Argentina (Washington Insider Magazine)— Mercado Libre, Argentine Inc. operates online trading platforms in the United States. It operates Mercado Libre Marketplace, an automated online trading platform that enables businesses, merchants and individuals to post goods and transact sales and purchases digitally. With the opening of its first distribution center (Cedis) in the United States in early 2024, it has initiated a decisive phase of global expansion.
Announcement and Objectives
The news was revealed by Ariel Szarfsztejn, President of Commerce at Mercado Libre, via his LinkedIn account. Szarfsztejn expressed that the move aims to facilitate connections between American sellers and brands with Latin American buyers, starting initially with Mexico.
Location of the First Center
Mercado Libre has revealed that its inaugural Distribution Center in the United States will be situated in the state of Texas. This strategic positioning is intended to enhance the product variety available to Mexican buyers on the platform by enabling quicker and more direct access to offerings from North American sellers.
Improved Delivery for Mexican Buyers
According to Lafm, David Geisen, General Director of Mercado Libre México and Senior Vice President of Hispanic Commerce, emphasized the benefits for users, particularly in anticipation of events such as the Hot Sale. Geisen highlighted that Mexican buyers can expect expedited delivery times, ranging between two to five days in major cities, along with complimentary shipping.
Financial Performance
Mercado Libre’s entry into the United States market was announced after the company released its financial and operational results for the first quarter of 2024.
Optimistic Outlook
According to Defenseworld, Martín de los Santos, CFO of Mercado Libre, expressed his satisfaction with the company’s performance, citing a 36% increase in net profit to USD 4.3 billion. Operating profit climbed by 29% to USD 528 million compared to the same period last year.
Robust Growth
Mercado Libre reported a notable 71% year-on-year rise in net profit, amounting to $344 million for the first quarter. De los Santos underscored the company’s successful endeavours in Brazil and Mexico, contributing fundamentally to this expansion.
The latest developments highlight Mercado Libre’s determined expansion efforts and strong financial performance, positioning it as a key factor in the rapidly evolving e-commerce landscape and financial services in Latin America and beyond.
