Selling on the internet has become a great opportunity to undertake in Mexico. Ease and reach are two factors that people take into account to launch a brand and that come together in dropshipping MercadoLibrea business model that allows you to start on this path with little investment.
Over time, entrepreneurship has become a great opportunity for Mexican families to generate income and improve their lifestyle. Although this path requires a lot of effort, dedication and preparation, more and more people decide to create their own business.
If you are thinking of having a brand that sells online, here I will tell you more details about dropshipping MercadoLibrea model that will help you start your business with little –really, very little– investment.
Will you accompany me to learn more about this topic? 🚀
What is MercadoLibre dropshipping?
Dropshipping is a business model in which a person or company sells products without having their own inventory, playing an intermediary role between the buyer and the supplier, known as drop shipper.
When this sales format joins Mercado Libre, one of the most important marketplaces in Latin America, the opportunity to find suppliers becomes a dream.
So, MercadoLibre dropshipping can be summed up as the process in which an entrepreneur uses this marketplace to become the intermediary between the client and Mercado Libre, with the aim of generating sales without having stock or investing in shipments.
Pretty interesting, right? Before you decide to use this model, I invite you to learn how dropshipping works with Mercado Libre in 2022.
Dropshipping Mercado Libre: how does this business model work?
Supporting yourself in a marketplace as important as Mercado Libre will help you have the support of a company recognized worldwidebut you will also have to compete with hundreds of brands that can offer the same product at different prices.
To do dropshipping in Mercado Libre you must have one or more external providers that can offer you the product and shipping management service; Negotiate with them to have competitive delivery times for users, create a product catalog and publish it on the marketplace to start receiving purchases.
💡Type: if you want to create your own online store without having an inventory, you can read our guide to make , one of the platforms preferred by many entrepreneurs to sell products at affordable prices.
Advantages and disadvantages of dropshipping with Mercado Libre
Since you know that to start with this form of online sales you must, now I will share with you the advantages and disadvantages of dropshipping with Mercado Libre.
Advantages of dropshipping in Mercado Libre
- You will not suffer with inventories or shipping costs. Two of the main headaches for entrepreneurs are inventory and shipping costs. By starting a business using dropshipping, both costs will be forgotten and you can focus on effective marketing strategies to sell more.
- You can start with little investment. If you don’t have a significant sum to start a business, MercadoLibre dropshipping can become a strategic ally that makes it easier for you to sell technological accessories, beauty items, jewelry, and even clothing.
- You will have a striking product catalog. Without the worry of having to invest in inventory or shipping costs, all your attention will be focused on finding the best products to create an eye-catching catalog for your customers.
- You will receive purchases 24/7. By selling on a marketplace like Mercado Libre, you can receive purchases without being in front of a computer all day or even while you sleep. You also have this advantage with your own online store. Take it into account to create one with and increase your chances of selling more.
Disadvantages of dropshipping in Mercado Libre
- You will have to negotiate with external suppliers. Unlike dropshipping with AliExpress, when using Mercado Libre you will have to carry out the analysis and negotiation with suppliers on your own. This can be exhausting if you don’t have the resources to do the research.
- You will not have control over product shipments. Delivery times can be very high as they depend on the capacity of your supplier. Remember that people want to receive what they buy as quickly as possible, and if you don’t have good communication, you can lose a lot of sales.
- Your earnings could be low. The definition of prices is very important and you should consider the payment to suppliers and commissions before reaching the final number. If you do not do it correctly, you can have little profit and even lose money.
- Other sellers will offer the same products. You are not the only one who is thinking about dropshipping in Mercado Libre, other entrepreneurs can contact the same supplier and create a catalog with products similar to yours; If the price they offer is less than your item, people will prefer them without hesitation.
How to sell with dropshipping Mercado Libre
The time has come for you to meet how to sell with MercadoLibre dropshipping in 2022. Go for a pen and paper, the following steps will be very useful for you to start your next internet business.
- Research the market in which you want to develop.
- Compare the different providers out there.
- Define the price of your products.
- Publish your catalog in Mercado Libre.
- Work on a communication strategy.
Here I explain more details of each point. Are you ready? 😉
1. Research the market in which you want to develop
Market analysis is essential before starting any business. with this research You will be able to know what the consumer profile is, the brands that are already positioned and what type of communication they carry out.
By having all the information in your possession, working on an action plan will be much easier and you will be aware of the challenges that await you to achieve success.
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2. Compare the different providers that exist
As I mentioned before, the research and negotiation with external providers will be entirely up to you. That can be a disadvantage, but if you take the time to do it, you can turn it into something favorable for yourself.
in your analysis consider the capacity to make shipments, the delivery times they promise, prices and the ease of contacting them in case of having a problem. All this will help you make the best decision, even if you decide to work with a company that ships internationally.
3. Define the price of your products
Defining the price of a product is one of the headaches for entrepreneurs in Mexico.
The first step to achieve this is set the , which are divided into fixed and variable. In this way, you will have a clear idea of the amount that you must cover every month so that the product reaches the consumer.
Other important points are to define the percentage of utility that you want to have and thoroughly evaluate the value proposition that you will offer to your customers. Be honest and realistic with this process.
💡Type: rely on one to organize the expenses you have in your business. This document must include everything from the investment in raw materials and payments to your suppliers, to taxes or your internet service.
4. Publish your catalog in Mercado Libre
This point is very important to capture the attention of people who can buy from you. When publishing your products, You must choose eye-catching photographs, write a complete description without misspellings, payment methods and delivery times.
To make this combo a winner, dedicate the necessary time to it, visit the products or stores of your competition and identify areas of opportunity that you can take advantage of to stand out.
💡Type: do not close yourself to using other sales channels. By having reliable suppliers, you can have your own ecommerce and forget about paying commissions. If you decide to do it, you can combine your income between Mercado Libre and your online store.
5. Work on a communication strategy
With the arrival of social networks, digital marketing found one of its best allies. Thanks to its immediacy, platforms such as Facebook, Instagram and TikTok they give you the possibility to share the benefits of your products through quality organic and paid content.
Design a publication plan in which you combine direct sales with useful information. In this way, the user will know you and feel confident enough to buy from you, while obtaining a benefit to improve your quality of life.
conclusion
Dropshipping MercadoLibre is a great idea to start selling online with little money and without inventory. Of course, you should know that it is not a new business model and that it has many areas of opportunity that you will discover along the way.
The key to success is being informed, working on a data-driven, non-feeling strategy that keeps you on track to take off in the digital world.
If in addition to dropshipping in Mercado Libre you want to have your own online store, you don’t need advanced technical knowledge and you’ll be ready to sell in a few minutes.🚀
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