Most merchants focus on becoming an Amazon international seller. However, sellers following this strategy may miss out on regional eCommerce platforms. This is especially true for businesses taking advantage of eCommerce in Latin America.
Latin America is one of the fastest-growing markets but also has low competition, making this one of the most promising international regions. However, a mistake businesses make during Latin American expansion is only selling on Amazon rather than Mercado Libre.
In 2023, Mercado Libre earned a revenue of $14.47 billion. Plus, international expansion on Mercado Libre is easier than you think. But how can businesses start selling products on this platform? This guide will teach you everything about selling on Mercado Libre.
What Is Mercado Libre?
Mercado Libre is an eCommerce platform based in Latin America. It was formed in Argentina in 1999. Mercado Libre has since experienced tremendous growth, expanding to 18 countries and becoming the first Latin American tech company listed on the NASDAQ.
Mercado Libre is similar to Amazon. It’s an eCommerce marketplace that sells various products, such as apparel, electronics, auto parts, and other consumer goods.
Third-party merchants can sell on Mercado Libre’s platform. Mercado Libre owns five distribution facilities and a software center throughout Latin America, so international sellers can let ML handle their fulfillment.
Mercado Libre also offers other benefits to international sellers. Its website is user-friendly and has content in English. Plus, ML also has a robust mobile app.
Mercado Libre’s Services
Mercado Libre has both eCommerce and tech services that support businesses in different ways. These services vary from ads to various payment solutions.
Before you sell on Mercado Libre, here’s a breakdown of each service.
Mercado Pago
Mercado Pago is a payment solution that safeguards transactions for both sellers and consumers.
What makes Mercado Pago unique is it offers physical currency as well as digital payments. Cash is still the most common way to pay for goods and services in Latin America, making Mercado Libre’s payment gateway groundbreaking.
Mercado Pago also offers money transfers between different countries. It can read QR codes and credit cards, expediting payments quickly.
When you sell on Mercado Libre, you can accept Mercado Pago or use your payment gateway.
Mercado Credito
Consumers also have the option to open a line of credit with Mercado Credito. Mercado Credito is worth more than 3.8 billion USD and is a middle ground between eCommerce and banking.
With Mercado Credito, consumers can take a loan to pay for Mercado Libre products. Consumers then pay back the purchase with interest using Mercado Pago. Interest varies, depending on the consumer’s credit score.
Mercado Envios
Mercado Envios is the logistics system for third-party sellers. When you sell on Mercado Libre, merchants can partner with third-party carriers to ship their products throughout Latin America. This is perfect for remote fulfillment or marketplace expansion.
Some of the services available with Mercado Envios include warehousing and stock management. Sellers can also receive a discount on storage and shipping.
Mercado Shops
When picturing Mercado Shops, think of Amazon Stores. Mercado Shops are micro-stores dedicated to each merchant where they can feature a catalog of their products.
When you sell on Mercado Libre, you can set up a Mercado Shop for free. You can connect your shop to your social media and any Mercado Libre service.
Mercado Ads
You can create Mercado Ads to increase sales when selling on Mercado Libre. These ads appear on and off Mercado Libre. Common examples include banners and suggested products on searches.
Mercado Ads operate on a pay-per-click basis. In other words, you only pay if a consumer clicks on your ad. Sellers also have a lot of freedom over their ads. For example, you can choose when Mercado Libre displays your ad and follow a specific budget.
Classifieds
Mercado Libre also offers a listing service for non-retail businesses. Companies and individuals, such as realtors and car dealers, can list services and items for sale on the marketplace. When a consumer finds your ad, they will contact you and negotiate the sale.
Mercado Libre charges their classifieds by placement.
Can Foreigners Use Mercado Libre?
Yes, Mercado Libre allows sellers outside Latin America to sell on its platform. Mercado Libre designed its Global Selling Platform to allow sellers from all over the world to enter its market.
The Global Selling Platform includes all services and tailors them to international sellers, so you don’t need to be based in Latin America to sell on this platform or worry about cross-border sales.
With the Global Selling Platform, Mercado Libre will handle customs, shipping, taxes, and currency exchanges. Mercado Libre partners with DHL and other carriers to ease the shipping process.
How to Sell on Mercado Libre
The first step to selling on Mercado Libre is creating a seller account. When creating your seller account, you must enter your business details and contact information. Mercado Libre must also know your banking details to facilitate payments and returns.
During the signup process, you decide which Mercado Libre services you’ll use. For example, you can choose Mercado Pago to collect payments or set up your payment processing system.
Once Mercado Libre approves your account, you can easily upload your products to their platform by uploading a CSV file. Ensure all products include categories, GTINs, and descriptions like color and size.
What to Know About Mercado Libre
Before you sell on Mercado Libre, you must know some basic facts about their platform and how they may affect you as a seller. These include the products you sell and the fees you’ll pay.
Eligible Products
While numerous retailers can sell on Mercado Libre, there are still exceptions. Mercado Libre offers a restricted items list. Read this before signing up for an account to ensure your inventory complies with their requirements.
Some carriers also have shipping restrictions. Your package must be a certain size for shipping; otherwise, the carrier won’t accept your package. Here are general dimension recommendations to follow:
- Minimum dimensions: 1 x 1 x 1 cm
- Maximum dimensions: 110 x 100 x 220 cm
- Minimum weight: 1 kg
- Maximum weight: 25 kg
Remember that all countries may have shipping dimension and weight requirements, especially with international shipping.
Seller Fees
Mercado Libre doesn’t charge a fee to list products; however, you will pay a fee when you sell on Mercado Libre. These fees vary based on the region and type of product.
Mercado Libre Mexico has fees that vary between 12.5% and 22.5%, similar to selling on Amazon Mexico. However, Mercado Libre Brazil has a fixed fee of 16.5%, which is similar to selling on Amazon Brazil.
You may incur additional fees. For example, if you sell low-cost items, you’ll incur a per-unit fee. Shipping fees also vary; click here for more information.
Sell on Mercado Libre
If you plan on expanding internationally, it’s important to focus on marketplaces outside of Amazon. For sellers expanding to Latin America, you’ll also want to sell on Mercado Libre.
To sell on Mercado Libre, you must sign up for a seller’s account and optimize your store for the Global Selling Program. It’s also important to know Mercado Libre’s additional services and other helpful information, such as the eligible products you can sell and any fees you may incur.
Do you still need help expanding internationally? With our Global Expansion Program, we will find your true potential and capitalize on it in international markets. Click here to learn more about our services.
Authors
Esteban Muñoz is a content writer with several years’ experience in digital marketing and eCommerce. He’s been able to achieve incredible growth for his associates by optimizing and managing their accounts, and creating in-depth content marketing strategies.
Stephanie Jensen has been writing e-commerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
