Meikeduo won the second quarter! Net income was US$2.6 billion and 275.2 million items were sold

Recently, Latin American e-commerce giant MercadoLibre Inc released its latest financial report for Q2 2022. This quarter, MercadoLibre sold a total of 275.2 million items, with a total market transaction volume of US$8.6 billion, an increase of 21.8%, and net income of US$2.6 billion, a year-on-year increase of 52.5% in US dollars, setting a record high! Among them, Mexico was the highlight of GMV growth this quarter, with an increase of nearly 30% in US dollars.

Meikeduo’s financial report shows that there were 3.5 million new users this quarter, and the active user base reached 84.3 million at the end of this quarter.

Net revenue from the e-commerce business increased 23% year-over-year to $1.4 billion, with the financial report indicating that this was due to its market strength, the expansion of its digital advertising business, and 41 million unique shoppers in the quarter. The level of shopper activity on the platform remained stable, and the number of items per buyer increased compared to the previous quarter.

It is reported that Meikeduo's business covers 18 countries in Latin America. Brazil, Argentina and Mexico are Meikeduo's three major markets.

Among them, Brazil's net income in this quarter was US$1.451 billion, a year-on-year increase of 53%, accounting for 55.87% of the total net income; Argentina's net income in this quarter was US$594 million, a year-on-year increase of 62%, accounting for 22.87% of the total net income; Mexico's net income in this quarter was US$428 million, a year-on-year increase of 65%, accounting for 16.48% of the total net income. The net income of the three major markets accounted for 95.22% of the total net income.

According to the financial report of Meikeduo, the products suitable for sale on the Meikeduo platform include: auto parts and accessories, household goods, decorations, consumer electronics, clothing and beauty, toys and entertainment, groceries, etc. It has been proven that Meikeduo's investment in fast and free delivery, navigation search and other services that continuously improve the user experience has increased user stickiness and improved shopping conversion rates.

It is reported that Meikeduo has a huge seller base in Latin America. It currently has a 78% market share in its home market of Argentina and a 40% market share in other fast-growing markets such as Mexico.

For Chinese sellers, the European, American and Southeast Asian markets have become a red ocean after several years of competition. Peers are constantly competing with each other and sales growth is weak. Perhaps Latin America will be the next blue ocean for cross-border e-commerce.

It is understood that the Latin American e-commerce market has shown double-digit growth in the past five years, and is expected to maintain a growth rate of more than 30% by 2025, which is impressive data.

eMarketer data shows that in the global retail e-commerce sales growth ranking, Latin America topped the list in 2020 and 2021, with a growth rate of 63.3% in 2020, far higher than the second place by nearly 20 points. Even though demand slowed down due to the epidemic in 2021, it still ranked first in the world with a growth rate of 25.6%.

From the perspective of market potential, Latin America has the following five advantages:

1. Light industry is underdeveloped, and electronic consumer products mainly rely on imports;

2. Internet coverage is greater than 72%, and the number of online shoppers exceeds 200 million;

3. Online retail accounts for less than 5% (China's online retail is >30%);

4. There are few sellers in China, so market competition is low and profits are high;

5. The e-commerce market growth rates in Latin American countries such as Brazil, Argentina and Mexico are at the leading level in the world;

According to Statista's survey on the purchasing trends of Latin American e-commerce users, the most popular product categories among Latin American consumers are electronics & media, fashion, toys, hobbies and DIY, furniture and appliances, food & personal care. For sellers of these products, there may be a new opportunity.

Meiduoke

Latin American Market