The Latin American market is gradually attracting attention. Among them, Mercado Libre, as a leading cross-border e-commerce company, is one of the first choices for Chinese sellers. It has been committed to providing Chinese sellers with excellent services and store opening experience.
For novice sellers who intend to settle in Mercado Libre, the most important question is: How much initial capital is needed to open a store on Mercado Libre? The following will calculate in detail the funds required to operate a store on Mercado Libre.
1. Registration fee.
First of all, registration on Mercado Libre is free, and there is no monthly rent for store operation. The entire registration and operation process is free.
However, if you choose to settle in through a third-party agency, you will need to pay a certain fee, usually around 4,500-5,000 yuan. The specific fee depends on the charging standard of the service provider. It is relatively easier to successfully register through an agent.
2. Platform settlement fee.
1. Investment in registering a company: about 2,500 yuan. First, you need to register a company to obtain a business license, which is convenient for registering a store and setting up a collection account. The cost of registering a company is about 2,500 yuan, and the registration fee varies in different regions.
2. Store registration investment: If you already have a store, you can skip this part. If you don’t have a store, you need to create one. At present, MercadoLibre has suspended CBT store registration for Chinese sellers, and stores are relatively scarce due to the upcoming KYC policy. According to current estimates, the store cost is about 6,000 yuan.
3. ERP investment: In order to improve order processing efficiency and reduce error rates, self-delivery sellers usually need to use ERP. There are various ERP tools with different prices on the market. In view of the limited start-up funds of new sellers, we estimate the investment of ERP at an annual cost of 1,700 yuan.
4. Product selection tools: At present, there are few product selection tools for Meikeduo, and there are domestic and foreign options. Taking the domestic barley data as an example, the monthly fee is 199 yuan, which is 2,388 yuan per year.
5. Printer/packaging supplies: Self-delivery sellers need printers, and the price is usually between 350-400 yuan. Packaging consumables include packaging supplies, such as single paper, utility knife, transparent tape, packing machine, waterproof bags of various specifications, foam cotton and cartons, etc. It is temporarily calculated at 1,000 yuan.
6. Rent cost: Due to the large difference in rents in different places, the average monthly rent cost is about 2,500 yuan. Many e-commerce entrepreneurs choose to work from home in the initial stage to save costs, but if they need to rent offices, tables and chairs, etc., there will be higher costs. Taking 2,500 yuan/month as an example, the annual rent cost is about 30,000 yuan.
7. Working capital: Due to self-delivery, the initial orders are relatively scattered, and it is difficult for sellers to enjoy the manufacturer’s credit period. Therefore, after the store order is generated, it is usually necessary to purchase in advance on the platform Pinxixi and other channels. Assuming that there are 20 orders per day, the average purchase cost per order is 40 yuan: the funds required per day are 20 orders/day × 40 yuan/order = 800 yuan/day. Under the platform’s payment cycle, a new store needs to be pressed for at least 45 days to get the money back, and the required amount of money is about 36,000 yuan.
These are the main costs for novice sellers in the preparation stage, totaling about 80,000 yuan. However, this does not include hidden costs such as return fees, postage fees, delivery fees, and handling fees, nor does it cover handling fees and cash withdrawal fees. If you already have some resources, it is recommended to make a more accurate estimate based on the actual situation.
3. Sales commission costs.
After successfully entering the Meikeduo platform and owning a store, you need to consider sales commissions and delivery costs.
Sales commission: For each item sold, the seller must pay a commission that accounts for a certain percentage of the total sales price. Sales commissions vary depending on factors such as sales sites, categories, and delivery methods. Only after the goods are successfully sold will the platform charge a sales commission based on a certain percentage.
In addition, for low-unit-price items, Meikeduo may also charge a single-item surcharge. For example:
1) Brazilian site: sales commission 16.5%, no single-item surcharge.
2) Chile/Colombia/Mexico sites: Sales commissions are based on product categories, and a per-unit surcharge will be charged based on the selling price.
Fourth, platform delivery costs.
The delivery costs of the Meikeduo platform depend on factors such as the place of shipment, the destination of shipment, the store’s reputation level, and the delivery method (self-delivery or overseas warehouse).
1) Self-delivery: Sellers deliver orders by themselves, and can use the official freight calculator to calculate the cost of self-delivery.
2) Overseas warehouse (FBM): Meikeduo Mexico and Chile sites support the overseas warehouse model. The basic delivery cost includes the first-leg freight, storage fee, and last-leg delivery fee. The last-leg delivery fee depends on the weight, size, and reputation level of the product.
In order to encourage sellers to develop overseas warehouse business, Meikeduo offers a discount of up to 50% on the last-leg delivery fee, and the size of the discount depends on the store’s reputation level and the product price. In addition, the use of the overseas warehouse model also requires a certain storage fee, which is measured by the size of the product and is charged monthly based on the volume of the occupied space.
In summary, to enter the Meikeduo platform, you need to prepare the registration capital and platform entry capital, and then consider the sales commission and delivery costs. Other expenses, such as advertising costs and exchange rate costs, can be considered after the store business is stable. If you want to enter the Meikeduo platform, the estimated start-up capital is about 100,000.