How Mercado Libre Prepares to Compete With a Giant Amazon

If you want to buy phone number list then you can discuss here
Post Reply
rahman272327232723
Posts: 1
Joined: Mon Sep 19, 2022 8:39 am

How Mercado Libre Prepares to Compete With a Giant Amazon

Post by rahman272327232723 »

The largest company in Argentina and one of the most successful in Latin America awaits the landing of Amazon and prepares to compete. Electronic commerce has great expectations for 2018 in Argentina. In a context of falling consumption in general, e-commerce is the only one that is growing: it did so forcefully in 2017 and they expect it to do so even more this year. According to estimates by the chamber that brings together merchants in the sector, more than 200 billion pesos (US$ 8 billion) will be billed throughout the year. In this context, the expected (and not yet officially announced) landing of Amazon worries the competitors in the sector led by Mercado Libre . The objective is to seek to strengthen the leadership position before the arrival of the giant of Jeff Bezos . Mercado Libre is the largest company in Argentina and one of the largest e-commerce retailers in Latin America, but Amazon is a rival that would engage anyone, no matter how strong.

Likewise, Marcos Galperin , executive SMS Marketing Service director of MercadoLibre, said in an interview with Bloomberg Television that he is confident he can handle his rivals with his nearly two decades of experience working in 13 countries. “Our way of successfully competing is to look at all the players, see what they have that we think is cool, and if we can incorporate that into our model, we do it, but most of all, we play our game,” Galperin explained, adding: “We try to play our game and use our advantages and strengths. We have a great network of sellers, a great brand, we are investing a lot”. One of the investments that Galperin talks about is the construction of a 38,000-square-meter distribution center in Buenos Aires. In parallel, to strengthen the commitment of his chain of businesses that sell in Mercado Libre, he is granting loans to merchants and payment processing platforms. They are also making progress on a digital wallet. According to Galperin, they will focus on logistics and the infrastructure of what he calls "compliance." Precisely one of the Achilles' heels of Mercado Libre, and of online commerce in general in Argentina, is distribution and, fundamentally, the costs derived from it.

Image

For example, an item purchased through online platforms may cost 30 or 40 percent less than in physical stores, but the cost of shipping raises the price so much that it loses the advantage. This is increased when items must be carried from one city to another. Sometimes shipping doubles the final cost. Amazon's arrival in Argentina is only a matter of time. According to RedUSERS.com published at the end of last year, citing sources close to Amazon's operations in the region, landing in Argentina will be a "derivation of the company's expansion in Brazil", in a first stage "it would operate as administrative/commercial headquarters”, and most of the “infrastructure would depend on the Brazilian subsidiary”. For Mercado Libre, digesting the arrival of Bezos's giant will not be easy. Keep in mind that Brazil represents 54% of the turnover of the "star unicorn of Argentina" and Argentina , about 31%. The other big market is Mexico , with 5%.
Post Reply