MercadoLibre : Impact that matters - 2023 MercadoLibre Socioeconomic Impact Study

INTRODUCTION

Through the democratization of trade, the commitment to financial inclusion and the ongoing support for the economies of Latin America, we have contributed to generating a positive impact in the region for the past 24 years. From Mexico City to the southern tip of Chile, the transformative power of our ecosystem makes life easier for millions of people in the region to buy, sell, develop businesses and improve their financial health.

We are convinced that this transformative power lies not only in our solutions, but in the increasingly broad and deep connection we have with users, entrepreneurs, small merchants and SMEs to overcome the challenges of the present and, above all, those of the future.

We do not only continue to evolve in order to be increasingly ecient and sustainable along the entire value chain; we also provide access to the most innovative technological tools of the century, such as blockchain and artificial intelligence, and we forge new emotional bonds in entertainment and sports. Every day, we take risks to be more creative and disruptive, thereby scaling up by leveraging all the possibilities oered by our ecosystem.

To understand and measure how we generate value and promote the development of Latin American countries, we worked with Euromonitor International to prepare a new installment of Impact that Matters, the study that reflects how our positive socioeconomic impact is channeled through digital transformation, employment generation, financial inclusion and economic growth.

The main findings of the last two years show that Mercado Libre has consolidated its position as the main source of income for 1,858,528 families in the region. With 11% more new SMEs that joined our digital platform (+574,000 in total), we contributed to generating more than 234 thousand new jobs; we provided technological capabilities so that

1 in every 3 businesses were able to maintain or strengthen their teams; and we created the conditions so that more than half of these small and medium-sizedcompanies could have access to credit through Mercado Pago for the first time.

Even in a complex regional and global scenario, we feel that the potential of Latin America is only beginning to be discovered. We are proud to see how digital tools can become the best allies for planning and development, as they encourage entrepreneurs, businesses and companies to aspire for more. This motivates us to continue innovating to improve the experience, reduce gaps, build bridges and multiply opportunities. We are proud to be a Latin American company that continues to grow as a global benchmark and drives progress for millions of Latin Americans in all corners of the region.

Mercado Libre

The solution designed to analyze the impact of Mercado Libre in Argentina, Brazil, Chile, Colombia and Mexico included various methodologies and sources:

A L I G N M E N T S E S S I O N .

Alignment and knowledge transfer sessions with internal Mercado Libre teams.

S E C O N D A R Y R E S E A R C H A N D I N - H O U S E R E S O U R C E S .

Use of secondary sources to measure the micro and macroeconomic impact of Mercado Libre.

I N T E R V I E W S W I T H S H I P M E N T S Y S T E M A N D L O G I S T I C S O P E R A T O R S .

In-depth interviews with Mercado Libre logistics operators and distribution chain to understand the growth of the industry.

S U R V E Y S I N T H E M E R C A D O L I B R E E C O S Y S T E M .

+4,000 surveys with Mercado Libre merchants, consultancy agencies that provide services to these merchants, and Mercado Pago resellers.

D A T A A N A L Y S I S A N D T R I A N G U L A T I O N

Results, +170 statements that consolidate the impact of Mercado Libre on the economic development of the countries in question.

The joint Socio-Economic Impact Analysis 2022/23 study carried out by Euromonitor International and Mercado Libre aims to measure the positive impact generated by our ecosystem, in the form of transformation, employment generation, financial inclusion and economic growth, four vectors that boost our purpose with collective meaning.

MERCADO LIBRE IS THE MAIN SOURCE OF INCOME

+1.8 million families

in the region and facilitates trade for more than 574 thousand small- and medium-sized enterprises (SMEs).

LOCAL EXAMPLES

In Mexico, operations linked to Mercado Libre added 19 jobs every day.

In Brazil, 25 new jobs were generated per hour thanks to the growth of Mercado Libre operations.

In Argentina, SMEs in the Mercado Libre ecosystem increased their work force by more than 4,000 workers in 2022.

In Colombia, SMEs in the Mercado Libre ecosystem increased their employment by more than 13,000 workers in 2022 alone.

LOCAL EXAMPLES

Brazil has the best expansion record of all the companies that participate in the ecosystem: 93.2% of SMEs managed to expand outside the city where they sell and 7% of SMEs have operations in more than one country.

In Mexico, 60% of SMEs in Mercado Libre only sell through electronic commerce and, on average, 34.9% of SMEs' sales originate in the online channel versus 65.1% that come from physical channels.