Hispanic eCommerce bigwig MercadoLibre Inc. is joining forces with Texas-headquartered BigCommerce Holdings Inc. to introduce the shopping platform to the Latin American market.
BigCommerce allows businesses to build their online stores into its eCommerce marketplace and sell their products online and via social media networks. Now, the platform seeks to register another 60,000 merchants into its platform–which currently dominates as the fastest-flourishing e-commerce market.
With the same breath, MercadoLibre–currently number 2 in Latin America by market value — hopes the collaboration reinforces its efforts to fortify its overseas business.
This collaboration is part of its BigCommerce strategy to match up to the globe’s top eCommerce market and rival its more established competitor, Shopify Inc.
Earlier in the year (around February), the eCommerce marketplace entered an agreement with Walmart to allow its retailers to sell on the platform’s third-party online marketplace. Then last month, BigCommerce publicized a new alliance with Amazon.com Inc. that allows it to enjoy the giant retailer’s groundbreaking fulfillment services.
“We are comfortable working with multiple partners as long as they service the various needs of e-commerce retailers,” says Russell Klein, a senior executive at BigCommerce. “Our collaboration with MercadoLibre will eliminate the challenges of doing business across borders.”
Klein also explained that this new alliance will begin with a special focus on primary markets including Mexico, Chile, Colombia, and Brazil.
MercadoLibre is yet another product of the COVID-19 pandemic. It thrived during the massive customer shift to eCommerce shopping and digital payments. Pre-pandemic, web shopping made up a meager 5 percent of Latin America’s total retail sales. Now, estimates from HSBC show this figure could jump to 25 percent throughout the next decade.
MercadoLibre is determined to grow its primary business (eCommerce) while maintaining its secondary wing’s (financial services) momentum. Sources show the company generates nearly ⅔ of its total revenue from online commerce and ⅓ from financial services.
MercadoLibre is now getting ready to set foot and erect a physical office in Miami thanks to the agreement. Meanwhile, BigCommerce integration is working to onboard the sixty thousand Hispanic merchants into its platform.
Author Bio: Content crafter Alex Wilmont has been active in the payments industry for over 15 years and understands everything about eCommerce. He lives simply, gives generously, and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.