Mercado Libre

Hello everyone!
Anyone with experience in Mercado Libre?
We are considering the possibility of entering this marketplace given that it is predominant in Brazil, Argentina or Mexico.
Can anyone of you give us some advice or share the experience?

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Have you had much experience selling in those countries – esp Mexico with the low completion rate for deliveries, and Brazil with the requirement for CDF (customer’s tax file number) which is usually not supplied.

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We shut off Mexico and South American sales after rising to a 90% fraud rate.

We still have a few customers direct on our brand websites. They contact us, we turn on the country they are in and after they order we turn it off.

Very, very bad buyers. Our results, yours may differ.

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I had similar experience with Amazon.MX. I’m wondering if Amazons policies don’t play a huge role in that though? Maybe Mercado Libre has more seller friendly policies where there aren’t so many issues? I would love to find out too, thank you for asking notmyflag.

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While I would be at the head of the line to complain about Amazon’s policies, I will not on this one.

Our experience with Amazon in Mexico was the same with our own brand websites. 90% fraud.

Our products are popular in Mexico and South America, customers would beg us to send them the product. They would even do TT (Telegraphic Transfer) to us. On those, the customer would never get the item, we would get the funds. Some govern-ment agency or bandito would get the product.

With CC (Credit Card) orders, chargebacks were the order of the day. We often saw, mostly in Mexico, test orders. Small orders that were paid for, and we shipped. Then a large order would come in from the same customer. We shipped and got a charge back. Again 90% fraud.

The “good” customers that we have in Mexico are typically high end hotels or event venues.

If others want to sell in this region, fine enjoy the new market, it did not work for us.

ETA; govern-ment without the dash is not allowed? @Pepper_Thine_Angus

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That is an error and I will correct it

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While I would not deny that I harbor little doubt that the Customer-centric policies DO play a significant role in such all-too frequent experiences, I feel that I would be remiss in not pointing out that decades before eCommerce was but a gleam in the futurist’s mind’s eye, our own experience in International Shipping to these regions of our world left us feeling once bitten, twice shy.

That being said, one of my SILs was born in Buenos Aires, and has a cousin who controls a Brazilian-Argentinian-Peruvian-Surinamese consortium which does very well on that marketplace; he’s told me the same thing that the seasoned and savvy forum veterans have been recommending for years: that it’s better to start on a new far-flung front with one’s own infrastructure already geographically in place that it is to depend on some other business entity to provide that, absent an absolutely iron-clad contract, enforceable both within AND beyond the courts of These United States

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I agree completely but if we’re not willing to take some risk, we’re not going to share in the reward. That said, I wouldn’t risk more than I can afford to lose.

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Thanks for your comments.

I assume that your bad experiences are doing “FBM”.
We do always FBA or whatever is it called depending on the marketplace.
Mercado Libre does Fulfillment and this is atractive. But yes, one of our fears, even if we do fulfilment, is that orders may not reach the customer or similar problems that are not common in the USA or Europe, which is where we currently operate.

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Well, MercadoLibre seems on a growth spree: E-commerce firm MercadoLibre to increase staff by 30% in 2024

Surely they wouldn’t expand into unreliable marketplaces? :thinking:

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I wonder if anticipation of this had anything to do with Amazon’s decision, after allowing that portion of the GEI (“Global Expansion Initiative”) to lie dormant for a few years, to continue rolling out the Brazilian Marketplace over the last few months?

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