Latin America has 10% of the world’s population, with a middle class of more than 50 million and rising disposable income. Its GDP accounts for 8% of the world’s total, half of China’s and twice that of India. In the field of Internet, Latin America also shows great potential, with nearly 375 million Internet users and more than 250 million smartphone users. These figures show that Latin America has surpassed the United States in terms of Internet development. The platform leads the way in website visits in Latin America, more than double that of Amazon. In Europe and North America, where the e-commerce market is saturated, Latin America has become a new e-commerce oasis. So, does Mercadolibre need to be activated by a manager after opening a new store? The answer is yes. The entry conditions and activation process of the Mercadolibre platform are particularly important. The following will introduce them in detail.
1. Entry conditions.
To open a new store in Mercadolibre, a series of conditions must be met, including:
1. Company registration: only limited companies registered in mainland China or Hong Kong, China are accepted.
2. Monthly turnover: monthly turnover of mainstream cross-border platforms is required.
3. Sales experience: Sales experience is required to be more than 60,000 US dollars.
4. Average order value: Average order value must be more than 15 US dollars, and the optimal range is 20-50 US dollars.
5. FBA experience: Sellers with FBA operation experience will be given priority.
6. Stable supply: Stable and high-quality supply is required, which is more advantageous for brands and sellers who are deeply engaged in vertical categories.
7. Number of SKUs: At least 100 product SKUs are required.
2. Platform characteristics.
The characteristics of the Mercadolibre platform include:
1. Entry method: You can apply for it yourself.
2. Accounts and sites: Join the cross-border trade plan, and one account can operate multiple sites, covering Mexico, Argentina, Brazil, Chile, Colombia, etc.
3. Language: The platform supports English background and automatically converts to local language, which helps to improve user experience.
4. Product listing: Purchase a Tongtu account and connect to the API to facilitate product listing.
5. Order and logistics: The tracking number must be filled in within 48 hours, and the delivery must be completed within 6-14 days. Domestic shipments can be shipped to the platform warehouse by yourself, and logistics providers can be selected for overseas shipments.
6. Payment cycle: The cycle is 15 days.
3. Costs.
The costs to be considered for opening a store include:
1. Settlement fee: No settlement fee is required for self-registration, and the third-party registration fee is ￥5200.
2. Commission: The commission for the Mexican site is 17.5%, and for other sites it is 16%.
3. Handling fee: 2% of the total transaction amount.
4. Exchange rate fee: Converted into Hong Kong dollars or RMB according to the exchange rate on the day of payment, the exchange rate is based on the Bank of China’s exchange rate plus 1% difference.
5. For details of the storage fees for FBM sellers, please refer to the platform manual.
4. Settlement process.
The process of settling in the Mercadolibre platform is divided into three steps:
1. Account creation: Fill in company information as required, including name, contact information, password, country and detailed address, etc.
2. Complete account information: upload brand logo, set up bank account, configure logistics, etc.
3. Verify information: After logging in to the account, verify the information and feedback to the investment manager to apply for activation.
Conclusion: In Latin America, Mercadolibre, as the largest e-commerce ecosystem, presents huge business opportunities. A series of conditions must be met to open a new store. After the settlement process, manager activation is a necessary step. This platform has set off a new wave in the e-commerce trend in Latin America, providing merchants with a broad market space.