MercadoLibre, Inc. (MELI)
dbAccess 2012 Technology Conference
September 12, 2012 6:20 p.m. EDT
Pedro Arnt – CFO
Ross Sandler – Deutsche Bank
Okay, we're going to get started. So, thanks for joining us. I'm Ross Sandler, the recently joined member of the Deutsche Bank Internet Research team.
We've got -- we're very excited to have MercadoLibre all the way up here from Argentina to participate in the conference. So we've got Pedro Arnt, the CFO.
Why don't you just give them a quick 60-second overview. I mean, I think most people are familiar with your story, but just give us a quick overview of it, and then we'll hop into questions.
Absolutely. Apologies for being late.
So, MercadoLibre, we've been operating in the region since '99. Started as an idea arbitrage, I believe, we say now as eBay. The business model has evolved significantly and what we have today is an ecosystem of essentially online solutions for merchants and retailers that want to move online.
So we have the marketplace business where we started, which is a marketplace that has certain characteristics that make it a little bit different from our US peer in that 98% of what we retail is done through fixed price, 80% of the goods sold are new goods, 70% of the merchants selling on the marketplace are small-sized retailers. So in many ways it has a flavor more similar to Amazon's 3P business.
We have a business called MercadoPago, which is very similar to what PayPal is in the US. Essentially the strategy there is to become an online payment standard for online transactions. And more recent business units around online advertising, so, search advertising based on our different web properties and MercadoShops, which is a software-as-a-service e-commerce store front solutions that allow us to offer technology to set up web stores for merchants that either want to go multichannel and, in addition to sell on our marketplace, sell on their own URLs or their own brands. And as that product develops and rolls out more features, it will allow us to start targeting midsize and larger retailers and offer them technology.