Amazon has decided to take an unprecedented step in its global operations and announced that it will zero out storage and shipping fees charged to merchants using Fulfillment by Amazon (FBA) in Brazil until December. The platform, which according to a Conversion report released in May 2024 recorded 195 million visits, ranks third in the list of most accessed e-commerce platforms, behind Mercado Livre and Shopee. This strategy, therefore, marks a shift in the company's stance in the country and intensifies the increasingly fierce competition for control of the seller ecosystem.
FBA is the program where Amazon handles all logistics, from storage to shipping and post-sale customer service, and is usually one of the company's main revenue sources from sellers. With the temporary exemption, the company forgoes significant earnings right during the Black Friday and Christmas season, the period of highest sales volume of the year, in exchange for increasing its base of partner merchants.
“This is an action that had never been done in any country. Amazon is giving up revenue at its peak billing period to capture the most contested asset in e-commerce today: the seller,” assesses Rodrigo Garcia, CEO of Petina Soluções, a consultancy specialized in marketplaces and retail media.
According to Garcia, the plan goes beyond the logistics exemption. “Those who have never used FBA should also receive a commission exemption for an initial period. And there is an additional incentive: those who reinvest part of their sales in media within the platform can extend the benefit. It's a very aggressive and surgical commercial move,” he explains.
Competition for sellers heats up
Amazon's move comes at a time when Mercado Livre and Shopee are already engaged in intense competition for independent sellers and small brands. In August, Mercado Livre reduced the minimum value for free shipping from R$ 79 to R$ 19, in direct response to Shopee, which offers free shipping on purchases from R$ 19 and, during promotional campaigns on double dates — 9.9, 10.10, and 11.11 — lowers this limit to R$ 10, further strengthening its appeal among price-sensitive consumers.
“These platforms are mirroring each other and quickly adjusting tactics. What Shopee does with affiliates, Mercado Livre replicates within weeks; now, Amazon adopts the same logic of aggressive incentives. The difference is that it is entering the fray for real,” says Garcia.
For the executive, this new round of competition tends to benefit both merchants and consumers. “Competition forces platforms to offer better conditions and services. In the end, the ecosystem wins: the seller pays less and the buyer gets more options, with better delivery times and prices.”
Long-term strategy
Despite the immediate impact on margins, Amazon's offensive is seen as a positioning move. The company has been gradually advancing in last-mile and expanding distribution center operations in Brazil, which allows it to fund larger-scale promotional actions without compromising logistical efficiency.
“The timing is perfect. Amazon wants to consolidate its presence before Black Friday, when thousands of new sellers enter e-commerce. If it manages to attract some of them now, it creates a loyalty effect for the next cycle,” analyzes Garcia.
The message, according to the expert, is clear: “The war between Mercado Livre and Shopee has now gained a third heavyweight competitor. And this time, Amazon is not just testing the market; it's diving in headfirst,” he concludes.
