Mercado Libre Overtakes Chile’s E-Commerce Market as Local and Global Players Compete

Mercado Libre, the Argentine online marketplace, now leads Chile’s e-commerce sector, according to official company figures and recent market studies. In 2024, the platform delivered between four and five million packages each week in Chile.

More than half of these packages arrived within 24 hours. This level of service has helped Mercado Libre become the most used e-commerce site in the country, capturing 31% of online shoppers during the last week of December 2024.

Falabella and AliExpress followed with 13% and 11% respectively. Chile’s e-commerce market is one of the most dynamic in Latin America, despite the country’s population of just under 20 million.

In 2024, e-commerce sales reached $11.5 billion, growing 8% from the previous year. This growth outpaced physical retail, which expanded by 4% in the same period. Around 66% of Chileans bought products online last year, with the strongest growth seen among lower and middle-income groups.

Mercado Libre’s rise marks a significant shift. In 2019, Falabella held 51% of the e-commerce market, Cencosud had 24%, and Mercado Libre just 3%.

By 2024, Mercado Libre’s share had climbed sharply, while Falabella and Cencosud lost ground. The company’s success comes from its wide range of products, fast delivery, and investment in technology and logistics.

Its payment platform, Mercado Pago, is now the second most used for online transactions in Chile, behind only WebPay. International platforms, especially from China, have also grown.

AliExpress, Shein, and Temu are popular for cross-border purchases, but most Chileans spend less on these sites compared to local platforms. New tax rules, which removed exemptions for small-value imports, may slow their growth by making foreign goods more expensive.

Mobile shopping has become the norm, with over 60% of visits to e-commerce sites in Chile coming from smartphones. Mercado Libre saw 61.9% of its traffic from mobile users, while Falabella had 73%.

Shoppers spend an average of five and a half minutes per visit on these platforms, reflecting high engagement. The competition has forced all players to improve their customer experience.

Fast delivery, reliable service, and easy payment methods now define the market. Local retailers like Falabella and Cencosud continue to invest in their online presence and logistics to keep up.

Mercado Libre’s dominance in Chile shows how quickly digital commerce can change a market. Its growth pressures traditional retailers to adapt, while new rules and consumer habits keep the sector evolving.

For shoppers and businesses alike, these changes mean more choice, faster service, and a market that keeps moving forward.

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