Mercado Libre and Amazon dominate e-commerce in Mexico, which is expected to reach US$63 billion by 2025, according to Statista.
With 16,195 employees in Mexico, Mercado Libre had net revenues in Mexico of US$2.985 billion in 2023, a year-on-year increase of 60.1 percent.
This growth was recorded after increasing its net revenues by 59 percent in 2022 over 2021.
Mercado Libre is the largest online commerce ecosystem in Latin America in terms of unique visitors and orders processed.
The company is present in 18 countries: Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay, Venezuela, Bolivia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Paraguay and El Salvador.
E-commerce in Mexico
Free market commerce revenues in Mexico increased 54.4% in 2023, compared to 2022.
This amount was generated by a US$617 million increase in the company’s revenue from commerce services and an US$80 million rise in its revenue from commerce product sales.
At the same time, Fintech revenues grew 72.9%, an increase of US$424 million, during the year ended December 31, 2023 compared to 2022, driven primarily by a US$278 million increase in its credit revenues and a US$144 million increase in our Fintech services revenues.
According to the U.S. Department of Commerce, local companies such as Coppel and Liverpool have also gained relevance by adopting omnichannel strategies in Mexico. And Asian platforms such as Temu and Shein have a strong presence in the market.
Investments
Amazon Web Services (AWS) is the cloud services division of the technology company Amazon. In February 2024, it announced an investment of over $5 billion. This investment will go towards a new technology infrastructure in Querétaro, Mexico.
The new infrastructure is set to begin operations in 2025. It is expected to expand the company’s cloud services offerings.
In May 2024, Amazon reported that AWS continues to expand its infrastructure. This growth supports its customers. The company also highlighted investments in Saudi Arabia, totaling $5.3 billion, and in Mexico.
The new infrastructure in Saudi Arabia and Mexico will provide more options. This will benefit developers, businesses, and entrepreneurs, allowing them to run their applications and offer services to end users.