Mercado Libre Stock Drops: Brazil eCommerce Battle
- * Mercado Libre's stock slump: Shares of Mercado Libre (free market) experienced their largest two-day decline since November, falling 6.8% on Wednesday (Oct.
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* Mercado Libre‘s stock slump: Shares of Mercado Libre (free market) experienced their largest two-day decline since November, falling 6.8% on Wednesday (Oct. 1) and 6.6% on Tuesday (Sept. 30).
* Increased competition: Heightened competition in Brazil’s eCommerce market is the reported cause of the stock decline.
* Amazon’s Actions: Amazon Brazil announced it will waive or reduce Fulfillment by Amazon fees for some sellers during the holiday season.
* Competitors Offering Low Prices: Ago and Shein are offering “ultra-cheap goods” in Brazil.
* Mercado Libre’s position: Mercado Libre is the largest eCommerce player in Brazil and latin america.
* Mercado Libre’s Investment: Mercado Libre continues to invest heavily in the region.
* Free shipping Expansion: Mercado Libre expanded its free shipping offer in Brazil a few months ago.
* Free Shipping Impact: Lowering the threshold for free shipping drove 34% year-over-year growth in items sold in June.
* Earnings Report: Mercado Libre reported $6.8 billion in revenue and $825 million in income from operations in its Q2 2025 earnings release (Aug. 4).