This article has been translated from our Spanish version using artificial intelligence techniques. Errors may exist due to this process. Opinions expressed by entrepreneur Shareholders are their own.
The basic principle of growing your store is to offer products that do not exist at the same time in Mercado Libre that also allow you to earn a high profit margin with each sale (from 50%).
There are two proven ways to achieve this: import and sell Chinese products or represent manufacturers from your country by selling their products on Mercado Libre.
The first is to launch stores with Chinese products. The procedure is to find the missing products and then improve your margin. Do a search by browsing AliExpress or TaoBao, choosing those products you like and then checking in each case that they are missing in the Mercado Libre. For example, if you find a mobile phone case you like and it’s not on your Mercado Libre, this could be a selling opportunity.
You should set a similar price compared to existing sellers and calculate your margin on that target price including import and nationalization cost and Mercado Libre commission. When it comes to Chinese products, you can hope to get margins above 50%. If the product is missing in Mercado Libre and the profitability calculation is certain, your next step is to import 3, 5 or 10 units and publish them to Mercado Libre.
Here’s the key to the question: Once the products are published, identify the ones that sell well and buy more inventory. If you find winning products, the next step is to search for the same products from a Chinese wholesaler like Alibaba.com and buy from wholesale suppliers at a better price. If you focus on products that sell well with each experience, your store will grow month by month.
The second figure is the representation of domestic manufacturers in Mercado Libre. You can search for manufacturers in your city by searching any online directory of local manufacturers. Check out their pages, ask for their catalogs, and if you consider their products an opportunity, call and ask for a meeting to meet them, see their products and suggest reselling them at Mercado Libre.
Several manufacturers have already posted their inventory on the Mercado Libre. The key is to find traditional manufacturers, who have not yet sold on the platform and release their products from it. Reselling products from manufacturers generates opportunities to sell lost products with a margin of 50% or more.
If you repeat these processes, your store will grow month after month. Remember, whether you are a local manufacturer or a Chinese wholesaler, it is important that you take the time to build trusting relationships with them and enjoy the interactions. I also advise you to talk to your customers to identify other products that they searched for and did not find and have them offer them from your store.
Buying inventories without validating them, through debt, can slow your growth for months. Always remember to focus on purchasing inventory of products you have verified by experimenting with sales in smaller quantities and try to reduce or eliminate inventory purchases through debt.
Choose the products you like, following the procedure we describe and enjoy growing your e-commerce business month by month.
I wish you all the best.