Mercado Libre created a logistics vertical to better serve buyers and sellers and offer a world class experience in Latin America. We now handle more than 90% of our packages, and we deliver almost 80% of them within 48 hours.
Latin America’s fastest logistics network
Efficiency driven by proprietary technology
Mercado Libre’s logistics is one of our strongest competitive advantages. We are able to deliver a world class experience to buyers, which means greater traffic, conversion and sales for sellers, and higher NPS and cost efficiency for Mercado Libre. This operation is completely run and managed by Mercado Libre.
Frequently Asked Questions
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We handle more than 90% of packages with our Managed Network.
We use third party delivery companies – many of them small- and medium-sized – to transport packages in their own vehicles, which may carry our company branding, logo and colors but are owned by the third parties.
MELI has long term leases on the warehouses and owns all the equipment inside of it. Logistic workers are directly hired by MELI.
Mercado Libre developed proprietary technology to manage our logistic operation. We currently have thousands of engineers dedicated to improve efficiency, costs and delivery times all over Latin America.
We have fulfillment centers across the region that hold sellers’ merchandise, which makes the process of dispatching the product to the buyer quicker than other forms of delivery. Mercado Libre counts on fulfillment centers all over Latam, serving thousands of sellers by holding their inventory and shipping to consumers. Fulfillment is a key enabler of same- and next-day delivery. Our fulfillment operation enabled us to deliver faster than ever.
Mercado Libre counts on millions of sellers in the region, we created a cross docking network tailored to the needs of smaller sellers and / or sellers with lower turn inventory. , Packages are collected by MELI or dropped-off at our service centers or MELI Places, and are then collected, consolidated and despatched for last mile delivery outbounding packages as a sale is made.
This is a high-speed solution for when buyers and sellers that are in the same metropolitan region close to each other, and involves our transport partners vans delivering the product directly from one to the other directly, a more cost and time efficient solution
Sellers dispatch their goods sold directly through local carrier networks and they directly deliver them to the buyers.
Mercado Libre hascounts on dedicated aircrafts (in a partnership with a third party airline) to take packages from distribution centers in one region of the country to another.
Financial & Accounting
Sellers contribute to the cost of the free shipping program above the free shipping threshold, and buyers pay for the cost of shipping below the free shipping threshold. This is booked as revenue.
When we act as Agent – generally when contracts with third party transport providers have a variable element – costs are booked as contra-revenues as Shipping Carrier costs. This is how the majority of transportation costs are booked.
When we act as Principal – generally when contracts with third party transport providers are fixed – costs are booked in COGS as Shipping Carrier costs.
The cost of operating our facilities such as fulfillment centers, service centers and cross-docking centers, is booked in COGS as Shipping Operations costs.