Latin America’s other Amazon enjoys one important advantage over foreign rivals, for which its home is a peripheral market—focus
MercadoLibre needs more workers. On May 3rd it reported that revenues grew by 35% in the first quarter of 2023, to $3bn. Last year goods worth $35bn changed hands on its platform, helping generate $1bn in pre-tax profits. How is it flourishing as similar firms elsewhere struggle?
Its success is a mix of good management and good fortune. Early on it expanded from connecting buyers and sellers into payments, initially to allay users’ fear of fraud. Its payments system, MercadoPago, is now widely trusted and used beyond its platform; more than $100bn flowed through it in 2022. The company has also built its own logistics network to deliver packages quickly in a region where infrastructure can be patchy.
MercadoLibre also benefits from a deep understanding of local shopping habits, notes Ricardo Tapia of the University of Anáhuac in Mexico City. For instance, by accumulating points for purchases, its shoppers can gain benefits such as free delivery. What may seem gimmicky to Western shoppers, for whom a big benefit of buying online is that it saves time, is a big draw for game-loving Latin Americans.
The resulting strength has allowed the firm to take advantage of fortuitous circumstances. As everywhere in the world, the pandemic accelerated the growth of e-commerce in its region. In Mexico, MercadoLibre’s third-biggest market after Brazil and Argentina, 63m people bought something online in 2022, up from 37m in 2018. In contrast to more mature markets such as Britain, the number of Latin Americans buying online did not drop back down after an initial boom in 2020.
The region’s brick-and-mortar retailers, which are rapidly improving their own digital offerings, and online giants such as Amazon have cottoned on to this trend. To keep growing, MercadoLibre may need to boost penetration in less online countries such as Colombia, where Amazon is weaker, and perhaps move into new segments, such as groceries. But it does at least enjoy another advantage over foreign rivals, for which Latin America is a peripheral market—focus.
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Pedro Pascal has a great tip for managing anxiety - here's why it worksThe internet's 'daddy' Pedro Pascal has revealed his subtle technique for dealing with social anxiety. We spoke with behavioral scientist James Milford, who is here to explain why it actually works 👇
Lire la suite »
Why The Wicker Man has divided opinion for 50 yearsIt has been described as the Citizen Kane of horror movies - and one of the worst films ever made.
Lire la suite »
Why Oil Prices Are Plunging Despite Falling Inventories | OilPrice.comOil prices have lately lost their forward momentum, with both Brent and WTI crude plunging this week. A rather puzzling trend is being observed in the oil markets: there’s a big disconnect between inventory data and oil prices.
Lire la suite »
Why Ursula Parrott’s Cult Jazz Age Novel Ex-Wife is More Resonant Than EverFirst published anonymously in 1929, Ex-Wife is an account of an open marriage and eventual divorce in Jazz Age New York. Republished today, co-host of The C-Word podcast Alissa Bennett talks about its resonance for young women today
Lire la suite »
Why you vote with a pencil in the local elections 2023Pencils are supplied at polling stations, but voters are free to bring their own pens
Lire la suite »