Afternoon Coffee: MercadoLibre Looks to Hold Off Amazon; Tipalti to Improve Customers’ B2B Payments Experience

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The Argentinian e-commerce company MercadoLibre Inc. is looking towards the long term in their battle to hold off industry giants such as Amazon.

The financial infrastructure in Latin America is poor, and many are suspicious of the security surrounding online payments. MercadoLibre has therefore spent billions of dollars to build their own logistics and financial payment infrastructure. This had helped increase sales by $1.4 billion, over 18 different countries in Latin America.

However, gross profit margins are decreasing, which the company says is part of the long-term plan as they do not expect profits in the next 3-5 years.

Tipalti Upgrades PayPal Payouts Integration

Tipalti, a provider of global payables automation solutions, announced that the company is upgrading its PayPal services offering "to help customers execute PayPal payments to their suppliers even more effortlessly."

In a blog post by Tipalti CEO Chen Amit, he outlines how now, in the Tipalti platform, "PayPal payments have the same seamless, integrated approach for payouts as all our other payment methods, such as wires, US ACH, eCheck (Global ACH), and checks."

DSW Inc. Starting to Push Own Products Over Suppliers’

DSW Inc. is one of the largest discount shoe retailers in the U.S., and up until now, its business model has been based around selling the footwear made by suppliers. However, to prevent all sales going directly to suppliers, DSW is now planning to push more of their own products.

Under a new name, Designer Brands, they will offer products that customers can only get in DSW stores or online. This means competing directly with its own suppliers, highlighting the increasingly complicated relationship between vendors and retail.

Counterfeit Goods Sales Total $509 Billion and Counting

In 2016, counterfeit goods made up 3.3% of all global trade volumes, up from 2.5% in the previous year. This adds up to an estimated $509 billion, according to an OECD report.

Twenty-two percent of all customs confiscations were fake footwear brands, with clothing and leather goods also topping the counterfeit list. Most of these fake goods came from China or Hong Kong.

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