How to start selling cross border on marketplaces

Are you a seller looking to expand your business into Latin America? This region offers a vibrant and growing market that could be the perfect next step for your business. In this article, we’ll guide you through the process of selling your products on Latin American marketplaces.

Join us as we explore the opportunities and challenges of cross-border selling in Latin America, and learn how to effectively reach new customers and grow your business in this exciting market.

Cross-border for international merchants

This vibrant and rapidly growing market is characterized by a high demand for international brands, especially those from the United States. By entering this market, sellers can tap into a consumer base eager for new and diverse products that are often not available locally. The limited availability of US brands in Latin America means that those who do offer their products can often charge premium prices, resulting in higher profit margins.

Furthermore, the region’s growing e-commerce infrastructure and improving logistics make it easier than ever for international sellers to reach these customers. By leveraging local marketplaces like Mercado Libre, Amazon and Coppel, sellers can effectively overcome traditional barriers to entry and capitalize on the burgeoning demand. 

Why expand to Latin America?

Expanding your business to Latin America offers a strategic advantage due to its rapidly growing e-commerce market. According to Statista, Latin America boasts over 300 million digital buyers, with online retail sales projected to rise from $122 billion in 2022 to $200 billion by 2026. Countries like Brazil and Mexico lead the way, accounting for 32% and 28% of the market, respectively, while other nations such as Colombia, Argentina, and Chile are also showing promising growth.

The region’s population of 650 million, with an 80% internet penetration rate, demonstrates a strong inclination towards online shopping. Additionally, the cultural ties and shared consumer preferences between Latin America and the United States make it easier for US brands to resonate with Latin American consumers. The increasing financial inclusion, widespread adoption of digital payments, and the cultural affinity for international products contribute to a robust market environment. Many Latin American consumers hold a positive perception of US brands, which fosters trust and receptivity towards international sellers. 

What to know before starting to sell cross-border in LatAm

Expanding your business into Latin American marketplaces can open up new avenues for growth. Here are key aspects to consider for a successful entry:

• Understand the market and consumer preferences: Before start selling in Latin American marketplaces, it’s crucial to understand the diverse market dynamics and consumer preferences. Conduct thorough market research to identify trends, demands, and potential gaps in the market. Each country in LatAm has its unique preferences. Studying consumer behavior is essential—look into buying habits, preferred payment methods, and popular shopping periods. Additionally, understanding cultural nuances such as holiday seasons, regional festivities, and local tastes can significantly impact your marketing strategies and product offerings, making your business more appealing to local customers.

• Choose the right marketplace and country: Selecting the appropriate marketplace and target country is very important. Evaluate the leading marketplaces like MercadoLibre, Amazon, Magalu, Coppel, among others. Each platform has its strengths, user base, and category focus, so choose the ones that align with your product range and business strategy. Determine the country that best suits your business by considering market size, economic stability, internet penetration, and ease of doing business. 

• Customs and duties: Navigating the complexities of customs and duties is essential to avoid legal and financial pitfalls. Familiarize yourself with each country’s import regulations, as some may have restrictions or special requirements for certain products. Understanding import duties, and other taxes applicable in each country is crucial since these costs can impact your pricing strategy. Incorporate these costs into your financial planning to maintain profitability and avoid unexpected expenses that could erode your margins.

• Adapting your catalog to the market and language: Localization is key to effectively engaging with local consumers. Translate product descriptions, titles, and other relevant content into Spanish or Portuguese, depending on the country. Accurate and culturally appropriate translations enhance customer trust and engagement. Additionally, adjust your product catalog to meet local tastes and preferences, highlighting product features that resonate with local consumers. 

• Pricing strategy: A well-thought-out pricing strategy is essential to remain competitive and profitable. Analyze local competitors to set competitive prices, taking into account local purchasing power and price sensitivity. This helps you avoid pricing yourself out of the market. Include all relevant costs such as shipping, duties, taxes, and marketplace fees in your pricing strategy. Transparent pricing builds trust with customers and prevents unpleasant surprises, enhancing the overall shopping experience and encouraging repeat business.

• Customer service: Providing exceptional customer service can set you apart from competitors and build long-term loyalty. Offer customer support in the local language to improve communication and satisfaction. Establish clear and transparent return, refund, and exchange policies that comply with local regulations. Easy-to-understand policies build trust and encourage repeat purchases, helping to establish a positive reputation in the marketplace.

• Marketing and promotion: Effective marketing and promotion strategies are vital to boost visibility and drive sales in a competitive market. Utilize advertising tools available on marketplaces like MercadoLibre and Amazon to increase your product visibility and attract potential buyers. Also, participating in the promotional calendars of each marketplace, such as Children’s Day, Black Friday, Hot Sale, among others, is crucial for an international seller aiming to cultivate a strong brand. 

The easiest way to expand into Latin America

Are you an international seller interested in selling your products in Latin America, but don’t know how to start doing it? Don’t worry, nocnoc has the perfect solution for you.

nocnoc has developed a 360-degree solution that allows sellers to expand their products to +15 leading marketplaces in the region such as Amazon, Mercado Libre, Carrefour, Walmart, among others, across different countries in just 48 hours.

You don’t have to worry about anything; we take care of everything for you, from international shipping to publishing your catalog, optimizing your listings, translations, customer support, regulations, taxes, and launching effective marketing campaigns that will boost your sales. All you have to do is wait for your sales to come in!

What are you waiting for? All you need to do is SIGN UP, and watch your sales grow like never before.