MercadoLibre: 100 million users, sales records and energizes the online economy Latam

Under conference, MercadoLibre, recognized as the 8th site retail busiest in the world according to ComScore, and platform retail more unique visitors in each of the countries where (12 Latin American operations, Portugal and the United States) released business metrics for 2013 and strategic projects for 2014.

The business-as confirmed by Federico Procaccini, the CEO of MercadoLibre in Argentina and PulsoSocial-passed the barrier of 100 million users in 2013 accounting for 20 million unique buyers and 7 million unique sellers. Despite its dominance in the regional market as a whole, the markets of more weight according to Brazil and Argentina are Procaccini (with 45 and 25% of business respectively).

The Director General of the platform stated the following amounts in 2013 at the regional level:

Money traded abroad: U$S 7300 million in volume of money traded abroad by products sold, representing a growth of 28% compared to 2012.

Products sold: Were sold a total of 83 million products, 26% more over the same period the previous year.

Turnover: Net income was U $ S 472.6 million, an increase of over 26% compared to 2012.

MercadoPago: The number of transactions through MercadoPago was 31.5 million, 34% more than in 2012

Total volume of payments is close to U $ S 2,500 million growing 40% YoY.

Mobile: No Finally, a minor detail. Growth, surprising and unexpected that we spoke Daniel Rabinovich few months ago does not stop: and represents an equivalent to 12% of money transacted.

The regional economy of MercadoLibre

The study of the socio-economic impact of MercadoLibre that Nielsen conducted spanned just over 3800 top sellers or big sellers in the region (Mexico, Colombia, Venezuela, Brazil, Peru, Chile, Uruguay, and Argentina). According to the survey, 60% use the platform as a sole or primary sales channel with an online availability of products amounting to 44%. “The fact that 6 out of 10 indicates this is their sole or main sales channel reflected in the fact that we see an increase in the number of people who quit his job to devote full time to sell through the platform”, recognized Procaccini, who explained that the Internet is the most profitable for that target (80%) channel and a percentage of sales increased 49% in 2013.

The report indicates that in 2013 a 53% indicated that their sales structure comprises the seller itself more collaborators, with a media that reaches the five people per team. The Half admits that he had to incorporate staff. “The structure of the major vendors is constant through the years, first of the relatives or family members and then direct of specialized collaborators”, he said.

The expectations of the growth according to the survey are placed less specialization in adding new dealers to the platform. The largest digital access in Latin America is a higher margin business growth whose focus, in most cases the interviewees come from the hand of older mobile devices to surf the web, we are improving access to WiFI, online advertising and more offline.

More changes in 2014

During the last year and the course of 2014, the platform has been developing modifications and launching of products and services designed to make more efficient the buying and selling online.

One of the highlights was the launch of the Official Stores, a site designed especially for big brands and large appliances chains: “The aim is that these big brands and retailers market their products within MercadoLibre considering that volumes traffic and number of transactions we do and they can not stay outside even if sold by other online channels or from your own site. If you have a multi-channel strategy, you can not stay out of MercadoLibre”, Procaccini said.

The platform offers a comprehensive solution for marketing their products stores can adapt with their logo and brand and product offering at no additional cost and with the same fees as other dealers. Specifically in Argentina, there are more than 40 stores that are present with their online store.

The launch, according Procaccini, promoted the sale of clothing and accessories in the fashion and accessories category by 51%. “In Brazil we are offering the solution to major brands and retailers and hope to do with the rest of the countries of the region during this year, “he pointed to PulsoSocial.

For other products, platform MercadoPago from this year offer discount coupons and consumer tools that will be available to vendors, who are set prices for the products.
It is worth noting that the vertical of payments of MercadoLibre grows in industries such as travel and tourism, football and services, among others.

Finally, MercadoEnvíos business unit is created for one of the crucial aspects of ecommerce: the administration and logistics of product shipments. Through the partnership with partners and logistics operators have launched one year and recorded that 10% of the items sold at the regional level do through the system already posted some 45,000 shipments per month.