There are different marketplace options in Mexico through which an entrepreneur can start an online sales business. Knowing those options and knowing that you can evolve to an online store, allows you to take control of your business.
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In Mexico, online sales grew by 27% in 2021 according to the AMVO, in which they also point out that consumer habits have changed and online purchases tend to increase in different sectors such as food delivery, beauty, electronics or household appliances among others.
Given these data, many entrepreneurs are looking for a way to be part of online businesses and a marketplace can be a first experience in sales through the internet. In this article I will tell you a little more about the Marketplaces in Mexico and how they can be part of your first approach to a successful online business.
What is marketplace?
A marketplace is a platform that allows sellers to connect with buyers and is usually managed by a third party. Within this platform, different brands and sellers coexist, so the buyer has the power of choice.
One of the advantages for the sellers of a marketplace is that they do not invest in digital infrastructure, that is, they do not have to deal with buying a domain, paying for hosting or creating a store, they usually pay a commission per transaction or a kind of membership to be able to use the platform as a showcase for their products.
It is also true that a series of requirements must be met in order to upload articles and put them up for sale. Depending on the marketplace, the seller will have to follow certain guidelines and many times these platforms reserve the right to admit sellers if they do not meet the requirements.
They are places with a lot of competition for sellers, although for buyers the fact of being able to compare between several suppliers on the same website may seem attractive. It’s like going to a virtual shopping center where different brands with similar products coexist.
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Types of marketplaces
There are different types of marketplaces that are based on the needs they cover and the type of customers who visit them. I will tell you about the main four according to AMVO.
vertical marketplace
In this type of marketplace, specific products with few categories are offered. It brings together vendors from a specific market segment, such as: beauty, fashion, art, food, technology, etc. It targets buyers who are specifically looking for a category and by going to a well-targeted audience, it is possible to synergize between sellers when creating strategies and promotions.
B2B Marketplace
This type of marketplace represents an important step in the model (business to business) and is about buying and selling between companies through a digital platform.
In a marketplace with these characteristics, different suppliers can offer their products to companies which, by buying in this way, have the possibility of finding better prices, a greater variety of products and contact with new suppliers.
It is not yet a very exploited niche, however, they exist specifically for well-defined business sectors such as IT or infrastructure.
Loyalty Marketplace
They are those who develop a business model where their clients can be charged monthly or by membership. These types of actions make it much more comfortable to buy in a specific marketplace because the user has the feeling that payment is easier.
Credit payment options can also be offered through monthly invoices, such as ClaroShop or Tienda Dish.
Services Marketplace
In this type of Marketplace products are not sold, but different professionals upload their services to offer them. In this model, the service provider sells directly on the platform and the buyer makes the payments securely, which provides a good level of trust between them.
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Facebook Marketplace, how does it work?
It is also important to mention that within Facebook there is a tool that allows you to sell from the platform, which is also called Marketplace and is basically a product manager that allows you to offer them within the app itself.
This tool only helps you publish your products whether they are new or used and you can share them in different sections within Facebook. However, it does not allow you to sell directly, since there is no way to charge or send.
Let’s say that Facebook Marketplace is a showcase for your products, but it is far from being an online sales manager, although it works well as a first catalog of everything you sell.
If you want to know more about this tool, I invite you to read our complete guide to understand how it works.
What are the marketplaces in Mexico?
According to , there are eleven main players in the market which support small medium and large companies in their online sales.
- pink basket
- CornerShop
- rappi
- Claro Shop
- Elektra
- Second hand
- Liverpool
- Uber Eats
- Coppel
- iron palace
- Walmart
pink basket
This platform allows entrepreneurs to share and sell their unique creations such as natural products, food, pastries, crafts, etc. Its proposal is to support local producers, artisans and entrepreneurs so that they bring their products closer to digital consumers. It has different monthly plans to start selling within the marketplace by specific categories.
CornerShop
It works like a marketplace for supermarkets and stores, you can upload your business and publish your catalog, a specific shopper does the shopping for the customer and delivers it to their home. Its main differentiator is that it makes deliveries in up to 60 minutes.
rappi
Its key proposal is to get third-party products into the hands of consumers in a short time, paying affordable commissions. Like Cornershop, it has a network of “buyers” who are responsible for collecting orders and delivering them. Its catalog is very varied and it can be a good option if your deliveries are local.
ClaroShop
In this marketplace you can sell electronic products, clothes, furniture, etc. Paying a commission only for sale. You are not charged for membership but you compete with big brands. Your earnings are reflected within 7 business days after uploading your invoice. One advantage is that they have a captive audience that are Telmex customers.
Elektra
Following its promise of small installments, Elektra’s Marketplace customers can defer their payments in mini installments, which allows them to buy more items. You can decide your costs per shipment and you have captive the public of Banco Azteca. It is a young Marketplace because it was born in 2018 inviting big brands to join as sellers. Currently you can be part of their marketplace if you have a more consolidated company and issue invoices.
Second hand
In this Marketplace you can sell used things as its name says, but it is also possible that you publish new items. You can publish classified ads at no cost, but to sell with them you must register in their “express” section that will allow you to charge for your products and they will even do the collection at your home and delivery. The charge they make you by commission is 6% of the value of what you sell.
Liverpool
This is a departmental Marketplace where big brands can sell their products, reaching more people and offering a pleasant experience. With its Click and collect services Liverpool has managed to position itself as a store in the preference of its customers for the facilities it represents.
Uber Eats
To be part of the Uber Eats offer with a food business, you will need to register and pay a one-time welcome fee so that you can upload your restaurant and menu. Subsequently, you are charged for each order and the commission is between 20% and 30%.
Coppel
In the Coppel marketplace you can register among various categories such as clothing, footwear, appliances or electronics. After registering and meeting the sales requirements, you can start receiving orders. One advantage is the large number of clients that Coppel has throughout the country and the payment facilities that it offers to buyers, as this allows them to acquire more products.
iron palace
Luxury brands converge in this marketplace, which provides its customers with an exclusive experience. It has proof of quality and requires each brand to raise its standards to offer the best service. It has free shipping nationwide and express deliveries.
Walmart
You can also register in the Walmart marketplace with products from linens and appliances to wines and spirits, each with a different commission depending on the category. To register you must create an account on their site, abide by the instructions and requirements on photographs and descriptions as well as barcodes. Once you become part of the catalog, you will appear in the Walmart and Bodega Aurrera online store to start receiving orders.
Marketplace in Mexico vs. an online store
Now we are going to review some characteristics and main differences between marketplaces and online stores.
Marketplace
- They allow you to upload a catalog complying with the guidelines of each marketplace.
- It serves as exposure on the internet and to familiarize yourself with online sales.
- Some provide you with pickup and delivery service for a membership fee.
- Depending on each marketplace and the type of items you sell, they charge you a commission from 5% to 30%.
- You compete within the same platform with other sellers.
- You must adhere to their guidelines on permitted items, descriptions, and photos.
- It doesn’t give you a lot of brand exposure.
- You cannot re-contact the people who buy from you.
Own online store
- You own your brand and your exposure.
- You have no competition within the store.
- You keep the data of the people who buy from you.
- You have control of your customers’ purchases
- You can generate loyalty strategies.
- You offer a good shopping experience
- You can boost your sales through your social networks and use other channels so that they visit your online store.
Depending on the strategies and plans you have with your business, one option or another may suit you. A marketplace is a great first experience that requires perhaps a little less commitment to your brand and customers, but if building a more established business is what you’re interested in, I might suggest you go with creating your own store.
Conclusions
Using marketplaces to sell your products is a…
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