Mercado Livre will change free shipping rate and subsidy for sellers – Business – Tecnoblog

Due to what it called the “macroeconomic context”, the Mercado Livre decided to transfer new tariffs to sellers in its marketplace. The main changes involve the payment installment options for the Mercado Livre Premium ads, which depend on the value of the product advertised, and the fee charged for offering free shipping on products weighing up to 30 kg.

User browses the Mercado Livre website (Image: Mercado Livre/Disclosure)

Mercado Livre will change installments for advertisers

Mercado Livre claims that, given the “macroeconomic context”, it will update its policy for sellers in order to improve its services in Brazil. In note to the Techblog, the marketplace states:

Information about the adjustments, which will be valid from January 6, 2022, has been made available to sellers in advance so they have time to organize their business.

The first is about the installment of Premium ads, an option that allows the seller to have greater visibility when promoting a product on the website, including the option of payment through the Mercado Pago digital wallet. Even though the partner advertising model is free, the retailer charges a per-disclosure fee.

Sellers will have to split Premium ads for sales of up to R$ 299 in nine interest-free installments, depending on the value of the product. Auctions from R$300 to R$1,499 can only be paid in up to ten interest-free installments.

Mercado Livre, however, states that it will maintain the limit of 12 interest-free installments for sales above R$1,500. But, for negotiations below this value, the retailer says it will provide the option of installments in 12 installments, but with interest — the company says that they are “significantly lower than the [juros] conventional”.

In the Free Market system, the higher the product price or sale value, the greater the amount of interest-free installments offered in the advertisement.

Check out how the retailer’s installment table looks like with the change:

Product price or sale value Maximum number of interest-free installments
de R $ 0 a R $ 9,99 1
de R $ 10 a R $ 14,99 2
de R $ 15 a R $ 19,99 3
de R $ 20 a R $ 24,99 4
de R $ 25 a R $ 29,99 5
de R $ 30 a R $ 209,99 6
de R $ 210 a R $ 239,99 7
de R $ 240 a R $ 269,99 8
de R $ 270 a R $ 299,99 9
de R $ 300 a R $ 1.499,99 10
more than BRL 1,500 12

Free shipping rate will have an average increase of 3%

Free shipping for Mercado Livre sellers will also increase from January 6th. The marketplace will increase the average charge for free delivery by 3% for all types of products weighing up to 30 kilos.

The discount given by the retailer can reach 50%, depending on the seller’s reputation, which can be green, yellow, orange or red. In the case of the two lowest reputations (orange and red), there is no discount. In yellow, this value is 40%.

Another change will be in relation to the date when the seller will receive the money when using Mercado Envios. If the partner has its reputation calculated and sells new products, those received will be available in the seller’s account five days after delivery. In the case of old products or unreputable partners, this period will be nine days.

Also from February 1st, the legal entity accounts (PJ) of sellers will no longer generate income. However, Mercado Livre states that it will offer income options to legal partners through Mercado Pago.

A final update concerns the subsidy of deliveries via Mercado Livre Flex — a delivery mode that is in the umbrella of the Mercado Envios program. This rate will be lower, dropping from 40% to 10% as of January 6th.

This subsidy decrease does not apply to new products starting at R$79. But the retailer warns that if the seller’s reputation is yellow, orange or red, it will no longer cover the cost of free delivery.

According to Mercado Livre, more than 900 thousand families have their direct source of income with sales on the platform, while more than 500 thousand small and medium businesses benefit from the marketplace.

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