What is MercadoLibre? MercadoLibre Review

Platform Introduction

MercadoLibre uploads product titles and detailed descriptions that can be edited in English. The platform will automatically translate the seller's title and description into Spanish and Portuguese. Products need to be uploaded through Tongtu ERP, or directly connected to the platform through API. There is no limit on the number of SKUs uploaded, but new sellers are limited to 1,000 SKUs. If the number exceeds 1,000, you need to contact MercadoLibre staff to review the data and eliminate the restrictions until the platform verifies the data. Once the initial data verification is completed, the seller will be able to upload more SKUs. The seller's product pricing is displayed in the local currency.

MercadoLibre's commission is uniformly set at 16%. Payments are settled through ESG. The logistics time is 48 hours, and delivery is completed within 6 to 14 days. It has warehouses in Shenzhen, Hangzhou, and Hong Kong.

E-commerce solutions

MercadoLibre Marketplace - an automated online e-commerce service for businesses and individuals to list items for sale and purchase, either fixed price or auction-based; through the service, sellers can list their products by category and buyers can select their products by category;

MercadoLibre Classifieds — provides users with off-platform services, mainly for products such as automobiles and real estate;

MercadoPago – Online Payment Solution, an integrated online payment solution that facilitates transactions by providing a mechanism that allows users to send and receive online payments;

MercadoLibre Advertising - enables retailers, small and medium-sized brands, and various consumer brands to easily promote their products and services online; enables users and advertisers to place advertisements (images or text) on their websites to promote their brands and products;

MercadoShops — Online store solution, a SaaS that allows users to set up, manage and promote their own online web store;

MercadoEnvios – Delivery (courier) solutions for marketplace users.

Business coverage area

Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, Paraguay, Venezuela, Portugal, El Salvador, Uruguay

Product Categories

Includes electronics, books, entertainment, beauty and personal care, household goods, automobiles, motorcycles and others, real estate, services, toys and games, etc.

Restricted Products

It is forbidden to upload lists with restrictions, as these products will not be able to be delivered. On the other hand, products held by customs will not be able to be returned to the country of origin due to the export process required. Please see the restriction list below:

1. All countries/regions restricted products: lithium batteries, fine jewelry (precious and semi-precious)

2. Restricted Products in Mexico: Toy Weapon Replicas

3. Toys with characters (eg: Funko Pops, collectible characters in general)

4. Any kind of dolls (Barbie, Lego characters)

5. Any type of product for children under 3 years old

6. Untreated wood products (pencils, board games, etc.)

7. Medical equipment (thermometer, tensiometer, etc.)

8. Herbicides, pesticides, insect repellents

9. Paint, varnish, etc.

10. Animals and animal products, food products, magnetized materials, monetary items

commission

For the Mexican site, the commission range is between 11.5% and 17.5%, depending on the unit price;

Example: The unit price is 6500USD, and the total commission received is as follows:

0-1000USD part, 17.5%, i.e. 1000*17.5%=175

For the 1000-5000 USD portion, 14.5% is charged, i.e. 4000*14.5%=580

For the 5000-6500 USD portion, 11.5% is charged, i.e. 1500*11.5%=172.5

Total: 175+580+172.5=927.5USD

At present, the unit price of most of the goods sold by Chinese sellers is within 1,000 USD, so the commission is 17.5%.

Other sites currently charge a uniform fee of 16%

Entry requirements

As MercadoLibre's officially designated strategic partner, ESG is responsible for the platform's investment promotion in China and provides a green channel for sellers to join the platform.

1. Application fee for settlement: RMB 5,000.

2. All sellers applying for Marcos Galperin must purchase and bind the platform's designated software service provider: Tongtu ERP software online version for 1 year (cost: ￥3588)

Note: After the seller passes the ESG review, he/she needs to sign a payment agreement with ESG and successfully pay the entry application fee (RMB 5,000) and the one-year online trial version of Tongtu ERP software (fee: RMB 3,588). ESG will then assist the seller in submitting the application to the platform and assist in going online with the account.

Financing

The first round of financing: In November 1999, JP Morgan, BHCA LP, Flatiron, Hicks, Muse, Tate&Furst invested a total of US$7.6 million. The second round of financing: In May 2000, Goldman Sachs, Capital RiesgoInternetSCR (a subsidiary of Spain's Santander Bank), GE Capital, JP Morgan, BHCA LP, Flatiron, Hicks, Muse, Tate&Furst invested a total of US$46.7 million.

In August 2007, Mercadolivre was listed on NASDAQ with the stock code: MELI.

In 2011, Mercadolivre and eBay signed a five-year cooperation plan in Latin America, and eBay became one of the two major shareholders of Mercadolivre. However, the cooperation plan ended after it expired.

develop

MercadoLibre was founded in Argentina in August 1999 and quickly expanded to Brazil (via MercadoLivre.com), Mexico, and other South American countries;

In 1999, MercadoLibre chose to become an Endeavor (non-profit) Entrepreneur;

In 2001, eBay exchanged its newly acquired Brazilian Ibazar.com.br for MercadoLibre's 19.5% stake, making MercadoLibre eBay's exclusive partner in South America. Currently, eBay still holds 18.37% of the shares and has 50% of the voting rights.

In November 2005, MercadoLibre acquired its main competitor DeRemate's operations in eight countries (Brazil, Colombia, Ecuador, Mexico, Peru, Puerto Rico, Uruguay and Venezuela);

In 2006, MercadoLibre.com entered the markets of Costa Rica, Panama and the Dominican Republic;

In August 2007, Mercadolivre was listed on NASDAQ.

In August 2008, MercadoLibre acquired the remaining operations of DeRemate, including operations in Argentina, Chile, Colombia, Mexico, and Brazil;

In 2009, Mercadolivre's total sales volume was 29.5 million, with a total value of US$2.75 billion. In the third quarter of 2010, the number of new products reached 10.4 million, with a growth rate of 30.1%.

In 2010, MercadoLibre.com expanded its e-commerce portal to Portugal.

In 2013, EBay and Baillie Gifford became the two major controlling shareholders of mercadolibre.

In 2014, MercadoLibre acquired Chilean classifieds site Portal Inmobiliario.

In 2015, MercadoLibre announced the acquisition of Metroscúbicos.com, the portal of Mexican real estate company Grupo Expansión.

As of March 31, 2016, Mercadolibre operates in 13 countries.

MercadoLibre opened its first Colombian office in Bogota in October 2016. This is the company's fourth customer service center in Latin America.

MercadoLivre achieved net revenue of $371 million in the third quarter of 2017, up 61% year-on-year and 79% in local currency, a record high.

In April 2018, MercadoLibre China’s first investment promotion summit was officially launched!

References

• 1. Do you know the latest entry requirements and seller information of Latin American e-commerce giant Mercadolibre? : Sina Finance [cited on 2018-01-31T16:00:00.000Z]
• 2. A beginner's guide to opening a store on Mercado Libre. How is Mercado Libre? : chinabrands [cited on 2019-05-28T16:00:00.000Z]
• 3. Latin America's largest e-commerce platform: Mercadolibre (MELI) : US Stocks Home [reference date 2019-11-29T16:00:00.000Z]