Amazon has decided to take an unprecedented step in its global operation and announced that it will eliminate storage and shipping fees charged to merchants using Fulfillment by Amazon (FBA) in Brazil until December. The platform, which in a Conversion report released in May 2024 recorded 195 million accesses, ranks third among the most accessed e-commerce sites, behind Mercado Livre and Shopee. This strategy, therefore, marks a change in the company's stance in the country and reinforces the increasingly fierce competition for control of the seller ecosystem.
FBA is the program in which Amazon handles all logistics, from warehousing to shipping and after-sales service, and is usually one of the company's main sources of revenue from sellers. With the temporary exemption, the company is foregoing significant gains during the Black Friday and Christmas season, the period with the highest sales volume of the year, in exchange for increasing its base of partner retailers.
“This is an action that has never been done in any country. Amazon is giving up revenue at its peak sales period to acquire the most sought-after asset in e-commerce today: the seller,” says Rodrigo Garcia, CEO of Petina Soluções, a consultancy specializing in marketplaces and retail media.
According to Garcia, the plan goes beyond logistical exemption. “Those who have never used FBA should also be exempt from commission 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 vendors heats up
Amazon's move comes at a time when Mercado Libre and Shopee are already engaged in intense competition for independent sellers and small brands. In August, Mercado Libre reduced the minimum order value for free shipping from R$79 to R$19, in direct response to Shopee, which offers free shipping on purchases starting at R$19 and, during promotional campaigns on double dates — September 9th, October 10th, and November 11th — reduces this limit to R$10, further strengthening its appeal among price-sensitive consumers.
“These platforms are mirroring each other and adjusting their tactics rapidly. What Shopee does with affiliates, Mercado Libre replicates in weeks; now, Amazon is adopting the same logic of aggressive incentives. The difference is that it's going all in,” says Garcia.
According to the executive, the new round of competition tends to benefit both retailers and consumers. “Competition forces platforms to offer better conditions and services. In the end, the ecosystem wins: the seller pays less and the buyer receives more options, with better terms 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 centers in Brazil, which allows it to finance larger-scale promotional campaigns 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,” Garcia analyzes.
The message, according to the expert, is clear: “The war between Mercado Libre and Shopee has now gained a third major competitor. And this time, Amazon isn't just testing the market, it's going all in,” he concludes.
