Tiendanube reveals the secrets to online business during a talk at INCmty.
What are the challenges of e-commerce? Creating a marketplace and innovating on payments and shipping, says Juan Martín Vignart, country manager of Tiendanube, one of Latin America’s unicorn companies, which reached a valuation of 1 billion dollars last August.
Tiendanube is a company that enables businesses to easily create online stores at an affordable price and without any technical expertise. During the INCmty 2021 festival, Vignart spoke about the challenges and opportunities facing companies in the region after the pandemic.
In fact, the platform is already working on new innovations in digital commerce, such as augmented reality to see how an item would look in your home, a search engine that uses drawings to find the nearest thing possible to what you need, live shopping, and more.
“In Mexico, there are currently 50,000 professional stores, but 4 million SMEs, which means that only 1% are online,” explains Vignart.
Although the Mexican digital market received a boost during the pandemic, the most important acceleration was in marketplaces such as Mercado Libre and Amazon.
The problem was that Mexican businesses didn’t create their own marketplaces in time. Once they had uploaded their products to these platforms, they realized they have a lot of competitors with better prices.
“The lack of a local platform prevented them from communicating the essence of their businesses and connecting directly with customers,” he explains. Vignart estimates that Mexico should have between 200,000 and 250,000 online stores.
“The most important thing about online selling is getting started,” according to Tiendanube’s country manager. “Taking businesses online and gaining consumer trust takes time, but the more SMEs that do, the easier it’ll be for buyers.”
That’s why he recommends entrepreneurs train to do what they enjoy and be resilient.
And he asks entrepreneurs to pay special attention to the biggest challenges for e-commerce expansion: payments and shipping.
“There are people who don’t have payment cards and want to pay in cash at an OXXO store. Make that possible. Use different forms of payment that work for your customers. It should be simple, without the need for an application,” he says.
And he recommends looking for the best parcel delivery service for shipping products all over the country.
“I’m sure that most people have never heard of Tiendanube, but we’re the fifth unicorn in Latin America. We’re just as important as any other SME, large or small, but there is a before and after,” he says.
After becoming a unicorn, Google searches for Tiendanube increased by 40% and they’ve gained the trust of partners and investors.
“It’s the moment when growing aggressively stopped being a promise and became a reality,” he concludes.