You produce an item, put someone else's brand on it, and sell it for $50 on Mercado. What you get is only 10 dollars in processing fees. Who earns the remaining 40 dollars? This article does some math to show you why more and more factories are choosing to bypass the middleman and embrace the 200 million Latin American consumers directly.

First, a solid fact: factories are always “helping others to make money”.”

1.1 Do the math and you'll get the picture

You manufacture a Bluetooth headset in Dongguan:

final result: You make less than $5 in processing fees for a product that the consumer pays $50 for. The rest of the $40 or so is split between the middlemen.

This is the harsh reality of the “foundry model” -You have the capacity, but not the channel; you have the quality, but not the brand; you have the profit margin, but the profit does not belong to you.

1.2 The “three mountains” of traditional foreign trade”

Pain Point 1: Pressure on Accounting Periods

The billing period for traditional foreign trade is usually 60-90 days. This means that you have to wait two or three months to get the money for the goods you sent out. And your raw material purchases, workers' wages, plant rent, are spending every day. The risk of a broken capital chain hangs over your head like a knife.

Pain point 2: unstable orders

Large customers order 2-3 times a year, half of the production line is idle in the off-season; in the peak season, we have to work overtime to meet the deadline. The factory can not do balanced production, low equipment utilization, high unit cost.

Pain point 3: Profits are continuously compressed

Foreign trade customers press prices year after year. “Your costs haven't gone up, so why should you raise prices?” “No price reduction? Then I'll find a Vietnamese factory.” You know the margins are already thin, but there is no negotiating leverage - because you don't hold the end consumer.

Immediately contact: 19076121147 (phone / wechat same number)

Second, how much more can you earn by doing cross-border yourself?

2.1 Direct Marketing Model Profit Breakdown

The same Bluetooth headset if you yourself sell directly to Latin American consumers through Mercado:

It's still the same product, it's still the same quality.Doing cross-border on your own boosts net profit from less than $5 to $9--Same as selling for $50, you nearly doubled the money you made.

More importantly:For the first time, you've mastered the end consumer.. You know what colors, features, and prices they like. This data, in turn, can guide your product development and production plans.

2.2 Real Case: A Factory's “Turnaround”

Case: Dongguan Bluetooth headset factory

Wang boss in dongguan do bluetooth headset OEM 10 years, annual output value of 50 million, net profit of less than 2 million.

In 2025, he was admitted to the Mexican station through the green channel of the Mercado factory.After 6 months::

• Monthly sales exceeded $800,000
• Net profit margin improved from 4% to 18%
• Plant capacity utilization increased from 65% to 92%
• Not only did not lose the OEM old customers, but because of the “self-managed stores do well”, to attract more brands to take the initiative to cooperate!

“Before it was begging customers to place orders, now it's customers lining up for scheduling.” Mr. Wang said.

Immediately contact: 19076121147 (phone / wechat same number)

Third, factories do not dare to do cross-border 4 concerns, one by one to break down

Concern #1: “I don't know anything about e-commerce and I don't have a team, how can I do it?”

This is the most common concern voiced by factory owners.

✅ The answer is: in 2026, you don't need to understand.

Officially launched by Mercado in March 2026Full hosting modelIt is tailor-made for factories with “zero e-commerce experience”.

You just need to focus on what you're good at--give birth to a child. The rest, all to the platform.

Concern 2: “I've heard that cross-border pressurization is serious, and I'm afraid of inventory buildup”

✅ Fully hosted/semi-hosted model that dramatically reduces the risk of overwhelm.

• Small batch testingRecommended stocking 5-10 pieces per SKU for the first order, with an input cost of only a few thousand dollars.
• Platform data guidance: Mercado will give advice on product selection and stocking based on big data on Latin America's hot sales.
• Flexible replenishment: Sell well and then replenish, sell poorly and stop in time
• Entry into a position is a confirmation of rights: After preparing goods to Dongguan warehouse, the right of goods still belongs to the seller, and the strategy can be adjusted at any time.

real data: The average first-order lag rate for factories that enter through the Mercado fully managed model is less than 15%.

Concern #3: “Is cross-border payback safe? Will I get screwed?”

✅ Mektor's payment mechanism is more secure than traditional foreign trade.

Mercado Payment Process: Buyer's payment → platform freezes funds → buyer confirms receipt of goods → platform settles to seller → withdraw to domestic account. Platform as a third-party guarantee, buyers and sellers have protection.

Concern #4: “I don't speak English well, how can I do the Latin American market?”

✅ Platform full Chinese background + translation tools + customer service support.

• The Mercado seller's back office has been fullyChinese cultureThe interface is clear and easy to understand
• When shelving a product, the platform providesone-click translationFunction, Chinese to Spanish/Portuguese automatically
• under the full hosting model.Customer service is the responsibility of the platformYou don't need to communicate directly with overseas consumers.
• We offerChinese Escort ServiceWe will take you through the entire process from registration to first order.

Fourth, who is making money through Mercado?

According to the platform's 2025 data, the following 3 types of factories are the best performers in Mercado:

Type I: Small Appliance Factory

• Representative products: Juicer, air fryer, hair cutter, hair dryer
• Latin American market demand, Chinese products cost-effective advantage is obvious
• Mexico station small appliances category annual growth of 47%

Type II: Consumer Electronics Parts Factory

• Representative products: Bluetooth headset, charging treasure, data cable, cell phone case
• High-frequency just need, high repurchase rate
• Brazilian station accessories category average daily orders of more than 100,000 orders

Type III: Home/Hardware/Auto Parts Factory

• Representative products: hand tools, storage products, motorcycle accessories
• Latin America's DIY culture is prevalent, and tools are a perennial seller
• Chile station hardware category Chinese sellers accounted for less than 20%, blue ocean opportunities

Does your product fall into any of the above categories? If it does, now is the best time to enter.

V. What dividends can I enjoy if I enter now?

Dividend One: Platform Policy Window

In 2026, Mercado launched a series of limited time policies to attract quality factory sellers:

• Removal of mandatory water flow requirement for general cross-border stores (previously, proof of water flow on other platforms was required)
• Factory green channel 48 hours down the store (normal entry takes 7-10 days)
• Free commission for the first 3 months for new stores
• Subsidies up to 15% for headway logistics

These policies will not last forever. As the number of incoming sellers increases, the bar is bound to rise.

Dividend 2: The competitive landscape is not yet solidified

Compared with the “red sea fight” on Amazon Europe, the proportion of Chinese sellers on the Merkur Latin America site is not high:

Early entry = low cost customer acquisition = first mover advantage.

VI. What are you still hesitating for?

Your peers, they're already making money.

Immediately contact: 19076121147 (phone / wechat same number)