A little less Brazil, a little more Mexico
As more Latin Americans turned to online shopping due to the pandemic, Mercado Libre’s dynamics in the 18 markets where it operates changed accordingly. Brazil still accounts for most of the revenue generated by the company, but its share has declined compared to 2019. Meanwhile, Mexico and its home country, Argentina, have increased their contribution to Mercado Libre's revenue. Still, it is in Mexico that competition tends to be stiffest. This growth has not come for free, as the company has progressively focused on the Mexican market in recent years. Mercado Libre disclosed its largest-ever investment in Mexico in 2024, injecting approximately 2.45 billion U.S. dollars into the country.The race to deliver is on
The growing demand for online shopping triggered by the pandemic brought urgency to a persistent problem in Latin America: logistics. Realizing the online shopping game is also a race to deliver, Amazon —Mercado Libre's main competitor— has been increasingly investing in logistics and transportation across the region, seeking to reduce costs and delivery times within and beyond its borders.In 2023, Amazon Mexico unveiled a 30,000-square-meter warehouse in the country's capital, as part of its efforts to boost delivery efficiency. This facility, the largest last-mile delivery center in Latin America, marks a substantial addition to the infrastructure of the U.S. e-commerce behemoth in Mexico, which already counts 11 shipping centers, 27 delivery stations, and three sorting centers. Furthermore, Amazon Brazil significantly expanded its distribution center network, totaling 62 delivery stations and ten fulfillment centers established by 2023.
