MercadoLibre: The Amazon of Latin America with a Promising Growth Trajectory

MercadoLibre, often referred to as the “Amazon of Latin America,” is positioned to capitalize on the region’s growing e-commerce market and expanding access to broadband and mobile connectivity.

Amazon’s phenomenal success in the stock market is undeniable, but its growth trajectory has slowed due to its sheer size. However, investors looking for a company with the potential for significant growth similar to Amazon’s early days need not look any further than MercadoLibre. Often dubbed as the “Amazon of Latin America,” MercadoLibre is focused on building its e-commerce empire in a region that is yet to see a dominant market leader. With its diverse range of businesses, including digital payments, logistics, and digital advertising, MercadoLibre is well-positioned to capture the growing demand for e-commerce in Latin America.

MercadoLibre’s Target Market is Undergoing a Major Evolution:

Latin America’s access to broadband and mobile connectivity is on the rise, creating a favorable environment for e-commerce growth. As of last year, only about half of the region’s residents had access to at-home broadband, up from 30% a decade ago. This increase in connectivity is reminiscent of the growth seen in the United States ten years ago, signaling a potential boom in e-commerce. Additionally, mobile phone penetration in Latin America is growing steadily, with 69% of residents owning mobile phones in 2021 compared to 56% in 2010. This growing mobile crowd is expected to embrace the convenience of mobile shopping and mobile wallets, further driving the e-commerce market in the region.

MercadoLibre Leading the Charge:

MercadoLibre is not only benefiting from this favorable environment but also capturing a significant share of the market. Insider Intelligence reports that the company currently holds a market-leading 21% share of Latin America’s e-commerce market after years of consistent growth. While this may seem modest compared to Amazon’s nearly 40% market share in the U.S., it is comparable to where Amazon stood in the U.S. market around 2014. Moreover, MercadoLibre’s growing share of a growing market is translating into impressive financial results, with last quarter’s gross merchandise volume up 32% year over year and revenue growing by 40%.

Promising Financial Outlook:

The International Monetary Fund predicts a 2.3% growth rate for Latin America’s economy next year, and analysts expect MercadoLibre to deliver revenue growth of around 23% in 2022. This strong sales growth is projected to continue through 2027. The company’s expanding payment technology is also contributing to its growth, with last quarter’s total payment volume increasing by 47% year over year. MercadoLibre’s integration of its e-commerce platform with its payment platform positions it well for future growth, as consumers are unlikely to switch to a rival mobile wallet after becoming accustomed to MercadoLibre’s offerings.


While investing always carries some level of risk, the parallels between Amazon’s early days and MercadoLibre’s current growth trajectory are difficult to ignore. As Latin America’s e-commerce market continues to expand, MercadoLibre is poised to capitalize on this growth, aided by the region’s increasing access to broadband and mobile connectivity. With impressive financial results and a promising outlook, MercadoLibre presents an enticing opportunity for investors seeking the next big growth story in the e-commerce sector.






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