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The Dispute Over Brazilian E-Commerce Gains Strength on the Eve of Black Friday, with Amazon, Shein and Shopee Pressuring Mercado Livre in a Market Still Little Explored and Marked by Falling Stocks and Millionaire Reactions
The information published by O GLOBO shows that, on the eve of Black Friday, Mercado Livre is facing increasing pressure from Amazon, Shein and Shopee in Brazil.
The company, founded in Argentina and headquartered in Uruguay, maintains a historical position of leadership in online commerce in Latin America, but is now facing competitors that are expanding their presence in a market with high potential, as only about 15% of Brazilians shop online, according to research from Itaú BBA.
The intensification of this dispute occurs because Amazon is investing in new structures and payment methods, while Shein and Shopee continue to attract price-sensitive consumers, driving a race for customers in the midst of the pre-Black Friday period.
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The blouse tax seemed to have disappeared, but it returns in 2027 with a different name, a new federal charge, and a change that could affect the price of international purchases.
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New agreement in Minas changes the entry salary in supermarkets and hypermarkets, sets a minimum wage of R$ 1,735.76, and creates an alert for workers to check adjustments, commissions, and rights on the payslip.
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With 80.9% of families in debt, the state creates a new law against over-indebtedness to guide consumers, combat abusive practices, and encourage debt renegotiation.
Impacts on the Financial Market
The competitive environment has generated an immediate reaction in the financial market. Mercado Livre’s shares, traded under the code MELI, recorded a decline of nearly 8% in a single session after Amazon made a deal with Nubank to expand payment and credit options in the country.
In the following weeks, the stock accumulated a decline of nearly 6%, approaching the level of US$ 2,000, reflecting investors’ concerns about the advancement of competitors.
This movement indicates apprehension about the impact of the dispute at a decisive moment for digital retail, especially in light of initiatives that could alter the dynamics of the sector.
Reaction of Mercado Livre
The company’s response was quick and marked by significant investments. Mercado Livre allocated about US$ 19 million in coupons for Black Friday, its largest value ever applied for the event and approximately double the amount used by Amazon.
Additionally, it reduced the minimum amount required to release free shipping, a measure aimed at broadening the platform’s reach and strengthening its position.
In the assessment of analyst Rodrigo Gastim from Itaú, the strategy highlights the company’s willingness to forgo part of the margins to consolidate its leadership amid the advancement of rivals.
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