This past May 24th, the eCommerce giant, Amazon, enabled Latin American countries such as Ecuador, Uruguay, Argentina, Bolivia, Brazil, Chile, Colombia, Paraguay, Peru, and Venezuela to be eligible to sell their products through its platform.
As a matter of fact you can already see these countries in the Amazon Seller Central registration list. Click here to view the list.
This comes as great news since it represents a great opportunity for large, medium, and small companies in these countries to expand their business by attracting users they weren’t able to reach before, especially on an international scale given the almost 300 million global active users that Amazon currently has.
However, it is very important for companies in these countries to keep in mind that to be successful on a platform like Amazon, they need to be ready for an exponential, non-linear demand, which will force them to have an installed capacity with a margin for significant growth. Another important aspect to consider is the standardization of quality, weight and product. Lastly, in such a competitive market it is critical for these companies to constantly meet customer expectations. These factors force companies to invest in technology and automation, with the latter being a priority. This is where Maxpack jumps in. If you are in the food, household & chemical, or pharmaceutical industries and are looking to automate your operation taking into consideration all the details shared before, contact us right away at sales@maxpackmachinery.com or give us a call at +1 (305) 424-1661. You can also visit our online machinery catalogue by clicking here.
“This milestone is an opportunity for the development and international projection of Uruguayan companies. #UruguayAlMundo”, published the Uruguayan Ministry of Foreign Relations in a tweet letting his country know the importance of this event.
Amazon enters a market practically dominated by one player which is MercadoLibre with 71 million regional active users according to its latest financial status report in 2020 and that, according to a report by bnamericas in 2020 alone it captured 17 million new users.
The region’s digital ecosystem also has favorable winds considering the new digital customers gained in recent months. The consulting firm eMarketer forecasts that electronic retail sales will increase 36.7% this year 2021 in Latin America to US $84.9 billion, the fastest rate among all the regions evaluated.
Many companies in Latin America might ask themselves: How can Amazon help me? Although we mentioned a part of the answer at the beginning of this post, there is data that can help to give a better answer. According to Keri Cusick, an Amazon senior employee, in an interview given in January 2021 to Forbes , she mentions that in 2020, the number of US SMB (small and medium-sized businesses) sellers who exceeded a million dollars in sales grew by more than 20% and more than 3,700 exceeded a million dollars in sales for the first time. And SMBs that sell through the Amazon.com store have created roughly 1.1 million jobs. Although these figures may vary in the Latin American region, the business opportunity for SMBs is very clear.
Here’s some additional Amazon facts to keep in mind:
On April 29, the e-commerce giant announced profits that reached USD 8,1 billion between January and March 2021, more than triple the $2,5 billion achieved in the same period of 2020.
In all of 2020, the firm achieved twice the benefits than in the previous year, so these first figures for 2021 indicate that its pace has not only maintained but accelerated.
Today, Maxpack technologies are being used to package dozens of products for sale on Amazon, mostly from North American customers. If you are a Latin American company that wishes to follow these steps of automating your operation, or to expand your already automated operation, contact us at sales@maxpackmachinery.com or give us a call at +1 (305) 424-1661.
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