Low prices, free shipping, and viral videos: this is how Shein and Temu, the Chinese giants threatening Mercado Libre, operate.
The emergence of Shein and Temu , two Chinese e-commerce giants, is upsetting the balance of trade in Latin America. Their combination of aggressive pricing, optimized logistics , and a keen understanding of consumer habits makes them a concrete threat to Mercado Libre 's reign.
The Argentine unicorn, which until now dominated the region, is beginning to feel the pressure of an express model—whose visits climb to 285 million in Latin America, surpassing Amazon 's 216 million—that moves with the perseverance of a Xiongnu warrior.
These marketplaces understood that today's consumer is looking for a streamlined, visual, and connected experience, with attractive design and viral campaigns that resonate with the digital codes of the new generations. Faced with this expansion, Mercado Libre's more transactional offering is beginning to lose its shine.
To stop the customer exodus, ML urgently needs to patch its model. Its weakest points are: a structure increasingly tied to Mercado Pago's performance, verticals that require complex coordination, a system sustained by additional charges to improve visibility, and constantly rising commissions .
Chinese giants are fighting over Mercado Libre's territory.
A determining factor in this equation was the opening of the Chancay megaport in Peru . Previously, importing goods from China to South America took 45 days or more, via indirect routes loaded with intermediaries. With the new "Pacific hub," times are reduced to 20 days and processes are simplified.
Therefore, ML needs to optimize its logistics network to reduce delivery times and costs , strengthen Mercado Pago as a loyalty engine, and expand concrete benefits for its sellers. Only then will it be able to defend its position against competitors who already offer products up to 60% cheaper and non-stop shipping.
Furthermore, its local catalog—which also includes a limited offering from abroad—doesn't always boast the variety and speed of updates that distinguish its Asian counterparts. And while, due to its location, its digital marketing operations are fairly well-oiled, it doesn't possess the same level of algorithmic personalization as its rivals.
In some countries, such as Argentina and Brazil , this scaffolding becomes heavier compared to the lightness of the Chinese model, which advances without friction or additional costs.
The advance of Chinese e-commerce giants in Argentina.
Shein and Temu's expansion began in 2024, anticipating that the North American market was beginning to become blocked. Faced with this situation, they decided to focus their efforts on Latin America. To achieve a significant impact, they invested more than $49 million in digital advertising in the region.
Its proposal consists of connecting consumers with manufacturers, something that allows it to deliver items at very low costs —even lower than those found on Amazon USA—especially in fashion (Shein) and household and technology items (Temu).
To capture the attention of generations X, Y (millennials), and Z, these marketplaces are banking on trends such as hauls , popular videos on TikTok and Instagram where users open, show off, and comment on the shopping bags they made at a specific store. This simple and addictive format turns each purchase into a micro-spectacle that seduces and spreads the desire to buy.
In the case of Shein and Temu, these videos typically include product unboxing , clothing or gadget testing, and quick reviews on quality, price, and style. And most importantly: personalized discount codes .
To make their content go viral, these platforms often hire micro-influencers (1,000 to 100,000 followers) and content creators to build trust. This means that followers perceive these recommendations as more authentic than traditional advertising.
Additionally, Temu offers free shipping on thousands of select products and free returns within 90 days . To further enhance customer satisfaction, there are flash sales that change daily, with discounts of up to 63% on technology, footwear, perfumes, and fashion.
What to consider before purchasing from Chinese platforms.
- Many products, especially clothing and accessories, may not match promotional photos . The quality of the materials is often inferior to traditional brands or what one expects.
- Although they've improved their shipping, it can take between 2 and 4 weeks . Detailed package tracking isn't always available. Returns can be costly or complicated, as they often involve sending the product back to China.
- Before activating the sale, it's best to download the official Temu or Shein app , as it offers even more benefits than the web version. It typically unlocks welcome coupons, exclusive benefits, and promotions. It also includes special events like the "Mega Festival" or "Deals of the Day," where prices are even lower for a limited time.
- A promotional code can make the difference between a bargain and a great purchase. At checkout, be sure to enter any active discounts, many of which are up to 50% off the purchase price.
- On these platforms, it's common to find generic items with different names. Faced with this dilemma, compare models, read reviews, and choose the one with the best rating or price. Sometimes the only thing that changes is the photo.
- Reviewing negative reviews helps you identify common flaws or issues with the seller. As with most marketplaces, these show positive reviews first, but you can filter by the lowest-rated reviews to get a more balanced view.
- One of the most common mistakes is assuming that sizes follow international standards. An "M" can fit like an "S" or an "L," depending on the supplier. The key is to check the specific sizing charts for each garment, compare them with your own measurements, and read other buyers' comments, which are usually brutally honest.
- If this is your first time shopping at Temu or Shein, it's a good idea to place a small order . A couple of accessories, a T-shirt, or some inexpensive item serves as a test of the process: from shipping time to product quality. This reduces risk and helps you gain experience.
- The first return is usually free. The platform sends a label, which must be affixed to the package. If the merchandise is so cheap that it's not worth shipping, they usually refund the amount as credit for future purchases.
- Not all products are eligible for refunds, and in some cases, the process can be lengthy or complex. It's important to check each platform's exchange policies and see if they apply to your country.
- It's always recommended to use reliable payment methods such as cards with buyer protection or backed-up digital wallets. Avoid uploading bank details directly to unfamiliar sites or responding to emails with external links. Security is always a priority, especially on international platforms.
- Shopping on Temu or Shein isn't for the impatient. Shipping can take anywhere from 10 days to 3 weeks , depending on the destination and the shipping method chosen. If you need something urgently, these aren't the most recommended platforms.
- When it comes to high-value electronics , it's better to be safe than sorry. Even if the prices are tempting, the lack of local warranty and poor technical support can turn a bargain into a loss. It's best to reserve these purchases for trusted brands or sites with guaranteed after-sales service.
Clarin
