The Latin American firm’s investment in coupons amounts to nearly $19 million, Bloomberg reported Tuesday (Nov. 25).
Mercado Libre also lowered the threshold for free shipping earlier this year, according to the report.
The company has made these moves at a time when Amazon is working to gain a greater share of the market with initiatives that include waiving fees for sellers that use its fulfillment services and forming a partnership with Nu Holdings to offer more credit and payment options to Brazilian shoppers, per the report.
In addition, Shein, Shopee and Temu are targeting this market with low-cost products, the report said.
Asked by Bloomberg about the competition it is facing, Mercado Libre said the challenge is nothing new.
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“We’ve been competing for many years not only with Asian platforms but also with other global industry leaders,” the firm said, per the report. “This competitive environment has always driven us to raise our standards and aim for excellence, which has allowed us to lead the market in every geography where we operate.”
Mercado Libre said in August that the lower threshold for free shipping drove a 34% year-over-year increase in items sold in June.
The company said that this expansion of its free shipping program in Brazil aimed to reduce friction in the country’s transition to online commerce and boost shoppers’ purchase frequency on its platform.
“Mercado Libre’s commerce business continued to outperform the broader market as ongoing investments in free shipping, user experience and assortment drove outstanding growth in Brazil, Argentina and Mexico,” the company said in an Aug. 4 earnings release.
On Oct. 24, it was reported that Mercado Libre launched an eCommerce partnership with Casas Bahia in Brazil. In this long-term partnership, Casas Bahia’s main portfolio, including appliances, electronics and furniture, is available on Mercado Libre’s platform.
Mercado Libre also expanded beyond the consumer market with the launch of a B2B unit. In a Sept. 22 report, the company said it had more than 4 million users enabled for wholesale purchases.
