Free Shipping as a Growth Weapon – Why MercadoLibre Deliberately Forgoes Margin
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MercadoLibre accelerated growth in its core markets in the fourth quarter of 2025. In Brazil and Mexico, gross merchandise volume increased by 35%, while the number of items sold in Brazil even rose by 45%. CEO Ariel Szarfsztejn attributed this momentum mainly to strategic investments, including lowering the threshold for free shipping. This boosted conversion rates and significantly increased purchasing frequency. At the same time, management emphasized that Artificial Intelligence is increasingly permeating all areas of the business and is already...
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