Can you discuss the strategy that Mercado Libre is trying to implement in this category to grow?

They pursue this strategy because it increases customer frequency. People continue to return to the platform and remain active by placing orders. During my time there, they conducted research comparing customers who made their first purchase with groceries to those who started with other categories. They found that within a year, those who began with groceries purchased 2.5 times more than those who started with other categories. This was a significant value driver for marketing campaigns to encourage first-time orders on Mercado Libre. It's more about investing in frequency and maintaining customer engagement rather than focusing on a profitable business unit.

Can you discuss the strategy for the other categories you mentioned? You have experience across a broad range of categories. I want to understand what's happening in terms of growth, penetration, competition, and profitability per category since you've had professional exposure to four different categories?

Regarding the categories, all of them are profitable in Mercado Livre, except for FMCG. The average price per unit sold in FMCG is very low, and each item has a high cost of handling in a warehouse. For example, a pack of beer and a can of corn have the same handling cost in a warehouse, but their average prices are very different. This affects the threshold for Mercado Libre. The cost inside the warehouse and delivering to the customer from a centralized space is high, making FMCG unprofitable.

Can you discuss the strategy for the other categories you mentioned? You have experience across a broad range of categories. I want to understand what's happening in terms of growth, penetration, competition, and profitability per category since you've had professional exposure to four different categories?

It's the only category that is geolocated to reduce delivery costs for Mercado Libre. The other categories are quite profitable, especially those with higher ticket values. The first is consumer electronics, and the second is auto parts. Mercado Livre started in Brazil, and the main part of its business there was based on auto parts. They have a unique search engine in Brazil that no other platform has, which is why it's still very important to Mercado Livre. We estimate that Mercado Livre holds 93% of the online auto parts market in Brazil, making it highly dominant. These are the main categories of profitability for Mercado Livre.