Basically there are four ways to find wholesale merchandise in the region:
*Buy directly from international companies located outside the region
*Purchase from local distributors representing different foreign companies
*Order from Latin American and Caribbean manufacturers
*Find wholesalers online thanks to online B2B marketplaces
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- Purchase from local distributors or agent representing different foreign companies
The majority of companies located in Latin America and the Caribbean will fill their sourcing needs by buying from local distributors, wholesalers and agents representing foreign brands and manufacturers. This option allows them to buy smaller quantities and remove all responsibilities related to shipping and customs procedures. These wholesalers are usually found in tax free zones such as the “Zona Libre de Colon” in Panama or the “Zona Franca de Iquique (Zofri)” in Chile. Almost every country in Latin America and the Caribbean has its own tax free zone to boost trade in their economies. These geographic regions have become strategic trading platforms in the region.
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- Browse wholesalers on B2B marketplaces and business portals
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.