Mercado Libre is one of the leading e-commerce platforms in Latin America, offering sellers a fantastic opportunity to showcase their products and services to a large audience. Whether you’re a small business owner or a freelancer, selling on Mercado Libre can significantly increase your reach and sales.
What is Mercado Libre?
Mercado Libre is an online marketplace where individuals and businesses can list their products or services. It connects sellers with potential buyers by providing exposure to millions of users. Think of it as a digital marketplace that acts as a middleman between sellers and buyers, helping you gain more visibility and boost sales.
For those looking to start their online business, Mercado Libre is an ideal platform. In Mexico, it’s a major player in e-commerce, along with Amazon.
How to Create a Mercado Libre Account
Wondering how to get started? Follow these simple steps to create your business account and make your first listing:
1. Visit www.mercadolibre.com.mx and click on the “Create your business account” button, located in the upper-right corner.
2. Fill out the required information, including your tax ID (RFC with homoclave), business name, voter ID (INE), and personal ID (CURP). You’ll also need to provide an email address and password.
3. Verify your account by entering the verification code sent to your email and phone number.
Once your identity is verified, you’ll be ready to start using your account. If you need to issue invoices, Mercado Libre will require your fiscal information. Make sure you specify your tax status and upload your fiscal situation certificate.
To check if you’re required to pay income tax (ISR) for your sales, visit the SAT website for more details.
How to List a Product on Mercado Libre
Now that your account is ready, it’s time to list your first product:
1. Log into your account and click the “Sell” button in the upper menu.
2. Choose the product category. Categories range from vehicles and real estate to clothing and services.
3. Write a clear title that helps buyers easily find your product. A good format to follow is: Product + Brand + Model + Key Features.
4. Select the appropriate category for your product. Mercado Libre will suggest categories, but make sure to choose the one that best fits your product.
5. Complete the product details, including photos, available stock, universal product code (UPC), and specifications like size, material, and color. Products with full technical details tend to rank higher in search results.
6. Set your price and choose the type of listing. More on this below.
7. Write a compelling description that highlights the product’s features and benefits. Make sure not to infringe on intellectual property rights.
8. Publish your product and you're done! Your product is now live on the platform. You can review it by clicking “Review Publication.”
Good photos are essential. Use high-quality images with good lighting to highlight the details. Also, take some time to study your competitors’ listings to gain insights into their selling strategies.
What Are the Costs of Selling on Mercado Libre?
Mercado Libre offers three types of listings, each with different costs and visibility options:
– Free Listings: These don’t cost anything but have low visibility, meaning your product may take longer to sell. Listings last for 60 days.
– Classic Listings: The most popular option among sellers. These listings have unlimited duration, and the cost varies depending on the product category. The platform charges a fee ranging from 8% to 18% of the product’s price.
– Premium Listings: These listings offer more visibility and the option to provide interest-free payment plans. The fee ranges from 12.5% to 22.5% of the product’s price.
Choose the listing that best fits your budget, but keep in mind that for both Classic and Premium listings, Mercado Libre automatically deducts its fee before crediting your account.
You can also sell through Mercado Shops, where you create your own branded store. This allows you to integrate your products with your social media accounts, and you’ll have access to the same payment and shipping tools that Mercado Libre offers.
Shipping Your Product
Once your product is sold, it’s time to ship it. Mercado Libre offers Mercado Envíos, a shipping service that is mandatory for most products. By using Mercado Envíos, you can improve your product’s visibility, and the shipping costs are usually lower than other courier services.
Buyers can calculate their shipping costs using their postal code during the purchase process. For new products priced over $299 MXN, Mercado Libre offers free shipping, which can attract more buyers.
Additionally, if you maintain a good seller reputation, Mercado Libre covers part of the shipping costs. For example:
– Accounts with a yellow reputation get 20-40% of the shipping costs covered.
– Accounts with a green reputation, MercadoLeaders, and Official Stores have 30-50% covered.
You can also opt for Mercado Envíos Full, where Mercado Libre handles your shipping and inventory management, offering an even more streamlined selling experience.
Conclusion
Selling on Mercado Libre is straightforward and provides numerous opportunities to grow your online business. By following these steps you can start selling your products in no time. Just remember to stay on top of your tax obligations. Mextax has a team of experts ready to help you with all your fiscal needs, so you can focus on growing your business.
Reach out to one of our advisors today and let us handle the complexities of your fiscal paperwork!
