Overview

Latin America (LATAM) is emerging as e-commerce’s next big frontier, and Mexico is leading the charge. In this post, we distill expert insights from a recent Marketplace Masters session featuring Adam Pixler (Co-Founder of Capybara Ads powered by AMZHIT) and Freddy Neuman (Founder/CEO of AMZHIT). They have years of hands-on experience scaling brands across LATAM, and their advice can help you break into this dynamic market. From understanding why now is the perfect time to expand, to navigating regulations, mastering dual platforms (Amazon and MercadoLibre), and planning for sustainable growth – we’ve got you covered. Let’s dive in!

Understanding the LATAM Opportunity (Why Mexico, Why Now)

Mexico’s e-commerce market is booming – it’s the fastest-growing Amazon market, with Amazon Mexico sales growing about 25% year-over-year, outpacing other countries. This rapid growth, combined with relatively low competition, creates an early-mover advantage reminiscent of Amazon’s early days.

“It’s like Amazon was 12–13 years ago – less competition, less saturation, lower cost-per-click,”

notes Adam,

“you can launch into a country [Mexico] into two major platforms at the same time.”

In other words, the playing field isn’t as crowded yet, giving new entrants room to gain traction.

Why focus on Mexico first? Mexico is the second-largest economy in LATAM and often the easiest entry point due to trade ties and geographic proximity to the U.S. Shipping to Mexico is relatively simple (same time zones and even overland trucking), and Amazon even offers programs to sell remotely from the U.S. to Mexico. However, for real impact, localising inventory is key – sellers find that once they send stock into Amazon FBA Mexico (or a local 3PL warehouse), sales can jump by 5x compared to just fulfilling cross-border. Plus, Mexico can be a test market for the broader region: if your product succeeds in Mexico, it’s a strong indicator for expansion elsewhere in LATAM.

Dual-platform presence is non-negotiable. In Mexico (and LATAM generally), Amazon is not the only game in town. MercadoLibre, the region’s homegrown e-commerce giant, actually holds roughly 55% of the market vs. Amazon’s share. Freddy emphasises,

“MercadoLibre shares about 55% of the market… you must be on both.”

Consumers often shop on both platforms, so to maximise reach, you’ll need to list your products on Amazon Mexico and MercadoLibre. By doing so, brands can capture an estimated additional 5% of their U.S. Amazon sales volume in Mexico – a significant revenue uplift for a 7- or 8-figure seller.

Infrastructure investments are accelerating. Both major platforms are heavily investing in Mexico’s e-commerce infrastructure, signalling long-term growth. MercadoLibre announced a record $3.4 billion investment in Mexico for 2025(reuters.com), a ~38% increase from the previous year. Amazon has likewise committed billions over the next few years to expand operations in Mexico. New fulfillment centers, delivery networks, and fintech services are coming online. For sellers, this means better logistics options and a rapidly maturing ecosystem. Getting in now allows your brand to “plant roots” and grow alongside these platforms.

One warehouse, multiple channels. A unique advantage in Mexico is the emergence of third-party logistics providers that serve both Amazon and MercadoLibre simultaneously. Freddy points out that there are private fulfillment warehouses certified for Amazon Prime and MercadoLibre Full (“Fulfilled by MercadoLibre”) services. If you stock inventory in one of these Mexico warehouses, orders on Amazon get Prime two-day delivery, and orders on MercadoLibre get their equivalent two-day shipping (MercadoLibre “Full”). Even your Shopify or other channels can ship from the same stock. This unified logistics approach “kills two birds with one stone,” simplifying operations. In short, you can serve all your Mexico customers from one inventory pool, with fast shipping across platforms.

Bring your brand credibility with you. Mexican consumers love established brands and social proof – but the good news is you can carry over your existing reputation. Amazon allows you to import your product’s U.S. reviews to your Amazon.com.mx listings, instantly boosting credibility with local shoppers. If you have 1,000+ reviews in the U.S. at 4.5★, that badge of quality will display on Amazon Mexico, giving new customers confidence to try your product. “You can come in and get a foothold very quickly,” Adam says, since those review stars and counts provide instant social proof in a market where consumers heavily favour products with solid ratings.

Key Steps for a Successful Mexico Market Entry

Entering a new country isn’t as simple as just turning on international shipping. Preparation is critical to maximise your chances of success. Freddy recommends treating a Mexico launch as a structured project – “it’s not something you can start tomorrow; it’s a process.” Here are the critical steps brands should take before launching in LATAM:

1. Conduct Market Analysis and Demand Research: Estimate the market depth for your product category in Mexico. Use Amazon Mexico and MercadoLibre research tools (analogous to Helium 10, etc.) to gauge competitor sales and search volume. Ensure your product is appealing to local consumers and not dominated by an unassailable local brand. This analysis will confirm if that oft-quoted “~5% of US sales” figure holds for your category or if it could be even more. Essentially, validate that there’s real demand and room for your product in the market before committing resources.
   
   
2. Assess Profitability (Landslide Costing): Analyse all the costs of getting your product to customers in Mexico. This includes shipping (which, luckily, can be relatively cheap via ground or sea), Amazon fees, import duties, and taxes. “Customs is a headache,” Freddy warns – every product has a specific import tariff (HS code duty rate) that could impact your margins. Determine your product’s tariff rate and factor it into your pricing strategy. For example, some categories like textiles now incur a hefty 35% import tariff in Mexico due to recent policy changes (Mexico imposed high duties to curb ultra-cheap imports from platforms like Shein/Temu(reuters.com)). If such costs make your product unprofitable, you may need to rethink your sourcing or pricing before launch.
   
   
3. Line Up Local Partners and Compliance Needs: Successful expansion “takes a village.” You will need reliable local partners for customs brokerage, legal registration, tax accounting, and warehousing. In Mexico, you can’t simply ship goods to Amazon; you typically need a registered Importer of Record with a customs license. Either set up a local entity or partner with an authorised importer who can bring your goods in. Engage a seasoned customs broker early – they will ensure you have the proper import permits for your product type and handle paperwork to avoid border delays. Likewise, consult a local tax advisor to register for an RFC (tax ID) and understand VAT obligations. 
   
   (Remember, Mexico requires monthly tax filings – it’s a different cadence than the quarterly or annual system you might be used to.) Hiring an accountant familiar with e-commerce (Amazon/MercadoLibre platforms) is invaluable. Don’t forget about logistics: decide whether you’ll use Amazon FBA warehouses or a third-party fulfillment center – and get that lined up so you have somewhere to send your inventory. Having these pieces (legal, logistics, tax) in place on the ground will save you from compliance nightmares and allow you to focus on selling.
   
   
4. Localise Your Listings and Content: Simply copying your Amazon US listing to Spanish is not enough. To truly connect with Mexican consumers, invest in proper translation and localisation of all your content. This means translating not only the text (titles, bullet points, descriptions) but also your product images and graphics that contain text. Many sellers make the mistake of leaving English text on images – a turn-off for local shoppers. Hire a native Spanish copywriter (preferably familiar with regional dialects) to adapt your copy. 
   
   Pay attention to local vocabulary and any cultural nuances in your phrasing. As Freddy notes, while general Spanish is understandable across markets, there are differences in expressions and some keywords. Do fresh keyword research in Spanish – the top search terms in Mexico might differ from Spain or the U.S. Spanish terms. Optimise your backend keywords and PPC targets for Mexican Spanish. By speaking the customer’s language (literally and figuratively), you’ll improve conversion rates out of the gate.
   
   
5. Plan Your Fulfillment Strategy: Decide how you will get products to customers quickly and cost-effectively. You have a few options:
   
   
   • Amazon NARF (Remote Fulfillment) – allows shipping from US FBA inventory to Mexico/Canada. This is easy to enable and a good way to test the waters. But it has downsides: slower delivery and import fees passed to customers. It’s mostly useful as a pilot.
     
     
   • Local FBA in Mexico – sending inventory to Amazon’s Mexico FBA warehouses (or Amazon-partnered 3PLs) so that products are Prime-eligible domestically. This unlocks the full potential of demand (as noted, many see ~5x sales jump when switching from remote to local stock).
     
     
   • MercadoLibre Fulfillment (Full) – MercadoLibre has its own network of fulfillment centers (“Full”) and also leverages third-party warehouses. You can use a single 3PL to serve both channels as described earlier.
     
     
   • In either case, plan out your initial stock quantities and how to replenish efficiently. Consider starting with a smaller test batch (to learn import logistics and gauge demand), then scaling up once things run smoothly. The key: aim to get products into Mexico on-hand so customers enjoy fast shipping – a critical factor in winning the Buy Box on both Amazon and MercadoLibre.
     
     
6. Leverage Platform Incentives and Support: When expanding into an emerging marketplace, you might find Amazon surprisingly eager to assist (quite a change from the usual support experience!). Both Adam and Freddy mention that Amazon’s LATAM expansion team is actively courting established U.S. brands to launch in Mexico. They’ve seen Amazon waive referral fees and offer promotional support or account management to sellers who bring significant product portfolios to Amazon.mx. 
   
   Don’t be afraid to reach out to Amazon’s Global Selling program managers or marketplace development teams – there could be growth programs you can tap into. Additionally, being early in Mexico could mean access to beta programs and placements that are no longer available in the saturated U.S. market. Take advantage of these while they last (these incentives won’t be around forever). The same goes for MercadoLibre – as a new seller, explore if they have any onboarding promotions or if your 3PL partner can get you fast-track enrollment into MercadoLibre’s Fulfilled service for Prime-like benefits.
   
   

By following these steps – researching thoroughly, sorting out compliance, localising content, and planning logistics – you set a strong foundation before you launch. This preparation will dramatically increase your odds of a smooth entry and early sales momentum.

Navigating Local Regulations and Compliance Pitfalls

Expanding to LATAM isn’t without its bureaucratic hurdles. Many brands stumble on regulatory issues, which can delay or derail a launch if not handled properly. Here are some common pitfalls (and how to avoid them):

• Import Compliance and Licensing: To get your goods into Mexico, you must have an importer of record with the proper license (known as a “padrón de importadores” in Mexico). If you don’t set up a Mexican entity with import rights, you’ll need to partner with a local distributor or customs broker that can act as the legal importer for your products. Don’t assume you can just FedEx cartons to an Amazon warehouse – without the correct paperwork and importer, your goods will be held at customs. 
  
  Also, certain product categories (e.g. cosmetics, supplements, electronics) might require additional permits or compliance certificates before they’re allowed in. Do your homework on any product-specific regulations (for example, health products might need COFEPRIS approval, electronics might need NOM certifications, etc., depending on local laws). Bottom line: engage a knowledgeable customs broker early and ensure all licenses, permits, and tariff codes are squared away before shipping.
  
  
• Labelling and Translation Requirements: Beyond getting through customs, remember that products sold in Mexico may need Spanish labelling for consumer info, ingredients, warnings, etc., per local law. Plan to have compliant packaging or stickers in Spanish where required. It’s part of the regulatory landscape that sometimes gets overlooked in planning.
  
  
• Taxes and Corporate Setup: If you’re selling directly (not via a distributor), you’ll likely need a Mexican tax ID and be subject to Mexican VAT (value-added tax). Mexico requires businesses to file taxes monthly – which can be an unpleasant surprise if you’re used to quarterly filings. A local accountant can file these for you and also help reclaim any VAT paid on imports. 
  
  Additionally, Amazon Mexico and MercadoLibre by law will withhold a portion of your sales for taxes if you don’t provide a local tax ID (this is to ensure foreign sellers pay their dues). Those withholdings can be heavy, so it’s in your interest to register properly and stay compliant. Consider hiring an experienced accounting firm that specialises in e-commerce clients – they’ll know the ins and outs (Amazon actually has a vetted network of such accounting partners in Mexico). Getting your finances and registration right will keep your business in good standing and prevent nasty surprises like frozen funds or penalties.
  
  
• Local Operational Support: Regulations can also crop up in day-to-day operations. For example, if something goes wrong – a shipment stuck in customs, a legal notice, a customer return issue – having someone local who can handle matters is invaluable. Whether it’s a team member, an agency, or a reliable partner, ensure you have boots on the ground. As Adam puts it, working with people “in confianza” (in confidence/trust) locally makes all the difference. They understand how to navigate the bureaucracy and can often resolve issues far quicker than you could remotely.
  
  
• Tariffs and Trade Changes: We mentioned tariffs in the profitability step, but it’s worth reiterating: trade policies in LATAM are in flux. Governments often adjust import duties to protect local industries or respond to international politics. A recent example: Mexico slapped a 35% tariff on imported textiles in late 2023, to shield domestic apparel makers from cheap Chinese fast fashion. If you were planning to import clothing, a 35% duty (on the retail value, no less) could be a game-changer. 
  
  The takeaway is twofold: stay informed on relevant policy updates, and have contingency plans. If a high tariff hits your category, could you shift production locally or regionally? Adam suggests this is actually an opportunity in disguise: “Maybe we should manufacture in Mexico”. Indeed, nearshoring production to Mexico (or elsewhere in LATAM) might bypass tariffs and even give you faster supply chains. Several Mexican industries – textiles, plastics, furniture, food – have capable manufacturers. By sourcing locally for the local market, you reduce import costs and appeal to customers who prefer “Hecho en México” (made in Mexico) products.
  
  
• Logistics & Inventory Management: Once your goods clear customs, you need a smooth pipeline to get them into customers’ hands. Many sellers partner with a 3PL in Mexico to receive and store inventory, especially if selling on both Amazon and MercadoLibre. Choose your warehouse partner carefully – look for one with tech integration to Amazon (for instance, ability to create Amazon shipment plans or distribute to multiple fulfillment centers) and experience with MercadoLibre Full. 
  
  Ensure they have solid procedures to prevent stockouts, shrinkage, and can handle returns. Mexico is a big country – consider warehousing near Mexico City or other major hubs for best shipping coverage. You might even split inventory between Amazon’s fulfillment centers and a separate 3PL that handles MercadoLibre + other channels, though as noted earlier, some 3PLs can fulfill both from one pool. The key is to maintain Prime-equivalent service levels on all platforms, which usually means having inventory inside the country, positioned close to buyers.
  
  

Final tip: Don’t rush and cut corners on compliance. As Adam advises,

“do all of your homework, dot your i’s, cross your t’s… customs [officials] are really quick to hit you with a fine if you don’t have everything ready.”

It may feel tedious, but getting these regulatory ducks in a row will save you from costly delays, penalties, or being banned from selling. Once you’ve navigated the initial setup, operating in Mexico becomes much easier – and the growth opportunities can outweigh these early hurdles.

Connecting with the LATAM Consumer (Marketplace Nuances)

Expanding isn’t just a logistical exercise – it’s also about winning the hearts of a new customer base. Mexican and LATAM online shoppers have their own behaviours and preferences. Adapting to these will improve your marketing and conversion rates significantly.

Brand trust and reviews matter a lot. Mexican consumers tend to be brand-conscious and cautious with new products. They strongly favour established brands or products with high review counts and ratings. As Adam explains, a Mexican shopper is less likely to gamble on an unknown brand with few reviews, even if it’s cheaper. They’ll often stick with a known name or the product that clearly has social proof. This contrasts with U.S. shoppers, who might be more adventurous to try a new D2C brand, or respond to a lightning deal on a low-review item.

In Mexico, you need to bring credibility. This is why leveraging Amazon’s global review share is so powerful – those 500 five-star reviews you earned in the U.S. can instantly appear on Amazon.mx, making your product look tried-and-true to Mexican buyers. If you don’t have many reviews yet, consider strategies to build them carefully (e.g. via Early Reviewer programs or product inserts asking for feedback – within Amazon’s policy). Outside Amazon, having a presence (even a basic one) in Spanish on social media or a website can also reassure customers that you’re a legitimate brand. Overall, emphasise your track record: if you’re a top seller in the US/EU, let that fact shine in your Mexico listings and branding.

Visual content is king. In Latin America, shoppers are even more visual in their shopping approach. High-quality images and videos can make or break your success. Many consumers will skim or ignore long text descriptions – they want to see the product in action and understand it at a glance. Ensure your product photography is appealing and instructive. Consider adding infographics in Spanish, highlighting key features or usage instructions. Lifestyle images that resonate with local culture can help (e.g. showing the product being used in a familiar Mexican context).

If you have video assets from your U.S. marketing, re-purpose those for Amazon Mexico (Sponsored Brands Video ads, Amazon Posts if available, etc.) with Spanish captions or voice-overs as needed. Freddy notes that video ads perform exceptionally well: Latin American audiences engage with video demonstrations and prefer them over reading blocks of text. For example, a short video showing how to assemble or use your product can instantly answer customer questions and drive conversions – fulfilling the role that detailed bullet points might play in the U.S.

“They don’t want to really read… if in search they see what they need [in a video], they go straight to it,”

says Freddy. So, invest in visuals – it will pay off in higher click-through and purchase rates.

Price sensitivity is real. While there is a growing middle class in Mexico, price and value for money remain crucial factors. Many Mexican shoppers will compare prices on Amazon vs. MercadoLibre vs. local stores before committing. They are attentive to deals and promotions. With the Mexican Peso’s fluctuations (e.g. significant shifts from 15 MXN/USD to 20 MXN/USD in late 2023), consumers become even more price-conscious as imported goods can suddenly become pricier. Ensure your pricing is competitive after accounting for import costs.

Local competition might be selling alternatives (even if lower quality) at lower price points – be prepared to justify your value. Offering periodic discounts or coupons can stimulate purchases, as can participating in big sales events (Hot Sale, Buen Fin – Mexico’s equivalents of Prime Day/Black Friday). Also, remember the free shipping threshold: Amazon Mexico gives free shipping (for non-Prime users) on orders over $499 MXN ($25 USD). If your item is below that, many cost-sensitive buyers might hold off or bundle items to cross the free shipping line. Strategies like virtual bundles or multi-pack offers can help increase basket size to hit that sweet spot.

Different adoption of Prime and payments: Only about 10% of Mexican households have Amazon Prime (vs. ~60-70% in the U.S.). This means a lot of Amazon.mx customers are shopping without that free shipping benefit, and they might be more inclined to check shipping cost or speed for each item. It also means MercadoLibre’s free shipping (often on lower thresholds or via its loyalty program) is a strong competitive advantage.

Additionally, cash-on-delivery and OXXO payments (cash vouchers) are still common for online purchases in Mexico. Amazon and MercadoLibre both accommodate these, but it’s an aspect of consumer behaviour to be aware of – some customers don’t use credit cards for online buys. Ensure your Amazon and MercadoLibre settings allow all relevant payment methods (by default, they usually do). The easier you make it for the consumer to say “yes” – whether through trust, price, or convenience – the better your sales will be.

Leverage local shopping culture: Mexican shoppers often use the “wishlist” or “add to cart and wait” approach. Many will add a product to their cart or wishlist and monitor it, perhaps waiting for a payday or a price drop. Don’t be discouraged by this behaviour (e.g. higher add-to-cart than immediate conversion). To convert these wait-and-see customers, you can utilise tools like 7-day deals or coupons, which display a strikethrough price – this creates urgency and can nudge those on-the-fence buyers to finally purchase. Also, try to accumulate reviews within Mexico once you launch (even though global reviews show up, some buyers specifically read the local-language reviews). Early reviewer programs or simply delivering a great experience will help garner positive local feedback.

In summary, earn trust and deliver value. If Mexican consumers perceive your brand as reliable, popular, and offering good bang-for-buck, they will reward you with loyalty and word-of-mouth. Many international sellers have found that once they establish a foothold, repeat purchase rates can be excellent in LATAM, as customers stick with brands they trust in a market that historically had fewer choices. So focus on building that customer trust through quality, service, and culturally resonant marketing.

Advertising and Dual-Channel Strategy (Amazon & MercadoLibre)

To drive growth in Mexico, you’ll need to deploy smart advertising on both major platforms. The good news: advertising costs are substantially lower than in the U.S., and competition is thinner. But each platform has its quirks. Here’s how to approach your ad strategy:

Take advantage of lower CPCs on Amazon Mexico. Brands accustomed to U.S. Amazon’s high cost-per-click (CPC) will find Mexico a welcome relief.

“Cost per click is like 17% less than in the U.S.,”

according to Freddy. In some categories, advertisers might pay only 70–80% of the equivalent US CPC for top-of-search placements. This means your ad spend can go further, and advertising can be more profitable as a customer acquisition tool. Lower CPC, combined with the fact that many competitors simply aren’t advertising aggressively yet, creates a “green field” for savvy brands. We recommend increasing your budget allocation to Amazon Mexico campaigns, as the ACOS (advertising cost of sales) can be very favourable.

Use Sponsored Products to start, targeting both Spanish keywords and relevant English keywords (some Mexican shoppers use English search terms for certain products – check your search term reports). As you gather data, you can refine and expand into Sponsored Brands and Sponsored Display. Sponsored Brands Video ads are particularly effective – these autoplay videos in search results can grab attention, and as noted, the audience loves visual content. If you already have video creatives from the U.S., reuse them with Spanish subtitles. Very few sellers in Mexico use video ads currently, so a compelling video can really make your product stand out on page one.

Optimise for relevance and education. Given the market is still growing, you might need to educate consumers through your ads. Ensure your ad copy (in Spanish) clearly communicates what the product is and its top benefits. Don’t rely on brand name recognition unless you’re a well-known global brand – instead, focus on descriptive headlines and images. Remember that many shoppers are new and may be searching more generally (“water filter for home” versus a specific brand model), so cast a wide net with your keyword targeting, then prune out what doesn’t convert.

MercadoLibre: a must-win channel. It’s worth emphasising again: do not ignore MercadoLibre. In Latin America, MercadoLibre is often called the “Amazon of LATAM,” and in Mexico, it actually has more market share than Amazon in e-commerce. Many Amazon-focused sellers from the U.S. are unfamiliar with MercadoLibre’s platform and thus shy away – this is an opportunity for you to leap ahead. “Many Amazon sellers dismiss MercadoLibre… you better learn how to use it, or hire us,” Freddy half-jokes, underlining how critical it is.

Start by setting up a MercadoLibre seller account (it’s a separate process from Amazon). Translate and list your products there with equal care – you can reuse a lot of your Amazon content, but ensure it fits MercadoLibre’s category formatting and attributes. Pricing strategy might differ too (MercadoLibre’s fees and shipping subsidies are different from Amazon’s). Once listed, take advantage of MercadoLibre’s advertising platform (called Mercado Ads). It offers ads similar to Amazon’s sponsored listings. MercadoLibre also has a reputation system and a different buy box logic (it’s more catalogue-based), so pay attention to fulfillment performance and customer service to maintain high seller ratings.

One inventory, multiple marketplaces. If you followed our earlier advice on using a unified 3PL or Amazon Multi-Channel Fulfillment, you should be able to fulfill MercadoLibre orders just as swiftly as Amazon ones. This is crucial because MercadoLibre customers have come to expect quick delivery (thanks to MercadoLibre’s logistics investments). MercadoLibre’s search algorithm favours listings that are in the Fulfilled by MercadoLibre program (i.e., stored in their network) or those with very fast shipping.

So either use their fulfillment service or ensure your 3PL can ship same-day to meet the “full” service level. Winning on MercadoLibre can significantly boost your overall LATAM sales – some brands find that once fully optimised, MercadoLibre sales equal or even exceed their Amazon Mexico sales. At minimum, it will likely contribute ~50% of your Mexico revenue, so it’s truly like a second Amazon you can’t afford to neglect.

Leverage your U.S. assets: If you’re a 7- or 8-figure brand expanding to Mexico, you probably have a trove of marketing assets from your primary markets. Use them! High-quality product images, videos, A+ content modules – repurpose all of it for Spanish-speaking audiences. Your existing review count also becomes an asset for advertising. Freddy notes that when they bring established brands into Mexico, the brands often have thousands of reviews to start with, which gives them high conversion rates and allows the team to scale ads profitably from day one. Essentially, your strong listing plus cheaper clicks equals a high return on ad spend. So don’t be afraid to ramp up campaigns early – if your fundamentals are good, advertising will be an accelerant to gain market share quickly.

Monitor and adapt: Keep a close eye on your campaign metrics and overall sales on each platform. You may notice differences in what products or SKUs perform best in Mexico versus elsewhere. Adjust your ad strategy accordingly – funnel more budget to the winners, and maybe pause or rethink the underperformers. Also, watch your organic rankings. With two marketplaces, you’ll be juggling two algorithms.

Success on Amazon won’t automatically translate to MercadoLibre (and vice versa), so optimise for each search ecosystem. On Amazon, that means refining keywords, pricing, and stock to boost your BSR and organic placement. On MercadoLibre, that means maintaining high seller metrics and utilising promotions (MercadoLibre has its own promotional campaigns you can join). The end goal is to achieve a solid presence such that your customer acquisition isn’t solely reliant on paid ads – over time, organic sales should grow as your reviews, ratings, and recommendations snowball.

In short, treat advertising in LATAM with the same rigour you apply in your home market – but enjoy the fact that your dollars (or pesos) will go further. Early entrants can capture a disproportionate mindshare while larger competitors are still hesitating. By being aggressive and smart with ads on both Amazon Mexico and MercadoLibre, you can establish your brand as the category leader before others catch on.

Building a Sustainable Growth Plan for LATAM

Launching in Mexico is just the beginning. How do you scale sustainably and potentially expand further in LATAM? Here are some parting strategies for long-term success:

Think mid- to long-term – patience pays off.

“Launching into any marketplace won’t be profitable on Day 1,”

Freddy reminds us. It’s important to set realistic expectations: your first few months might be about building brand awareness and gathering reviews rather than turning a big profit. You might invest in advertising or price aggressively to gain traction. This is a normal part of the growth curve. Don’t be deterred by early ups and downs. Have a mid-term plan (6–12 months) where you aim for key milestones: e.g. 100 reviews, #1 Best Seller badge in a sub-category, expansion to MercadoLibre Argentina or Brazil, etc. By focusing on strategic goals and not just immediate ROI, you’ll position your brand for sustainable growth. Moreover, success in LATAM can have a halo effect: it diversifies your revenue and can make your overall business more resilient.

Consolidate learnings and then consider other markets: Mexico is the ideal beachhead, but LATAM is a big region. Once you have a formula working in Mexico, you can expand to other Spanish-speaking countries via MercadoLibre. MercadoLibre operates in 18 countries, including Argentina, Chile, Colombia, Peru, etc. The platform makes it relatively easy to clone your Mexico listings to those markets, though you’ll have to manage additional logistics (MercadoLibre doesn’t automatically redistribute your inventory; you may need new import routes).

Each country has its own regulations and consumer preferences, so treat them as distinct markets with new research and due diligence. Brazil is another huge opportunity – Amazon is present in Brazil, and MercadoLibre is dominant there too. However, Brazil is more complex (different language, higher import barriers). Many sellers go there after mastering Mexico. Sequence your expansion: prove it out in Mexico, then leverage that success (and cash flow) to enter one new country at a time. The combined LATAM market is massive – for instance, Latin America’s e-commerce sales are projected to grow from $151B in 2023 to $232B by 2028(finance.yahoo.com) – so there is plenty of runway to keep growing geographically.

Optimise operations and consider localising supply: As your LATAM sales scale, look for ways to streamline costs and operations. One strategy used by advanced brands is partial local manufacturing or assembly. We discussed how tariffs can eat into margins; one solution is to produce certain product lines in Mexico or a nearby country (maybe your high-volume or heavy items, where import costs are highest).

Mexico, in particular, has a strong manufacturing base and favourable trade agreements (including USMCA with the U.S./Canada). By localising production, you not only dodge import duties but can, marketing-wise, tout your product as locally made, which can resonate well. This obviously isn’t feasible for all products, but it’s worth evaluating once your volume justifies it. At the very least, consider localising packaging to save costs – for example, have your supplier print Spanish packaging for units destined to LATAM to avoid stickering each unit after import.

Keep an eye on currency and economy: LATAM markets can have higher economic volatility. Currency exchange rates (MXN to USD, etc.) will affect your costs and pricing – build in some buffer in your margins for potential currency swings or inflation. Also, stay aware of economic indicators: if consumer spending tightens, you might adjust your marketing tactics (perhaps emphasising value and necessity of your product). Conversely, during economic upswings or around government stimulus times, be ready to stock up and ride the demand.

Double down on MercadoLibre if it outperforms: Some brands are pleasantly surprised that their product really takes off on MercadoLibre through broader LATAM, in ways it didn’t on Amazon. If you find a strong product-market fit on MercadoLibre (maybe less competition in your niche there), invest more in that channel. MercadoLibre has programs for branding, such as official stores (similar to Amazon Stores) and enhanced marketing solutions. Engage with your MercadoLibre account managers (if you reach a large volume, they may assign you one) to explore featured placements or promotions – they often highlight international brands expanding to the region.

Build a local team or partnerships: As your LATAM operations grow, you might need dedicated resources to manage them. This could mean hiring bilingual staff who understand the culture and can handle customer service, social media in Spanish, and coordination with local partners. Agencies like Adam’s and Freddy’s specialise in managing LATAM marketplace operations – some brands partner with experts on the ground rather than doing it all in-house, which can be a smart move to sustain growth. The key is not to treat LATAM as an afterthought or “set and forget” market – assign real ownership to it, whether internally or via a partner, to continue optimising and expanding.

Stay adaptable and compliant: Regulations, marketplace policies, and consumer trends will continue evolving. For example, new consumer protection laws might come in, or Amazon could change fee structures in Mexico (as they often do elsewhere). Stay agile and be ready to adjust. If Mexico introduces, say, stricter rules on product certifications, get ahead of it rather than pulling out. Brands willing to adapt will outlast those that give up when complexities arise. As Freddy and Adam both stress, perseverance is crucial. There’s immense opportunity in LATAM, but you have to be willing to navigate some complexity and keep learning.

Expanding your brand into LATAM – and Mexico in particular – can be transformative for your business. It offers a chance to tap into high-growth markets with relatively less competition and cost than you face in the U.S. By approaching expansion strategically (doing your homework, localising properly, and utilising both Amazon and MercadoLibre), you set yourself up for success.

As Adam aptly put it, “so many people say, ‘I want to launch there.’ Do your homework first… then go from there.” With the insights above and a solid plan, you’re now equipped to take that next step confidently. ¡Buena suerte! (Good luck!) And if you ever feel stuck, don’t hesitate to reach out to experienced peers or consultants – the LATAM e-commerce community is growing, and experts like Adam (LinkedIn*) and Freddy (LinkedIn) are passionate about helping brands thrive in this new frontier.

Mexico isn’t just a starting point—it’s your strategic springboard into the booming LATAM e-commerce ecosystem. But scaling across Amazon and MercadoLibre takes more than ambition. It takes marketplace intelligence, streamlined operations, and performance visibility across every SKU and region.

MerchantSpring gives Amazon agencies and brands the clarity and control they need to dominate LATAM. From country-level analytics to real-time insights across Amazon, MercadoLibre, and more—we equip you to move faster, optimise smarter, and grow globally.

👉 Launch with confidence. Expand with data. Start your LATAM journey with MerchantSpring.