MELI is an e-commerce and logistics leader in Latin America. It has a thriving marketplace and fulfillment business, with support for 3rd party merchants. It also features a rapidly growing financial services suite and payments platform, entertainment offerings through partnerships, a rapidly growing ads business and a loyalty program called MELI+ where it laces broad-ranging product utility into one unique consumer bundle. The business model resembles Amazon without cloud computing and with financial services. Here are the names of its various products:
- The e-commerce marketplace is called Mercado Marketplace.
- Logistics/Shipping is called Mercado Envios. Mercado Envios Full is its full-service logistics business for merchants. It handles all inbound and outbound activity, packaging and returns. It’s similar to Supply Chain by Amazon.
- The financial services business is called Mercado Pago, with its credit business called Mercado Crédito.
- MercadoShops is its white label store builder for other merchants to create a site fully integrated into the Mercado Libre platform.
- Mercado Play is its entertainment business. Key partnerships with Disney help fill out the library.
- Mercado Coin is its stablecoin. This can be used to shop on its site with exclusive perks for using it.
- Acquiring TPV (Total Payment Volume) refers to the piece of MercadoPago that lets merchants seamlessly tap into these easier payment options, augmenting conversion rates (through software and point of sale hardware). Acquiring TPV happens whenever MercadoPago is used as the main payment facilitator/processor on the marketplace or on a merchant’s own site (“off-platform” acquiring TPV). They’re taking market share “across all markets” thanks to popular credit, bank service and solutions like point of sale software and sales data analytics.