The strategy: Mercado Libre is making long-term bets that improving its customer experience, technology, and logistics will help it drive more consumers to shop online. Ecommerce will account for just 10.7% of retail sales in Latin America this year, according to our forecast.
“Offline to online is a secular trend, but it doesn't happen in a vacuum; it is fueled by innovation and investment to constantly improve the online buying experience,” the company wrote in its Q3 letter to shareholders.
- That realization drove Mercado Libre to open six new fulfillment centers in Q3—five in Brazil and one in Mexico—to offer faster, more reliable delivery speeds.