delivery addresses, and getting the duty formula right so that everyone can be paid, including customs.

Marketplaces as Key Channels

Maria: Thank you, Lucas. Now, let’s shift the focus to marketplaces, as they are key channels for e-commerce sales in Latin America. Expanding to the right marketplaces can significantly impact your success in the region. It’s essential to diversify across as many platforms as possible. In the U.S., you have Amazon, Walmart, and maybe eBay. Amazon dominates with over 40% of e-commerce sales and more than 80% of marketplace sales. But in Latin America, Amazon holds less than 10% of the market share, so relying solely on Amazon won’t be enough here.

In Latin America, we have several important marketplaces such as Mercado Libre, Walmart, Coppel, Falabella, and Linio. Whether you’re targeting Brazil or Mexico, the best marketplace for your business depends on your products and goals.

For Black Friday, I recommend starting with marketplaces that heavily promote these sales events. For instance, Magalu (Magazine Luiza) invests significantly in marketing, running campaigns with influencers and hosting live-streamed events to promote offers. Mercado Libre, as one of the largest marketplaces in the region, is another essential platform, along with Amazon in Brazil and Mexico.

Diversification is crucial. To capture over 50% of the e-commerce market share in Latin America, you need to expand to at least six to eight different marketplaces. I understand that expanding quickly before the peak season can be daunting, but we’ll cover how nocnoc can help streamline that process for you.

So, to succeed in Latin America, you need to broaden your presence beyond just Amazon, as there isn’t a single dominant player like in the U.S.

Case Study

Now, I’ll share a quick case study. Last year, during Black Friday in Walmart Mexico, we worked with a toy product from Fisher Price. We identified that this product was trending in the U.S. and that Mexican influencers were promoting it. By collaborating with Walmart on this product, setting aggressive discounts, and using marketing strategies like mobile push notifications and banners, we saw fantastic results. Our product hit the front page of Walmart, appeared in the ‘Best Deals’ section, and secured the top spot on Google Shopping. We achieved over 200,000 monthly searches and a 1,500% weekly growth rate.

The takeaway here is that partnering with the right platforms and developing a solid strategy can propel your products to success in Latin America. Preparation is key—researching market trends, setting the right discounts, and collaborating closely with local partners will bring you results.

nocnoc

Now that you understand the opportunity and the importance of marketplaces, I’d like to introduce nocnoc. We help U.S. brands and merchants expand their products across over 15 Latin American marketplaces. Once you sign up and upload your products to our seller center, your listings will be automatically published across all our cross-border stores.

It’s a simple process. As a seller, you only need to send your packages to our warehouse in Miami, and we handle the rest, from logistics to duties, making sure your products are distributed across all relevant platforms before key events like Black Friday.

At nocnoc, we also support marketing and pricing strategies. We maintain close relationships with decision-makers at these marketplaces to ensure your products receive the visibility they need.

Bringer

Lucas: Thank you, Maria. With nocnoc’s ability to connect to multiple channels, we at Bringer manage the logistics to deliver products to these customers. Our Express Plus service offers delivery within 3 to 10 business days across all countries, with daily flights from Miami. We handle customs processes electronically, usually within 1-2 business days, allowing for a smooth delivery experience.

Some sellers opt to use local postal services, but that often results in a 30-day delivery time, which is no longer acceptable to Latin American customers, who are now used to faster shipping options, similar to the U.S. Amazon experience.

We also offer returns, so if a buyer isn’t satisfied, we can manage the return to the U.S. Our service is highly personalized, and as your account manager, I’ll help onboard you to Bringer’s services and ensure we meet the 3 to 10-day delivery window.

Q&A

“How has e-commerce from China, such as AliExpress and Shopee, impacted the marketplace in Latin America?”

Maria: Chinese brands are indeed growing in Latin America. Major players like AliExpress and Shopee are trying to comply with regulations to expand their presence. Chinese products are often chosen for their lower prices, but this doesn’t necessarily compete with U.S. brands, which offer higher-quality products. There’s still strong demand for U.S. goods in Latin America, particularly when local consumers are looking for something they can’t find elsewhere.

Lucas: I’ll add that while China does a lot of business with Latin America, many consumers here prefer quality over price. For instance, in industries like vitamins and supplements, Latin Americans typically choose U.S. brands like GNC or Optimum Nutrition. Similarly, with electronics, they tend to buy from reputable U.S. brands rather than Chinese manufacturers. We’ve also seen local governments start to impose tariffs on Chinese goods, like Mexico’s recent 18% tariff on footwear from China, which opens new opportunities for U.S. businesses.

“Is nocnoc or the seller responsible for handling duties?”

At nocnoc, we take care of duties and taxes for you. When you upload your products, we ensure compliance with local regulations and calculate all the relevant duties, so you don’t need to worry about them. The price you input into our system is the FOB price—the price you want to earn—and we’ll add on marketplace commissions, duties, and other costs to the final retail price.

Sell In Latin America Today

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