Expanding to New Markets with Mercado Libre
Mercado Libre has been making headlines recently, and with good reason. The largest eCommerce platform in Latin America has come into the international spotlight with record financial gains as well as forward thinking technology innovation. While other online sales platforms have slowed since the height of the pandemic, the second quarter of 2022 saw Mercado Libre increase their sales by 53%. These results beat all out all the projected analysis and given the company a big buzz in the financial world. With newfound international publicity, new investments and such strong figures Mercado Libre is a powerful and growing marketplace that everyone in the eCommerce business needs to be aware of.
Since its founding in 1999, Mercado Libre has been expanding across Latin America to become the major online sales platform in the region, with operations in Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, The Dominican Republic, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay and Venezuela. Currently boasting over 80 million active users, Mercado Libre does the bulk of it’s sales in Brazil and Argentina where it is the leading eCommerce market. They have established dominance in a region home to 650 million people that are rapidly gaining more and more access to the internet and designed a marketplace system to efficiently operate in the unique conditions of Latin America. This means that not only is the growth opportunity enormous, Mercado Libre has a major logistical edge on the competition as well.
In addition to the highly successful online sales market, Mercado Libre has been expanding to develop and integrate new financial technology on their platform. Mercado Pago is Mercado Libre’s payment processing service. It can be thought of as a digital wallet similar to PayPal, with a wide range of financial services to help customers. Users of Mercado Pago are able to quickly and easily buy and sell products from different countries with various currencies online, but it also functions like a bank, offering credit and loans. The mobile point of sale and QR code payment integration expand the Mercado Pago service from eCommerce into the face to face, in-person sales market. These consumer friendly features are paying off, with Mercado Pago reporting $30 Billion in payment volume in the second quarter, a 72% increase for the service.
Most recently, Mercado Libre has jumped into the crypto currency market.The newly launched Mercado Coin is Mercado Libre’s own Ethereum based token. This block chain currency is being given as a cash back reward to customers for purchases on Mercado Libre. Customers who accumulate the reward are able to spend it on the Mercado Libre platform. Unlike a traditional cashback reward or coupon, the Mercado Coin is an investment for the customers, as it grows in value with the fast expanding crypto currency market. Currently, Mercado Coin is available to customers in Brazil and are valued at $0.10 USD, with plans to expand it’s availability to the rest of Mercado Libre’s Latin American countries. The coin is being kept internally in the Mercado Pago wallet during the first phase of its roll out, but is planned to grow to external wallets soon, greatly increasing value.
Getting on board with Mercado Libre is a must for eCommerce. It functions much like competing U.S. based eCommerce platforms, allowing merchants to sell and auction virtually any item. The interface is well designed and easy to use, and integrates with LvledUp for seamless inventory management. Simply put, getting your products on Mercado Libre opens up a new, massive population of customers to sell your products to.