Saturday, June 5, 2021 - (08:11) 'Amazon opens its doors to Ecuador: how and what to sell on the platform? - "Interest in marketing products to the United States increased after Amazon enabled at the end of May, to Ecuador and nine other South American nations, direct sales through its website.
The news has been considered as "a great opportunity for the country", because before the companies that wanted to sell their products on that platform, did so through alliances with other companies domiciled in the United States.
However, Amazon does not have its own logistics in Ecuador, so shipments must be made through other channels provided by companies to remove the merchandise by air and sea, they point out from the Guayaquil Chamber of Commerce (CCG).
“In other words, the big challenge to solve is logistics. The logistics costs for exporting are not yet attractive, especially for small companies ”, says a statement from the CCG.
The president of the Ecuadorian Association of Express and Courier Messaging Companies (Asemec), Edith Villavicencio, explains that the values depend on the content, weight, destination and frequency. “For example, the more shipments there is, the more discount. The advantage is that there is a range of options, "he explains.
According to the National Customs Service of Ecuador (Senae), there are 48 courier companies authorized in the country to send packages abroad.
One of them is SiatiGroup, which indicates that in order to comply with the courier regime, the products that are exported must have a weight of up to 50 kilos and a FOB value of US $ 5,000, taking into account the permits required in the destination country.
"The packaging must be in accordance with the product to be exported, for example, if it is fragile, it must have the protection required for transit to the destination country."
Villavicencio mentions that the Couriers can take the order to the wineries of other countries or through the direct distribution model to the final recipient, "as is the case with the floricultural sector, from the farm to the person who receives the bouquet of flowers in another country".
The directive states that the authorization of sales by Amazon from Ecuador, fits "perfectly" with the consultancies, preferential rates and premium services that will be provided to micro, small and medium-sized companies (MSMEs), organizations of the Popular and Solidarity Economy (EPS ), entrepreneurs and artisans, through the “Exportando” program.
This agreement was signed in April within the framework of an inter-institutional cooperation with Asemec and the Ministry of Production, Foreign Trade, Investments and Fisheries, to promote the export culture and facilitate the logistics process of sectors that traditionally do not export on a large scale.
SELLING IN AMAZON
While advising on exports or shipments of products by orders, Manuel Echeverría, associate consultant of Corpei and CEO of Trade & Business Partners, an international business advisory company based in Miami, United States, remarks that a MSM must comply with all the normal requirements and for this you must have an armed logistics infrastructure.
For this reason, he recommends that the company export its products and have them in stock in a warehouse in the United States, once he has been profiled as a seller on the Amazon page.
Echeverría points out that many companies in Ecuador or the Latin American market in general, consider that the ideal customer is one who buys three tons of the product per month. "But getting there is difficult."
That is why he points out that it would be useful for a company to send at least three pallets in a consolidated container, store their product in the United States and be able to sell it through Amazon. “It may be that 15 boxes of the product are sold per month, but by having the product nationalized in the destination country, a vendor can be hired to start knocking on the door at minimarkets, at home or at a cafeteria. The important thing is to start, even if it is a small sale. That is the strategy. Some boxes to Miami, to New York, and why not? To the Caribbean".
Echeverría says that many of the companies dedicated to selling seafood such as frozen shrimp or fish apply this retail strategy.
Could selling directly work? “Yes it could, but Ecuador does not have an efficient system for small volumes. There are countries like Chile that have a unit export system and the costs are not very high, ”says Echeverría.
Once the stock reaches the United States, the foreign trade specialist indicates that Amazon has two services. “When they deliver the products it is called Fulfillment By Amazon (FBA), that is, Amazon is the one in charge of collecting the package, packing it, labeling it and shipping it ...." - https://www.vistazo.com/ Home / amazon-opens-its-doors-to-ecuador-how-and-what-to-sell-on-the-platform-BY357553
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