Business

Mercado Libre to open its third distribution center in Brazil

Currently, half of what is sold on the platform is delivered through its own logistic network

Mercado Livre Q3 results
Photo: Mercado Libre
  • Mercado Libre already operates two distribution centers in Brazil, both in the state of São Paulo;
  • The new logistic complex will be located in Bahia, a northeastern Brazilian state.

Argentina-based Mercado Libre, Latin America’s biggest e-commerce platform and marketplace, will open a third distribution center in Brazil, and the first in the country to be outside the state of São Paulo. The warehouse complex is located in the city of Lauro de Freitas, in the northeastern state of Bahia.

According to Exame, the distribution center is part of an investment plan of BLR 4 billion that the company intends to make in Brazil by the end of 2020.

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Mercado Libre operates two distribution centers in Brazil, in Cajamar and Louveira, both in the state of São Paulo. The new center is also part of the process of expanding the platform’s logistical capacity.

The center will have 35,000 square meters, with the possibility of expansion, and the capacity to serve more than 100,000 customers per day. In the beginning, there will be 50 employees in the space, reaching 500 people at peak capacity.

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Currently, around 50% of what is sold by Mercado Libre is delivered through its own logistic network. The firm’s goal is to continue increasing this rate. The final aim is to shorten delivery time, as over 70% of orders that rely on the company’s logistical services are already delivered within two days, according to Mercado Libre.