Globally, Brazil, Mexico, Chile, Latin America and other countries are among the fastest growing countries in the e-commerce market. In 2019, Latin America became the world’s fourth largest retail market, and the scale of e-commerce is expected to reach 118 billion US dollars in 2021. With the continuous development of the Latin American market, cross-border sellers are no longer unfamiliar with it.
Therefore, how should Chinese sellers develop the Latin American market? Why choose the Latin American market?
Latin America has a population of 650 million, 430 million Internet users, a social media penetration rate of 64%, and “online time” of 212 minutes.
The North American market is relatively mature, but at the same time, the competition is fierce, and the problem of follow-up sales is serious. From the perspective of emerging markets, the demographic dividend of Latin American countries may not be as good as that of the Middle East and Africa, but their economic development and modernization have enabled them to have the foundation for explosive growth in the e-commerce market, and the average customer price is relatively high.
For example, the Linio e-commerce platform mainly serves the western language market. The platform currently has 5 million active users, with an average age of 26-37 years old for the core user group, and an average customer price of about $80. Excluding the proportion of mobile phone users, the customer price is between $28 and $42.
How to prepare for the peak season in Latin America?
For the peak sales season at the event node, the platform generally gives partners various subsidies.
After grasping the key moment, the following five suggestions are made for specific preparations:
1. Pay attention to the small Us that have performed well in normal or previous promotional activities in your store, and adjust the prices one by one during the event, and try to ensure a price reduction of more than 5%.
2. For the “long tail” part of the store (usual performance at ordinary times, with more SKU groups), it is recommended to reduce prices in batches during the event, with a range of about 15%.
3. Prepare goods two weeks before the event, and prepare sufficient inventory to cope with the explosion of orders. Consumers are less willing to wait during important festivals.
4. Keep in touch with the business manager during the event so that any problems that may arise can be solved in a timely manner.
5. Pay attention to the timeliness of domestic logistics. Linio requires that orders be scanned and TrackingNumber generated within 5 working days. As orders increase, it is even more necessary to arrange the delivery time reasonably.