![]() These two services are similar to Amazon's logistics and advertisement business. This take rate includes shipping fees through the company's logistics operations (Mercado Envios) and advertising operations (Mercado Ads). MercadoLibre primarily is mainly a 3P marketplace, which means that third-party sellers are selling their products through the marketplace and MELI just operates the infrastructure (both online and offline) and takes a cut. The three main points I want to talk about are: MercadoLibre has been a great compounder since its founding in August 1999 and developed a fantastic e-commerce ecosystem, with several advantages over Amazon's e-commerce system. Amazon is much more than e-commerce, and it's common knowledge that AWS is the most interesting part of Amazon, but e-commerce still accounts for the majority of the revenue, so I believe this is a reasonable comparison. ![]() To start, I own shares in both companies, with Amazon actually being my largest position. Throughout the article, I will refer to MercadoLibre as MELI, its Ticker, and Amazon as AMZN, also its Ticker. MercadoLibre, Amazon performance (Google) In this article, I will iterate why I believe that MercadoLibre is the better e-commerce play. ![]() Another e-commerce darling rose up, even though not as much, and fell down again is Amazon ( NASDAQ: AMZN ). Even though there was a demand-pull forward, e-commerce in LATAM (Latin America) still has massive tailwinds and expected to grow from a $98 billion industry to a $165 billion industry in the next 3 years, according to Statista. MercadoLibre ( NASDAQ: MELI) has been one of the big pandemic winners, seeing its stock price skyrocket almost 300% since March 20 lows, but then also falling up to 68% afterwards.
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