MercadoLibre (Nasdaq:MELI) is the largest online trading platform in Latin America. They are market leaders in e-commerce in each of Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela, based on unique visitors and page views during 2007. Additionally, they have recently launched online trading platforms in Costa Rica, the Dominican Republic and Panama. With a market of over 550 million people and a region with one of the world’s fastest-growing Internet penetration rates, they provide buyers and sellers a robust online trading environment that fosters the development of a large and growing e-commerce community. They offer a technological and commercial solution that addresses the distinctive cultural and geographic challenges of operating an online trading platform in Latin America.
Stock = MELI The objective of the firm is to provide a technical launching pad which may allow markets to become ever more efficient in Latin America. Mercado Libre began by pioneering online commerce in the Latin American region under the idea that regional markets were fragmented, lacking breath and asymmetrically informed.
The business segments of the company are divided by the company in which they hold their online commerce platform in.
Though the company also recognizes two distinct services it provides: the MercadoLibre marketplace and the MercadoPago online payment solutions. The first is a fully automated online commerce platform that allows individuals or corporations to sell items in a variety of sale formats. The platform further provides a classifieds service for large parcel items like motor vehicles and real estate. The latter is an integrated online payment system that provides safe and efficient transactions.
Revenue drivers in the Mercado Libre Marketplace are: listing fees, optional features fees, final value fees, and online advertising fees. Revenues from the online payment solutions come from fees charged to the buyers and sellers.
With a population of 550MM and one of the highest internet penetration rates in the world, online companies in Latin America face high expected growth rates.