Latin America is an emerging e-commerce market that has attracted much attention. MercadoLibre (hereinafter referred to as MercadoLibre), as the largest e-commerce ecosystem in Latin America and known as the South American version of eBay, is increasingly becoming an ideal choice for Chinese sellers to enter the market. In Latin America, MercadoLibre ranks first, and the number of website visits is even more than twice that of Amazon. With the saturation of the e-commerce market in Europe and North America, and Southeast Asia becoming the outlet for e-commerce, Latin America is representing a new e-commerce oasis. The following will introduce the experience of opening a store on MercadoLibre to sellers.
Latin America has 10% of the world’s population, of which the middle class population exceeds 50 million, and their disposable income is constantly increasing. The region’s total GDP accounts for 8% of the world, which is equivalent to half of China and twice that of India. The number of Internet users is as high as nearly 375 million, and the number of smartphone users is about 250 million. These data show that Latin America is in a leading position in the field of digitalization. Smartphones are the main tool for people to access the Internet, providing sufficient impetus for the development of e-commerce.
MercadoLibre is a leader in the Latin American e-commerce market, and the conditions for sellers to enter are relatively strict. Corporate legal persons (limited companies) registered in mainland China or Hong Kong, China can apply for entry in the name of the company, and must have sales experience of more than 60,000 US dollars in monthly turnover on mainstream cross-border platforms. In addition, sellers with a customer unit price of more than 15 US dollars, more than 100 product SKUs, and FBA operation experience will be given priority. Sellers with stable and high-quality sources of goods and deep vertical categories will also be favored.
MercadoLibre has multiple sites in Latin America. Sellers can join the cross-border trade CBT plan. One account can operate multiple sites, such as Mexico, Argentina, Brazil, Chile, Colombia, etc. The platform uses an English background to automatically convert product listings and customer service questions into local languages, providing sellers with a convenient operating environment. Sellers can purchase a Tongtu account for API docking to list products. In terms of orders and logistics, sellers need to fill in the tracking number within 48 hours to ensure that they are delivered within 6-14 days. For the domestic segment, sellers who ship their own goods need to ship to the platform’s warehouses in Shenzhen, Hangzhou and Hong Kong. For the overseas segment, they can choose US Post, VIS Brazil or other logistics providers. FBM sellers need to use the logistics designated by the platform. The collection period is 15 days.
MercadoLibre’s fees include entry fees, one-year fees for a certain ERP online version, commissions, handling fees, exchange rate fees, and storage fees for FBM sellers. The commission is 17.5% in Mexico and 16% in other sites. The handling fee is charged at 2% of the total transaction amount. The exchange rate fee is converted into Hong Kong dollars or RMB based on the exchange rate on the day of payment, and the exchange rate is calculated based on the exchange rate of the Bank of China on that day plus a 1% difference. For details of the storage fee for FBM sellers, please refer to the platform manual.
In terms of the entry process, sellers can apply for entry by themselves, and they need to fill in company information, name, contact information, password, country and detailed address. Next, sellers need to complete account information, including uploading company logos, setting up bank accounts and logistics, etc. After completing these steps, sellers need to check the information and feedback to the investment manager to apply for activation.
To summarize, MercadoLibre, as the largest e-commerce ecosystem in Latin America, has brought Chinese sellers a unique opportunity to enter the Latin American market. Latin America has a huge number of Internet users and smartphone users, and MercadoLibre’s market share in the region is ahead of other e-commerce platforms. However, the entry conditions are relatively strict, and sellers need to have certain sales experience and stable supply. During the entry process, you need to fill in the relevant information carefully and actively cooperate with the feedback of the investment manager. For Chinese sellers who are interested in exploring the Latin American market, MercadoLibre is undoubtedly a good choice worth considering. With passion and opportunity, let us explore the broad prospects of the new oasis of Latin American e-commerce.