Mercado Libre Founder Downplays Concerns as Chinese E-Commerce Giants Threaten Regional Dominance
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A growing debate over the impact of chinese e-commerce platforms like Shein and Temu on Latin American markets has drawn a response from Mercado Libre’s leadership, with founder Marcos Galperin publicly dismissing anxieties about increased competition. The exchange highlights a rising tension between established regional players and the influx of low-cost goods from Asia, sparking calls for new regulations.
Regulatory Calls Mount Amidst Rising Competition
The debate was ignited by comments from Juan Martín de la Serna, Mercado libre’s executive vice president, who advocated for a “level playing field” through increased regulation of platforms like Temu and Shein. De la Serna warned that the surge of inexpensive Chinese products poses a risk to local industries and employment. He argued at the ABECEB forum that the current situation “risks undermining the local productive fabric and endangering jobs in the region.”
These concerns were echoed by national deputy Miguel Ángel Pichetto, who publicly called for increased taxes on products from these chinese platforms. Pichetto asserted that congress must act to “regulate this platform economy and take care of the national industry and Argentine employment.”
However,Galperin responded to Pichetto’s post on X (formerly Twitter) with a blunt “I’m not worried.” This sparked a further exchange,with Pichetto warning Galperin to “start worrying” as he believes these platforms are already impacting Mercado Libre’s business and threatening shipping and distribution jobs.
mercado Libre’s Strong Financial Performance
Despite the looming competitive pressure, Mercado Libre recently reported robust financial results for the third quarter of 2025. The company announced net revenue of $7.4 billion, a 39% year-over-year increase, marking its 27th consecutive quarter of over 30% expansion. Operating results reached US$724 million (a 9.8% margin), with a net profit of US$421 million (a 5.7% margin).
According to Martín de los Santos, CFO of Mercado Libre, the company’s strong performance in Brazil – fueled by investments in free shipping – was a key driver of these results. “We are well positioned to take advantage of the great growth opportunities of e-commerce,” de los Santos stated. “Mercado Pago continues to show extraordinary momentum and we are proud that more users choose us as their financial partner.”
Adapting to the Competitive landscape
Mercado Libre is actively responding to the competitive pressure. In Brazil, the company recently lowered its free shipping threshold to 19 reais (approximately $5,000) to directly challenge competitors like AliExpress and Shopee. Shopee,in particular,is gaining traction through a business model that now incorporates local suppliers. While Shopee had a brief presence in Argentina in 2022, sources suggest a potential return next year.
Within Argentina, Mercado Libre offers free shipping on purchases over $33,000, or $15,000 for subscribers to its Meli+ program, launched last April. The company has also invested in infrastructure, announcing the construction of a new distribution center in Tres de Febrero, Buenos Aires province, and the launch of an international purchasing segment on its platform.
A Different Challenge Than Amazon
De la Serna drew a distinction between the competitive threat posed by Amazon and that of Chinese platforms.He noted that Amazon’s entry into Brazil a decade ago forced Mercado Libre to improve and innovate. “They forced us to raise the bar and be much more aggressive,” he said. Though, he emphasized that “China is another story,” suggesting the scale and cost structure of Chinese competitors present a unique challenge.
De la Serna further explained that the current market dynamics favor Chinese companies, stating, “When you open the market indiscriminately and an Asian company sends you products by ship, you are actually giving work to Chinese companies, not Argentine ones.” This sentiment underscores the growing concern that the influx of low-cost goods is shifting economic activity away from local businesses and workers.
