Brazil – An Untapped Market
Brazil is one of the fastest and largest growing economies of the Latin-America. With the availability of digital infrastructure, there’s been a significant rise of entrepreneurs and online customers.
Many online marketplaces such as Mercado Livre, Americanas, Submarino, have proven that there is a great opportunity for growth and e-commerce need in the country.
These online marketplace platforms allow thousands of micro, small, medium enterprises to connect and do business across the regions.
Any supplier small or big doesn’t matter, can offer its products and services to thousands of buyers. However, the B2B market (Busines-to-Business) is still untapped.
There is a huge potential of small-scale suppliers across industries who are still looking for a business. Having an online marketplace will allow any small-scale suppliers to get exposure to the B2B market.
Starting an online venture in a developed country like the United States is very competitive, as there is already a pool of million-dollar e-commerce giants such as eBay, Etsy, or Amazon. But, here in Brazil the e-commerce market is still growing and has zero competition.
Developing countries such as Brazil, Mexico, Argentina have become lucrative markets for tech investments.
How to Create Online Marketplace
Creating an online store can be done using various platforms such as – Magento, Opencart, WooCommerce. These platforms are hugely popular and used by many online merchants.
However, these e-commerce platforms only allow one seller functionality. That means only one supplier will be able to list the products, manage the store, create shipments, handle orders, and do the rest of the things.
But with the help of the Multi-Vendor Marketplace extension, the one-seller store can be converted into a multi-supplier marketplace. Multiple suppliers can register themselves and create product listings, manage orders, create shipments, and everything.
The Multi-Vendor Marketplace provides greater visibility to small-scale suppliers and their products.
Correios is the national postal system of Brazil and it is the most preferred shipping carrier in Brazil. Due to its economical pricing, wide reach of the delivery network, and various shipping options available.
Correios shipping is the perfect choice for shipping method integration for the Brazilian market.
Correios Shipping Marketplace Add-on allows the suppliers to create Correios shipments for their buyers. Using Correios Shipping Marketplace Add-on, the suppliers can easily print the packaging slips and send tracking information to the buyers.
In an online marketplace, when a buyer makes the payment, it is not immediately transferred to the supplier, it is sent to the marketplace owner.
Once the goods are delivered to the address, it is then wired to the suppliers. This process is done for security and refund reasons.
Therefore, it is always advisable to provide those payment methods which are preferred locally such as MercadoPago and Moip. Having a secure payment gateway provides safe transactions to both suppliers and buyers.
Also, it gives trust and assurance to the buyer, that their money is in safe hands.
MercadoPago Payment Method
MercadoPago is the most popular online payment gateway in Latin America. It was launched by MercadoLibre – Latin America’s most popular online marketplace in terms of visitors. MercadoPago offers a secure and convenient payment system to buyers.
Using the MercadoPago Connect extension, you can integrate the MercadoPago payment method into your online marketplace. With the help of this extension, the buyers can use their credit cards and make payments.
Source – MercadoPago
More is also an ideal online payment gateway for the Brazilian market. More offer payment solutions to various e-commerce stores, marketplaces, and face-to-face sales channels.
In the Moip payment method, the buyer is not redirected to any other web page, everything is done on the checkout page. That’s why Moip is a secure and transparent payment method.
For integrating the Moip payment method, please check out Magento 2 Marketplace Moip Payment extension.
Chinese Investments in Brazil
Brazil and China share-friendly relationship with each other. They cooperate economically on quite some mutually beneficial projects and ventures. Since 2009, China has been Brazil´s leading trading partner both for exports and imports.
Much Brazilian media even consider China to be “Brazil’s most promising business partner and a strategically” due to China’s “rapidly rising demand for raw materials and agricultural produce”.
There’s been a constant inflow of Chinese investments in Brazil for various sectors including tech companies. Bilateral trade grew from US$6.7 billion in 2003 to US$36.7 billion in 2009.
Business to Business
In B2B sales transactions, the purchase process is entirely different. Even the purchase cycle is quite long as compared to the B2C (Business-to-Consumer). B2B products are mostly semi-finished, or raw materials for other products.
Also, the volume of transactions is a lot higher than the B2C because of the bulk order quantity. The process of negotiation, quotation, and bidding is involved. All these functionalities can be integrated into the online marketplace as well.
As B2B transactions are large, buyers generally don’t purchase the products at the listed prices. The B2B buyers commonly negotiate the product prices because of bulk order quantity. If the supplier accepts the quote, the product can be purchased by the buyer.
With the help of the Marketplace Quote System extension, the B2B customers can give the desired quote for the products and purchase the products. The buyer and supplier can negotiate for the price and quantity using the buyer-seller communication feature.
Pricing plays a very important role B2B market. There are different prices for different customer groups. The profit margin may be slightly higher or lower for one buyer in comparison to another. In B2C the prices of products are the same for anyone, it does not change.
Using the Pricelist extension, you can create different types of price-lists for the buyers. Custom price lists can be created for the products, categories, customer groups, minimum product price, and minimum quantity.
Request For Quotation or RFQ is a business process where the buyer sends an invitation or request to multiple suppliers. Each supplier sends their quotation with the bulk quantity and price.
After negotiating will all the suppliers, the buyer can select the best quotation and make the purchase.
Marketplace Request For Quotation extension allows the customers to send RFQs to all the marketplace suppliers. Each seller can negotiate the price and quantity with the customer.
PO or Purchase Order is a formal document issued by a buyer to the supplier. It contains detailed information about the ordered products or services such as order quantity, each item cost, supplier details, etc.
The purpose of the purchase orders is to source the goods and services for direct consumption, or stock, and procure materials.
With the Purchase Management extension, the store owner can create purchase orders for the suppliers. As there are hundreds of products sold, keeping a track of all the inventory is difficult.
But with the extension, as soon the stock is depleted, an automatic draft-purchase order is created.
Quick Order functionality allows B2B customers to quickly add the items to their cart instead of browsing and searching the store. A form with multiple fields is available where the buyer can quickly enter the product name and enter the quantity.
Multiple Purchase Lists
In any business, there are a lot of different suppliers or vendors for different types of products and services. B2B customer needs to manage multiple purchase lists with the prices. One purchase list cannot be used for all the suppliers.
That’s all for How to Setup an Online B2B Marketplace in Brazil still have any issues feel free to add a ticket and let us know your views to make the module better contact us.