MercadoLibre: Is it really the Amazon of Latin America?

September 26, 2025 — 07:45 am EDT Written by Lawrence Nga

Key Points

• MercadoLibre dominates the Latin American market with comprehensive logistics and advertising services.
• Mercado Pago provides an adherence that Amazon does not have, integrating both in commerce and finance.
• While Amazon relies on AWS and Prime, MercadoLibre is heavily betting on financial technology.

When investors talk about MercadoLibre, the phrase “the Amazon of Latin America” automatically comes up. The comparison is not incorrect. MercadoLibre manages the main online marketplace in the region, has built its own logistical backbone, and increasingly monetizes sellers with advertising.

But staying there is losing the full picture. MercadoLibre is not just Amazon transplanted to the south. It is a hybrid of e-commerce and financial technology that Amazon has never really managed to build. And that difference could make it one of the most important growth companies in Latin America.

Where the comparison with Amazon makes sense

At its core, MercadoLibre is primarily a marketplace. Its platform connects millions of buyers and sellers across 18 countries, with Brazil contributing 55% of total commercial revenue, Mexico and Argentina accounting for 39%, and the rest coming from other countries. Unlike traditional retailers, MercadoLibre does not hold most of its own inventory. Instead, it provides digital storefronts, payments, and logistics that make commerce possible in a region where physical retail options may be fragmented.

This business has grown impressively. In the second quarter of 2025, MercadoLibre attracted 71 million unique buyers, and more than 550 million items were traded on its platform, a 31% increase from the previous year. The revenue of the commercial segment grew by 45% year-on-year, driven by higher transaction volumes and increasing logistical adoption.

The logistics arm, Mercado Envíos, is a critical part of the strategy. By handling shipping, MercadoLibre can ensure faster and more reliable deliveries in markets where infrastructure is often lacking. In 2024, Envíos managed 1.8 billion items, with nearly half of the shipments in its largest markets arriving in less than 48 hours. This capability not only satisfies customers but also gives sellers fewer reasons to desert to competitors that have struggled to gain market share in the region.

And just like Amazon, MercadoLibre is building an advertising business (Mercado Ads) on its marketplace. Sellers pay for promoted listings and visibility tools, providing MercadoLibre with a high-margin revenue stream that expands alongside its commercial platform.

Key differences between Amazon and MercadoLibre

At first glance, MercadoLibre looks a lot like Amazon. Both operate dominant marketplaces, have their own logistics networks, and use advertising to increase profitability. But looking deeper, the differences are as significant as the similarities.

1. Financial technology as a growth engine

Amazon relies on established banking systems in North America and Europe. MercadoLibre did not have that luxury. To make e-commerce work in Latin America —where a large part of the population is unbanked— it had to build its own financial rails. This gave rise to Mercado Pago, a payment platform that has evolved into a digital wallet, lender, and asset manager. By the end of 2024, it had 61 million monthly active users, a loan portfolio of $6.6 billion, and client assets of $10.6 billion.

It could be argued that this integration makes MercadoLibre's digital ecosystem more adhesive than Amazon's. Payments fuel commerce, commerce fuels credit, and credit drives loyalty. Amazon does not have an equivalent.

2. Amazon Web Services and entertainment

On the other hand, Amazon has businesses that MercadoLibre does not have. The most important is its cloud business, AWS, which generates substantial revenue and funds much of Amazon's growth ambitions. MercadoLibre does not have a cloud arm, which means its margins depend entirely on the balance between commerce, logistics, and fintech.

Amazon also has an entertainment ecosystem through Prime Video, which helps attract and retain Prime subscribers. MercadoLibre has chosen not to expand into media, focusing instead on becoming the backbone of commerce and financial services in Latin America.

What does this mean for investors?

So, is MercadoLibre really the Amazon of Latin America? The easy answer is yes and no. It resembles Amazon in its marketplace, logistics, and advertising business. It also places customer satisfaction at its core.

But tactically, it is approaching the game differently, reflecting the dynamics of the market in which it operates. By combining e-commerce with financial technology, it is positioning itself as the digital backbone of the Latin American economy, not just as a marketplace operator.

This ecosystem approach gives MercadoLibre a huge growth runway, likely even greater than that of Amazon, considering the already massive size of the latter. Investors looking for an opportunity abroad should keep a close eye on this Latin American tech company.