On August 1, 2026, Latin American e-commerce giant Mercado Libre officially launched its local ”FULL” warehouse services in Mexico, Brazil, Chile, and Argentina, and introduced the CBT PRO program for Chinese cross-border sellers. This marks the largest infrastructure upgrade by Mercado Libre since the launch of its cross-border trade program—previously, Chinese sellers could only enter the Latin American market through direct international shipping, which took 15–30 days and resulted in persistently high return and exchange rates; Now, through local ”FULL” warehouses, sellers can pre-position inventory in warehouses within their target countries, delivering a “next-day” or “two-day” delivery experience similar to Amazon’s FBA in the U.S. More importantly, the CBT PRO program provides one-on-one Chinese-speaking account managers, the ability to independently submit campaign proposals, and dedicated after-sales support channels—giving Chinese sellers, for the first time, operational tools nearly on par with those of local Latin American sellers.

However, the barriers to entry in the Latin American "blue ocean" market should not be overlooked. Tax compliance requirements vary across the four Mercado Libre countries—in Mexico, an RFC tax ID has become a mandatory verification requirement, and sellers without one face withholding taxes of up to 36%; in Brazil, a mandatory escrow payment system went into effect on August 1, requiring sellers to link their local Brazilian tax information to receive payments normally. For Chinese sellers accustomed to Amazon’s operating model, Mercado Libre is not only a new platform but also an entirely new set of market rules and compliance systems. How to seize the initiative during this period of logistics advantages while simultaneously establishing a solid foundation for compliance is a question every seller expanding into Latin America must answer.

Expanding into Latin America involves more than just product selection and operations; it also requires establishing a comprehensive cross-border structure, including overseas company registration, ODI filing, and tax compliance. Qicaiying Group specializes in providing domestic and international company registration services in Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, Hong Kong, the United States, Japan, South Korea, Southeast Asia, Singapore, the British Virgin Islands (BVI), the Cayman Islands, and more. We offer a one-stop suite of corporate services, including annual reviews and audits, bookkeeping and tax filing, tax compliance, information updates, bank account opening, ODI filing, FDI filing, and other corporate services; Hong Kong residency application, renewal, and permanent residency services; Singapore EP application services; and cross-border e-commerce mentoring and managed operations—all as part of our one-stop solution. If you have any needs or are interested, please feel free to contact me at any time (Consultation Hotline: 18676749275, add WeChat: Qicaiyingjituan).

I. Full Warehouses in Four Countries: Logistics Advantages and Entry Requirements

The full-scale launch of Meike Duo’s local “FULL” warehouses in four countries has opened up a logistics highway to the Latin American market for Chinese sellers. However, the entry requirements and operational characteristics vary from country to country.

FULL warehouse in Mexico. Mexico is Mercado Libre’s largest single market, with over 100 million monthly active users. The FULL warehouse is located on the outskirts of Mexico City and covers the ”next-day delivery” areas throughout Mexico. Eligibility requirements include: registering for a Mexican RFC tax ID, completing the seller qualification review, and stocking at least 30 SKUs for the initial inventory. The RFC tax number is the key requirement—for cross-border sellers without an RFC tax number, the platform withholds 36% of the sales amount as advance tax on each sale; for sellers with an RFC tax number, income tax is paid based on actual profits, and the withholding tax rate is reduced to approximately 16%. For sellers with monthly sales exceeding $100,000, a 36% withholding rate results in $36,000 in tied-up capital—enough to cripple cash flow.

FULL warehouse in Brazil. Brazil is the second-largest e-commerce market in Latin America, and FULL’s warehouse is located near São Paulo. The key change in the Brazilian market is the mandatory payment segregation system that took effect on August 1—revenue generated by sellers through platform sales will be automatically split by the platform into ”proceeds from goods sales” and ”service fees” in accordance with Brazilian tax law, and each portion will be settled and taxed separately. Sellers must link their local Brazilian CPF/CNPJ tax information and a local Brazilian bank account to receive payments normally. This means that cross-border sellers need to establish a compliant entity in Brazil or operate through a compliant payment segregation service provider.

Chile and Argentina are fully stocked. The Chilean market is small but growing rapidly. FULL’s warehouse is located in Santiago, and the barriers to entry are relatively low, making it a suitable ”test market” for Latin America. The Argentine market is highly susceptible to exchange rate fluctuations. While FULL’s warehouse is located in Buenos Aires, sellers should be mindful of managing exchange rate risks associated with the Argentine peso. It is recommended to price in U.S. dollars and settle in local currency to minimize foreign exchange losses.

II. CBT PRO Program Benefits: An Exclusive Toolkit for Chinese Sellers

The CBT PRO Program is an empowerment system designed by Meike Duo specifically for Chinese cross-border sellers, with the following four core benefits.

One-on-one Chinese account manager. In the past, Chinese sellers who joined MeKeDuo through cross-border trade programs could only communicate with the platform via an English-language ticket system, resulting in long response times and low efficiency in resolving issues. The CBT PRO program assigns each seller a Chinese-speaking account manager who provides end-to-end support—from onboarding reviews and product selection advice to campaign sign-ups and dispute resolution. The account manager also serves as a liaison between the seller and various platform teams, significantly reducing response times.

Submit event proposals on your own initiative. Traditional cross-border sellers cannot independently sign up for platform promotions; they can only wait for targeted invitations from the platform. CBT PRO sellers have been granted the authority to submit their own proposals for promotions; they can view the calendar of upcoming promotions in the seller dashboard and independently select the promotions and SKUs they wish to participate in. This offers direct value for creating bestsellers and boosting traffic—on the MeKeDuo platform, products participating in major promotions such as Hot Sale and Buen Fin can see a 3- to 5-fold increase in average daily traffic.

If the IPI is ≥50, you may apply for a tank capacity expansion. The Inventory Performance Index (IPI) is the core metric that Meitiao uses to evaluate the health of a seller’s inventory. CBT PRO sellers with an IPI score of 50 or higher are eligible to apply for an expansion of their FULL warehouse capacity. This mechanism provides room for growth for sellers with efficient operations—the faster the inventory turnover and the lower the rate of slow-moving inventory, the greater the warehouse capacity they can obtain, creating a virtuous cycle.

Dedicated after-sales service channel. Return and exchange rates among Latin American consumers are higher than in European and American markets. CBT PRO sellers have access to an exclusive after-sales processing channel, through which returned or exchanged items are received and inspected directly by the FULL warehouse, reducing the logistics costs and time associated with cross-border returns. For product categories with high return rates (such as apparel and footwear), this benefit can significantly lower after-sales costs.

The operational systems and compliance frameworks in the Latin American market differ significantly from those in Europe and the United States. From obtaining an RFC tax ID to filing ODI reports, and from registering overseas companies to opening local bank accounts, every step requires professional support. Qicaiying Group specializes in providing domestic and international company registration services in Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, Hong Kong, the United States, Japan, South Korea, Southeast Asia, Singapore, the British Virgin Islands (BVI), the Cayman Islands, and other locations, as well as annual reviews and audits, bookkeeping and tax filing, tax compliance, information changes, bank account openings, ODI filings, FDI filings, and other corporate services; Hong Kong residency applications, renewals, and permanent residency services; Singapore EP application services; and one-stop cross-border e-commerce support and managed operations. If you have any needs or are interested, please feel free to contact me at any time (Consultation Hotline: 18676749275, add WeChat: Qicaiyingjituan).

III. Tax Compliance in Three or Four Countries: RFC, Segregated Account Payments, and Profit Repatriation

Tax compliance is at the heart of expanding into Latin America—with four countries having distinct tax systems, the compliance structure directly determines profit margins.

Mexican RFC tax ID number. The RFC (Registro Federal de Contribuyentes) is Mexico’s taxpayer identification number. For Mercado Libre sellers, the RFC directly determines the withholding tax rate—for cross-border sellers without an RFC, the platform withholds 36% from each sale as estimated tax; For sellers with an RFC, the withholding tax rate is reduced to approximately 16%, and they can adjust the amount based on actual profits during their annual tax filing. Registering for an RFC requires a local Mexican entity or an authorized representative to submit the application, and the process takes approximately 4–6 weeks. We strongly recommend that sellers with monthly sales exceeding $50,000 register for an RFC; otherwise, withholding taxes will significantly erode their profits.

Payment via revenue sharing in Brazil. The segregated payment system, which took effect in Brazil on August 1, is a key measure of the country’s e-commerce tax reform. For each sale made by a seller, the platform automatically splits the revenue into ”goods revenue” (subject to ICMS, the state value-added tax) and ”service fees” (subject to ISS, the municipal services tax), and reports these separately to the relevant tax authorities. Sellers must provide a local Brazilian CNPJ (corporate tax ID) or CPF (individual tax ID) and a local Brazilian bank account. Cross-border sellers typically need to establish a subsidiary in Brazil or operate through a compliant account-segregation service provider.

Taxes in Chile and Argentina. Chile has implemented a simplified VAT withholding system for cross-border e-commerce; platforms withhold 19% VAT at the time of sale, and sellers are not required to register separately. Due to strict foreign exchange controls in Argentina, it is recommended to operate by pricing in U.S. dollars and settling in local currency, with profits repatriated through compliant channels. In both countries, it is recommended to establish a local entity to optimize the tax structure.

Compliant repatriation of profits. Foreign exchange controls vary among these four Latin American countries—Mexico and Chile have relatively lenient controls, while Brazil and Argentina have stricter ones. It is recommended that sellers establish a compliant overseas investment structure through ODI (Outbound Direct Investment) registration, and repatriate profits from Latin America to domestic corporate accounts via compliant channels such as dividends and service fees, thereby avoiding anti-money laundering and tax risks associated with remittances through personal accounts.

IV. The Strategic Value of Latin America’s Blue Ocean: Why Now Is the Time to Enter the Market

The opening of Meiketuo’s four local full-scale warehouses in these countries represents not only an upgrade to logistics infrastructure but also an important sign that the Latin American e-commerce market is maturing.

The Latin American e-commerce market is currently at a growth inflection point characterized by ”rapidly rising penetration rates.” Latin America has a total population of over 650 million and more than 500 million internet users, but its e-commerce penetration rate is only 10%–12%, far below the levels in China (35%) and Europe and the United States (20%). According to eMarketer forecasts, the Latin American e-commerce market is expected to maintain an average annual growth rate of over 20% from 2026 to 2028, making it one of the fastest-growing regions for e-commerce globally. As Latin America’s largest e-commerce platform, Mercado Libre covers core markets such as Brazil, Mexico, and Argentina, with a market share exceeding 50% in most countries, making it the optimal channel for entering the Latin American market.

However, the window of opportunity in the Latin American market won’t remain open forever. With the opening of FULL warehouses and the launch of the CBT PRO program, more and more Chinese sellers are flooding in—official data from Meikeduo shows that in the first half of 2026, the number of Chinese sellers joining the platform grew by more than 200% year-over-year. Sellers who are the first to complete their localization efforts and establish a compliant operational framework will build brand momentum and customer loyalty during this traffic boom; those entering the market later will face fiercer competition and higher customer acquisition costs.

From an operational perspective, the product selection logic in the Latin American market differs significantly from that of the European and American markets—Latin American consumers are highly price-sensitive and prefer products that offer good value for money; climatic conditions result in seasonal categories that are the opposite of those in the Northern Hemisphere; and cultural preferences create unique demand for certain categories (such as soccer merchandise and religious holiday items). Sellers are advised to conduct thorough market research before entering the market and to select product categories and pricing strategies that align with Latin American consumer characteristics.

From product selection and operations to ODI filing, and from overseas company registration to opening bank accounts with local banks in Latin America, expanding into Latin America requires the establishment of a comprehensive cross-border structure. Qicaiying Group specializes in providing company registration services both domestically and internationally—including Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, Hong Kong, the U.S., Japan, South Korea, Southeast Asia, Singapore, the British Virgin Islands (BVI), and the Cayman Islands—as well as annual reviews, audits, bookkeeping, tax filing, tax compliance, information updates, bank account opening, ODI registration, FDI registration, and other corporate services; Hong Kong residency application, renewal, and permanent residency services; Singapore EP application services; as well as cross-border e-commerce mentoring and managed operations—all as part of our one-stop service. If you have any needs or are interested, please feel free to contact me at any time (Consultation Hotline: 18676749275, add WeChat: Qicaiyingjituan).

The doors to Latin America’s blue ocean have opened, but compliance barriers at the entrance are rising rapidly. Sellers entering the market now can take advantage of a dual window of opportunity: the logistics boom and the traffic boom. Those who wait until competition intensifies will face higher entry costs and a more crowded market. Now is the golden opportunity to expand into Latin America.