Seller of record in Latin America: what it is and why you need one to sell on Mercado Libre and Falabella

A seller of record is the entity that legally sells a product to the end consumer: it issues the invoice, collects and remits the sales taxes, and answers to the buyer and the authorities. Foreign brands, especially US brands, need one because Latin American marketplaces such as Mercado Libre and Falabella generally require a local tax ID to operate as a local seller. A local seller of record solves that requirement without the brand having to incorporate a company in each country.

What exactly is a seller of record?

In any online sale there are several roles that are sometimes played by the same company and sometimes not: the manufacturer, the brand owner, the importer and the seller. The seller of record is the party that legally appears in the transaction with the customer. That means:

• Appearing as the seller on the marketplace.
• Issuing the tax invoice for the sale.
• Collecting and remitting the applicable indirect taxes.
• Answering to the consumer for warranties, returns and claims, under each country's consumer protection rules.

It should not be confused with the importer of record, which is responsible to customs for bringing the goods into the country. In many cases the same partner plays both roles, but they are different responsibilities.

Why does a foreign brand need a seller of record in Latin America?

To sell as a local seller on Mercado Libre, Falabella, Liverpool, Walmart or other marketplaces in the region, you are normally asked for a local tax ID, a local bank account and the ability to issue invoices under the local tax system. Many countries in the region require electronic invoicing connected to the tax authority.

For a US brand, meeting all of that on its own would mean incorporating a company in each country, registering with the tax authority, opening bank accounts, hiring local accountants and keeping up with regulations that change. It is a high fixed cost before you sell a single unit, and it multiplies with every market you add.

That is why the seller of record has become a central piece of selling on international marketplaces: it lets you test and scale a market without building your own legal structure.

What does a seller of record handle?

Scope varies by partner, but a full-service arrangement usually covers:

• Taxes and invoicing: issuing electronic invoices and calculating and filing the taxes on each sale.
• Collections and payments: receiving marketplace payouts in local currency and settling them with the brand. If this topic interests you, read about fintech for cross-border commerce.
• Regulatory compliance: health registrations, Spanish or Portuguese labeling and the certifications each category and country requires.
• Importing and logistics: coordinating the entry of goods, warehousing and delivery to the customer, together with logistics providers and fulfillment centers.
• Customer service and returns: answering questions, handling claims and protecting the account's reputation.

What are the alternatives to a seller of record?

There are four main paths, each with different advantages and costs:

1. Set up a local entity. It gives you full control, but it requires investment, time and ongoing management in every country. It makes sense once the market is validated and the volume justifies it.
2. Marketplace cross-border programs. Some marketplaces, such as Mercado Libre, have programs for international sellers shipping from abroad. They are a good entry point, although they usually come with country, category and logistics restrictions, and longer delivery times than local selling. We explain this in detail in how to sell on Mercado Libre from the US.
3. Sell to a distributor. You sell wholesale to a local importer, who then resells. It is simple, but you lose control over pricing, brand, content and customer data.
4. Work with a seller of record. A partner sells locally on your behalf and runs the operation. It combines the speed of a distributor with the visibility and control of selling direct.

The right choice depends on your category, your volumes and how much control you want to keep. In practice, many brands start with a seller of record or a cross-border program to validate the market, and decide later whether their own structure makes sense. Legal and tax requirements differ from country to country, so always confirm them with the marketplace or a local advisor.

How do you choose a good seller of record?

• Marketplace expertise: invoicing is not enough; the partner needs to know how to rank products, manage advertising and protect the account's reputation.
• Country coverage: ideally, one partner for several markets in the region.
• Transparency: real-time access to sales, inventory and profitability data.
• Contract clarity: who sets prices, who owns the inventory and how payments are settled.

How we do it at LAP Global

At LAP Global we have more than 10 years of experience in cross-border commerce across the Americas, and we manage more than USD 30 million in annual GMV and more than 25,000 SKUs across 8+ countries. We offer two models:

• 1P, "We sell": LAP Global acts as seller of record and handles taxes, compliance, payments and logistics. You just supply the product.
• 3P, "You sell": you keep ownership of your inventory and brand, and we run your marketplaces end to end. Compare both in 1P vs 3P marketplace models.

We operate with AI agents working 24/7, Key Account Managers and a real-time centralized dashboard, integrated with marketplaces, couriers and fulfillment centers. The average launch takes 45 days. See how it works.

If you are a US brand or distributor looking to sell on Mercado Libre, Falabella or other Latin American marketplaces, email us at comercial@lapglobal.io and we'll help you choose the best path for your product.