We want to take Feeds and educating the business world about Latin America to a new level. That’s why this month, we are sending our readers unique content found nowhere else but here.
Local Customer that Can’t Buy from Amazon
Rafael is an intern at ExxonMobil and studying to get his IT degree from a university about a 15min walk far from his apartment. He’s tired of carrying his laptop from work to his night classes and thinks that a new Fire tablet from Amazon could be a cost effective solution.
Just before he’s off to class, Rafael gets out his Mastercard to buy the tablet that’s already in his Amazon cart. He placed the order, but what he doesn’t know is that his card, although technically an international credit card brand, is only able to make national purchases.
Ultimately, the payment is declined and it’s time for class.
Later that night, instead of cracking open his books to study, Rafael opens his laptop to check out a local ecommerce selling older versions of competitor tablets—for about triple the price. He’s not happy about it but knows he doesn’t want to lug his laptop around anymore.
Rafael pulls out the same Mastercard and selects the best looking tablet on Mercadolivre. This time the card goes through and Rafael was able to break-up the exorbitant price into 3 monthly installments.
Rafael’s story isn’t uncommon in Brazil. Many international business don’t realize how much business they’re losing without local payment options (cough* local credit card processing).
More educational content from our blog:
Expand Globally, Using Alibaba’s Ecommerce Ecosystem Strategy
Viewing global expansion through an ecommerce world rather than a traditional buyer-seller relationship can change the way you plan your expansion. Regions of the globe can be grouped by continent, culture, and more importantly consumer culture and limitations. Read more.
A Story About Boleto Conversion Rates
The reason behind great boleto conversion rates is not always straight forward. I have seen cases of online stores within the exact same industry, offering very similar products and prices with extremely divergent boleto conversion rates. Read more.
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