To buy wholesale in Latin America and the Caribbean has become more complex with the increase supply and demand of consumer goods. Since the economic crisis has hit the world, foreign companies are looking into new markets such as Latin America and the Caribbean.
To summarize, there are 4 different options to buy wholesale in Latin America and the Caribbean:
*Purchase directly from foreign manufacturers located outside the region
*Buy from local distributors representing non-Latin American /Caribbean companies
*Order from Latin American and Caribbean manufacturers
*Search for wholesalers online thanks to B2B Trade portals and marketplaces.
1- Buy directly from international companies located outside the region
The international products offer that is available outside of Latin America and the Caribbean is very big and allows buyers to select from a wide variety of merchandise from famous brands to inexpensive items. However this solution forces buyers to purchase large quantities if they want the commercial operation to be cost-effective therefore requiring large amount of investment which becomes difficult for small and medium size companies. Another issue that may arise is that the buyer needs to fully understand the way international trading works. In particular it’s important to be comfortable with matters such as International commercial terms, payments methods, shipping and customs procedures.
2- Purchase from local distributors or agent representing different foreign companies
Most companies in Latin America and the Caribbean will buy from local distributors, wholesalers and agents who represent several foreign brands and manufacturers. This allows them to decrease their initial investment as well as not worry about international procedures such as shipping and customs procedures. You can find very often wholesale distributors located in tax free zones such as the “Zona Libre de Colon” in Panama or the “Zona Franca de Iquique (ZOFRI)” in Chile. It is important to state that almost every country in Latin America and the Caribbean has its own tax free zone in order to boost trade and these geographic location have become strong trading platforms in the region.
3- Buy wholesale from manufacturers located in Latin America and the Caribbean.
To decrease shipping and logistics fees, it is beneficial to order from manufacturers located in the region. This allows better communication as the same language is spoken between the supplier and buyer. This also allows for more cost effective prices as no intermediaries are adding additional costs to the final product value. This also reduces costs due to customs duty
4- Search for Wholesalers and distributors online thanks to B2B Trade Portals and marketplaces.
The region is seeing a drastic increase in internet use in the past years. Business people are starting to use business portals and marketplaces to find potential manufacturers and suppliers. Asian websites are the leader with names such as Alibaba, Tradekey, EC21 etc. These marketplaces have an important status on an international level yet lack visibility in Latin America and the Caribbean. Thankfully, there is a new marketplace dedicated to Latin America and the Caribbean called www.mercatrade.com. Its design is simple, easy navigability, security and adapts to the needs of the region.
About the Author:
Joshua Adekane specializes in helping companies on how to successfully build their business in Latin America and the Caribbean. To get instant access to his strategies, tools and resources, click here Latin growth. For more information about this dynamic market, click here Zapatos al por mayor
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