Mercado Libre: its business strategy
The main stated objective of Mercado Libre is to serve the people of Latin America by enabling broader access to retail, digital payments and e-commerce services.
To this end, the company provides attractive technology-based solutions that democratize commerce and money.
Thus, the solutions contribute to the development of a large and growing digital economy in a region with a population of more than 650 million people and one of the fastest growing e-commerce and Internet penetration rates in the world.
To achieve its objectives, Mercado Libre intends to pursue the following strategies:
Expand an offer of transactional services
Mercado Libre’s strategic goal is to enable online transactions of multiple types of goods and services throughout Latin America.
Accordingly, the company strives to launch online transactional offerings in new product and service categories where it believes business opportunities exist.
These new transactional offerings include, but are not limited to:
- Maximizing the utilization of Mercado Pago on its platform and expanding outside of it in digital and offline transactions.
- Offering additional product categories in its Marketplace.
- Expanding Mercado Libre’s presence in classifieds for vehicles, real estate and services.
- Maximize the value and use of the money in the account through savings and investment products.
- Maximize the use of Mercado Envíos.
- Expand the company’s Mercado Crédito service.
- Offer enterprise software solutions to its online commerce business users.
- Expand its advertising offerings.
Continue to improve the shopping experience for users
The company intends to continuously improve its e-commerce ecosystem in order to better serve individuals, brands, retailers and other businesses that wish to buy or sell goods and services online in a convenient, simple and secure manner.
Mercado Libre is committed to continue investing in the development of its tools and technologies that facilitate web and mobile commerce on the company’s platform.
In line with its ongoing focus on innovation, a critical component of the user experience are the vertical solutions the company offers across key categories.
Mercado Libre will continue to focus on improving the functionality of its websites and apps, building a vertical experience in key categories, driving greater use of its payment and shipping solutions to offer a more efficient and secure shopping experience, and providing its users with the support of a dedicated customer service department.
It will also continue to focus on increasing the purchase frequency and transaction volume of its existing users, including the development of its loyalty program for frequent users.
Continue to grow its business and maintain market leadership
The company is focused on growing its business, achieving competitive advantages related to scale and strengthening its position as the preferred commerce and fintech platform in each of the markets in which the company operates.
Mercado Libre also intends to grow its business and maintain its leadership by leveraging the growing potential user base that has resulted from the growth of Internet penetration rates in Latin America.
The company intends to achieve these objectives through organic growth, introducing its services in new countries and entering new category segments, launching new transactional business lines and through potential strategic acquisitions of key businesses and assets.
Increasing the monetization of its transactions
Mercado Libre is focused on improving the revenue-generating capacity of its business by implementing initiatives designed to maximize the revenue it generates from transactions on its platform.
Some of these initiatives include increasing its fee structure, selling advertising on its platform, offering other e-commerce services and expanding its payment functions.
Leveraging the natural synergies that exist between its services
The company strives to leverage its various services and its loyalty program, to promote greater cross-use and synergies, thus creating a fully integrated ecosystem of e-commerce offerings.