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:
*Buy directly from suppliers located in Asia, Europe, USA etc.
*Buy from local distributors representing non-Latin American /Caribbean companies
*Order from Latin American and Caribbean manufacturers
*Browse wholesalers on B2B marketplace business portal
1- Buy directly from suppliers located in Asia, Europe and USA
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- Buy from local distributors representing non-Latin American and Caribbean companies
One of the most common ways to buy wholesale in Latin America and the Caribbean is to order from local distributors that represent foreign manufacturers and brands. Since distributors are responsible for the full supply process, this removes the burden of international procedures (shipping, customs) from the buyer and requires a smaller initial investment. In the Latin American and Caribbean market, it is common to find these wholesale distributors in tax free zones such as the ‚Zona Libre de Colon‘ in Panama or the ‚Zona Franca de Iquique‘ (ZOFRI) in Chile. Please note that almost every country in Latin America and the Caribbean has its own Tax Free Zone. This is very convenient for buyers to purchase wholesale products conveniently located in one location from several distributors then combine all their orders in containers. This saves on shipping fees and helps to optimize the buying process.
3-Order from Latin American and Caribbean manufacturers.
Another way to lower shipping fees is to buy from local manufacturers. Not only has this solution allowed the buyer to know the exact identity of the manufacturer, consequently adding a better management of the quality of the production; but it also allows to get cost-effective prices since there is no intermediary adding margin in the process. In the case where the buyer purchases wholesale products in its own country, that also reduces the costs related 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.
Joshua Adekane specializes in assisting companies on how to successfully grow their business in Latin America. To get instant access to tools and resources, click here Business to business b2b.