MercadoLibre has announced a record coupon spend of nearly $19 million (R$100 million) for its upcoming Black Friday promotion, a move that represents a 150 % increase over the coupon budget of the previous year. The investment is aimed at driving sales during the holiday season and protecting the company’s market share in Latin America.
The record spend comes amid intensified competition from global players such as Amazon, Shein, Shopee and Temu, all of whom are expanding aggressively in the region. In Brazil, MercadoLibre has already lowered its free‑shipping threshold from R$79 to R$19, a change that boosted items sold by 34 % year‑over‑year in June and set the stage for a larger coupon push.
The Black Friday campaign will run from November 18 to December 1, with the flagship Black Friday event on November 28, 2025. The coupon budget will be distributed across key product categories and geographic markets, with a focus on high‑margin electronics and fashion items that historically drive the most volume during the holiday period.
While the coupon spend signals a strong growth push, it also reflects the company’s broader strategy of investing heavily in logistics, free shipping and fintech services. In Q3 2025, MercadoLibre reported a 39 % year‑over‑year increase in revenue and a 28 % rise in gross merchandise volume, but margin compression of 350 bps was noted due to higher shipping and carrier costs and increased funding expenses. Management has emphasized that capturing growth opportunities outweighs short‑term margin pressure, and the CFO highlighted the importance of continued investment in free shipping and credit offerings to sustain long‑term momentum.
The fintech arm, Mercado Pago, continues to expand rapidly, with monthly active users reaching 72 million and the credit portfolio growing 83 % year‑over‑year. This diversification supports the company’s ability to absorb the cost of aggressive coupon spending while maintaining a robust revenue base across e‑commerce and financial services.
Overall, the record coupon spend underscores MercadoLibre’s commitment to defending its dominant position in Brazil and other key markets, while balancing the trade‑off between short‑term margin compression and long‑term growth potential.
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