Sunrise thousands, revenue 1000w US dollars? Latin America Independence Station is in its prime

Image source: Figureworm Creative

Under the influence of the epidemic, global consumption has accelerated its upgrading. Emerging markets have become particularly interesting in the context of a variety of factors, and Latin American e-commerce is undoubtedly one of the leaders.

The rapid development of the Latin American market since the epidemic has not only allowed a number of cross-border e-commerce companies such as Amazon, AliExpress, and Shopee to step up their layout of the market. At the same time, the rise of major website building platforms has also allowed many sellers to quickly start with cross-border independent stations and make a lot of money.

An independent station seller in the Latin American market said bluntly: "In 2020, the total GMV of its own independent station store will reach nearly 1,000w US dollars, and the maximum daily order volume can be close to 1,000 singles, indicating that the Latin American market potential is quite good, and it is a good choice worth trying for cross-border e-commerce sellers." ”

"All along, the Latin American economy is mainly based on the primary industry, the manufacturing industry is not developed, for now, with electronics, home, outdoor products and other popular export categories of Chinese sellers will have more advantages." The seller added.

According to foreign media reports, between January and August 2021, Latin America generated $5 billion in e-commerce sales, an increase of 34% year-on-year, an increase of more than 100% over the same period in 2019, and it is expected that e-commerce sales for the whole year of 2021 will reach $8 billion.

Brazil, Mexico and Argentina, as the top three economies in the Latin American e-commerce market, are the first choice of Latin American sellers. Among them, the annual e-commerce transaction volume in Brazil is about 40 billion US dollars, accounting for 42% of the Latin American e-commerce market, and is expected to reach 60 billion US dollars by the end of 2021; mexico's annual e-commerce sales are also increasing, increasing by 41% in 2020 and 19% in 2021; Argentina's e-commerce transaction volume this year (between January and August) increased by 179% year-on-year.

The time is running to the end of November, and with the arrival of the peak shopping season, Latin American e-commerce is also ushering in a new round of outbreak.

A big promotion followed, and Latin American consumer portraits at a glance

In addition to the clichéd "Black Five Net One", the recently concluded Mexican online wild shopping festival , El Buen Fin (the event period is from Wednesday, November 10 to Tuesday, November 16), attracted a lot of attention.

With payment discounts and free shipping [click here to learn more about EBANX's one-stop payment solution], Happy Weekend has become one of the most attractive online shopping activities in Mexico, with electronics, clothing, shoes, beauty and perfumes as the "evergreen goods" of the big promotion.

According to the annual report published by the Mexican Online Sales Association (AMVO), the purchase intention of the "Happy Weekend" in 2020 was analyzed. For a group of cross-border sellers, 6 major consumer portraits were summarized:

1. Before purchasing, consumers inquired about product information from 3 sources of information:

2. 36% of consumers have purchased goods destined for Mexico on websites in other countries or regions;

47% of consumers shop online to avoid crowded brick-and-mortar stores;

4. 23% of consumers said they had planned or were saving money to shop during El Buen Fin.

5. Half of consumers decided to shop during El Buen Fin and are looking forward to the arrival of the shopping festival;

6. 47.3% of consumers only shop online.

Overall, the role of the promotion on the promotion of e-commerce in Latin America is obvious. Not only in Mexico itself, but also in other Latin American countries, consumers are also positive about the "Happy Weekend". At the same time, consumers still remain calm and restrained in the face of the big promotion, and "good at price comparison and planning" has become a prominent feature.

Although the results of this year's promotion have not yet been announced, driven by the rapid development of the e-commerce market, many industry personnel expect that the results of the "Happy Weekend" in 2021 will be more eye-catching.

The ensuing "black five nets and one" will also become the year-end highlight that cross-border sellers urgently need to plan. Because Latin American consumers have a very heavy family concept, the holiday time will be extended accordingly. The holidays may have begun on December 20. The long holidays and the strong desire to buy at the festival have made more consumers flock to buy online.

The surge in online orders, what is the solution for cross-border payments?

The growth in traffic will also lead to a surge in orders, which makes it a "must-have lesson" for sellers to provide a good digital payment experience for consumers.

Although current Latin American payment methods, cash payments are still an important local payment method for 40% (about 256 million people) of Latin Americans who are unbanked. But the sheer size of the middle class over the past decade and the popularity of smartphone apps have intensified Latin American consumer demand for more fintech products and payment options.

For cross-border sellers, between the complexity of cross-border business links and the difficulties of payment in Latin America, establishing good cooperative relations with local strategic payment processors has become the key to opening up local markets and rapidly expanding sales scale.

Hugo cross-border learned from Latin American payment unicorn EBANX that in recent years, with the continuous expansion of the Chinese seller group in Latin America, the number of sellers who have come to seek cooperation has also increased. In addition to continuously improving its own payment system, EBANX creates payment solutions for local acquiring and global settlement for cross-border platform and independent sellers, and also supports sellers' marketing activities and logistics solutions in Latin America, which can help sellers effectively improve sales conversion rates. At present, the platform business has covered 15 Latin American countries and regions, which can help sellers continuously expand their business territory.

For Chinese sellers who are still on the sidelines, EBANX, founded in 2012 and with local genes, does have a good competitive advantage in the Latin American market and can become a better choice for cross-border payment cooperation. Interested sellers can consult EBANX professionals online to learn more about the platform and get more Latin America's latest news!