Latin America sales may be easier than you think with a strong demand in this area for merchandise from the United States, making it a prime growth opportunity for many U.S. online retailers. A large percentage of Latin American Internet-users make purchases online, and often times from U.S. based websites – because many offer popular brands and items not easily available in their home markets.
However, buying online can be frustrating for Latin American buyers, since most online customers from Latin America do not have credit cards that are accepted in the U.S., or prefer other payment methods. With more online payment options available than ever before, as an e-commerce retailer, it's good for you to consider having as many available for various markets that might be viable. An easy payment process for your customers will undoubtedly lead to more sales for your store, at least it can't hurt.
Here are 4 ideas you may have overlooked:
Encourage the Use of Pre-Paid Credit Cards
Paying with a regular credit card is not an option for Latin American consumers. Many do not have a credit card and those that do, don’t have one that is valid for a U.S.-based website.
A pre-paid virtual credit card makes it easier to pay for transactions made through a U.S. website. It is a U.S. issued credit card where the consumer can transfer money from an international credit card, debit card, or bank account. The U.S. retailer sees the card as a U.S. based card and the order can be processed. The fees associated with these cards differ, so it is a good idea to do additional research.
Offer PayPal as an Option
PayPal is a good solution for an online retailer that wants to start up their ecommerce business quickly and easily. PayPal can be linked directly to the user’s email address and verified bank account, so the money comes right from the buyer’s checking or savings account.
PayPal charges a fee of 1.9%-2.9% per transaction plus $0.30 per order, depending on your company’s sales volume. PayPal also offers upgraded versions, such as Website Payments Pro, where the customer can checkout directly on your website, instead of being directed to PayPal’s site.
Consider Not Well Known Methods Such as Google Wallet
Formerly known as Google Checkout, this option is best for those customers that already use Google for other online services. Google Wallet is similar to PayPal in that users can pay for items through an account connected to their Google profile. Since millions of people use Google for other Internet services, purchasing goods through Google Wallet is fast and easy.
Keep it Simple with Direct Payment
There are several services that allow customers to pay for goods purchased online directly from their bank accounts. This is a good alternative for those customers who are reluctant to share their financial details online, since payment is completed through their financial institution.
Of course, completing an international sale online is more than just accepting a payment. Don’t overlook the challenges of fulfillment and shipping. SkyPostal makes online buying easier for Latin American consumers by streamlining the process for dealing with import taxes and duties on shipments. Learn how small parcel shipping services can help grow your presence in the Latin American market. Give us a call.