Recently, many small partners asked, what is Mercado Libre boutique in Mexico?New entrants generally choose which mode to enter the market. For this problem, I think it is necessary to make a difference between the boutique mode and the distribution mode, as well as their advantages and disadvantages.

1、 Difference between boutique mode and distribution mode

1.Boutique mode:

As the name suggests, a category is vertically fixed or the customer audience is perpendicular to a certain direction. Sites such as women's clothing, beauty makeup, shoes, mother and baby, pet surroundings, etc. can be called boutiques. Such stores usually have fewer links to sell, and more homes are sold focusing on factories or product types.

The boutique model is more difficult in the early stage of opening the store. Such sellers' grasp of products and supply chain is also more mature than distribution sellers.Generally speaking, compared with the distribution sellers, the high-quality model can better precipitate the flow and form a brand.

2.Distribution mode:

This kind of store can be said to be the one with the largest number of Chinese CBT sellers in Mercado Libre, Mexico. The usual practice is to collect data sources on a large scale on other e-commerce platforms through some ERP tools, modify the parameter format of the data source, and put them on their own Mercado Libre CBT stores in batches.

The advantage of these stores is that they can quickly measure the products at a low cost in a short time. Without a fixed sales category, they are similar to department stores, selling everything. These stores are mainly popular products chasing the outlet. They need to constantly find new products on the shelves. They focus on what products they sell when the sales data can run. After the data decline, they continue to test new categories,The purpose is to make the fastest money in the shortest time, so you will see clothes and shoes together with a variety of irrelevant commodity categories such as power tools and binoculars in many grocery stores at the same time, which is very common.

2、 Advantages and disadvantages of boutique mode and distribution mode

1.Advantages and disadvantages of boutique mode:

Advantages: this kind of store is more suitable for making brands. Because most boutique sellers have goods in stock and have a deeper understanding and grasp of products, the timeliness of the store can be guaranteed and the profit will be better. Advertising can obtain accurate and transaction conversion, and higher traffic can form a higher repurchase rate. The significance of repurchase lies in that you spend a share of advertising,However, it can bring two or even multiple re purchases, which is difficult to realize in the distribution mode. Moreover, after the brand effect in the later stage rises, a steady flow of traffic can be obtained from both advertising and various promotion activities on the platform.

Disadvantages: compared with distribution sellers, boutique sellers will have a difficult start. In the early stage, they need to invest a lot of money to prepare goods and build a brand route. Due to fewer links in stores, customers will have a much smaller range of products to choose.

2.Advantages and disadvantages of distribution mode:

Advantages: ① it has strong flexibility and more selectivity for the products sold, because there is no fixed customer audience and the sales pricing is relatively arbitrary. It is easier for new Mercado Libre sellers to get started. As long as they are diligent enough, they can sell tens of thousands of links in batches on the shelves in a short time and issue orders quickly with the help of ERP tools.

② For quick product testing, with the help of Mercado Libre selection tool, select different categories and quickly find out the links of other sellers that have certain sales volume for follow-up sales. Even novice sellers without operation experience can easily achieve the purpose of rapid product testing by choosing low price.

③ The investment is not high and the risk is small. Since the distribution seller delivers goods by itself, there is no need to invest a lot of money to prepare goods at the initial stage of the project, and the threshold is relatively low for novice sellers who want to get started with Mercado Libre quickly.

Disadvantages: ① it is easy to infringe, and the risk is high. Most sellers who blindly distribute goods must encounter infringement problems. The platform strictly investigates and cracks down on infringement, ranging from removing store products from the shelves to directly closing the account and closing the store.

② The orders are issued disorderly and the purchase time and cost are too high. Due to the large number of goods distributed and the strict store performance evaluation mechanism for sellers on the platform, many sellers need to repeatedly communicate with merchants on a source platform to confirm product specifications and delivery timeliness. Due to the small purchase quantity, Mercado Libre sellers often need to spend more time and money,You can purchase goods matching the order.

③ There are many customer complaint problems. Because the products on the shelf are published in batches with ERP, most sellers who ship their own goods and even don't know what goods they are selling. Therefore, after the shop issues the order, there are often cases that the goods they buy can't arrive, or the goods they buy are quite different from their own order products. There are many customer complaint problems.

④ The time limit is strict, and the store is easy to be yellow. The warehousing time limit of the platform for self shipping sellers is 72 hours (96 hours for a few stores). Under this more stringent warehousing time limit assessment, most self shipping sellers cannot warehouse in time, resulting in the Yellow store.The impact of store yellowing is more expensive freight and fewer orders.

⑤ The gross profit is low. Most sellers deliver goods by themselves, and their own supply chain is extremely scarce. Customers in Mexico have high requirements for products. Once the package is returned, it can not be returned to China or sold again. They can only be forced to calculate the loss. Once the return rate is not grasped, the overall gross profit will be very low.

To sum up, you can choose the development direction suitable for you according to your actual situation and the overall planning of Mercado Libre project. If you are still a confused little partner, it is suggested that you can start with a large number of distribution modes and be familiar with the basic rules and operation skills of Mercado Libre platform during the operation,And constantly improve the selection and supply chain, and then transform to boutique brand stores.