Mercado Libre Sees Surge in Chinese Sellers Diversifying From U.S.

Chinese merchants are increasingly turning to Latin America’s largest e-commerce platform, Mercado Libre, as growth slows in traditional markets and trade frictions with the U.S. intensify. This shift is largely due to changing U.S. trade policies, pushing Chinese sellers to diversify their markets and explore new sources of demand [para. 1]. Over the past two years, the number of Chinese sellers on Mercado Libre has soared, recording triple-digit growth. This surge accelerated from mid-2025, as tariff changes and mounting regulatory uncertainties in the U.S. made Latin American markets more attractive for Chinese exporters [para. 2].

Mercado Libre, founded in 1999 and headquartered in Buenos Aires, operates in 18 countries in Latin America and boasts more than 218 million active users. In addition to the core marketplace, the company offers services including payments, logistics, advertising, and software tools [para. 3]. It began recruiting Chinese sellers in 2019, initially focusing on experienced exporters, but has significantly broadened its support and access since 2025. Now, it offers direct shipping, warehouse fulfillment, and managed logistics, improving the ease with which Chinese merchants can participate [para. 4].

The recent return of President Trump and subsequent U.S. trade policy changes, including the removal of tariff exemptions for small parcels and increased import duties, have further prompted Chinese sellers to diversify their regional exposure. The consensus among industry players is now to avoid excessive reliance on any single market, particularly the U.S. [para. 5].

Brazil has emerged as the key growth frontier for Chinese sellers in Latin America. According to company executives, Brazil represents a “blue ocean” market—massive and still relatively underpenetrated by e-commerce. With a population of 212 million and over 85% internet penetration, Brazil’s online sales exposure is rising rapidly (from 4.97% in 2019 to over 10% by 2021), with the market expected to reach $78 billion in 2025—making it the largest in the region [para. 6][para. 7].

Chinese merchants find Brazil's demand particularly well matched to their manufacturing strengths, especially in consumer goods sectors like electronics, fashion, homeware, and fitness products. While consumer technology adoption rates in Brazil lag behind those in China, Brazilians have shown strong receptivity to innovations such as wearables and AI-enabled devices [para. 8][para. 9]. Promotional events play a major role in stimulating sales: During Mercado Libre’s Singles’ Day, Brazilian buyers purchased 7.41 million units (a 96.7% year-on-year increase), and gross sales topped $212 million (up 129%) [para. 10]. Meanwhile, competition among major Chinese platforms in Brazil is intensifying, with the likes of AliExpress, Shein, Temu, TikTok, and Kwai all entering the space [para. 11].

Brazil is now Mercado Libre’s largest single market, with e-commerce revenue reaching $6.41 billion in the first nine months of 2025, over half the platform’s total. The company invested $4.6 billion in Brazil in 2024, primarily to enhance logistics, technology, and digital payments [para. 12].

Nevertheless, sellers face significant hurdles in Brazil. The language barrier (Portuguese), slow legal processes, and particularly the country’s complex tax structure (often involving 7–12 taxes and much larger tax teams than in the U.S. or Europe) pose real challenges [para. 13][para. 14]. The August 2024 end to a $50 import duty exemption means that cross-border e-commerce goods can face total tax burdens of up to 44.5% of the retail price [para. 15]. Localization—adapting products and marketing to local tastes—is crucial but difficult, especially in finding reliable partners [para. 16]. Logistics, once a major issue due to infrastructure and distance, is now improving thanks to heavy investment, with some deliveries being made in as little as five days [para. 17]. Success in Brazil, experts say, requires patience and a long-term commitment, but for those who persist, the rewards can be substantial [para. 18].