Recently, there is news circulating in the cross-border circle: Meikeduo’s cross-border stores have begun to allocate numbers in large quantities. Applications that were previously stuck in the review process have been receiving notifications of advancement in the past two weeks.
Many people’s first reaction is that platform policies have been relaxed, but if you look at recent data, you will find that there is a logic behind it that deserves more attention.
The fundamentals of the Latin American e-commerce market are stronger than many people imagine.
According to data from eMarketer’s “Latin America Ecommerce Forecast 2025”, Latin American retail e-commerce sales will reach US$19.1 billion in 2025, a year-on-year increase of 12.2%, and the growth rate is 1.5 times the global average.
The more critical number is the penetration rate: the current e-commerce penetration rate in Latin America is only 12% to 15%, while in China it is 45%, and in mature European and American markets, it is between 25% and 30%.
In other words, most consumers in Latin America have not yet formed stable online shopping habits, and the market is far from saturated.
In this context, the three platforms Meikeduo, Temu, and SHEIN have recently made extremely intensive moves in Latin America.
Meikeduo’s cross-border GMV increased by 68% year-on-year in the first quarter of 2026, with total quarterly GMV reaching US$19 billion; Temu entered Brazil and Mexico in 2024, and by the first half of 2025, Latin American monthly active users had exceeded 105 million, a year-on-year increase of 143%.
SHEIN’s sales in Brazil increased by 698% from 2021 to 2025, far exceeding the 131% in the US market during the same period, and it plans to build 2,000 local factories in Brazil.
The three platforms have different playing styles, but the core of the competition is the same thing: China’s supply chain.
There is one detail that illustrates the intensity of competition – the president of Mercado Argentina publicly called on the government to strengthen supervision of Temu and SHEIN.
As the largest local e-commerce platform in Latin America, reaching this point shows that the penetration rate of Chinese platforms in Latin America has touched its core interests.
From another perspective, when Chinese sellers enter Latin America, they are not unilaterally asking the platform to open its doors, but the platform needs the Chinese supply chain to cope with competition.
However, the cost structure faced when entering the market now and entering the market two years later is different.
Taking Mexico as an example, starting from August 2025, the commodity tax rate for countries that have not signed a free trade agreement with Mexico will increase from 19% to 33.5%.
For the same product with a unit price of US$15, the tax rate cost has directly increased. Coupled with the increase in advertising fees due to intensified competition, the profit margin will be further narrowed.
Chile will impose a 19% value-added tax on all online imported goods from October 2025. Previously, prices below US$41 were exempt.
Although Brazil will cancel federal taxes on low-price goods in May 2026, it will simultaneously tighten the import certification requirements for electronic products.
TikTok Shop has also entered Mexico and Brazil, and the competitive landscape in the Latin American market is rapidly becoming complex.
The Latin American market has real room for growth, but its logic is different from that of Southeast Asia. Language thresholds, logistics systems, and platform rules all need to be re-explored.
For sellers who have a supply chain foundation and are considering the diversified layout of the platform, now is a relatively cost-controllable entry point.
Are you paying attention to the Latin American market now?
Welcome to chat about your judgment in the comment area.
