MercadoLibre ($MELI): Amazon of South America

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In the late 1990s, when Steve Jobs reshaped Apple with a closed ecosystem, Jeff Bezos chose a completely different path for Amazon. Recognizing the shortcomings of the traditional retail model:

• High inventory management costs

• Slow operations

• Limited scale

… Bezos came up with a breakthrough solution: build an open ecosystem.

This decision completely changed the landscape when Amazon launched Marketplace in 2000. Instead of seeing other sellers as competitors, Bezos turned them into partners, allowing them to use its platform to sell, in return Amazon takes a commission.

This ecosystem doesn't stop at the marketplace but also includes high-value complementary services like storage and order fulfillment (fulfillment), smooth payment processing, and attracting customers through advertising.

This genius business strategy not only helped Amazon become an e-commerce giant but also created an industry-standard model.

Jeff Bezos wrote this strategy playbook, and MercadoLibre ($MELI), "Amazon of South America," is one of the few companies that has successfully applied this formula.

Similar to Amazon, MELI not only developed a strong e-commerce platform but also built a complete ecosystem, integrating complementary services like fulfillment, payments, and advertising.

MercadoLibre, Inc. (MELI) is an e-commerce "giant" in the Latin America region - has attracted strong attention from investors since its IPO. In 2007, MELI officially went public, raising over 300 million USD and achieving a valuation of 1.2 billion USD. To date, MELI's stock price has reached 1,823.86 USD, delivering over 6,000% returns in just 17 years.

So what makes MELI's superior strength in the Latin American e-commerce market? And can this company continue to maintain its impressive profitability for investors? Today's article will help readers learn more about this 25-year-old enterprise:

1. MercadoLibre's Business Model

2. Competitive Advantage Analysis

3. Financial Situation Analysis

4. Future Prospects

5. Preliminary Valuation of MercadoLibre